Slides
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Earnings Presentation Third Quarter November 11, 2025
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Disclaimer Note As from Q2-25, Avon International and Avon Central America and Dominican Republic (CARD) from Latam were reclassified as assets held for sale. In 2024, Avon International and CARD were accounted for as discontinued operations. This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of Natura’s management. The words “anticipate," "wishes,“ "expects," "estimates," "intends," "forecasts," "plans," "predicts," "projects," "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include, but are not limited to, the impact of competitive products and pricing, market acceptance of products, product transitions by the Company and its competitors, regulatory approval, currency fluctuations, production and supply difficulties, changes in product sales mix, and other risks. This presentation also may include pro-forma and adjusted information prepared by the Company for information and reference purposes only, which has not been audited. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments. ri.natura.com.br/en/ EARNINGS | Q3 - 25
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3 Key highlights Net revenue BRL 5.2 billion Underlying EBITDA Margin 11.1% -350 bps YoY Underlying EBITDA Margin Latam 11.7 -360 bps YoY Net income from continuing operations BRL -119 million Corporate and Operational Simplification nearing completion • Completion of Avon CARD divestment and Avon Intl (ex-Russia) sale agreement • Alternatives for Avon Russia continue to advance positively • Completion of the merger of Natura &Co and Avon Industrial, reflecting the end of Wave 2 Natura Latin America • Retail demand in Brazil has been slowing down since June/25 • Wave 2 significantly impacted Argentina • Mexico with positive signs of sequential improvement, but still in negative territory • Revenue decline across the three main geographies led to G&A deleverage, offsetting the benefits from healthy gross margin and lower selling expenses • G&A in Brazil has been running at high levels given that most structural investments, innovation, and systems are concentrated in the region 3 EARNINGS | Q3 - 25 3Q-25 | Consolidated
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4 Quarter Results Silvia Vilas Boas CFO
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Net revenue (BRL million) 5 Avon | -17.3% YoY • Lack of innovation • Macro slowdown • Interlagos factory migration Home & Style | -9.0% YoY • Level similar to 1Q-25 • Weaker than 2Q-25, when it benefited from opportunistic campaigns Natura | -0.2% YoY • Macro slowdown • Stronger impact from less productive consultants • Tighter credit restrictions Brazil | Net Revenue Brazil | -3.7% YoY EARNINGS | Q3 - 25
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Brazil -690 bps YoY • Gross margin at a healthy level, reduction due to strong comparison base • Selling expenses followed revenue decline • G&A affected by investment in systems and innovation • QoQ G&A reported a high single-digit improvement • 9M-25 G&A running at high levels YoY, with investments concentrated in Brazil Underlying EBITDA margin Brazil (%) 6 Brazil | EBITDA Margin EARNINGS | Q3 - 25 Underlying EBITDA BRA 3Q-24 -3.0% Gross margin -3.5% SG&A (excl. D&A) -0.4% Other Expenses Underlying EBITDA BRA 3Q-25 23.1% 16.2% -690 bps Underlying EBITDA margin (%) 3Q-25 Gross margin (%) SG&A Underlying EBITDA margin (%) 1H-25 16.2% +70 bps +430 bps 21.1% +490 bps
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7 Avon | -27.2% YoY • Argentina affected by integration and transition to digital magazine • Smaller decline ex-Argentina due to recovery in Mexico Home & Style | -35.9% YoY • Wave 2 impact in Mexico and Argentina • Decline in channel and commercial adjustments made during integration Natura | +12.3% YoY • Argentina affected by Wave 2 • Ex-Argentina improvement related to recovery in Mexico Net revenue in BRL million with annual variation in constant currency (%) (excluding Argentina) High single- digit -15.4% -20.5% Hispanic | -3.9% YoY in CC | -24.9% YoY in BRL: impacts from FX and hyperinflation accounting Hispanic | Net Revenue Net revenue (BRL million) EARNINGS | Q3 - 25
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Hispanic underlying EBITDA margin (%) 8 Hispanic | EBITDA margin Hispanic -100 bps YoY • Gross margin benefited from accounting effect of hyperinflation • Selling expenses partially follow decline in revenue • G&A: • Impacted by severance pay; excluding this effect, decline is similar to drop in revenue • Central expenses are denominated in BRL, which appreciated against Hispanic currencies • EBITDA margin ex- Argentina improved YoY EARNINGS | Q3 - 25
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Latam | EBITDA margin -360 bps YoY Operational deleverage impacted by G&A, reflecting: • Investment in innovations and systems in Brazil and severance at Hispanic • G&A has been running at high levels during the year... • ....after the set-up of investments and structural actions for organizational efficiencies... • ...expenses should decrease as a % of revenue Group | EBITDA margin -350 bps YoY • Streamlining of Holding mitigated 10bps of the decline Underlying EBITDA margin Latam and Group (%) 9 Net revenue (BRL million) Net revenue in BRL million with annual variation in constant currency (%) (excluding Argentina) -1.6 Natura Group | Net Revenue and EBITDA Margin EARNINGS | Q3 - 25
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Continued Operations Result | BRL -119 million Y/Y deterioration reflects: • Drop in revenue and deterioration in profitability • Financial result impacted by dollar debt hedge Partially offset by taxes Consolidated Results | BRL -1,926m Non-operating and non-cash loss of BRL -1.8 billion: • Impairment of BRL -2.8 billion • Gain of ~BRL 1.0 billion from the Avon brand in Latam (BRL million) 10 Natura Group | Net Income EARNINGS | Q3 - 25
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Continued Operations Free Cash Flow to Firm 9M-25 | BRL+301 million • Down BRL -81 million vs. 9M-24 • Operating and profitability deterioration: BRL -217 million • Partially offset by improved tax efficiency • Soft Working Capital dynamics on the back of inventories Free Cash Flow 9M-25 | BRL -111 million • Down BRL -172 million YoY • FX effect on cash explains BRL -127 million vs. 9M-24 (BRL million) 11 Natura Group | Cash Flow from Continued Operations (9M) EARNINGS | Q3 - 25 60 381 301 -111 322 158 15 FCF 9M-24 Interest and FX 9M-24 FCFF 9M-24 Net Income Adj. for Non-Cash Effects Variation WK Variation Income Tax and other effects Variation Leasing and CAPEX Variation FCFF 9M-25 Interest and FX 9M-25 FCF 9M-25 -217 -37 -412
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1,50 1,27 1,43 2,18 2,53 1,73 1,52 1,68 2,54 2,83 -2,00 -1,00 0,00 1,00 2,00 3,00 4,00 5,00 6,00 3Q-24 4Q-24 1Q-25 2Q-25 3Q-25 BRL 4.0 billion Net debt at the end of the period 1 Including IFRS 16 effects Net debt (BRL billion) and net debt/EBITDA ratio (x) 12 Net debt/EBITDA including the effects of IFRS 16 Net debt/EBITDA excluding the effects of IFRS 16 Amortization schedule (BRL billion) 2,3 0,2 - 0,2 2,4 3,5 Cash and Short-Term Deposits 2025 2026 2027 2028 2029 onwards • Net debt practically stable QoQ • Increased leverage due to worsening EBITDA YoY • It is worth noting that 4Q-24 (included in LTM EBITDA) was affected by BRL 564 million from API Chapter 11 Excluding this effect, 3Q-25 leverage would be 1.87x 2.531 Group Net debt/EBITDA ratio Natura Group | Indebtedness EARNINGS | Q3 - 25 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25
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Final Remarks João Paulo Ferreira CEO
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Key Takeaways 2025 • Tactical actions in Q3-25 should generate more meaningful efficiencies in Q4-25 • Ongoing recovery in Mexico • Gradual improvement in Argentina after Wave 2 completion Commitment to annual expansion of Latam underlying EBITDA margin 14 2026 onwards • Defending and gaining market share in Brazil and Argentina, including the modernization of direct selling • Mexico leveraging sustainable growth • Acceleration of direct to consumer channel and hair category • Avon brand revamp • Agile business model, enabling the new strategic demands • Return of structure investments leading to profitability and cash efficiencies EARNINGS | Q3 - 25
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Thank you ri@natura.net ri.natura.com.br