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AVON 33 Aesop . natura THE BODY SHOP São Paulo , March 4 , 2021 Natura & co Q4-20 : Natura & Co reports strong sales growth of 24 % ¹ and net profit up 200 % The Group strongly outperformed the global CFT market by over 6 pp² in both the quarter and year , with strong contribution from digital social selling and e - commerce . Phased investments in branding , R & D and technology in Q4 to support continued sustainable growth . • Natura & Co's consolidated net revenue reached R $ 12.0 billion in Q4 , up 24.3 % in BRL vs. the same quarter last year ( + 6.4 % at constant currency , " CC " ) , with sustained growth in digital sales across all brands , significantly outperforming the global CFT market in the quarter and full year by approximately 6 pp² in CC . In FY20 , net revenue reached R $ 36.9 billion , up 12.1 % in BRL vs. FY19 ( -2.3 % at CC ) . • Natura & Co Latam's¹ Q4 net revenue increased by 20.5 % in BRL ( + 13.0 % at CC ) . The combined market share in the region increased significantly in the year , above 12 % ³ , vs. 11.8 % in 2019. In Brazil , the brands combined also gained market share of 4 pp4 in the quarter , and 0.6 pp4 in the year . This consolidates the Group's clear leadership both in Latin America and in Brazil . The Natura brand's net revenue increased by 24.7 % in BRL ( + 21.4 % at CC ) , with strong + 16.2 % growth in Brazil . It outperformed the domestic CFT market by almost 10 pp5 in Q4 and in the full year , driven by brand preference , continued productivity improvement and acceleration in social selling . In Hispanic Latam , the Natura brand's net revenue grew strongly ( + 44.5 % in BRL , + 35.8 % at CC ) in all markets . The Avon brand's net revenue increased by 16.2 % in BRL ( + 3.9 % at CC ) , supported by improved representative productivity and the Home segment . Avon in Brazil grew for the second consecutive quarter , up 4.9 % , and Hispanic Latam returned to growth of + 23.9 % in BRL ( + 3.0 % at CC ) . In FY20 , Natura & Co Latam's net revenue increased by 9.4 % in BRL ( + 3.7 % at CC ) , with the Natura brand up + 21.8 % in BRL ( + 17.2 % at CC ) and the Avon brand down -1.8 % ( -9.3 % at CC ) . • Avon International's¹ Q4 net revenue grew 12.1 % in BRL ( -11.5 % at CC ) . Avon gained share in color , despite the impact of the Covid - 19 second wave in Avon's key European markets , where core beauty categories declined . Highlights in market share gains include the UK , which grew 3.0 % at CC , and gained share for the 3rd consecutive quarter vs. the previous year , and Russia , with sequential share improvement . In FY20 , net revenue increased by 2.9 % in BRL ( -18.0 % at CC ) . • The Body Shop's ' Q4 net revenue increased by 48.4 % in BRL ( + 9.7 % at CC ) , driven by growth in the UK and Asia . Strong performance of At - Home ( + 206 % ) and e - commerce ( + 72 % ) more than offset the impact of the pandemic's second wave . FY20 net revenue increased 32.4 % in BRL ( stable at CC ) . • Aesop¹ Q4 net revenue grew by exceptional + 62.1 % in BRL ( + 19.3 % at CC ) , driven by online sales growth of 190 % vs. Q4- 19. Asia's remarkable performance was a highlight in the quarter , driven by Japan and South Korea . In FY20 , net revenue grew by 50.0 % ( + 13.2 % at CC ) , surpassing the half billion Australian dollar mark . • Natura & Co digital social selling and e - commerce sales continued to grow strongly , with total group digital sales ( e- commerce and social selling ) up 79 % in the quarter . In Q4 all brands recorded the highest - ever level of e - commerce sales . Aesop's total online sales reached almost 30 % of its revenue , doubling over the previous year , and The Body Shop rapidly pivoted to online and At - Home channels , which combined grew more than 130 % , representing 40 % of total sales . Social selling continues to grow , with e - brochure revenue up nearly 90 % vs. Q4-19 at Avon globally , and up 300 % in the UK vs. prior year for the second consecutive quarter . At Natura in Latin America , the number of consultants sharing content grew by more than 300 % since Q1 , e - brochure sales accounted for one - third of total digital sales in the period and the number of orders through the 1 million + consultant online stores in the region increased by 60 % vs. Q4-19 . • Natura & Co's Q4 adjusted EBITDA was R $ 1,485.7 million with margin of 12.4 % ( -130 bps ) , primarily due to the phasing of investments in brand , R & D and technology concentrated in Q4 , after rigorous cost control steps taken in the first half of the year to mitigate pandemic impacts . Reported EBITDA for Natura & Co was R $ 1,254.3 million ( margin of 10.5 % ) . FY20 1 For comparison purposes , Q4-20 and Q4-19 results and analyses include : i ) Q4-19 aggregated figures including Avon Products , Inc. results in IFRS ; ii ) Natura & Co's results in Latin America , which includes the operations of Avon , Natura , The Body Shop and Aesop brands in the region ; iii ) the results of Avon International , The Body Shop and Aesop brands , except in Latin America ; iv ) Q4-20 results and analyses including the effects of the fair market value assessment as a result of the business combination with Avon as per the Purchase Price Allocation - PPA . 2 Cosmetics , Fragrance and Toiletries market performance : Company estimate based on global peers ' net revenue vs prior year of approximately -0.4 % in Q4and -8.3 % in FY20 ( in reported FX ) , as reported by the companies or estimates published on Bloomberg for those who have not yet reported ; Natura & Co Q4-20 growth of 6.4 % ( at CC ) vs. -0.4 % market = + 6.4pp ; Natura & Co FY20 revenue -2.3 % ( at CC ) vs. -8.3 % market = + 6.0pp ; 3 Source : Based on Company's estimates for Latin America ; 4 Source : Kantar ; 5 Source : ABIHPEC of + 6.3 % in Q4 and + 6.2 % in FY20 ; Natura brand in Brazil Q4-20 revenue + 16.3 % vs. 6.3 % market = +10 pp ; Natura FY20 revenue + 16.5 % vs. 6.2 % market = +10.3 pp ; According to Kantar , the market grew 6.4 % in FY20 ; 6 Source : Kantar Household Panel . 7 Excluding effects that are not considered recurring nor comparable between the periods under analysis . 1