SAO PAULO, Oct 26 (Reuters) - Brazil’s beauty products manufacturer Natura Cosmeticos SA reported a sharp net income drop in the third quarter on falling revenues amid a harsh recession, according to a securities filing Wednesday.
Natura’s net income ended the quarter at 73.1 million reais ($23.3 million), down 44.6 percent over the same year-ago quarter. The company said consolidated net revenues fell 4.7 percent to 1.9 billion reais, affected by the weakness of the Brazilian consumer market.
Natura also sells products in Mexico, Colombia, Peru, Argentina and Bolivia. The company, which also has operations in France, revised down investment guidance for 2016 to 300 million reais from 350 million reais, according to the filing.
Amid Brazil’s most prolonged recession in eight decades, Natura said revenue fell as consumers in Brazil are trading its toiletry products for cheaper brands. The company derives 60 percent of sales from this category.
“Brazil remains a challenging market, and consumers have intensified the search for low-cost products,” said José Roberto Lettiere, chief financial officer, in a separate statement.
$1 = 3.1392 reais Reporting by Paula Laier; Writing by Ana Mano; Editing by Lisa Shumaker