Natura''s profit jumps 80% in 2nd Qtr, with help from overseas sales

SÃO PAULO-Natura had consolidated net profit of 163,500,000 Reals in the second quarter, 80% ante high same stage of 2016, supported by higher sales abroad.
But the company''s profit before interest, taxes, depreciation and amortization (Ebitda) fell 13,4% to 298,600,000 reais.
The total net consolidated revenues remained nearly stable, given that the revenues in the country, 67%, had 2,3% crash, 1.34 billion reals. International net revenue, on the other hand, grew 4,9%, for 681 million reais. The move is in line with the declared strategy of the company, according to the Director of investor relations, José Roberto Dragos.
"A few years ago the Natura announced willingness to internationalize and we were quite happy with the businesses in Latin America," said the Executive at a teleconference with journalists. "Part of the long-term strategy of the company to internationalize further."
One of those initiatives came with the purchase of the British brand The Body Shop, completed in June, for 1 billion euros. For now, however, your debt level reduced Natura, with the net debt over Ebitda ema 1.2 time, down from 1.43 time a year before.
Second, in addition to the recognized brand Dragos, the acquisition brings "several important components to the strategy group Natura", especially at a time when the company develops its sales channels for relationships and online. With The Body Shop, he said, "the company will become a global company."
He would not, however, give details about the impact that the brand can have in the short term, even if their products can be brought by Brazil in time for the season to end-of-year sales at Christmas. Reiterated only that the sale will be financed with "leverage" and cash generation.
Last week, the Administrative Council for economic Defense (Cade) approved the purchase without restrictions.
The Executive also stressed that the company''s margins are monitored, and that Natura makes no provision for twists in profitability because of supply costs.
"We have a good sustainable supply chain," he said. "The costs are well controlled, did not anticipate major problems ... In terms of banks we have no indication that we will have twists. "
Natura also has also wagered on the direct sales model, which is in the process of implementation, but I have seen an increase in productivity of consultants, said the Director.