Natura’s fourth quarter 2025 operational earnings soar, exceeding market forecasts significantly
Natura, a major cosmetics manufacturer, has reported operational results for the fourth quarter of 2025 that considerably surpassed market expectations. This strong performance signals a positive shift amidst ongoing restructuring efforts within the company. Its recurring EBITDA reached R$ 978 million, a significant increase from the previous year, despite a dip in overall revenue.
Operational resurgence drives strong EBITDA growth
The company recorded a recurring earnings before interest, taxes, depreciation, and amortization (EBITDA) of R$ 978 million between October and the end of December 2025. This figure represents a robust 57.2% growth compared to its performance in the same period a year prior, considerably outperforming the average analyst forecast. Market experts, on average, anticipated the cosmetics giant would report an EBITDA of R$ 741 million for the quarter.
This significant operational outperformance was primarily driven by stringent cost controls. Natura managed to reduce its operational and sales expenses by more than 20% during the period. These efficiency gains proved crucial in bolstering profitability, even as the company navigated a challenging revenue environment.
Strategic divestments and a return to profitability
Natura achieved a net profit of R$ 186 million from its continuing operations in the fourth quarter of 2025, successfully reversing a R$ 227 million loss recorded in the fourth quarter of 2024. This turnaround underscores the effectiveness of its strategic adjustments and focus on core businesses.
Without accounting for certain adjustments, the company reported a net loss of R$ 321 million from October to the end of December 2025. While still a negative result, this represents a notable improvement when compared to the R$ 438 million loss suffered during the same period a year earlier. For the full year 2025, Natura’s net profit from continuing operations stood at R$ 463 million, even after absorbing R$ 511 million in expenses related to divestments. This figure includes a substantial non-recurring, non-cash provision of R$ 434 million tied to the receivables from the sale of The Body Shop, highlighting the scale of its portfolio streamlining.
Revenue challenges met by improving same-store sales
The company’s net revenue for the period reached R$ 6.19 billion, marking a 12.1% decrease compared to the previous year. This figure also fell short of the market’s average forecast, which had projected revenues of R$ 6.74 billion for the quarter. The overall decline reflects ongoing market dynamics and the impact of the company’s broader restructuring.
Despite the top-line contraction, Natura reported a positive trend in its core retail channels. Same-store sales experienced a growth of 1.4% in the fourth quarter of 2025, indicating resilience in existing points of sale and a steady demand for its product offerings.
However, the positive momentum from a new franchise model was partially offset by a negative performance from its older “Aqui tem Natura” franchise format. This legacy model is currently awaiting migration to the updated framework, a process expected to unfold throughout 2026. This transition period presents both opportunities and challenges for the company’s retail footprint.
A year of significant financial recovery
On an annual basis, Natura significantly narrowed its overall net loss in 2025, reducing it by 75.3% to R$ 2.2 billion. This substantial improvement reflects the profound impact of the company’s multi-year restructuring efforts, which involved a critical reevaluation of its international acquisition strategy and subsequent divestitures. The reduction in losses signals a more focused and financially disciplined approach moving forward.
This financial recovery underscores the company’s commitment to streamlining operations and enhancing profitability after a period marked by complex international expansions. The strategic divestments and renewed focus on core markets have started to yield tangible benefits, positioning Natura for more sustainable growth in the future.
Restructuring efforts bear fruit amidst market shifts
The robust operational performance in the final quarter of 2025 highlights the efficacy of Natura’s intense focus on cost optimization and efficiency. These internal initiatives proved critical in delivering strong EBITDA numbers even as broader economic conditions presented headwinds to revenue growth.
The cosmetics industry continues to evolve, influenced by shifting consumer preferences and intensified competition. Natura’s ability to exceed operational expectations in this environment suggests that its strategic realignments are beginning to resonate positively, providing a stronger foundation for competitive advantage.
Further improvements are anticipated as the company advances with the full migration of its franchise models. The completion of this transition in 2026 is expected to standardize operations and potentially unlock additional growth within its extensive retail network.
Natura’s commitment to sustained operational efficiency and strategic brand focus remains central to its long-term vision. The fourth quarter results indicate that the company is effectively executing its recovery plan, setting a more promising trajectory for future financial health and market positioning.
Natura earnings 2025, Q4 operational results, Ebitda growth, cosmetics market, financial recovery Natura
