GRI 2-22
Fábio Barbosa
For Natura &Co, 2024 represented the consolidation of the movement towards simplification that we began back in 2022, with the aim of focusing our efforts on our strengths. This transformation has allowed us to grow our business once again and invest in increasing our ability to have a positive socio-environmental impact.
In line with our values and our public commitment to our shareholders and other stakeholders, we have achieved extremely impressive results for Natura, and advanced in the process of revitalizing Avon International, through the prioritization of markets where the company was already present.
The Natura &Co strategy has been adjusted in light of the specific needs of our business units, which have achieved increasingly more management autonomy. We have drastically simplified the Holding Company’s organizational design, strengthened our capital structure and sought to invest in projects with great potential for value creation, principally those focused on innovation, with omnichannel capabilities and the ability to serve key regions and markets.
A return to the heart of the business is what is driving us during this new phase in the Company's history: strengthening our differentials and investing in the innovation of products and channels, in order to connect with the consumers in who have different needs, providing solutions that can be found in the attributes of each of our brands. Taking advantage of this moment means making difficult decisions, but decisions that are necessary for us to be able to remain prepared to achieve consistent results.
The business indicators from 2024 suggest that we are on the right path. The simplification strategy has paved the way for Latin America to once again invest in innovation and marketing and drive the continued growth of Natura (which has been beating all sorts of performance records in Brazil), whilst also strengthening the foundations of Avon. The consolidation of the so-called 'Wave Two’, providing the foundation for the integration of the brands in the region, was a determining factor in the achievement of these results. Also in Latin America, we took important steps forward in our omnichannel capabilities, the expansion of physical retail, digitization of the Beauty Consultancy, the renewal of e-commerce, and the entry into new marketplaces.
As for Avon International, we have remained focused on strengthening the brand, prioritizing our operations in strategic markets, improving the integration of processes, nurturing the organizational culture, and finding ways to reconnect with the consumers. It should be mentioned that the Chapter 11 proceedings, which ended in December 2024, resolved the issues with creditors of the Avon Products Inc. non-operational unit in the United States, opening up new avenues for Avon International.
Whilst transforming the business, we not only achieved targets contained in our Commitment to Life, but also made many of them even more ambitious. The Commitment to Life is a platform that mobilizes the business around the public targets concerning climate action, biodiversity, human rights, social development, circularity and regeneration. In 2024, we celebrated a number of important milestones: Natura celebrated its 55th anniversary and a whole decade as a B Corporation. Furthermore, our Ecopark, in Benevides (PA), also celebrated its 10th anniversary of existence in the heart of the Amazon region, acting as our main geographical axis for positive impact, and combining our industrial operations with innovation and partnerships with the supplier communities.
Over the course of the year, we published the Natura Climate Transition Plan, which outlines how we will be advancing in the decarbonization of the business and operating in relation to the risks and opportunities associated with climate change throughout the production chain. We also recorded gains in our impact indicators, such as Integrated Profit and Loss (IP&L) and the Beauty Consultants’ HDI. In 2024, Avon International was awarded The Leaping Bunny seal by Cruelty Free International, reaffirming our commitment to fighting against testing on animals in the cosmetics industry. These achievements reflect the genuine way in which the Company cares for its relationships - a feature that has always run through the Natura and Avon histories, and is being reaffirmed at this moment of significant change at the Holding Company.
In response to the global uncertainties concerning the direction of the ESG (environmental, social and governance) agenda, we must once again restate that this is not the time to step away. At the beginning of 2025, we publicly stated our position on this matter, by declaring that the appreciation for life and the relations that support it is what guides all of our strategic decisions. We continue to believe that the world needs more businesses that can have a positive, measurable impact and balance the relations between people, ecosystems and the market, through innovation, collaboration and the regenerative economy.
What we have learned from our experience as a global group, over the last few years, has reinforced the importance of a better understanding the markets in which we wish to operate and remain as leaders. Natura’s excellent results, principally in Brazil, attest to the sound strategy adopted in recent years, and we have continued to explore its potential to attain even greater value. We began 2025 confident of the solid base upon which our strategic premises and current projects are built, even in the face of a volatile geopolitical and macroeconomic scenario.
We have the security and privilege to be able to rely on teams that are engaged and experienced, as well as on a powerful network of Beauty Consultants, suppliers, communities and consumers. The resilience of our business arises not only from the principles and values that we have reaffirmed, but also from strength that supports us and which contributes every day to breathe life and meaning into our purpose of nurturing beauty and relations for a better way of living and doing business. To each one of the people who form part of this effort to increase and improve wellbeing through beauty and the nurturing of relations, I would like to extend a heartfelt thank you. Now let’s go!
