Natura Sells Avon Central America Operations to Grupo PDC

Brazilian cosmetics giant Natura has finalized the divestment of Avon’s direct operations across six Central American countries: Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic. The buyer is Grupo PDC, a regional consumer goods company already established in Central America and Peru. The transaction, valued at a symbolic $1 in addition to a $22 million receivable, aligns with Natura’s ongoing restructuring strategy, aimed at streamlining operations and significantly reducing costs. The formal closure of the sale is anticipated by October 30, subject to necessary local corporate adjustments.

Despite relinquishing direct operational control in these markets, Natura intends to maintain a strategic presence in the region. This will be achieved through a licensing agreement for the Avon brand and the continued supply of finished products. This strategy underscores the company’s commitment to retaining commercial influence and market reach, even after the direct divestment. The market had widely anticipated this move, as Natura had been transparently signaling its intention to sell off various international Avon assets since the previous year.

The financial rationale behind this strategic decision is clear. In the first half of the current year, the discontinued operations of Avon International resulted in a substantial cash consumption of R$1.7 billion, which subsequently reduced Natura’s consolidated cash position by approximately R$750 million. Nonetheless, Natura demonstrated resilience, posting a net profit of R$195 million in the second quarter, a significant turnaround from a loss in the corresponding period last year. However, net revenue for the quarter did experience a slight slip of 1.7%, totaling R$5.7 billion.

Looking ahead, despite these operational shifts and financial adjustments, Natura is placing significant strategic importance on the potential of the Mexican market. Avon is deeply established and highly regarded within Mexico, making it a critical hub for regional growth. According to CEO João Paulo Ferreira, speaking at an investor meeting in June 2025, Avon’s strong presence in Mexico is instrumental in strengthening the network of consultants and enhancing Natura’s overall penetration across Latin America. This region, encompassing key markets like Mexico, is set to remain a paramount priority in the company’s forthcoming strategic endeavors.