Natura Cutting Estimates Post 2Q Preliminary Disclosure

Research evidence excerpt

Natura Cutting Estimates Post 2Q Preliminary Disclosure

Global Research

16 July 2026ab

Natura Equities

BrazilCutting Estimates Post 2Q Preliminary

Disclosure Cosmetics

12-month rating Neutral

12m price target R$9.50Lower estimates and PT to R$9.50, Keep Neutral

Prior : R$11.00

We revisit our estimates following NATU’s preliminary 2Q26 results, which imply a

revenue contraction of -9% to -10% and lead us to lower our earnings, FCF and Price (16 Jul 2026) R$8.56

dividend estimates, while reducing our price target to R$9.50 (from R$11) Although RIC: NATU3.SA BBG: NATU3 BZ

we continue to expect disciplined cost control to support cash generation and keep

leverage manageable, we now see a slower path to earnings recovery and believe Trading data and key metrics

the investment case will increasingly depend on a meaningful improvement in top- 52-wk range R$10.70-7.20

line trends, which appears unlikely in the near term. With shares trading at 10x / 8x Market cap. R$11.8b/US$2.31b

2026/27 PE, we keep our Neutral rating. Shares o/s 1,375m (COM)

Free float 40%

2Q preliminary results suggest more structural headwinds Avg. daily volume ('000) 13,021

As highlighted in our Downgrade to Neutral, we had already observed softer trends Avg. daily value (m) R$119.8

and growing concerns over NATU’s hability to regain market share amid intensifying Common s/h equity (12/26E) R$13.2b

competition and continued pressure on its direct selling model. While we remained P/BV (12/26E) 0.9x

relatively constructive on the margin expansion and the resumption of dividend Net debt to EBITDA (12/26E) 1.5x

distributions in 2026-27, the preliminary 2Q disclosure suggests a more challenging

operating backdrop than anticipated, with issues appearing more structural than EPS (UBS, diluted) (BRL)