Natura &Co strategically considers the sale of The Body Shop

30 Aug 2023 --- Brazilian global personal care cosmetics group Natura &Co has authorized its Board of Directors to “explore strategic alternatives” for The Body Shop, a wholly-owned subsidiary of Natura.

It publicizes to its shareholders and the market that this decision includes a potential business sale. However, Natura states there is “no assurance that will result in any transaction.”

“Natura does not intend to comment on or provide updates regarding this matter unless and until it determines that further disclosure is appropriate or required based on the then-current facts and circumstances,” states the company. 

The consideration of selling The Body Shop comes after L’Oréal acquired Aesop, a subsidiary of Natura, for an enterprise value of US$2.53 billion. The transaction is subject to customary regulatory approvals and is expected to close in Q3 this year.

The sale of Aesop was also part of an organizational shakeup, resulting in the former executive chairman of the Board of Directors and CEO position being taken over by Fabio Barbosa.Natura states there is “no assurance that will result in any transaction.”

Natura’s financial position
Earlier this month, Natura’s Q2 consolidated net revenue of BRL7.8 billion (US$1.6 billion), up 1.9% at constant currency (-4.1% in BRL), driven by solid, constant currency (CC) growth at the company’s Latin America division.

In its fourth quarter, Natura &Co had consolidated net revenue of BRL$10 billion (US$2 billion). 

In April, The Body Shop US expanded refillability by including makeup products in its “refill revolution,” aiming to take action against the global plastics crisis. The new collection launched Peptalk Lipstick in a refillable case made from 100% recycled aluminum.

The Body Shop in headlines
The Body Shop has been an active voice in the industry, openly protesting against animal testing for cosmetics.

The company has backed the European Citizens’ Initiative to ban animal-tested cosmetics. 

“We have to be optimistic that we can succeed. We won’t allow all this hard work to go to waste. The fight to protect animals from unnecessary harm is far from over. We won’t ever tire of raising our voice to the campaign,” The Body Shop previously told Personal Care Insights.

In other social causes, The Body Shop announced an effort to drive youth voter engagement and registration across the US as part of its “Be seen. Be heard” global campaign in collaboration with the United Nations Office of the Secretary-General’s Envoy on Youth.

By Venya Patel