Natura Considers Avon Separation; LVMH Highlights Sephora Growth In 2023; Beauty News In Brief

Brazilian beauty giant Natura & Co reports its board of directors has authorized management to assess a possible separation of Natura & Co Latin America and its Avon division to “unlock further shareholder value.” Noting the two entities’ distinct geographical footprints and service to different beauty consultants and consumers, the Sao Paulo-based firm said on 5 February the move would result in two independent, publicly traded beauty companies – Natura and Avon – with “unique business plans, independent governance and management teams, better equipped to pursue more tailored strategies to drive long-term shareholder value.” A separation also would “afford shareholders greater visibility into the financial performance, structure, growth prospects and investment theses of the respective companies,” Natura & Co. says. Natura & Co. acquired Avon in early 2020. (Also see "Natura Making Strong Headway In The Body Shop Transformation; Next Up, Avon" - HBW Insight, 28 August, 2019.)

Under the plan, Natura would operate the Natura brand worldwide as well as the Avon brand in Latin America, while Avon would operate its own geographically diversified business centered on the Avon brand. “This assessment is consistent with Natura & Co’s ongoing strategy of simplifying its corporate structure while providing increased autonomy to its business units and follows the recent divestments of Aesop and The Body Shop,” the firm says. Natura & Co. sold Aesop to L’Oréal SA in August 2023 for $2.52bn and The Body Shop to Aurelius in a deal valued at £207m ($261.5m), including an earn-out of £90m