The Body Shop’s owner sells Aesop to L'Oréal
- Natura &Co completed the sale of Australian luxury cosmetics brand Aesop to L'Oréal for $2.58 billion.
- The transaction, initially announced in April, will allow Brazilian-based Natura &Co to focus on its strategic priorities, notably strengthening The Body Shop's business.
- The Body Shop's second net revenue declined by 12.5% at constant currency.
Natura &Co, owner of Natura, Avon and The Body Shop, completed the sale of Australian luxury cosmetics brand Aesop to L'Oréal for $2.58 billion. The deal marks the largest brand acquisition ever made by the Frend brand L'Oréal, according to CNN. Aesop is an Australian luxury cosmetics brand that produces skincare, haircare and fragrance products that will join L'Oréal’s portfolio of 36 international brands.
The transaction, initially announced in April, will allow Brazilian-based Natura &Co to focus on its strategic priorities, notably strengthening The Body Shop's business, accelerating the integration of the Natura and Avon brands in Latin America, and further optimizing Avon International's footprint. Natura &Co, a global purpose-driven group, operates 2,000 stores and franchises worldwide.
"Under the stewardship of Natura &Co, Aesop reached new heights, expanding the brand's presence across the globe,” Fabio Barbosa, Natura &Co CEO said, in a press release. “In its constant striving for excellence, it also enhanced its sustainability practices. We feel immense gratitude and deep respect for its management and teams and will always hold the company close to our hearts. We wish Aesop all the best for the next chapter as part of the L'Oréal Groupe."
The Body Shop's second net revenue declined by 12.5% at constant currency, Natura &Co reported in its second quarter earnings. Combined sales of core distribution channels (stores, e-commerce and franchise) showed a mid-single digit decline in constant currency while The Body Shop at Home continued its steep decline. Adjusted EBITDA margin showed an improvement by 210 basis points to 5.4%, thanks to another quarter of gross margin growth, up 30 basis points to 77.8%, combined with strict cost control, the company said. The Body Shop continues to focus on structural cost reduction as it works to improve margin and cash generation.