Key Takeaways:Natura &Co’s EBITDA fell 33.7% as macro turbulence and integration costs weighed on margins.Online sales rose 25.9%, while relationship channels fell 6.8%, signaling a structural sales shift.With “Wave 2” integration nearly done, management eyes 2026 margin recovery and renewed growth focus.For Natura &Co, the third quarter of 2025 marked a difficult but pivotal chapter in its post-integration evolution. The company, owner of the Natura and Avon brands, reported net revenue of BRL 5.19 billion ($9.9 million), down 13.1% year over year (YoY), as operational turbulence in Argentina muted consumer sentiment in Brazil. And, the lingering effects of its “Wave 2” systems integration weighed on performance. Yet, amid declining top-line numbers and tightening margins, Natura maintained progress in its multiyear simplification agenda.While reported sales fell sharply, underlying trends showed relative stability when adjusted for foreign exchange volatility. On a constant currency basis, revenue slipped to a milder 3.8%, reflecting gains in Mexico and resilient demand from the Natura brand, even as Avon continued to struggle.The quarter’s story was one of rebalancing. That is, scaling back unprofitable sales channels, tightening costs, and prioritizing digital transformation. The group’s growing digital and retail arms provided bright spots, expanding double digits despite softness in traditional relationship selling. However, macroeconomic challenges, including hyperinflation in Argentina and a weak Brazilian consumer environment, continued to test resilience across the portfolio.