Earnings release
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Q2-26 Earning Release natura
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2 Pressured Revenues in Brazil Weights on Margin, Partially Offset by Hispanic Markets and New Operating Model ● Driven by product unavailability, macro headwinds , and a temporary tax mismatch , Brazil posted pressured top-line and EBITDA margin, despite a healthy gross margin and initial efficiencies from the new operating model ● Hispanic markets delivered accelerated growth and strong profitability expansion, despite Argentina’s ongoing gradual recovery ● Net debt and leverage were slightly lower QoQ, supported by FCFF generation in Q2-26, despite challenges in Brazil Net revenues were BRL 5,170 million in Q2-26, down -9.1% year-on-year (YoY). Performance remained under pressure from a subdued consumption environment, alongside internal operational challenges and adjustments that impacted revenue in Brazil for both the Natura and Avon brands. This decline more than offset healthy top -line growth in Hispanic markets. On a constant currency (“CC”) basis, revenues declined -7.1% YoY, driven by: ● Brazil, down -14.8% YoY, mainly affected by product unavailability which, compounded by a challenging macro, drove a volume decline in the relationship selling channel and pressured performance for both Natura (-14.5%) and Avon ( -22.5%). Furthermore, a temporary tax mismatch in Q2 -26, stemming from changes in São Paulo’s state indirect tax (ICMS-ST), added ~2 p.p. pressure to net sales. Finally, the digital and retail channels, which had been growing at healthy YoY pace, also felt an impact during the quarter due to the implementation of a new harmonized pricing policy and commercial rules across channels (particularly affecting digital performance), alongside the transition of 100% of franchise contracts to a new model ● Hispanic markets, broadly flat YoY in BRL (+0.7%) and up +7.2% in CC, driven by +12.3% growth from the Natura brand and +4.7% from Avon . Ex-Argentina CC growth reached +10.9%. The performance acceleration of both brands compared to Q1-26 YoY figures was mainly driven by solid performance in Mexico, sustained healthy growth across mature Wave 2 markets , and a steady recovery in Argentina – even as top-line growth lagged local inflation. Performance in Mexico was underpinned by higher commercial activity, which more than offset a YoY decline in consultant count and a slight drop in productivity. Growth was further supported by expanded cross-selling of Natura products across Avon’s network and customer base, alongside favorable Q2 phasing EBITDA was BRL 620 million, with a 12.0% margin or 13.2% ex-tax mismatch effect. This margin contraction1 of -200 bps YoY (or a +40 bps expansion versus reported Q2 -25 EBITDA margin) was primarily driven by selling expenses deleverage in Brazil alongside the temporary tax mismatch (-120 bps YoY) and severance expenses ( -40 bps YoY), which more than offset healthy operating results in the Hispanic markets. From a regional perspective: ● Brazil margin was 16.4%. This -370 bps YoY margin compression1 primarily reflects a -190 bps YoY impact from a temporary tax mismatch, -50 bps YoY from severance-related expenses and the remaining -130 bps YoY mainly from selling expenses deleverage amid the top-line decline. Excluding the tax effect, EBITDA margin would have declined1 -180 bps YoY, partially mitigating top-line pressure by pricing actions and initial efficiencies from the new operating model ● Hispanic margin reached 7.6%. The +220 bps YoY expansion 1 was primarily driven by G&A efficiencies – mostly stemming from the new operating model – which more than offset performance headwinds during Argentina’s ongoing recovery and increased selling investments in Mexico. Ex-Argentina, the YoY margins expansion would have been more than twice the +220 bps recorded Net income was BRL +35 million, compared to BRL +446 million from continued operations in the same period last year. The BRL -410 million YoY decline was primarily driven by the BRL -320 million deterioration in net financial results, mainly impacted by derivative settlement costs, alongside a favorable prior -year comp base due to accounting FX movements related to an intercompany loan . The remaining BRL -90 million YoY decrease reflects BRL -23 million in severance-related expenses associated with the new operating model, as well as higher tax expenses resulting from improved operating results in Hispanic markets. Net debt stood at BRL 3.9 billion in Q2-26, down BRL 179 million QoQ. This decline was driven by BRL 342 million in free cash flow to firm generation and BRL 160 million FIDC inflow, which were partially offset by cash outflows from interest on debt and derivative settlements. The leverage ratio reached 2.06x, slightly below the Q1-26 level 1Margin contraction when comparing Q2-26 reported EBITDA margin against Q2-25 Adjusted EBITDA margin (BRL mn, %) 1 Brazil Hispanic Latam Natura Groupa Brazil Hispanic Latam Natura Groupa Net revenues 3.070 2.100 5.170 5.170 5.752 4.164 9.915 9.915 YoY growth - CC (%) -14,8% 7,2% -7,1% -7,1% -10,7% 3,0% -5,5% -5,5% YoY growth - BRL (%) -14,8% 0,7% -9,1% -9,1% -10,7% -5,2% -8,5% -8,5% Gross margin (%) 68,5% 61,8% 65,7% 65,7% 68,9% 61,4% 65,8% 65,8% YoY change (bps) -60 bps 0 bps -70 bps -70 bps -90 bps -120 bps -110 bps -110 bps EBITDA 504 160 664 620 874 129 1.003 965 YoY growth (%) - vs Reported -23,8% 92,7% -10,8% -5,9% -29,6% -30,2% -29,7% -26,2% YoY growth (%) - vs Underlying -30,4% 40,6% -20,8% -22,2% -35,7% -54,9% -39,0% -38,8% EBITDA margin (%) 16,4% 7,6% 12,8% 12,0% 15,2% 3,1% 10,1% 9,7% YoY change (bps) - vs Reported -200 bps 360 bps -30 bps 40 bps -410 bps -110 bps -310 bps -240 bps YoY change (bps) - vs Underlying -370 bps 220 bps -190 bps -200 bps -590 bps -340 bps -510 bps -490 bps Net income 35 -410 Net debt 3.864 3.864 a including corporate expenses Q2-26 6M-26 1 Q2-25 and 6M-25 data are pro-forma and considers results published in Q2-25 Natura &Co earnings release
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3 Message from Management Q2-26 results revealed greater-than-expected operational challenges in Brazil, which were amplified by the macroeconomic environment. However, efficiencies from the new operating model, combined with a healthy gross margin, kept the region’s profitability in the mid-teens – or high teens when excluding the temporary impact of indirect tax changes in the State of São Paulo. Conversely, performance improved across both revenue and profitability in the Hispanic markets. On a consolidated basis, operational challenges in Brazil weighed more heavily due to its significant share of the overall business. Nevertheless, backed by its resilient business model, the company generated positive cash flow to firm in Q2-26 and achieved a slight quarter-over-quarter reduction in leverage. Following a thorough analysis of recent performance, we concluded that the challenges faced in the first half of the year were largely self-imposed, ultimately resulting from significant execution issues rather than structural business challenges or incorrect strategic choices, though amplified by the macroeconomic backdrop. In this sense, the challenges recently felt put additional pressure on the need to strengthen our execution, backed by enhanced governance at both the board and management levels. A movement that started earlier this year with a board refresh, designed to support the strategy of a now-simplified business. As of Q1-26, management was also reorganized to enhance governance and execution capabilities. Although the rapid implementation of this reorganization created some temporary disturbances, there is strong conviction that the new operating model – a customer-oriented platform – enabled a streamlined corporate structure, leveraging data-driven insights to empower teams to more effectively drive disruptive innovation while sharpening competitiveness. Zooming in on concrete actions to drive execution recovery and address current operational challenges, the company has deployed a dedicated task force to resolve supply chain bottlenecks and stabilize the supporting systems throughout 2H-26. Concurrently, it is recalibrating relationship selling incentives and adjusting commercial strategies toward high-turnover categories to boost consultant activity. Simultaneously, realigned franchise operations are expected to drive the resumption of sell-in and expansion plans from Q3 onwards, while scaling up the “Minha Loja” platform and accelerating entry into new marketplaces are important levers in place to strengthen direct- to-consumer revenues. Despite the evident execution challenges currently faced by the Company, the operational difficulties felt during the quarter stemmed from necessary adjustments to pave the way for future business growth – such as investments in digital and logistics capabilities and realignments to the online and franchise models. The board and management are fully aligned on these initiatives and track their progress frequently through rigorous governance mechanisms – particularly the Strategy and Performance Committee, which monthly evaluates strategic advancement and short- to mid- term operational results. With enhanced execution and governance now in place, full-year 2026 ambitions have been revised. This updated plan focuses on safeguarding momentum in the Hispanic region – which continues to show solid progress – while gradually restoring revenue in the core Brazilian market. With the 1H-26 reported EBITDA margin down -490 bps compared to the 1H-25 adjusted EBITDA margin, achieving a reported EBITDA margin expansion in FY-26 – relative to the 14.1% recorded in FY-25 – would require halting key strategic initiatives and scaling back essential investments in brand equity, marketing, R&D and other growth levers. Such measures would lead to an unwanted compromise on the future health of the business, a path that will not be pursued. Case in point, we are reviewing our FY-26 ambition to achieve a reported EBITDA margin expansion compared to the reported FY-25 figure. Despite the resulting impact of this revised profitability outlook on cash flow, a positive and higher YoY cash generation to firm is still expected this year, keeping leverage levels within the optimal range – a particularly critical factor given the uncertainties already emerging for 2027. While this performance falls short of initial expectations for the year and represents a temporary setback to restoring full growth, it does not alter the fundamental business thesis. The business remains built on strong brands, distributed through a unique business model across high-potential markets, and backed by a committed, innovative, and execution-driven team – a powerful combination designed to deliver consistent financial growth, high margins, and strong returns.
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4 ________________________________ 01 Results Summary Q2-26 Brazil Hispanic Latam Group Corporate Natura Group (BRL mn, %) 1 Q2-26 Q2-25 % YoY Q2-26 Q2-25 % YoY Q2-26 Q2-25 % YoY Q2-26 Q2-25 % YoY Q2-26 Q2-25 % YoY Gross revenues 4.298 4.919 -12,6% 2.612 2.627 -0,6% 6.910 7.546 -8,4% 6.910 7.546 -8,4% Net revenues 3.070 3.603 -14,8% 2.100 2.085 0,7% 5.170 5.687 -9,1% 5.170 5.687 -9,1% Natura 2.589 3.027 -14,5% 1.504 1.433 5,0% 4.093 4.459 -8,2% 4.093 4.459 -8,2% Avon 374 483 -22,5% 455 449 1,4% 830 932 -11,0% 830 932 -11,0% Home & Style 55 86 -36,2% 137 179 -23,5% 191 264 -27,6% 191 264 -27,6% Others 53 8 577,6% 4 24 -83,6% 56 31 79,3% 56 31 79,3% COGS -968 -1.112 -13,0% -803 -797 0,7% -1.771 -1.909 -7,2% -1.771 -1.909 -7,2% Gross profit 2.102 2.491 -15,6% 1.297 1.287 0,7% 3.399 3.778 -10,0% 3.399 3.778 -10,0% Gross margin (%) 68,5% 69,1% -60 bps 61,8% 61,8% 0 bps 65,7% 66,4% -70 bps 65,7% 66,4% -70 bps Operating expenses -1.741 -1.968 -11,5% -1.212 -1.276 -5,1% -2.953 -3.244 -9,0% -49 -86 -43,5% -3.002 -3.330 -9,9% as % of net revenues -56,7% -54,6% -210 bps -57,7% -61,2% 350 bps -57,1% -57,0% -10 bps -58,1% -58,6% 50 bps Selling expenses -1.319 -1.395 -5,5% -969 -948 2,2% -2.288 -2.344 -2,4% -2.288 -2.344 -2,4% G&A expenses -460 -534 -13,7% -254 -300 -15,5% -714 -834 -14,4% -36 -81 -55,8% -750 -915 -18,0% Transformation costs 0 -57 -100,0% 0 -31 -100,0% 0 -88 -100,0% 0 -11 -100,0% 0 -99 -100,0% Other revenues / expenses 39 19 108,3% 11 3 305,1% 49 21 132,6% -13 5 -347,1% 36 27 36,7% EBIT 361 523 -31,0% 85 11 680,4% 446 534 -16,4% -49 -86 -43,5% 398 448 -11,2% EBIT margin (%) 11,8% 14,5% -270 bps 4,1% 0,5% 360 bps 8,6% 9,4% -80 bps 7,7% 7,9% -20 bps D&A 143 139 3,3% 75 72 3,6% 218 210 3,4% 4 0 4327,7% 222 211 5,4% EBITDA 504 662 -23,8% 160 83 92,7% 664 745 -10,8% -44 -86 -48,6% 620 658 -5,9% EBITDA margin (%) 16,4% 18,4% -200 bps 7,6% 4,0% 360 bps 12,8% 13,1% -30 bps -0,9% -1,5% 60 bps 12,0% 11,6% 40 bps 2025 EBITDA adjustments 2 0 63 -100,0% 0 31 -100,0% 0 93 -100,0% 0 45 -100,0% 0 138 -100,0% 2025 Underlying EBITDA 2 504 725 -30,4% 160 113 40,6% 664 838 -20,8% -44 -41 7,6% 620 797 -22,2% 2025 Underlying EBITDA margin (%) 2 16,4% 20,1% -370 bps 7,6% 5,4% 220 bps 12,8% 14,7% -190 bps -0,9% -0,7% -20 bps 12,0% 14,0% -200 bps Net financials -297 23 -1378,6% EBT 100 471 -78,7% Taxes -65 -25 156,4% as % of EBT -64,9% -5,4% -5950 bps Net income from continued operations 35 446 -92,1% Net margin (%) 0,7% 7,8% -710 bps Discontinued operations 0 -250 -100,0% Net income / loss 35 196 -82,0% 1 Q2-25 data is pro-forma and considers results published in Q2-25 Natura &Co earnings release 2 From 2026 onwards, EBITDA will no longer be adjusted; however, extraordinary items - recorded under "Other revenues/ expenses" are disclosed in the Appendix C for reference 6M-26 Brazil Hispanic Latam Group Corporate Natura Group (BRL mn, %) 1 6M-26 6M-25 % YoY 6M-26 6M-25 % YoY 6M-26 6M-25 % YoY 6M-26 6M-25 % YoY 6M-26 6M-25 % YoY Gross revenues 8.006 8.826 -9,3% 5.197 5.540 -6,2% 13.203 14.366 -8,1% 13.203 14.366 -8,1% Net revenues 5.752 6.440 -10,7% 4.164 4.390 -5,2% 9.915 10.830 -8,5% 9.915 10.830 -8,5% Natura 4.808 5.315 -9,5% 2.972 2.960 0,4% 7.779 8.275 -6,0% 7.779 8.275 -6,0% Avon 738 905 -18,5% 901 1.003 -10,2% 1.639 1.909 -14,1% 1.639 1.909 -14,1% Home & Style 114 152 -25,1% 279 390 -28,5% 392 541 -27,5% 392 541 -27,5% Others 92 68 35,1% 12 37 -66,7% 104 105 -0,9% 104 105 -0,9% COGS -1.791 -1.944 -7,9% -1.605 -1.641 -2,2% -3.396 -3.585 -5,3% -3.396 -3.585 -5,3% Gross profit 3.961 4.497 -11,9% 2.558 2.749 -6,9% 6.519 7.245 -10,0% 6.519 7.245 -10,0% Gross margin (%) 68,9% 69,8% -90 bps 61,4% 62,6% -120 bps 65,8% 66,9% -110 bps 65,8% 66,9% -110 bps Operating expenses -3.367 -3.535 -4,7% -2.584 -2.714 -4,8% -5.951 -6.249 -4,8% -46 -118 -60,7% -5.998 -6.367 -5,8% as % of net revenues -58,5% -54,9% -360 bps -62,1% -61,8% -30 bps -60,0% -57,7% -230 bps -60,5% -58,8% -170 bps Selling expenses -2.509 -2.584 -2,9% -1.927 -2.008 -4,0% -4.436 -4.592 -3,4% -4.436 -4.592 -3,4% G&A expenses -883 -890 -0,7% -521 -596 -12,5% -1.404 -1.485 -5,5% -62 -111 -44,5% -1.466 -1.597 -8,2% Transformation costs 0 -112 -100,0% 0 -101 -100,0% 0 -213 -100,0% 0 -11 -100,0% 0 -225 -100,0% Other revenues / expenses 25 51 -50,9% -136 -9 1458,0% -111 42 -365,2% 15 4 256,5% -96 46 -307,4% EBIT 593 962 -38,3% -25 35 -171,6% 568 997 -43,0% -46 -118 -60,7% 522 879 -40,6% EBIT margin (%) 10,3% 14,9% -460 bps -0,6% 0,8% -140 bps 5,7% 9,2% -350 bps 5,3% 8,1% -280 bps D&A 280 280 0,2% 154 149 3,3% 434 429 1,3% 9 0 4408,2% 443 429 3,3% EBITDA 874 1.241 -29,6% 129 184 -30,2% 1.003 1.426 -29,7% -37 -118 -68,3% 965 1.308 -26,2% EBITDA margin (%) 15,2% 19,3% -410 bps 3,1% 4,2% -110 bps 10,1% 13,2% -310 bps -0,4% -1,1% 70 bps 9,7% 12,1% -240 bps 2025 EBITDA adjustments 2 0 118 -100,0% 0 101 -100,0% 0 219 -100,0% 0 50 -100,0% 0 269 -100,0% 2025 Underlying EBITDA 2 874 1.359 -35,7% 129 285 -54,9% 1.003 1.645 -39,0% -37 -68 -44,8% 965 1.577 -38,8% Underlying EBITDA margin (%) 15,2% 21,1% -590 bps 3,1% 6,5% -340 bps 10,1% 15,2% -510 bps -0,4% -0,6% 20 bps 9,7% 14,6% -490 bps Net financials -826 -328 151,5% EBT -304 550 -155,2% Taxes -106 -155 -31,7% as % of EBT 34,8% -28,2% 6300 bps Net income from continued operations -410 395 -203,6% Net margin (%) -4,1% 3,7% -780 bps Discontinued operations 0 -351 -100,0% Net income / loss -410 44 -1029,1% 2 From 2026 onwards, EBITDA will no longer be adjusted; however, extraordinary items - recorded under "Other revenues/ expenses" are disclosed in the Appendix C for reference 1 6M-25 data is pro-forma and was publisehd in Q2-25 Natura &Co Holding earnings release results
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5 _____________________________ 02 Brazil Operational and Financial Performance A. Performance by brand As disclosed in the Material Fact “Preliminary Q2 -26 Results” published on July 8, Brazil’s subdued consumption environment, coupled with internal operational challenges and adjustments, pressured Q2- 26 revenues for both the Natura and Avon brands to a greater extent than initially anticipated. Natura Brazil ● Natura in Brazil posted a -14.5% YoY drop, primarily driven by severe product unavailability that impacted all three distribution channels. This was caused by the stabilization of the new Integrated Planning system, an SAP update, and volume re allocation following the closure of the Interlagos plant. Adjustments being made across both supply planning and production – coupled with greater flexibility for urgent production – are expected to gradually normalize product availability throughout H2-26 ● Product unavailability, compounded by a challenging macro , drove a volume decline in the relationship selling channel. This drop led to a YoY decline in consultant activity and productivity, more than offsetting the QoQ channel recovery. Strategic adjustments to commercial incentives for consultant leaders and the internal sales force were implemented in mid -Q1 2026. These, coupled with a more regionalized communication and offering focused on high -turnover categories, are expected to drive brand performance as initiatives gain traction and service levels normalize ● A temporary tax mismatch in Q2-26, stemming from changes in São Paulo’s state indirect tax (ICMS- ST), also added pressure to net sales, though it did not impact YoY gross sales ● Driven by a streamlined structure and data-driven insights, teams are empowered to foster disruptive innovation and enhance market competitiveness. More recently , key emblematic products and campaigns were launched, most notably: I) Kaiak K21 – a new fragrance line connecting directly with outdoor sports communities; and II) Natura Ekos Equilibrium – a limited- edition launch inspired by consumer feedback and celebrating Brazilian singer Anitta’s new well- being moment Avon Brazil ● Top line declined -22.5% YoY as the impacts that pressured Natura’s performance – as described above – also affected Avon, which was integrated into Natura’s operational framework following Wave 2 ● While Avon’s relaunch continued to progress as planned throughout Q2-26, results were negatively impacted by service-level disruptions. Consequently, overall performance of the relaunch is currently mixed, as isolating the impact of product unavailability and other operational challenges from the actual relaunch outcomes is challenging. On the other hand, Avon’s brand health metrics have stabilized, building on Q1-26 improvements following the relaunch Home & Style ● The category declined -36.2% YoY, a steeper drop compared to the -10.8% YoY recorded in Q1-26. This was mainly driven by a tough comparison base in Q2 -25, whe n performance benefited from a particularly successful opportunistic campaign (BRL mn, %) Q2-26 Q2-25 %YoY BRLa 6M-26 6M-25 %YoY BRLa Total 3.070 3.603 -14,8% 5.752 6.440 -10,7% YoY growth - CC (%) -14,8% 5,0% -10,7% 4,8% Natura 2.589 3.027 -14,5% 4.808 5.315 -9,5% YoY growth - CC (%) -14,5% 10,3% -9,5% 9,4% Avon 374 483 -22,5% 738 905 -18,5% YoY growth - CC (%) -22,5% -12,9% -18,5% -12,4% Home & Style 55 86 -36,2% 114 152 -25,1% YoY growth - CC (%) -36,2% 2,8% -25,1% -6,3% Others 53 8 577,6% 92 68 35,1% YoY growth - CC (%) 577,6% 35,1% a YoY growth in BRL is the same of YoY growth in CC Brazil
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6 B. Performance by distribution channel The temporary tax mismatch mentioned in the “Natura Brazil” section impacted Q2-26 performance across all three channels detailed below. Effective July 1, the State of São Paulo eliminated the tax substitution (ICMS-ST) regime for direct sales, lowering the tax burden for this channel. Consequently, while pressure is expected to persist in direct-to-consumer channels, a reduced tax burden is expected for consultant-driven sales formats starting in Q3-26. Relationship selling ● Top line declined -15.9% YoY, impacted by lower consultant activity and productivity, as noted in the “Natura Brazil” section above. This was further compounded by a -2.6% YoY decrease in beauty consultants – though it grew QoQ, showing early signs that strategic commercial adjustments made in mid-Q1 2026 are starting to kick-in Omni/Digital ● Net sales dropped -11.7% YoY, mainly due to the São Paulo tax impact, alongside the implementation of a new harmonized pricing policy and commercial rules across channels , leading to a slowdown in the online channel. These adjustments are crucial to enable sustainable future top-line growth while driving non-traditional relationship selling channels – as migrating from traditional model to a social selling approach (classified as Omni/Digital ) remains a strategic priority for Natura Cosméticos ● In a challenging macro, consultants are less inclined to hold large inventories that risk going unsold. In this context, “Minha Loja” offers an enhanced experience for end -clients by preserving the personalized consultant -customer relationship, while lever aging the Company’s fulfillment and inventory capabilities. Accelerating the adoption of “Minha Loja,” coupled with expansion into new digital sales channels – such as entering marketplaces like Shopee – is expected to progressively offset the slowdown caused by the implementation of the new pricing policy and commercial rules mentioned above Retail ● 100% of franchise contracts were transitioned to a new model that aligns franchisee and franchisor interests based on sell-out sales performance. This shift caused momentary destocking in franchise stores and a corresponding slowdown in sell-in volume. Combined with the São Paulo tax impact , this drove SSS down to -4.3% in Q2-26 ● Over the LTM, 74 new stores were opened, bringing the total store base to 1,098 in Q2-26. However, during th e quarter the transition to the new franchise contract model temporar ily froze stores opening, with only 8 new stores launched – with normalization expected as early as Q3 -26. All in, total retail revenue declined -3.0% YoY. Similar to SSS, the São Paulo tax effect also weighed on net revenue performance; excluding this impact, revenue would have posted positive YoY growth Given omni/digital and retail channels current low penetration, they serve as strategic top-line levers even amidst volatile consumer conditions. Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Operational KPIs # of consultantsa ('000) 1.480 1.519 -2,6% 1.464 1.516 -3,4% # Identified Clients (mn) 9,0 7,9 13,8% 9,0 7,9 13,8% Total Stores 1.098 1.024 7,2% 1.098 1.024 7,2% Own stores 186 154 20,8% 186 154 20,8% Franchise stores 912 870 4,8% 912 870 4,8% SSS growth (%) -4,3% 9,1% -1340 bps -2,2% 9,6% -1180 bps Revenue per channel (BRL mn) Relationship selling 2.651 3.154 -15,9% 4.931 5.659 -12,9% Omni / Digital 167 190 -11,7% 375 343 9,2% Retail 251 259 -3,0% 446 438 1,8% Total 3.070 3.603 -14,8% 5.752 6.440 -10,7% a Considers the Average Available Beauty Consultants Brazil
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7 C. Emana Pay Emana Pay is the primary engine for digitalizing our distribution channel and boosting be auty consultants’ productivity. By improving on-us working capital powered by CRM -driven risk models, we offer a more assertive credit than traditional merchandise models. Active users ● Number of active users reached 6 97k (+ 50% YoY ), now representing 47% of total consultants, compared to 31% in Q2-25 Total payment volume ● During the quarter, TPV stood at BRL 15.1 billion. While this represents a -5% YoY decline, following the broader top line YoY trend in Brazil, we continue to see high engagement as consultants utilize the ecosystem for liquidity management Credit penetration ● On-us credit for consultants has always been a staple of the relationship selling model, and in Q2-26 it accounted for ~98% of total sales ( including Emana and non -Emana). When managed by a financial institution like Emana Pay – rather than through traditional merchandise credit – it becomes more personalized and data-driven, enabling higher productivity and lower default rates through more precise risk assessment ● The strategic migration of credit from legacy “Boleto Mercantil” (Natura Cosméticos) to the Emana Pay financial platform reached a tipping point this quarter, with Emana’s penetration of total credit outstanding reaching 50% of sell -in sales in Q2-26 and 55% by the end of the quarter , more than doubling from 22% in the same period last year and up from 44% in Q1-26 ● To support this momentum, a new BRL 200 million tranche of the FIDC was issued in July 2026, with an inflow of BRL 160 million. Following this operation, the FIDC totaled BRL 1,150 million, of which BRL 870 million corresponded to senior investors , with the remainder held in the subordinated tranche NPL – 90 days ● Reflecting the challenging Brazilian consumer landscape – characterized by high household leverage and persistent elevated interest rates – the consolidated 90 days NPL (Emana + non - Emana) rose to 6.7% in Q2-26, broadly flat compared to Q1-26 ● The increase in Emana Pay penetration (to 50% in Q2-26 vs. 22% in the same period last year) is the primary driver behind the YoY shift in the delinquency ratio to 2.6%, as the platform absorbs a broader consultant base, including segments that are naturally more susceptible to payment delays. Crucially, delinquency levels within the Emana Pay portfolio remain below those of the non- Emana portfolio, evidencing the effectiveness of our data -driven risk selection, monitoring and consultant engagement Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY # active users (k) 697 465 50% 697 465 50% Total payment volume (BRL mn) 15.078 15.800 -5% 27.831 30.246 -8% Credit penetration - % sell-in 50,3% 21,8% 2850 bps 47,1% 20,8% 2630 bps NPL - 90 days (%) a 2,6% 2,4% 20 bps 2,6% 2,4% 20 bps a To be comparable with consolidated NPLs, receivables overdue 180 days are considered write-offs Brazil
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8 D. Financial Performance ● Net revenues dropped -14.8% YoY driven by weak performance from both the Natura and Avon brands amid severe product unavailability compounded by a challenging macro scenario and a temporary indirect tax mismatch (ICMS-ST) impact of ~2p.p. ● Gross margin stood at 68.5%, down -60 bps YoY, remaining close to the historical level of 69% despite temporary ICMS-ST impacts and mild trade-down dynamics across the beauty market amid macro turmoil . These headwinds were partially offset by pricing actions and reduced discounts due to product availability challe nges. Excluding the YoY indirect tax impact, gross margin would have been broadly stable YoY ● Selling expenses declined -5.5% YoY mainly driven by lower commissions due to top -line pressures and reduced marketing investments amid product availability challenges. These effects were partially offset by higher YoY credit provisions – despite QoQ NPL improvement s – and increased logistics expenses to support service levels during supply disruptions . Despite the nominal YoY decline, the steeper revenue drop led to operating deleverage, increasing selling expenses as a percentage of net revenues by 430 bps YoY ● G&A expenses were down 13.7% YoY, but up 20 bps YoY as percentage of net revenues, resulting in operating deleverage. The nominal YoY decline was mainly explained by initial efficiencies from the new operating model, combined with minor tactical expenses cuts ● Other revenues/expenses came in at BRL +39 million, comprising BRL -15 million in restructuring- related severance expenses, more than offset by BRL +52 million in tax credits ● EBITDA and margin landed at BRL 504 million and 16.4%, respectively This -370 bps YoY margin compression primarily reflects a -190 bps YoY impact from the temporary tax mismatch, -50 bps YoY from severance -related expenses and the remaining -130 bps YoY mainly from selling expenses deleverage amid the top -line decline. Excluding the tax effect, EBITDA margin would have declined -180 bps YoY, partially mitigating top -line pressure through pricing actions and initial efficiencies from the new operating model (BRL mn, %) 1 Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Net revenues 3.070 3.603 -14,8% 5.752 6.440 -10,7% COGS -968 -1.112 -13,0% -1.791 -1.944 -7,9% Gross profit 2.102 2.491 -15,6% 3.961 4.497 -11,9% % gross margin 68,5% 69,1% -60 bps 68,9% 69,8% -90 bps Selling expenses -1.319 -1.395 -5,5% -2.509 -2.584 -2,9% % net revenues -43,0% -38,7% -430 bps -43,6% -40,1% -350 bps G&A -460 -534 -13,7% -883 -890 -0,7% % net revenues -15,0% -14,8% -20 bps -15,4% -13,8% -160 bps Transformation costs 0 -57 -100,0% 0 -112 -100,0% % net revenues 0,0% -1,6% 160 bps 0,0% -1,7% 170 bps Other revenues / expenses 39 19 108,3% 25 51 -50,9% % net revenues 1,3% 0,5% 80 bps 0,4% 0,8% -40 bps EBIT 361 523 -31,0% 593 962 -38,3% % EBIT margin 11,8% 14,5% -270 bps 10,3% 14,9% -460 bps D&A 143 139 3,3% 280 280 0,2% % net revenues 4,7% 3,8% 90 bps 4,9% 4,3% 60 bps EBITDA 504 662 -23,8% 874 1.241 -29,6% % EBITDA margin 16,4% 18,4% -200 bps 15,2% 19,3% -410 bps EBITDA adjustments 2 0 63 -100,0% 0 118 -100,0% % net revenues 0,0% 1,7% -170 bps 0,0% 1,8% -180 bps Transformation costs 0 57 -100,0% 0 112 -100,0% Other adjustments 0 6 -100,0% 0 6 -100,0% Underlying EBITDA 2 504 725 -30,4% 874 1.359 -35,7% % Underlying EBITDA margin 2 16,4% 20,1% -370 bps 15,2% 21,1% -590 bps 1 Q2-25 and 6M-25 data are pro-forma and consider results published in Q2-25 Natura &Co earnings release 2 From 2026 onwards, EBITDA will no longer be adjusted; however, extraordinary items - recorded under "Other revenues/ expenses" are disclosed in the Appendix C for reference Brazil P&L
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9 ________________________________ 03 Hispanic Operational and Financial Performance A. Performance by brand Natura Hispanic ● Top line was up +12.3% in CC (+5.0% in BRL) and accelerated from the +7.0% YoY growth posted in Q1 -26. This was primally due to solid performance in Mexico and a steady recovery in Argentina, despite a sub-optimal pace following the Wave 2 integration in Q 3-25. CC growth ex-Argentina outpaced consolidated performance driven by continued healthy contributions from more mature Wave 2 markets and the strong execution in Mexico ● In Argentina, the integration led to a significant contraction in the relationship selling channel which, combined with the ongoing macro slowdown, more than offset the improv ements in sales activity and YoY productivity gains ● Performance in Mexico was driven by higher commercial activity, which more than offset an ongoing YoY decline in consultant count and slight drop in productivity, despite supply chain constraints from Brazil that also partially impacted service levels in Mexico. Growth was further supported by expanding cross-selling of Natura products across Avon’s network and customer base, as well as some positive Q2 phasing Avon Hispanic ● Revenues were up +4.7% in CC (+1.4% in BRL ), improving from -11.3% YoY decline posted in Q1-26. Similar to Natura, Avon’s CC growth ex- Argentina outpaced consolidated performance, landing at +11.9%. Performance in Argentina also showed a recovery despite ongoing headwinds from the macroeconomic scenario and channel contraction following Wave 2 integration, while Mexico posted YoY growth driven by the same dynamics described in the Natura Hispanic section. Finally, top line was also supported by sell-in sales to CARD distributor1 Home & Style Hispanic ● Revenues declined -16.2% YoY on CC and -23.5% in BRL, as headwinds of Wave 2 implementation in Argentina in July and in Mexico in May persist. The category was particularly impacted by the reduction in the consultant base and by commercial model adjustments implemented during the integration process 1 As mentioned in the material fact published on September 15 , 2025, Natura Group continues to supply finished goods to Avon CARD (BRL mn, %) Q2-26 Q2-25 %YoY BRL 6M-26 6M-25 %YoY BRL Total 2.100 2.085 0,7% 4.164 4.390 -5,2% YoY growth - CC (%) 7,2% 4,3% 3,0% -2,9% Natura 1.504 1.433 5,0% 2.972 2.960 0,4% YoY growth - CC (%) 12,3% 17,9% 9,7% 7,7% Avon 455 449 1,4% 901 1.003 -10,2% YoY growth - CC (%) 4,7% -13,6% -3,7% -13,6% Home & Style 137 179 -23,5% 279 390 -28,5% YoY growth - CC (%) -16,2% -25,9% -22,2% -31,1% Others 4 24 -83,6% 12 37 -66,7% YoY growth - CC (%) -60,9% -0,6% -60,3% -6,2% Hispanic
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10 B. Performance by distribution channel Relationship selling ● Revenues were up +0.5%, as a solid YoY improvement in commercial activity in Mexico, and to a lesser extent in Argentina, more than offset a -17.3% YoY decline in beauty consultants’ count Omni/Digital ● Revenues declined -5.5% YoY, mainly due to the implementation of a new harmonized pricing policy and commercial rules across channels in Mexico, which led to a slowdown in the country’s online channel. Entering new marketplaces is expected to gradually restore digital growth momentum in Mexico Retail ● The expansion of own stores continued at a solid pace, with 26 new stores opened in LTM, including the launch of franchise stores in the region. Such expansion, combined with the performance from existent stores, led to a +19.5% YoY growth in retail revenues. Revenues in BRL were impacted by FX headwinds, but given the lower penetration of retail in Argentina ’s revenues, impact was not as severe as in Digital and Relationship Selling Revenues per channel are published in BRL and in accordance with IAS 29 hyperinflation accounting standards. Thus, YoY change in revenues by channel largely reflect the hyperinflation accounting and FX headwinds. Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Operational KPIs # of consultantsa ('000) 1.129 1.366 -17,3% 1.126 1.382 -18,5% # Identified Clients (mn) 1,6 1,1 44,4% 1,6 1,1 44,4% Total Stores 105 79 32,9% 105 79 32,9% Own stores 102 79 29,1% 102 79 29,1% Franchise stores 3 0 n.a. 3 0 n.a. Net Revenue per channel (BRL mn) Relationship selling 1.969 1.960 0,5% 3.924 4.170 -5,9% Omni / Digital 69 73 -5,5% 121 123 -2,2% Retail 62 52 19,5% 119 96 23,0% Total 2.100 2.085 0,7% 4.164 4.390 -5,2% a Considers the Average Available Beauty Consultants Hispanic
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11 C. Financial Performance ● Net revenues were flattish in BRL and +7. 2% YoY in CC (+10.9% ex-Argentina), supported by strong performance in Mexico, sustained healthy growth across mature Wave 2 markets , and signs of recovery in Argentina, despite top-line growth trailing inflation in the country ● Gross margin landed at 61.8% in Q2-26, flat YoY, as Mexico’s solid YoY expansion was offset by YoY compression in Argentina. Mexico’s performance was mainly driven by pricing actions, lower discounts amid product availability issues, and some one-off positive effect, while Argentina was still impacted by volume deleverage and lower commercial margins, as noted in the Q1-26 earnings release ● Selling expenses increased +2.2% YoY, up 60 bps as percentage of net revenues. The increase mainly reflects higher commercial incentives in Mexico to boost channel activity and consultant count. Depending on product availability, marketing investments in Mexico m ay accelerate given the country’s strategic importance for future top-line growth ● G&A expenses declined -15.5% YoY , down 230 bps as percentage of net revenues This still reflects incremental Wave 2 optimizations, but primarily highlights initial efficiencies arising from the new operating model ● Other revenues/expenses totaled BRL +11 million . This comprises BRL -8 million in restructuring - related severance expenses, which were more than offset by other revenues mainly related to the reversal of tax provisions ● EBITDA surged to BRL +160 million, implying a +7.6% margin. The +220 bps YoY expansion (or +360 bps YoY when compared to reported Q2-25 EBITDA margin) was primarily driven by G&A efficiencies – mostly arising from the new operating model – which more than offset Argentina’s ongoing recovery performance and some investments in Mexico selling expenses . Ex-Argentina, the YoY margins expansion would have been more than twice the +220 bps recorded (BRL mn, %) 1 Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Net revenues 2.100 2.085 0,7% 4.164 4.390 -5,2% COGS -803 -797 0,7% -1.605 -1.641 -2,2% Gross profit 1.297 1.287 0,7% 2.558 2.749 -6,9% % gross margin 61,8% 61,8% 0 bps 61,4% 62,6% -120 bps Selling expenses -969 -948 2,2% -1.927 -2.008 -4,0% % net revenues -46,1% -45,5% -60 bps -46,3% -45,7% -60 bps G&A -254 -300 -15,5% -521 -596 -12,5% % net revenues -12,1% -14,4% 230 bps -12,5% -13,6% 110 bps Transformation costs 0 -31 -100,0% 0 -101 -100,0% % net revenues 0,0% -1,5% 150 bps 0,0% -2,3% 230 bps Other revenues / expenses 11 3 305,1% -136 -9 1458,0% % net revenues 0,5% 0,1% 40 bps -3,3% -0,2% -310 bps EBIT 85 11 680,4% -25 35 -171,6% % EBIT margin 4,1% 0,5% 360 bps -0,6% 0,8% -140 bps D&A 75 72 3,6% 154 149 3,3% % net revenues 3,5% 3,5% 0 bps 3,7% 3,4% 30 bps EBITDA 160 83 92,7% 129 184 -30,2% % EBITDA margin 7,6% 4,0% 360 bps 3,1% 4,2% -110 bps EBITDA adjustments 2 0 31 -100,0% 0 101 -100,0% % net revenues 0,0% 1,5% -150 bps 0,0% 2,3% -230 bps Transformation costs 0 31 -100,0% 0 101 -100,0% Other adjustments 0 0 -100,0% 0 0 -100,0% Underlying EBITDA 2 160 113 40,6% 129 285 -54,9% % Underlying EBITDA margin 2 7,6% 5,4% 220 bps 3,1% 6,5% -340 bps 1 Q2-25 and 6M-25 data are pro-forma and consider results published in Q2-25 Natura &Co earnings release 2 From 2026 onwards, EBITDA will no longer be adjusted; however, extraordinary items - recorded under "Other revenues/ expenses" are disclosed in the Appendix C for reference Hispanic P&L
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12 ________________________________ 04 Financial Performance Natura ● Net revenues declined -9.1% YoY, as ongoing operational and market challenges in Brazil more than offset the flat BRL performance in the Hispanic region (+7.2% in CC) ● Gross margin stood at 65.7%, down -70 bps YoY. This mainly reflects temporary indirect tax mismatches in Brazil and continued gross margin pressure in Argentina, partially offset by solid gains in Mexico ● Selling expenses decreased -2.4% YoY, as a nominal reduction in Brazil – amid the top-line decline – more than offset a slight increase in the Hispanic market to support growth momentum in Mexico. However, lower revenue in Brazil resulted in operating deleverage , pushing consolidated selling expenses up by 310 bps YoY as percentage of net revenue ● G&A expenses were down -18.0% YoY, improving 160 bps YoY as a percentage of net revenues despite revenues pressure. The reduction was mainly explained by initial efficiencies from the new operating model, combined with minor tactical expenses cuts and the remaining optimizations from Wave 2 in the Hispanic region ● Other revenues/expenses landed at BRL +36 million. This was driven by BRL +52 million in Brazilian tax credits, which more than offset BRL -23 million in restructuring-related severance expenses and a BRL -13 million partial write-offs of non-operating assets related to the Fable venture capital ● Since the announcement of the new operating model in late December 2025, BRL -263 million in severance expenses have been incurred, with ~85% of planned reduction already executed and the remaining expected to be concluded in coming months ● EBITDA was BRL +620 million, with a +12.0% margin or +13.2% ex-temporary tax mismatch effect . The -200 bps YoY margin contraction (or a +40 bps expansion versus reported Q2-25 EBITDA margin) was primarily driven by the tax effects ( -120 bps YoY), severance related expenses ( -40 bps YoY) and selling deleverage in Brazil amid challenging revenues performance, which more than offset healthy operating results in the Hispanic markets ● With deleverage pressure from Brazil expected to gradually recover, the Hispanic region sustaining solid momentum, and new operating model efficiencies amplifying throughout the year, reported EBITDA margin expansion is expected when compared to the reported FY-25 figure (BRL mn, %) 1 Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Net revenues 5.170 5.687 -9,1% 9.915 10.830 -8,5% COGS -1.771 -1.909 -7,2% -3.396 -3.585 -5,3% Gross profit 3.399 3.778 -10,0% 6.519 7.245 -10,0% % gross margin 65,7% 66,4% -70 bps 65,8% 66,9% -110 bps Selling expenses -2.288 -2.344 -2,4% -4.436 -4.592 -3,4% % net revenues -44,3% -41,2% -310 bps -44,7% -42,4% -230 bps G&A -750 -915 -18,0% -1.466 -1.597 -8,2% % net revenues -14,5% -16,1% 160 bps -14,8% -14,7% -10 bps Transformation costs 0 -99 -100,0% 0 -225 -100,0% % net revenues 0,0% -1,7% 170 bps 0,0% -2,1% 210 bps Other revenues / expenses 36 27 36,7% -96 46 -307,4% % net revenues 0,7% 0,5% 20 bps -1,0% 0,4% -140 bps EBIT 398 448 -11,2% 522 879 -40,6% % EBIT margin 7,7% 7,9% -20 bps 5,3% 8,1% -280 bps D&A 222 211 5,4% 443 429 3,3% % net revenues 4,3% 3,7% 60 bps 4,5% 4,0% 50 bps EBITDA 620 658 -5,9% 965 1.308 -26,2% % EBITDA margin 12,0% 11,6% 40 bps 9,7% 12,1% -240 bps EBITDA adjustments 2 0 138 -100,0% 0 269 -100,0% % net revenues 0,0% 2,4% -240 bps 0,0% 2,5% -250 bps Transformation costs 0 99 -100,0% 0 225 -100,0% Other adjustments 0 40 -100,0% 0 45 -100,0% Underlying EBITDA 2 620 797 -22,2% 965 1.577 -38,8% % Underlying EBITDA margin 2 12,0% 14,0% -200 bps 9,7% 14,6% -490 bps Natura Group 1 Q2-25 and 6M-25 data are pro-forma and consider results published in Q2-25 Natura &Co earnings release 2 From 2026 onwards, EBITDA will no longer be adjusted; however, extraordinary items - recorded under "Other revenues/ expenses" are disclosed in the Appendix C for reference
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13 ________________________________ 05 Net Financials During the quarter, net financial results were BRL -297 million compared to BRL +23 million in Q2-25. The BRL -320 million YoY worsening is mainly explained by: ● Financing FX variation of BRL -114 million, compared to BRL + 268 million in the same period last year, when results benefited from FX variation on an intercompany loan (EUR vs. USD) between Natura Lux and Avon International. The BRL -114 million is split between: o BRL -80 million in carryover costs from derivatives hedg ing the principal of USD - denominated bonds o BRL -238 million from the partial settlement of the aforementioned derivatives maturing in Q2-26, with some expected to mature in the next 12 months . New derivatives were contracted to maintain a 100% principal hedge on the dollar bonds o BRL +173 million in FX and mark-to-market gains o BRL +31 million in other effects It is also worth noting: ● Interest expenses of BRL -127 million, based on total debt of BRL 6 ,222 million, implying a n effective quarterly interest rate of 2.0% ● Financial revenues on investments of BRL +21 million, representing a 0.9% quarterly cash yield on total cash and equivalents of BRL 2.4 billion. This relatively low yield is primarily due to a portion of the position being held in USD, as well as lower average cash balance throughout the quarter compared to the balance at the end of Q2-26 (BRL mn, %) 1 Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Financial expenses -227 -360 -37,0% -418 -626 -33,2% Interest on loans and derivatives -127 -137 -7,3% -256 -267 -4,1% Judicial contingencies -11 -9 27,4% -20 -21 -1,8% Lease expenses -15 -20 -22,0% -35 -52 -33,1% Other financial expenses -73 -194 -62,4% -107 -286 -62,6% Financial revenues 32 118 -72,6% 97 177 -45,2% Financial investments 21 23 -7,0% 50 63 -20,7% Other financial revenues 11 95 -88,4% 46 113 -59,0% Foreign exchange variation -87 279 -131,1% -475 143 -432,1% Operational FX var. 28 11 157,4% 11 -25 -142,2% Financing FX var. -114 268 -142,7% -485 168 -389,0% Hyperinflation gains (losses) -16 -14 14,8% -29 -21 35,6% Net Financial Results -297 23 -1378,6% -826 -328 151,5% 1 Data for Q2-25 and 6M-25 are pro-forma, based on Latam 2025 figures
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14 ________________________________ 06 Net Income In Q2-26, net income landed at BRL +35 million, compared to BRL +196 million in Q2-25 or BRL +446 million from continued operations in the same period last year. The BRL -410 million YoY decline was driven by: ● BRL -27 million YoY decrease in EBIT, as lower EBITDA in Brazil driven by operational deleverage and temporary tax effects, more than offset the profitability gains in Hispanic markets ● BRL -320 million YoY decrease in net financial results, primarily driven by financing derivative settlement costs, alongside a favorable prior-year comp base due to accounting FX movements on an intercompany loan ● Tax expenses, which came in at BRL -65 million due to the tax linearization effect, coupled with improved operating performance in Hispanic markets, which increased taxable income. The BRL -40 million YoY increase in tax expenses was primarily driven by the se stronger results across Hispanic markets ● BRL -23 million YoY in non-operating results explained by severance related expenses from the reorganization
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15 ________________________________ 07 Cash Flow Free cash flow from continuing operations was neutral in Q2-26, compared to BRL +160 million in Q2-25. On a free cash flow to firm (FCFF) basis, the company generated BRL +342 million in cash despite operational challenges faced during Q2 -26 – representing a minor YoY decline of BRL -23 million. The change mainly reflects: ● BRL -413 million YoY decline in net income from continued operations mainly explained by lower net financials ● BRL -180 million cash outflow from other operating activities compared to BRL -32 million in the same period last year. The higher YoY cash consumption was mostly driven by judicial deposits and payments related to tax, civil and labor claims Offset by: ● BRL +501 million YoY improve in working capital, driven by a BRL +250 million YoY improvement in accounts receivable alongside a BRL +227 million in inventory, with both lines benefiting from a pressured top-line ● BRL +54 million lower YoY Capex, mainly reflecting a slower pace of store openings, as highlighted in the “Brazil performance by channel” section, while also benefiting from favorable quarter-to-quarter phasing Cosméticos Holdinga Cosméticos Holdinga (BRL mn, %) Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Net income (loss) 35 196 (82) -410 44 (1.029) Depreciation and amortization 222 211 5 443 429 3 Non-cash adjustments to net income 546 561 (3) 1.268 1.286 (1) Discountinued Operations Results 0 250 - 0 351 - Adjusted net income 804 1.217 (34) 1.302 2.111 (38) Decrease / (increase) in working capital -105 -606 (83) -629 -1.242 (49) Inventories 61 -166 (136) -177 -633 (72) Accounts receivable -258 -508 (49) 57 -170 (134) Accounts payable -95 385 (125) -527 311 (269) Other assets and liabilities 188 -317 (159) 18 -750 (102) Income tax and social contribution -42 -44 (4) -156 -134 16 Interest on debt and derivative settlement -340 -189 79 -423 -243 74 Lease payments -85 -67 26 -157 -183 (14) Other operating activities -180 -32 461 -246 -97 154 Cash from continuing operations 52 279 (82) -309 212 (246) Capex -49 -103 (52) -87 -165 (47) Sale of assets 0 0 - 0 0 - Exchange rate variation on cash balance -2 -16 (85) -34 -56 (39) Free cash flow - continuing operations 0 159 (100) -430 -9 4.485 Other financing and investing activities -414 277 (249) 589 466 26 Operating activities - discontinued operations 0 -607 - -354 -1.761 (80) Cash balance variations -414 -170 143 -195 -1.305 (85) Free cash flow - continuing operations 0 159 (100) -430 -9 4.485 (-) Interest on debt and derivative settlement -340 -189 79 -423 -243 74 (-) Exchange rate variation on cash balance -2 -16 (85) -34 -56 (39) (=) Free cash flow to firm - continuing operations 342 365 (6) 27 290 (91) a Pro-forma as published in Q2-25 earnings release
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16 ________________________________ 08 Leverage and Net Debt Net debt ended Q2-26 at BRL 3.9 billion, a sequential decrease of BRL 179 million. This was mianly driven by BRL 342 million in free cash flow to firm generation and BRL 160 million FIDC senior investors inflow during the quarter, which were partially offset by cash outflows from interest on debt and derivative settlements. Leverage ratio reached 2.06x, a slight QoQ reduction, as LTM EBITDA and net debt in Q2-26 were broadly in line with Q1-26 levels. LTM EBITDA remained stable as reported Q2 -26 EBITDA came in at BRL +620 million, compared to BRL +658 million in the same period last year. Cosméticos Cosméticos Holding (BRL mn, %) Q2-26 Q1-26 Q2-25 Short-Term 410 484 88 Long-Term 5.853 5.879 6.271 Obligations with senior shareholders Natura Pay FIDC 723 580 352 (=) Total funding liabilities 6.987 6.943 6.711 (-) Obligations with senior shareholders Natura Pay FIDC -723 -580 -352 Gross Debta 6.263 6.363 6.359 Foreign currency and/or Interest hedging (Swaps) -41 46 -28 Total Gross Debt 6.222 6.409 6.331 (-) Cash, Cash Equivalents and Short-Term Investment b 2.358 2.367 2.343 (=) Net Debt 3.864 4.042 3.989 Indebtedness ratio including IFRS 16 effects Net Debt/EBITDA 2,06x 2,12x 2,18x Total Debt/EBITDA 3,32x 3,35x 3,46x Indebtedness ratio excluding IFRS 16 effects Net Debt/EBITDA 2,35x 2,41x 2,54x Total Debt/EBITDA 3,78x 3,82x 4,03x a Gross debt excludes exclude lease agreements b Short-Term Investments excludes non current balances
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17 ________________________________ 09 ESG Under the Climate Transition pillar, the operation of the Advanced Stock Post in Manaus exemplifies our strategy: by reducing air freight by 92% — with 2,566 tCO₂e avoided and 49% operational optimization — we achieved significant annual savings of R$ 40 million. This focus on financial and environmental efficiency is also reflected in the biomethane fleet, which reduced logistics emissions in Brazil by 17% (8,800 tCO₂e avoided), proving that decarbonization and profitability go hand in hand. We promoted a special action under the “Recicle com a Natura” reverse logistics program, focused on collecting liners, the silicone backings of collectible soccer world championship sticker albums for 2026. Tied to a commercial incentive for purchases over R$ 100, the initiative demonstrated the ability of sustainability causes to drive qualified traffic and generate financial value. Total gross revenue linked to the promotion reached R$ 4.45 million, corresponding to the total sales made using the reverse logistics coupon during the campaign period, which also drove an increase in average ticket size of 49.2% in Owned Stores and 54.1% in Franchises. In partnership with Polpel Fibras, the only company in Latin America with the technology to recycle this specific material, the entire volume collected will be reincorporated into Natura's supply chain as packaging cartons, consolidating a closed-loop circular economy model. In line with our commitment to underrepresented groups, we joined the Coalition for the Defense and Inclusion Code of Black Consumers, led by the Movement for Racial Equity (MOVER, the acronym in Portuguese), structuring protocols to combat discrimination and train teams. Also on the social front, in an initiative directly connected to the business, we entered into a partnership with the Ministry of Development and Social Assistance, Family and Fight Against Hunger, through the “Acredita no Primeiro Passo” program, to offer free training to over 3 million people enrolled in the Federal Government's Unified Registry for Social Programs (CadÚnico) and expand their opportunities for productive inclusion through direct selling, the Bluma platform, and formal job opportunities within the ecosystem. In recognition of our consistency, we were named leaders in the "Environmental" and "Social" categories in the Brand Finance Brazil 2026 ranking, reaching 11th place among the country's Most Valuable Brands and 18th among the Strongest Brands, in addition to standing out in the beauty and cosmetics sector in both lists. This sustainability trajectory is detailed in the 2025 Integrated Report, the ESG Indicators Booklet, and the 2025 iP&L, documents that communicate the early achievement of targets under the 2030 Commitments, such as expanding to 52 Amazonian sociobiodiversity bio-ingredients (exceeding the target of 49 by 2027), including 46 agro-extractive communities (exceeding the target of 45 by 2030), and generating R$ 4 in social and environmental benefits for every R$ 1 in revenue (ahead of the 2030 target). ESG1 Q2-26 Q2-25 % YoY Absolute carbon emissions 235.252 277.651 -15,3% Scope 1 and 2 6.877 7.634 -9,9% Scope 32 228.375 270.017 -15,4% % of plastic recycled post-consumption 21,0% 24,4% -340 bps Sustainable plastics (%)3 30,5% 31,8% -130 bps ¹ Consolidated results of Natura and Avon in Latin America. ² The Scope 3 result, also reflected in absolute emissions, includes priority workstreams (CFT Products, Home & Style Products, Printed Material, and Logistics). The full inventory will be presented in the Annual Report. 3 Incorporation of post-consumer plastic and renewable plastic
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18 ________________________________ 10 Fixed Income The table below details all public debt instruments outstanding per issuer as of June 30, 2026: Agency Global Scale National Scale Outlook Fitch Ratings BB+ AAA Stable Moody's Ba2 - Stable Standard & Poor's BB AAA Stable Principal Nominal Cost (million) (per year) 10/06/2022 09/15/2027 BRL 221.527 million Repurchase November 07, 2025 (BRL 255.9) DI + 0.8 per year Natura Cosméticos S.A. Debenture - 12th issue 10/06/2022 09/15/2029 BRL 335.771 million Repurchase November 07, 2025 (BRL 487.2) IPCA + 6.80% 10/06/2022 09/15/2032 - Equal installments between 2030 and 2032 BRL 275.051 million Repurchase November 07, 2025 (BRL 306.9) IPCA + 6.90% Natura Cosméticos S.A. Debenture - 13th issue 06/15/2024 06/15/2029 BRL 1.326 billion DI + 1.20 per year Natura &Co Luxemburg Holding (Natura Lux) Bond - 2nd issue (Sustainability Linked Bond) 05/03/2021 05/03/2028 US$ 450.0 million 4.125% per year Natura &Co Luxemburg Holding (Natura Lux) Bonds 04/19/2022 04/19/2029 US$ 270.0 million 6,00% Natura Indústria S.A Res. 4131 02/09/2026 02/10/2027 US$ 56.947 million DI + 0.65 per year Natura Cosméticos S.A. Issuer Type Issuance Maturity
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19 ________________________________ 11 Appendix A. Balance Sheet Cosméticos Cosméticos Holding Cosméticos Cosméticos Holding ASSETS (BRL mn) Q2-26 Q1-26 Q2-25 LIABILITIES AND SHAREHOLDER'S EQUITY (BRL mn) Q2-26 Q1-26 Q2-25 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents 1.297 1.710 1.335 Borrowings, financing and debentures 410 484 88 Short-term investments 1.061 657 1.007 Lease 173 178 183 Trade accounts receivable 4.350 4.199 4.527 Trade accounts payable and reverse factoring operations 4.281 4.416 5.032 Accounts receivable - sale of subsidiary 0 0 0 Trade accounts payable - related parties 0 0 0 Inventories 3.017 3.158 3.021 Dividends and interest on shareholders' equity payable 0 0 1 Recoverable taxes 901 1.004 906 Payroll, profit sharing and social charges 592 553 650 Income tax and social contribution 193 209 234 Tax liabilities 372 452 502 Derivative financial instruments 16 27 66 Income tax and social contribution 78 75 79 Other current assets 505 586 494 Derivative financial instruments 567 548 340 Assets held for sale 34 34 7.280 Provision for tax, civil and labor risks 0 0 12 Other current liabilities 296 331 317 Assets held for sale 0 0 4.016 Total current assets 11.374 11.583 18.872 Total current liabilities 6.769 7.037 11.220 NON CURRENT ASSETS NON CURRENT LIABILITIES Accounts receivable - sale of subsidiary 0 0 425 Borrowings, financing and debentures 5.853 5.879 6.271 Accounts receivable - related parties 0 0 0 Obligations with senior shareholders in Natura Pay FIDC 723 580 352 Recoverable taxes 387 365 550 Lease 322 316 395 Deferred income tax and social contribution 2.067 2.044 1.719 Payroll, profit sharing and social charges 75 53 23 Judicial deposits 865 711 576 Tax liabilities 198 196 177 Derivative financial instruments 81 85 86 Deferred income tax and social contribution 0 0 135 Short-term investments 30 30 25 Income tax and social contribution 53 48 127 Other non-current assets 23 40 97 Derivative financial instruments 67 182 0 Provision for tax, civil and labor risks 908 871 858 Other non-current liabilities 273 286 264 Total long term assets 3.454 3.275 3.478 Total non-current liabilities 8.471 8.411 8.601 SHAREHOLDERS' EQUITY Capital stock 6.000 6.000 12.490 PP&E & INTANGIBLES Treasury shares -3 -4 0 Property, plant and equipment 2.397 2.416 2.466 Capital reserves 2.173 2.192 10.366 Intangible 9.992 10.019 9.364 Profit Reserves 3.501 3.466 0 Right of use 609 617 685 Asset valuation adjustments 914 808 760 Accumulated Losses 0 0 -8.572 Non-controlling shareholders 0 0 -1 Total non-current assets 16.452 16.326 15.993 Equity attributable to owners of the Company 12.586 12.462 15.043 TOTAL ASSETS 27.826 27.910 34.865 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 27.826 27.910 34.865
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20 B. Extraordinary Items (BRL mn, %) 1 Q2-26 Q2-25 % YoY 6M-26 6M-25 % YoY Extraordinary items -29 139 -121,0% 121 270 -55,2% Reestructuring expenses (Reorganization) 23 0 n.a. 226 0 n.a. Transformation and Integration Plan 0 99 -100,0% 0 225 -100,0% Tax credits -53 0 n.a. -53 0 n.a. Other non-recurring 0 40 -100,0% -53 45 -216,9% 1 Q2-25 and 6M-25 data are pro-forma and were publisehd in Q2-25 Natura &Co Holding earnings release results
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21 C. Reconciliation Tax impact (ICSM-ST)
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22 ________________________________ 12 Conference call details Tuesday, August 11, 2026 08:00 am | New York 09:00 am | Brasília 13:00 pm | London The broadcast will be in Portuguese with simultaneous translation into English.
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23 ________________________________ 13 Glossary ARS: the foreign exchange market symbol for the Argentine peso B2B (Business-to-Business): A business model in which commercial transactions occur directly between companies (sales to corporate entities/B2B sales), as in the case of asset commercialization by Natura Ingredients Brand Finance: A leading global independent brand and asset valuation consultancy. It is an accounting firm regulated by the Institute of Chartered Accountants in England and Wales (ICAEW), the first in the sector to join the International Valuation Standards Council (IVSC), and its rankings are certified by the Marketing Accountability Standards Board (MASB) BRL: Brazilian Reais CadÚnico (Single Registry / Cadastro Único): A Brazilian federal government registry that identifies and characterizes low-income families, serving as the basis for inclusion in social programs for training and income generation CDI: The overnight rate for interbank deposits CDP: A global environmental disclosure platform used by companies and governments to measure, manage and report environmental impacts, particularly related to climate change, water security and forests CFT: Cosmetics, Fragrances and Toiletries Market (CFT = Fragrances, Body Care and Oil Moisture, Make-up (without Nails), Face Care, Hair Care (without Colorants), Soaps, Deodorants, Men’s Grooming (without Razors) and Sun Protection CO2e: Carbon dioxide equivalent; for any quantity and type of greenhouse gas, CO2e signifies the amount of CO2 which would have the equivalent global warming impact Constant currency (“CC”) or constant exchange rates: when exchange rates used to convert financial figures into a reporting currency are the same for the years under comparison, excluding foreign currency fluctuation effects COP30: Annual Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC), focused on negotiating and aligning measures for climate mitigation and adaptation Corporate Sustainability Assessment (CSA): Annual evaluation conducted by S&P Global assessing thousands of companies worldwide based on ESG criteria. The CSA underpins indices such as the Dow Jones Sustainability Indices (DJSI) and the Sustainability Yearbook Credit penetration - % sell-in: penetration of credit given by Emana pay tools in total net revenues CRM: Customer Relationship Management, a strategy and technological tool that centralizes data, automates processes, and monitors customer interactions Emana Pay active users: users that were active at least once in the last four months. Criteria aligned with the average available consultant from relationship selling. Some active users are not Natura/ Avon beauty consultants anymore, but they still have access to Emana services. However, credit from Emana is only available for Group’s sales (on-us credit only) EBITDA reported: EBIT with Depreciation and amortization added back EBITDA underlying: EBITDA reported excluding non-recurring revenues and expenses FX: foreign exchange G&A expenses: including general and administrative expenses, R&D, IT and projects expenses Group Corporate: remaining structure previously called Holding until Q2-25 Hispanic Latam: Often used to refer to the countries in Latin America, excluding Brazil Home & Style: a category focused on items related to home products IAS 29: “Financial Reporting in Hyperinflationary Economies' requires the financial statements of any entity whose functional currency is the currency of a hyperinflationary economy to be restated for changes in the general purchasing power of that currency so that the financial information provided is more meaningful
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24 Identified Clients: end customers identified in the last 12 months through sales of Natura, Avon, Emana Pay and Bluma IP&L (Integrated Profit & Loss): An integrated management tool that allows accounting not only for financial results but also for the impact of business operations across the environmental, social, and human dimensions Latam Central Allocation Costs: expenses incurred by a specific Latin American country, which benefits the entire Latam region. For example, C-level executive expenses or investments in systems used by different regions. These expenses are allocated according to their share of net revenue Minha Loja: official and unified online sales platform offered to the brand's beauty consultants; serves as a personalized digital store where consultants generate an exclusive link to sell Natura, Avon, and Home & Style products to customers MOVER (Movement for Racial Equity): A coalition of major companies focused on promoting diversity, racial equity, and combating structural racism in the Brazilian corporate sector. Omni / Digital: revenues including proprietary e-commerce platform, marketplace revenues and consultant digital sales (tracked from consultants’ website and trackable digital brochure) Optimal Capital Structure: company’s optimal leverage, within the range of 1.0x and 1.5x Net Debt/EBITDA Power Purchase Agreement (PPA): A long-term contract for the purchase of electricity (typically renewable) between a generator and a consumer, with pre-agreed pricing conditions. Generally ranging from 8 to 20 years, PPAs can support the development of new renewable generation projects. Purchase Price Allocation (PPA)- effects of the fair market value assessment as a result of a business combination S&P Global Sustainability Yearbook: A leading sustainability publication recognizing companies with outstanding performance within their industries, based on the Corporate Sustainability Assessment (CSA). Inclusion is limited to top-performing companies in each sector. Selling expenses: includes selling, marketing and logistics expenses SKU: stock keeping unit, a metric used to identify, organize and trace any item on inventories Task Force on Climate-Related Financial Disclosures (“TCFD”): climate-related disclosure recommendations enable stakeholders to understand carbon-related assets and their exposures to climate-related risks Task force on Nature-related Financial Disclosures (“TNFD”): The TNFD Framework seeks to provide organizations and financial institutions with a risk management and disclosure framework to identify, assess, manage and report on nature-related dependencies, impacts, risks and opportunities ("nature- related issues"), encouraging organizations to integrate nature into strategic and capital allocation decision making TPV: Total Payment Volume Underlying EBITDA: Excludes effects that are not considered usual, recurring or not comparable between the periods under analysis Wave 2: project to integrate Natura and Avon brands in Latin American countries, including distribution process, logistics, consultants’ base, etc
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25 ________________________________ 14 Disclaimer EBITDA is not a measure under IFRS and does not represent cash flow for the periods presented. EBITDA should not be considered an alternative to net income as an indicator of operating performance or an alternative to cash flow as an indicator of liquidity . EBITDA does not have a standardized meaning and the definition of EBITDA used by Natura may not be comparable with that used by other companies. Although EBITDA does not provide under IFRS a measure of cash flow, Management has adopted its use to measure the Company’s operating performance. Natura also believes that certain investors and financial analysts use EBITDA as an indicator of performance of its operations and/or its cash flow. This report contains forward -looking statements. These forward -looking statements are not historical facts but rather reflect the wishes and expectations of Natura’s management. Words such as “anticipate,” “wish,” “expect,” “foresee,” “intend,” “plan,” “pr edict,” “project,” “desire” and similar terms identify statements that necessarily involve known and unknown risks. Known risks include uncertainties that are not limited to the impact of price and product competitiveness, the acceptance of products by the market, the transitions of the Company’s products and those of its competitors, regulatory approval, currency fluctuations, supply and production difficulties and changes in product sales, among other risks. This report also contains certain pro forma data, which are prepared by the Company exclusively for informational and reference purposes and as such are unaudited. This report is updated up to the present date and Natura does not undertake to update it in the event of new information and/or future events. Investor Relations Team ri@natura.net