I will start, and then I'll turn to Guil. He studied postgraduate programs at the Kellogg School of Management at Northwestern University and at The Wharton School at the University of Pennsylvania. But on your question, Richard, first of all, I want to highlight that in the same waterfall there you see the 4 percentage point -- 4.7 percentage points impact in the adjusted EBITDA margin, you see 150 bps of higher investments that we did in the business. [Operator Instructions] The first question today comes from Richard Cathcart with Bradesco. Compared to Q4 '19, net revenue was up 5.8% in reais and down 18.2% at constant currency. Its a social element of inclusion they couldnt even take an Uber [before]. during this call is available on the Natura &Co Investor Relations website. Thank you, Roberto, and thank you, Richard, it's good to hear from you. So I think here, we are basically accelerating some strategic moves to deliver cost savings. Now at the helm of the holding company that oversees both businesses, Natura & Co Holding SA owned over 70 percent by Natura shareholders and the remainder by Avon shareholders is Roberto. Compared to Q4 '19, revenue was up 35.4% in reais and down 1.5% at constant currency. Natura &Co Holding S.A. (NTCO) CEO Roberto Marques on Q3 2020 Results Did you mean to type This is, in fact, 2.5 percentage points above Q4 2020 and significantly above their pre-pandemic level of 35% in Q4 of 2019. And ever since, we have been seeing improving number in total count of reps, the number of active reps, the consecutiveness of all the reps, especially the 1 and 2 starred reps as well as productivity. 10, 2022 12:36 PM ET Natura &Co Holding S.A. (NTCO) SA. Where are you in the Open Up Avon process? Irma, Roberto here. Actually, as we started telling you about that in Q3, but even in our release, we show that, in spite of the price increases, the value of the market is being contracting due to the trading down activities and the lower consumption power. Roberto Marques - Executive Chairman and Chief Executive Officer Guilherme Castellan - Chief Financial Officer Jao Paulo Ferreira - Chief Executive Officer of Natura &Co Latin America. Wish you all a good day with hopes for a peaceful resolution sooner than later in the Central Eastern Europe. On Slide 9, we focus on our improved profitability despite increasing costs and continued pressure in some of our key markets. Bloomberg: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden's administration. We ended the year with a strong cash position of BRL 6 billion. Thank you very much for your participation. We saw also the benefits in margin on Q4, which is related, especially compared to Q3, to some seasonality effects that we always have around Q4 of the business. And of course, very excited about the future entrants in China, which is moving according to plan. While studying music and art, he visited museums and art galleries, where he learned about Cubism, Abstraction, and the . [Operator Instructions] The next question comes from Joseph Girodano from JPMorgan. Watch Natura & Co Group CEO on Net Zero Progress - Bloomberg This increase was mainly driven by increased EBITDA and positive income tax impacts. Natura & Co mulls minority stake sale of Aesop Given all of that, we will continue to assess the right timing and will, of course, keep you updated. Those again basically were the bulk of the expansion of margin. Thank you for joining us today for this call to present Natura &Co's Fourth Quarter and Full Year 2021 earnings. This notion of relationship, where, I know you, I know your preference, I can get your insight on how we can develop new products and solutions, is very powerful. We can see that very clearly already. So we feel pretty good about the progress on the fundamentals. Biden: 600 thousand borrowers have already received relief from my student loan programs, Apple's Vision Pro is going to surprise investors, says Deepwater's Gene Munster. We adapted with a gifting strategy of more affordable products in beauty and personal care, supporting our Christmas campaign. I mean, we finalized the last year ahead of the plan with 50% of the synergies delivery in LatAm We have more to do this year. The other thing is that Avon has a much deeper household penetration than any of our brands because it is more mass. Natura CEO Roberto Marques on the Avon merger, growth strategy and more WWD: One part of Open Up Avon was focusing on product innovation. And now Guil, JP and I are happy to take your questions. Natura is in Brazil and six countries in Latin America this allows us to be more bullish to expand the Natura brand in more geographies. Thank you, Roberto. That's close to 50% of the plan, ahead of the 40% run rate in 2021 that we guided to. Roberto Marques is the Executive Chairman of the Board of Directors, and Group CEO of Natura &Co, a purpose-driven and customer centric beauty group of iconic brands including Avon, Natura, The Body Shop, and Aesop. Recent News and Activity. We know Avon has very strong product development expertise in skin care and makeup, and Natura has a very strong capability in fragrance and body care. But as Roberto mentioned, there is the seasonality impact in Q4, which compares to Q3 and Q1. Other temporary business pressures, notably sales deleverage, reduced margin by additional 230 bps and higher investments to accelerate growth had an unfavorable impact of further 150 bps with our business plan. Roberto, please. On Slide 21, Aesop again recorded an excellent performance. This reflects a very challenging environment, including a decline in CFT market in Brazil and still pandemic effect in key markets for the Body Shop and Avon with Omicron wave. This purpose gets expressed in women in power, the women entrepreneurs we have as consultants, fighting against climate crisis, non-animal testing, campaigns against domestic violence and breast cancer, sourcing ingredients in a sustainable way and working with local communities, all those values are common valuesthat make the group very special. Terms of Use Stephanie, Roberto here. At Natura, we saw an increase in online sales and in the numbers of consultants sharing content, while both the Body Shop and Aesop posted higher online sales compared to pre-pandemic levels. Roberto De Oliveira Marques, Natura & Co Holding SA: Profile and Natura & Co Group CEO Roberto Marques to exit - Cosmetics Business And again, like try to quantify a few things, and why is that, right? Let me now on Slide 4 quickly take you through the main highlights of the quarter and the year. We may have detected a typo. TNC. That's it from our side . In the full year, we posted solid net income of BRL 1 billion, reversing a loss of BRL 650 million in the previous year, and underlying net income reached BRL 1.7 billion. | And just wanted to check if that is actually an upside risk on your synergies guidance regarding Avon? Learn how Natura & Co has set ambitious sustainability targets, specifically in terms of responsible consumption and production, and has furthered their comm. To manage or opt-out of receiving cookies, please visit our. Please, JP. Stay Connected. Roberto Burle Marx: A Landscape Designer | DailyArt Magazine However, the measures adopted to increase recruitment and stabilize the new commercial model started to show impact recently. Q4 adjusted EBITDA margin reached a strong 10.7%, up 606 bps versus Q4 2020. Fragrances, color cosmetics, toiletries. On Slide 24, I would like to conclude on our core strategic initiatives to drive sustainable and profitable growth in 2022. Global sites represent either regional branches of The Nature Conservancy or local affiliates of The Nature Conservancy that are separate entities. Other Group roles such as Sustainable Growth Officer and Chief Transformation Officer will no longer exist or will be revisited in the new structure. So basically, like -- if you can help us to quantify of the 4.7 percentage points of revenues of what's really recurring, it would really help? JPMorgan, Wells Fargo, Morgan Stanley to Pay Higher Dividends After Fed Stress Tests, Stock Market Rally That Shocked Everyone Is Finally Broadening Beyond Tech, Argentina Economy Shrank More Than Expected, SufferingRecord Drought, Colombia Stops Record Tightening Cycle as Inflation Retreats, Drinking Beer in Connecticut Is About to Get a Lot Cheaper, Tesla Charging Hype Has Gotten Carried Away, Lucid CEO Says, SoFi Once Billed Itself as the Anti-Bank. Sales accelerated sequentially, continuously improving since Q3. We think this combination will accelerate [the Avon business] without changing direction. Thank you for your understanding and cooperation on this. Roberto Marques - Executive Chairman and CEO Jose Filippo - CFO Joao Paulo Ferreira - CEO of Natura & Co Latin America Conference Call Participants Thiago Macruz - Itau BBA Robert Ford - Bank. Previously, Roberto was a Various Senior Leadership Roles at Johnson & Johnson. That had a significant impact in the year, and of course, that will continue to impact going forward. His Brazilian cosmetics company, Natura & Co, listed shares on the Big. Fourth, I'd like to take the opportunity to update you on the primary listing project in U.S. that we mentioned in our Q3 call. Thanks, Roberto. When typing in this field, a list of search results will appear and be automatically updated as you type. In our digital payment system, &Co Pay and Natura in Brazil posted strong growth in both number of accounts, reaching approximately 340,000 accounts and total payment value rising to BRL 6.5 billion in full year 2021, well above the BRL 4 billion estimate for the year. Roberto Marques, current Group CEO and Executive Chairman, is stepping down from these roles. Looking at each business segment in the quarter against Q4 '19, revenue was up in reais at all of our brands. When we talk about Open Up Avon, [were talking about] digitization rebooting the direct-selling into social selling and networking, opening channels for consumers to buy products. Roberto Marques declared: "After a rewarding and intense six years, I'm forever grateful to our entire network of associates, consultants, representatives, and partners for the opportunity to help build Natura &Co into a global and recognized Group of purpose-led brands. And then the second part of my question goes on the cost pressures, right? But I just wanted to get your view on whether there are any kind of wider impact on the business beyond kind of Russia and Ukraine? Natura &Co is announcing today a Group reorganization in line with its strategic direction to increase the accountability of the individual Business Units and brands - Natura, Avon, The Body Shop, and Aesop. He will remain onthe Board of Directors to help the transition and plans to retire by year end. And as volumes are being picked up from this -- in these categories, which are being traded down in CFT categories, we are starting to see now more recently a compensation for the lost volumes in Fashion and Home. A reset of our group and governance structure is the right direction and I'm committed to helping Fabio and the board over the coming months.. It comes as Natura & Co revealed plans to reorganise its business structure in 2022, Natura & Co owns the Natura, Avon, The Body Shop and Aesop brands. So Guil, anything else to add? This event is being recorded [Operator Instructions] This presentation may contain forward-looking statements. But just to be clear, right, 470 bps, most of it, I want to be clear, is coming from what we call transformational savings in Avon International, synergies in Latam and efficiencies across the businesses, okay? We also will be stepping up cross-selling and upselling of Natura and Avon with the Wave 2 of our transformational plan and building on the success of &Co Pay we plan to roll it out at Avon Brazil and then at Natura in Latin America. |. And actually, we are already seeing Avon picking up volume in very -- in many categories where consumers are trading down. Natura & Co CEO Marques on Pricing Pressures bloomberg-markets-european-close May 14th, 2021, 9:15 AM PDT Natura & Co. Executive Chairman & Group CEO Roberto Marques speaks to Bloomberg's. Let's now move to Avon International on Slide 17. But 470 bps of cost savings and also one-off events, so how much of this 470 bps are more related to one-off things? Read More . And we've been doing that successfully already through Q4 in our regular offerings as well as in gifts across the region. And even in this challenging circumstances, profitability was very strong. This was partially offset by higher representative productivity as a result of structural changes in the new commercial model that were fully implemented in Q4 in the top 9 markets. Thank you for waiting. Roberto joined Natura in 2016, and in 2017 became the Executive Chairman of the Board, leading the transformation of the Natura &Co Group to a true global, multi-brand, omnichannel business with a unique direct to consumer, relationship selling approach, following the acquisition of The Body Shop, and more recently Avon Inc. Before that he served as EVP / President for North America at Mondelz International, and for over 25 years Roberto worked for Johnson & Johnson, serving as Company Group Chair for North America and holding Senior Executives Global roles in Beauty, Baby, Personal Product, Over-the-Counter and Medical Devices, working and living in countries such as Brazil, Colombia, United Kingdom, and the United States.