Natura 1Q26 Results — An Adjustment (And Weak) Quarter — EPS Miss Expectations

Research evidence excerpt

Natura 1Q26 Results — An Adjustment (And Weak) Quarter — EPS Miss Expectations

J P M O R G A N Latin America Equity Research

11 May 2026

Natura Overweight

NATU3.SA, NATU3 BZ

1Q26 Results — An Adjustment (And Weak) Quarter — Price (11 May 26):R$10.50

EPS Miss Expectations

LatAm Retail & Healthcare

Natura (NATU3; OW) delivered weaker-than-expected results on expectations Joseph Giordano AC

that have already been lowered. JPM adj. EPS of -R$0.03 was below last year’s (55-11) 4950-3020

+R$0.03 and JPMe/consensus+R$0.07, reflecting soft operating results. The weak joseph.giordano@jpmorgan.com

trends were mainly explained by (1) softer demand in Brazil (particularly in the Banco J.P. Morgan S.A.

Northeast region), (2) service-level interference, and a (3) decline in base/activity Guilherme A. Vilela, CFA

of less productive consultants, alongside (4) a still-pressured Argentina macro (55-11) 4950-3059

guilherme.a.vilela@jpmorgan.com

recovery added to noise from Wave 2 integration. However, the company Banco J.P. Morgan S.A.

generated ~R$130mn in cash on an adjusted basis despite its typically softer Nicolas Larrain

quarterly seasonality and operating results plus receivables deterioration. Having (55-11) 4950-3472

said that, in light of the erratic results over the past quarters, we believe the knee- nicolas.larrain@jpmorgan.com

jerk reaction to the miss on the tape should be negative, particularly in light of the Banco J.P. Morgan S.A.

top-line decline. Still, even considering that 2Q26E is likely to remain soft, albeit Giovanni Vescovi

likely better than 1Q, we believe major share price weakness offers an enhanced (55-11) 4950-2901

entry point for a FCF recovery case. If one-off charges are excluded from the giovanni.vescovi@jpmchase.com

Banco J.P. Morgan S.A.