Ever more Natura

Even in this constantly changing environment, we believe that every day we learn more and further develop the competencies that will enable us to make our dream come true

Our results in 2013 strengthened our conviction that Natura should extend its frontiers far beyond its current operations. Our value proposition, based on promoting well being well, on relationship selling and on business conduct aligned with sustainable development, has more than shown its potential for conquering new markets and consumers, be it in the countries in which we already have a presence, be it in others. The robust results in our Latin American operations reinforce this perception. By the end of 2013, these accounted for 14% of our business, growing at over 30% annually in recent years, and now showing a significant increase in profitability. In Mexico, we reached the landmark of 100 thousand consultants in January 2014, proving the power of our brands in these markets.

In Brazil, 2013 was a year of recovery, with a slow start and a resumption in growth from the second half. Increased productivity in our network will be driven by growth in purchase frequency and in the number of categories consumers acquire. This will be supported by a series of initiatives implanted in recent years: the redesign of the company's production and distribution capacity and investments in marketing and innovation capacity, among other factors.

 

Executive Committee

Standing, from left to right
Roberto Pedote, vice president, Finance and Institutional Relations
Josie Romero, vice president, Operations and Logistics
Alessandro Carlucci, president,
Lilian Guimarães, vice president, People and Culture
Robert Chatwin, vice president, New Businesses
José Vicente Marino, vice president, Brands and Businesses
Seated, from left to right
Agenor Leão, vice president, Digital Technology
João Paulo Ferreira, vice president, Commercial
Gerson Pinto, vice president, Innovation
Erasmo Toledo, vice president, International Operations

Faced with ever growing competition, we are confident we have laid the foundations upon which our consultants will increase their business volume with Natura. Here a fundamental element is the quality of the service Natura provides, with new records in order fulfillment and delivery times in 2013.

We ended 2013 with net revenues of R$ 7.01 billion, R$ 1.61 billion in Ebitda, and a net profit of R$ 842.6 million – results which were obtained amidst a vigorous cycle of investment in our operations, in our logistics model and, increasingly, in information technology.

In this respect, 2013 will also be remembered for the birth of the Natura Network, employing digital technologies and connectivity as levers for direct selling. Tested successfully in São Paulo state, the Network will be expanded to other regions in Brazil throughout 2014. This is one of the first results of a strategy in which we envision a Natura that serves consumers through different media and categories. A Natura that extends beyond cosmetics, fragrances and hygiene products, beyond the borders of Latin America, with brands occupying spaces in distinct markets – as is the case with Aesop, an Australian company that we acquired at the beginning of 2013 which proposes a new dimension in urban beauty, operating in market spaces which are new for us.

Similarly, Natura reaffirms the importance of sustainability as a driver of innovation and new business. The company retains its focus on a sustainable development model with key targets, initiated in 2007 with the decision to reduce greenhouse gas emissions by 33%, a landmark that was reached in December 2013.

To capture new opportunities in the market and in its relationship network, Natura implanted a new organizational design and expanded the executive group, advances that coincided with the best result ever in the organizational climate survey since its inception in 1994. Natura also recognizes that the transformations occurring in society affect the world of work, accelerating the quest for new forms of relationship between people and companies and promoting an indispensable alignment between societal zeitgeist and well being well. Even against this backdrop of constant change, which by its very nature generates a high degree of uncertainty, we believe that every day the company is growing in the knowledge and in the competencies that that will help it achieve its ambitions. We look forward to being part of the germination of a new cycle of development in which, paradoxically, the company will be substantially different in the coming years in order that, above all, it may be ever more Natura.

Alessandro Carlucci
Executive President