Natura&Co signaled this Friday (12) that it plans to open its first two Aesop-branded stores in China in the fourth quarter of this year, while considering closing operations in some less profitable countries.
“We are expected to open two stores in Shanghai in the fourth quarter,” Guilherme Castellan, the company’s chief financial and investor relations officer, said in a conference call with analysts about second-quarter results, adding that an expansion in China should take place in 2023.
At the same time, the executive admitted that the company is considering closing operations in regions where it has lower profitability, as Natura&Co seeks to recover profit margins in a “still challenging scenario”. Castellan, however, did not detail what these locations are.
The executive reaffirmed the company’s focus on cash generation in the coming quarters, a process that should benefit in part from the cost reduction with the operation in Latin America, after a recent restructuring.
The cosmetics maker announced on Thursday night that it had a net loss of R$ 766.7 million from April to June, pressured by a challenging macroeconomic scenario and higher financial expenses. Analysts consulted by Refinitiv had expected a loss of BRL 216.6 million.
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