Natura shares plunge 29% after disappointing margin results
Natura & Co Holding SA shares fell 29% in Sao Paulo, marking the largest drop since 2004. The decline followed disappointing fourth-quarter margin results, impacted by weak performance in Argentina and inflation. The company's recurring Ebitda margin dropped to 9.1%, below expectations. This has raised concerns about the future of its dividend payments, as the CFO indicated that dividends depend on margin recovery. Analysts highlighted risks from the integration of Avon, which could further affect Natura's financial outlook. The company aims to regain market confidence by improving margins and cash generation.