Natura sells Avon’s Central America operations to Grupo PDC

Brazil’s Natura has recently revealed its decision to sell off Avon’s operations in Central America and the Dominican Republic to Grupo PDC as part of its strategic plan to simplify its operations. The deal, which is priced at a symbolic US$1, ensures that Natura will remain the licensor and supplier for Avon in the region, while Grupo PDC will take charge of managing Avon’s business in several countries including Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic.

Although Natura did not have control over Avon’s US operations, the company has been focusing on streamlining the rest of Avon’s global presence, including the CARD markets and the Avon International unit. These areas were classified as “assets held for sale” in Natura’s second-quarter earnings report for the year 2025. This move is part of a broader restructuring initiative by Natura, following the previous sale of brands such as Aesop and The Body Shop to strengthen its financial position.

The transaction, expected to be finalized in October, includes an additional payment of US$22 million to Natura’s Mexican subsidiary upon completion. João Paulo Ferreira, CEO at Natura, emphasized the value of Avon’s brand, reputation, and widespread recognition among Latin American consumers. He expressed satisfaction in finding a partner with deep expertise in the Central American market to continue driving Avon’s success in collaboration with Natura.

Following the announcement of the sale of Avon’s Central American and Dominican Republic operations, Natura’s shares on the Sao Paulo stock exchange experienced a 3% increase, according to Reuters. Financially, Natura had been deliberating on the fate of its Avon businesses for more than a year. In February, speculation arose that the company was contemplating selling Avon’s operations outside of Latin America.

In its recent financial reports for the second quarter, Natura revealed a profit of R$445 million (US$82.1 million) from its ongoing businesses. However, factoring in losses from Avon’s struggling units, which are now classified as “assets held for sale,” the reported profit decreased to R$195 million (US$35.8 million). Despite this decline, it marks a significant improvement from the net loss of R$859 million (US$157.96 million) reported during the same period the previous year.

Natura will continue to be the licensor and supplier for Avon in the region, ensuring a seamless transition for the business operations. While Natura’s key brands witnessed a growth in sales in Brazil and Hispanic markets, the sharp decline in Avon’s performance hindered the region’s overall results. Despite challenges associated with Avon, Natura remains optimistic about maintaining profitability growth throughout the year by focusing on simplifying and restructuring its operations.