By Brazil Stock Guide – Natura Cosméticos S.A. said it has concluded the sale of Avon’s operations in Russia, marking the final step in its corporate simplification strategy as the group doubles down on Latin America. The Brazilian beauty company received RUB 2.52 billion, approximately €26.9 million, from the transaction. The proceeds were received on February 17, 2026.
The divestment was executed through its wholly owned indirect subsidiary, Avon Netherlands Holdings II B.V., which sold Avon Russia to Arnest Group. While modest in size compared to Natura’s consolidated revenue base, the disposal removes exposure to a geopolitically complex market and streamlines operations after years of portfolio restructuring following the Avon acquisition.
Management framed the deal as the conclusion of its broader simplification effort. Natura has been shedding non-core assets and refocusing on its strongest geographies amid margin pressures, higher interest rates and currency volatility. Latin America remains its core earnings engine, particularly Brazil, where the Natura brand retains scale in direct selling and multichannel distribution.
Strategically, exiting Russia also reduces operational and reputational risks linked to sanctions and supply-chain disruptions. The move underscores a clearer capital allocation discipline, with management prioritizing profitability and balance-sheet repair over geographic expansion — a recalibration investors have been pressing for as the company seeks to stabilize leverage and restore sustainable cash generation.
Read more: Global no more
Leave a Reply