Natura & Co. Considers Sale of The Body Shop Amid Post-Pandemic Restructuring

Natura & Co Holding, the Brazilian personal care cosmetics group based in São Paulo, is considering the sale of its The Body Shop brand. The company, which has a presence in 73 countries across the world, is reportedly looking to unload the British cosmetics, skincare, and perfume unit to lessen costs in the post-pandemic era.

Bloomberg reported that this is Natura & Co Holding’s latest measure in an effort to reduce its expenses. This move is also a dramatic turnabout to its previous global expansion strategy.

Moreover, the potential sale of The Body Shop will push Natura & Co. to shift focus back to its core Latin American business, which has suffered due to the COVID-19 pandemic and endless inflation ignited by the war in Ukraine. The personal care firm already sold its Aesop cosmetic brand to L’Oreal this year, and it appears that The Body Shop is up next.

Analysts at JPMorgan Chase & Co., led by Joseph Giordano, said that the divestiture of The Body Shop is most likely the route that Natura & Co. will choose to take. They further explained that the sale “could trigger potential extraordinary dividends, particularly in the context that the company should sit in a net cash position post the Aesop sale.”

Finally, CNBC reported that Natura & Co, which also owns the Avon brand, wrote in its latest regulatory filing that its board of directors is aware of its plans to divest its The Body Shop. The company revealed in the filing that the board gave permission for the management to explore strategic alternatives for The Body Shop, including a potential sale.

“There can be no assurance that this process will result in any transaction,” Natura & Co. said in the filing. “Natura does not intend to comment on or provide updates regarding this matter unless and until it determines that further disclosure is appropriate or required.”

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