Business snapshot: Fiscal results and acquisitions by Natura, BeautyHealth and BIA Brands

14 Mar 2024 --- Natura posts full-year fiscal results while the Beauty Health Company (BeautyHealth) releases its annual review, taking stock of current market demand for cosmetic devices, and BIA Brands acquires Asa Beauty in a play to enter India’s skin care sector.

Brazilian beauty company Natura reported a 17.4% decrease in net revenue to £1 billion (BRL 6.6 billion) for the fourth quarter, impacted by declines at Avon International. It also disclosed the impact of its Aesop and Body Shop divestments.

Overall, Natura revealed a net loss of £2.1 billion (US$2.7 billion), compared to a net loss of £696 million (US$890 million) in 2022, as it continued to “deleverage and simplify its corporate structure.”

Natura subsidiary Avon International, which covers all markets excluding Latin America, saw revenues decrease 17% to £267 million (US$342.3 million), with declines across its beauty, home and style categories.

has been shedding global assets over the past year, including the sale of Aesop and The Body Shop (Image credit: Aesop).The group has been shedding global assets over the past year, including the sale of Aesop and The Body Shop, as it turns its focus to Latin America with its Avon and Natura brands.

Last month, the group said it was assessing the possible separation of Avon International into an independent, publicly traded company.

“2023 was a landmark year…with important and significant advances on the strategy, operational and financial, and balance sheet fronts accomplished,” says Natura CEO Fábio Barbosa.

“On our corporate strategy, we continued to pursue a leaner holding structure, enabling the business units to operate with more autonomy. We also had important advances on the company’s simplification side as a result of the Aesop and The Body Shop divestments.”

“Our balance sheet was strengthened as we used the proceeds from the sale of Aesop to retire more than BRL 7.6 billion (US$1.6 billion) in debt, ending the year with a strong net cash position of BRL 1.7 billion (US$342 million).”

“We also announced in February 2024 the study of a potential separation of Natura and Avon. We continue to assess the merits of such a potential transaction and will provide updates when the studies are finalized.”

Beauty Health Company results
BeautyHealth, with its flagship brand Hydrafacial, released its financial results for the full year and fourth quarter ended December 31, 2023. Full-year net sales of US$398 million increased 8.8% relative to 2022, with fourth-quarter net sales of US$96.8 million decreasing 1.3% year-over-year. 

Its fourth-quarter results reflect lower equipment sales in the Americas, substantially offset by steady growth in America’s consumables net sales and strong device placement in Asia-Pacific.

“To close 2023, we delivered fourth quarter financial results consistent with the expectations we outlined on our last earnings call,” says BeautyHealth CEO Marla Beck. 

BeautyHealth, owning the brand Hydrafacial, disclosed 2023 net sales of US$398 million, an increase of 8.8% relative to 2022 (Image credit: BeautyHealth).Adjusted EBITDA was US$24.3 million in 2023 compared to adjusted EBITDA of US$46.1 million in 2022, primarily due to gross margin pressures.

Net loss was US$100.1 million in 2023 compared to net income of US$44.2 million in 2022.

BeautyHealth announced a US$100 million share repurchase program in September 2023, aiming to buy back its own shares. However, by the end of the year, the company only repurchased a fraction — 10.4 million shares for US$30.2 million — despite the larger authorization. 

Bia Brands enters India
BIA Brands acquired Asa Beauty, signaling its entry into the Indian skin care market. Asa Beauty specializes in natural, vegan and cruelty-free makeup. 

“Asa Beauty represents exactly what we aspire to bring under the BIA Brands umbrella — excellence, innovation and sustainability,” says Asha Khaitan, founder of Asa Beauty.

“With BIA Brands’ strong market presence and innovative approach, we are confident that the brand is in capable hands. We believe wholeheartedly that BIA Brands will elevate Asa Beauty to the heights it truly deserves.”

The move follows BIA’s acquisition of Mumbai-based TrueKind last December.

BIA Brands is led by Karen Kumar, former manager of Louis Vuitton and Ferragamo, who is now the CEO of BIA’s beauty and personal care segment.

Over the last decade, India has seen consistent growth in the personal care and cosmetics market with increasing shelf space in boutiques and retail stores across the country, according to reports by India Brand Equity Foundation.

Notable beauty players have enjoyed traction in India in the recent year, with The Body Shop India observing a “strong brand affinity built in India” amid local scale-up activities focusing on omnichannel expansion and “new opportunities” in retail, quick commerce and high convenience formats.

By Benjamin Ferrer