Brazilian Cosmetics Group Natura to Shake Up Structure and Leadership

Brazilian cosmetics group Natura announced leadership changes on Thursday as well as a restructuring proposal that would replace entities listed on the local stock exchange.

Under the plan, which will be voted on by shareholders on April 25, the current listed holding company Natura&Co will be merged into its subsidiary Natura Cosmeticos, which will become the parent company of the group and its shares will be listed on the Brazilian stock exchange.

In a joint securities filing, Natura&Co and Natura Cosmeticos said the reorganization would result in a more efficient structure while delivering value to shareholders by "realizing the distribution of future profits of Natura Cosmeticos."

Natura has grown rapidly over the past decade through high-profile acquisitions, including Avon, The Body Shop and Aesop, but profitability has been poor. This has led the company to seek deleveraging in recent years, with management shifting its focus to Natura and Avon's businesses in Latin America. The group said it is still considering alternatives for Avon's businesses outside Latin America, which could include a sale of the unit.

Natura&Co said in the filing that its CEO Fabio Barbosa and CFO Guilherme Castellan will leave. Barbosa will be appointed chairman of the new parent company, while Castellan will leave the group and will remain in office until May 12 to assist with the transition. Barbosa has been CEO of Natura&Co since 2022, overseeing sales of the Aesop and The Body Shop brands.

Joao Paulo Ferreira will continue as CEO of Natura Cosmeticos and Silvia Vilas Boas will continue as CFO, the filing said. Both will lead the new parent company under the proposal.

The group said the leadership changes were supported by the founders and controlling shareholders, who will remain on the board of the new public company.