Preliminary 2Q26 Results — Weak Trends Suggest Downside to ST Estimates

Research evidence excerpt

Preliminary 2Q26 Results — Weak Trends Suggest Downside to ST Estimates

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

08 July 2026

Natura Overweight

NATU3.SA, NATU3 BZ

Preliminary 2Q26 Results — Weak Trends Suggest Price (07 Jul 26):R$8.05

Downside to ST Estimates

LatAm Retail & Healthcare

Natura (NATU3; OW) exceptionally disclosed preliminary and unaudited figures Joseph Giordano AC

for 2Q26. Overall, the initial operating indicators are materially weaker than (55-11) 4950-3020

anticipated, with top line likely contracting 9-10% y/y - ~6% below already soft joseph.giordano@jpmorgan.com

expectations from us and the Street. With that, although flagging that reported Banco J.P. Morgan S.A.

EBITDA margin expands q/q, we believe downside risks to expectations are Guilherme A. Vilela, CFA

material given the top line miss. All in, despite the recent underperformance, we (55-11) 4950-3059

guilherme.a.vilela@jpmorgan.com

believe shares are likely to remain under pressure, particularly as the Banco J.P. Morgan S.A.

announcement did not provide context on whether the shortages/SAP issues have Nicolas Larrain

been resolved. Worth flagging that short interest and borrow rates are high, so there (55-11) 4950-3472

could be some potential short covering at this point. Natura trades at 8.5x/6.5x P/E nicolas.larrain@jpmorgan.com

‘26E/‘27E. Besides, in the context that Advent purchased the stake pre-agreed with Banco J.P. Morgan S.A.

the founders/controlling shareholders to get 2 board seats, we believe it is likely Giovanni Vescovi

that potential strategic changes will be announced once Advent starts to influence (55-11) 4950-2901

the company's direction via its board position. We rate the company as Overweight giovanni.vescovi@jpmchase.com

Banco J.P. Morgan S.A.