Natura had a profit of R $ 68.6 million in the third quarter of this year, down 48.4% compared to the same period of 2018 (R $ 132.8 million).

The company’s consolidated net revenue increased 7.2% year-over-year, totaling R $ 3.47 billion between July and September. The unfavorable scenario in Brazil and Hong Kong, according to the company, impacted the results of brands Aesoap and The Boy Shop. The market expected a slightly lower figure of $ 3.43 billion

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) was R $ 398.9 million – a 17.4% decrease over the third quarter of 2018 (R $ 483 million). The projection was $ 464.8 million, according to Bloomberg.

As a result, the company’s EBITDA margin (ratio of operating cash generation to net revenue) fell 3.4 percentage points from 14.9% in the third quarter of 2018 to 11.5% between July and September this year.

“The EBITDA margin reflects a planned increase in strategic investments aimed at strengthening our fundamentals, resulting in consistent and sustainable revenue growth and non-recurring expenses with the acquisition of Avon,” the company said in its quarterly report.

The company later announced that the purchase of Avon was approved by shareholders of both companies.