Natura shows big leap in both sales and profits during 2009

By Simon Pitman

- Last updated on GMT

Related tags Latin american markets Revenue

Leading Brazilian direct sales cosmetics company Natura has shown industry leading growth in the course of 2009, despite harsh economic conditions.

The company reported that its sales turnover in 2009 had grown by 18.6 percent to BRL4.24bn ($2.31bn), while net income grew 32.1percent to BRL683.9m and EBITDA was 17.2 percent higher at BRL1.01bn.

The results came on the back of similar growth during the fourth quarter, with sales turnover rising by 16.3 percent to BRL1.32bn, net income growing by 34.7 percent to BRL186.6m and EBITDA was 19.3 percent higher at BRL304.3m.

During the course of 2009 it had managed to grow its market share and sales in the domestic Brazilian market, while also continuing to expand in its other Latin American markets, which are now accounting for an ever larger share of the business.

Results helped by continuing strong economy in Brazil

The company said that its results had been in line with expectations and underlined that it had been able to successfully able to weather the economic crisis because Brazil had less exposure to the downturn.

In May 2009 the company introduced a new sales model in Brazil, which it said helped to drive sales by almost 20 percent, and accordingly the company increased the size of its sales force by 21.8 percent, meaning it surpassed 1 million sales people for the first time.

The company also underlined that it had continued to maintain strong levels of investment in research and development, which had helped it to launch 113 new products during the course of the year.

Further expansion in Latin America

Likewise, Natura has continued to focus on further expansion in international markets, with net revenues for the year from sales outside of Brazil increasing by 42.8 percent in local currencies and 37.6 percent in Brazilian currency, accounting for 6.9 percent of the total revenues, or BRL292.5m.

Looking ahead to the full financial year 2010, the company says that going on its above industry average growth in 2009 and the fact that the Brazilian economy is predicted to continue with strong growth over the next few years, it is adopting an ‘optimistic view of the future’.

Although the company did not give any specific figures, it did state that it expected to see further strong growth in its other Latin American markets, which will give way to a new expansion phase, ultimately creating a region-wide business platform.

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