Brazilian cosmetics giant Natura has finalized the sale of Avon’s operations in six Central American countries — Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic — to Grupo PDC, a regional consumer goods company with a presence in Central America and Peru. The transaction, concluded for a symbolic $1 plus a $22 million receivable, is part of Natura’s ongoing restructuring strategy to streamline operations and reduce costs. The sale is expected to close by October 30, pending local corporate adjustments.
Natura store – Natura &Co
Although it will relinquish direct control of the operations, Natura will maintain a presence in the region through licensing of the Avon brand and the supply of finished products. The strategy reflects the company’s effort to retain a commercial presence in these markets, even after the divestment. The market had anticipated the move, as the company had been signaling its intention to sell Avon’s international assets since last year.
The financial figures help explain the decision. In the first half of the year, discontinued operations at Avon International resulted in R$1.7 billion in cash consumption, reducing the consolidated position by approximately R$750 million. Even so, Natura posted a net profit of R$195 million in the second quarter, reversing a loss in the same period last year, although net revenue slipped by 1.7% to R$5.7 billion.
Despite the challenges, the company is banking on the potential of the Mexican market, where Avon is well established and regarded as strategic for regional growth. According to CEO João Paulo Ferreira, speaking at a meeting with investors in June 2025, the brand’s presence in Mexico strengthens the network of consultants and increases Natura’s penetration in Latin America — a region that will remain a priority in the company’s next steps.
This article is an automatic translation. Click here to read the original article.
