Natura & Co has taken a decisive step to reshape its portfolio, announcing the sale of its Avon business in Central America and the Dominican Republic for a symbolic $1 plus a $22 million receivable—a deal in line with its ongoing strategy to streamline operations.
What’s Included in the Sale
The newly divested division—known as Avon CARD—spans Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic and passes to Grupo PDC, a regional leader with a broad portfolio in Central America and Peru. Natura & Co will continue to operate as licensor and supplier, maintaining a product and brand presence while giving Grupo PDC operational leadership. The deal is expected to close October 30, pending local adjustments.
Strategic Context and CEO Statement
“Avon has enormous value due to its reputation, brand recognition, income generation for thousands of consultants, and deep household penetration among Latin America consumers,” said João Paulo Ferreira, CEO of Natura & Co. He added, “We are pleased to have found a partner with extensive experience in the Central American market who will continue to drive Avon’s prosperity in close partnership with Natura & Co.”
The sale follows previous divestitures—including Aesop and The Body Shop—with the aim of returning Natura to the black and focusing resources on its core Latin American markets.
Market Impact and Financials
News of the deal led to a 3% rise in Natura’s shares on the Bovespa index, beating the broader market, and earning analyst praise for supporting the company’s plan to divest further non-core assets. Outside Central America, Natura & Co remains committed to operating Avon in Latin America—a market responsible for $990 million in turnover in Q1 2025.
However, the period has not been without challenges. Avon International faced R$1.7 billion in cash consumption (approx. $326M), prompting job cuts and operational restructuring. Still, Natura posted a Q2 net profit of R$195M, reversing last year’s loss.
The Broader Strategic Plan
This Central American sale is part of a wider plan to divest Avon International outside Latin America, recently reclassified as ‘held for sale’ alongside the CARD division. According to Chairman Fábio Barbosa, “This agreement represents the final steps of the simplification journey initiated three years ago, focused on the growth of our operations in Latin America.”
Natura & Co will continue as licensor of the Avon brand within the region and as product supplier, keeping Avon’s ‘original influencer’ direct-selling model intact for thousands of consultants.
Consultants and Customers: What’s Next
For Avon CARD consultants and consumers, the transition means continued earning and product supply, with Grupo PDC’s regional acumen ensuring stability. Analysts note that, while the sale may not have a major financial impact compared to a larger divestiture, it will provide projected cost savings and reduce cash consumption for Natura & Co.
Why This Matters
With the sale, Natura & Co signals a clearer, more focused future and ongoing dedication to innovation, sustainability, and consultant empowerment throughout the broader Latin American region. As CEO João Paulo Ferreira explained, “The ongoing work to reposition the Avon brand and to redefine its innovation portfolio gives us confidence that this brand will resume its growth in the region and help strengthen Natura’s leadership in the Latin American markets.”
By combining brand stewardship and operational efficiency, Natura’s new strategy positions Avon to thrive—carrying forward a direct-selling legacy for the next generation.
