Innovation that generates value
With innovative technology, Ecocompacto comes in an optimized pack that generates 48% fewer GHG emissions than conventional packs. Launched in September, the line already impacted Natura's results in the quarter
In the third quarter of 2014, Natura posted consolidated net revenues of R$1.867 billion, a 5% increase over the year ago quarter. Factors driving results in the quarter include the company’s product launch strategy, which saw the debut of the perfume #Urbano and the aerosol deodorant Ecocompacto on the Brazilian market.
Launched in September, Ecocompacto is yet another product of Natura’s commitment to researching and developing sustainable technologies that minimize negative impacts on the environment and society and drive reflection on more conscious forms of consumption, as was the case with Natura Sou line released in 2013.
Ecocompacto generates 48% fewer greenhouse gas emissions than regular aerosol deodorants. The main innovation is in the product’s pack, which has around half the volume of traditional packs (75 ml for Ecocompacto compared with 150 ml for other packs). This uses 15% less aluminum while maintaining the product’s high performance and 24 hour protection. “We managed to concentrate the formula and use a valve that requires less propellant gas”, says Alessandro Mendes, Natura’s formulation and packaging director.
With the launch, Natura consolidated its presence in the aerosol deodorant segment, which, according to Abihpec/Sipatesp*, had a 50% share in the Brazilian deodorant category in 2013. According to 2013 Euromonitor data, Brazil was the world leader in the global deodorant market, with revenues of US$ 4.8 billion.
Also worthy of note during the period was the launch of refills for the Natura Ekos Frescores fragrance line. These were developed using 100% recycled post-consumer PET plastic, reducing carbon emissions by 72%. With this launch, Natura became the first major cosmetics brand to use this type of material in packaging for the perfumery category. The novelty is fully aligned with the company’s new sustainability vision which has a 2020 target of using 75% recyclable material and 10% post-consumer recycled material in its total packaging volume, as well as achieving 40% eco-efficient packaging** in relation to total units invoiced.
Dow Jones Sustainability Index
Natura was also named to the 2014/2015 Dow Jones Sustainability Index on the New York Stock Exchange. The index is for high market value companies adopting structured triple bottom line governance. Its presence in the ranking is proof of Natura’s commitment to developing more sustainable businesses that generate value both for the company and for society as a whole.
In addition to the growth in revenue, in the third quarter Natura’s Ebitda (earnings before interest, taxes, depreciation and amortization) totaled R$ 427 million, up 7.2% compared with the year ago quarter. Net profit was R$ 215 million.
In Brazil, revenue increased by 2.7%. In line with the company’s medium-term strategy which, among other points, establishes new forms of relationship with consultants and consumers, at the beginning of October the Natura Network was implanted in the states of Minas Gerais and Rio de Janeiro. The project, which extends relationship selling to the internet, had been implemented throughout the state of São Paulo by July.
Revenues from International Operations increased by 29.3% in local currency. During the quarter, the IOs accounted for 19.3% of Natura’s consolidated revenue, compared with 17.5% in the same quarter of 2013.
To see the company’s full financial, social and environmental results for the first nine months of the year, click on the link here.
* Sindicato da Indústria de Perfumaria e de Artigos de Toucador no Estado de São Paulo (São Paulo State Perfumery and Beauty Products Industry Association) and Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria e Cosméticos (Brazilian Cosmetics, Fragrances and Toiletries Industry Association).
** Natura defines eco-efficient packaging as packs that have a weight reduction of at least 50% compared with a regular or similar pack; or packs consisting of 50% post-consumer recycled (PCR) and/or renewable materials, as long as these do not result in an increase in mass.