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After promoting Aesop to L’Oréal for USD 2.5 billion, the Brazilian cosmetics big might now half methods with The Physique Store, which it acquired in 2017… from L’Oréal.
Natura &Co introduced right now that the Board of Administrators has licensed the group’s administration “to discover strategic alternate options for The Physique Store, which can embrace a possible sale of this enterprise.”
Nevertheless, there “will be no assurance that this course of will lead to any transaction,” the Brazilian multinational added in a press release.
Final 12 months, Natura &Co appointed Fabio Barbosa as CEO with the mission to reorganize the group, cut back prices and return to profitability. The duty has been partly completed, however The Physique Store stays the weak hyperlink of Natura &Co, which has chosen to refocus on Latin America. Final week, Natura &Co introduced that The Physique Store’s Q2 internet income declined by 12.5% at fixed forex (-12% in BRL), with gross sales exhibiting continued steep decline in all core distribution channels (shops, e-commerce and franchise).
In a report launched right now, the Itaú BBA financial institution thought-about the latest information as optimistic. “Given the efforts undertaken by Natura &Co to streamline its construction and enhance its monetary state of affairs, we imagine {that a} potential sale of The Physique Store could be a optimistic end result for Natura &Co because it might cut back the working danger recognized throughout the general firm’s investments and enhance its consolidated leads to the years to return“, mentioned the financial institution.
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