Natura has 77% more profit and reaffirms investments
Valor Econômico 04/24/2009
Cosmetics company Natura announced yesterday a 77% increase in net profit in the first quarter, influenced by an improvement in the operating income, financial gains and a reduction in the Income Tax. The net profit of R$ 138.8 million (US$ 63.1 million) is the best result in real terms in a first quarter since 2004, when the company started offering securities in the stock exchange. The net sales increased 27%, to R$ 844.7 million (US$ 384 million), also the greatest net sales ever registered by the company in the first three months, with the basis of comparison adjusted according to the inflation of the period. The earnings before interest, taxes, depreciation and amortization amounted to R$ 183.9 million (US$ 83.6 million) in the quarter, with an increase of 38% compared to the same period of time of last year.
Alessando Carlucci, CEO, affirmed the company "feels the positive effects of the restructuring plan" and that there will be an increase in the investments in the next two years. "In 2008 we already spent R$ 88 million (US$ 48.1 million) in additional investments in marketing. There are R$ 312 million (US$ 170.5 million) left from the R$ 400 million (US$ 218.6 million) foreseen to be invested in 2009 and 2010. The plan goes on, regardless of the crisis". In Carlucci's opinion, the resources made available for marketing, in addition to the 3% of the net yearly income invested in innovations and the better management of the product portfolio, were essential for the positive results of Natura in this beginning of the year.