Natura goes after innovative companies

"Dynamo Beauty Ventures is the first instrument that meets our criteria and focuses from now on," said Roberto Marques, chairman of Natura's board of directors, in a teleconference with analysts. "There will be more of these initiatives in the future." The objective of the Fund is to identify and invest in emerging brands with high growth potential overseas. Through it, Natura intends to acquire minority interest in innovative companies. The results of the company in the first quarter of 2019 were considered weak by analysts, but came in line with the expected. The company's net income was R $13.5 million in the first three months of the year, or 44.8% of the registered in the same period of 2018. According to Marques, despite challenging conditions, the company is on track to meet goals and reduce leverage. The company expects to reduce its net debt in relation to cash generation to 1.4 times up to 2021, compared to 2.95-fold at the end of March. Natura's indebtedness is important because it has been negotiating with Avon, two years after acquiring the Body Shop brand for 1 billion euros. Unveiled at the end of March, the negotiations involve the purchase of Avon in North America, a privately-owned company apart from the market-traded Avon and operating around the world. According to Marques, conversations with Avon continue, but no news. The Body Shop has grown in direct sales, where 5% of the brand's revenue already comes. However, sales declined 0.2% in the quarter, by closing 44 low-performance stores.