Natura &Co Holding S.A. (NYSE:NTCO) Q3 2022 Earnings Conference Call November 10, 2022 8:00 AM ET
Company Participants
Antonio Luiz da Cunha Seabra - Founder and Co-Chairman
Roberto de Oliveira Marques - Executive Chairman and Group CEO
Fábio Barbosa - Chief Executive Officer
Guilherme Castellan - Chief Financial Officer
Jao Paulo Ferreira - Chief Executive Officer of Natura &Co Latin America
Conference Call Participants
Guilherme Vilela - JP Morgan
Andrew Ruben - Morgan Stanley
Gabriela Moraes - Itaú BBA
Irma Sgarz - Goldman Sachs
Operator
Welcome to Natura &Co.’s Third Quarter 2022 Earnings Call. On this call today are Fábio Barbosa, CEO of Natura &Co and Guilherme Castellan, CFO of Natura &Co. Jao Paulo Ferreira, CEO of Natura &Co Latin America will join for the Q&A session.
The presentation that will be referred to during this call is available on the Natura &Co Investor Relations website. Please limit yourself to one question each in the Q&A session, so we can allow more people to ask questions. Thank you for your understanding and cooperation on this.
I will now hand over to Fábio Barbosa. Please go ahead.
Fábio Barbosa
Good morning or good afternoon to all of you and thank you for joining us today. I'm very happy to be with you again. And Guilherme will comment on the results shortly, so I will limit myself a more qualitative commentary.
We continue to operate in third quarter in a challenging environment, marked by high global inflation that is affecting discretionary spending, rising energy costs and foreign exchange impacts, as well as a geopolitical fallout resulting from the war in Ukraine. In this context Natura &Co posted results that were in line with what we had for [indiscernible] in the previous quarter, with top line training better growing by 2.2% at constant currency, while adjusted EBITDA margin, which was stable at the 8.6% continued to be pressured by the external factors I just mentioned, notably on costs.
We saw some reasons for satisfaction in the past quarter. Natura &Co Latam posted a solid performance driven by the Natura Brand and Avon in the CFT segment. Aesop recorded another strong quarter of double digit sales growth at constant currency. Avon International continued to show a sequential improvement in results and in key channel performing indicators such as activity and productivity.
The Body Shop continued to post challenging results channel, the results channel with decline in the At Home segment and slower franchise recovery. Clearly, we are not satisfied with this and we are working on implementing measures to improve performance on which Guil will give you more color.