Natura Cosmeticos S A : 2Q 2025 Earnings Release

Q2-25

Good progress on simplification journey, while recurring profitability landed at 14.7%

Revenues up 5.5% YoY in CC, an expected deceleration vs. Q1-25 figure impacted by the Wave 2 roll-out in Mexico and Argentina; Gross margin landed at 66.4% and EBITDA margin at 14.7%, progressing towards FY YoY margin expansion;

Latam FCFF positive, more than offset by cash consumption from Avon International, which is now reclassified as asset held for sale

Q2-25

Natura &Co Latam

YoY Ch. %

Consolidated

YoY Ch. %

BRL million

All Q2 and H1 figures are comparable and reflect the reclassification of Avon International and Avon CARD (from Latam) as assets held for sale1

Holding

YoY Ch. %

Natura &Co Latamb

YoY Ch. %

Consolidated

YoY Ch. %

H1-25

Holding

YoY Ch. %

Net revenue	5.687,4	(1,7)	5.687,4	(1,6)	-	-	10.830,4	4,5	10.830,4	4,5	0,0	-
Constant Currency				5,5%						10,1%		-
Gross profit	3.778,3	(0,4)	3.778,3	(0,3)	-	-	7.245,5	6,2	7.245,5	6,2	-	-
Gross Margin	66,4%	80 bps	66,4%	80 bps	-	-	66,9%	110 bps	66,9%	110 bps	-	-
Reported EBITDA	657,1	(6,9)	743,4	(9,6)	(86,3)	(26,3)	1.307,7	(4,0)	1.425,8	(8,1)	(118,1)	(37,5)
Reported EBITDA margin	11,6%	-60 bps	13,1%	-110 bps	-	-	12,1%	-100 bps	13,2%	-180 bps	-	-
Recurring EBITDA	795,6	4,5	836,8	(1,1)	(41,2)	(51,3)	1.577,1	15,3	1.644,8	8,9	(67,7)	(52,5)
Recurring EBITDA margin	14,0%	80 bps	14,7%	10 bps	-	-	14,6%	140 bps	15,2%	60 bps	-	-
Net income (loss)	195,1	(122,7)	-	-	-	-	44,4	(102,5)	-	-	-	-

1. Net Revenue of BRL 5.7 billion down 1.7% YoY in Brazilian Reais and up +5.5% in constant currency (CC) (+2.0% ex-Argentina) driven by a double-digit performance from Natura Brazil (+10.3%) along with revenue growth of the Natura brand in Hispanic markets (+17.8% or low single digit ex-ARS), offset by still weak Avon brand performance in Brazil (-12.9%) and the anticipated volatility of Avon and Home & Style in Hispanic markets related to the Wave 2 integration in Mexico and preparations in Argentina. Natura showed solid performance in Brazil, but a notable deceleration in the macro and in the Beauty market was felt in June. Given the above-market rate growth from Natura Brazil already posted in H1-25, market share gains are foreseen for the FY.
2. Consolidated Recurring EBITDA of BRL 796 million, with a 14.0% margin, up 80 basis points (bps) YoY and mainly explained by:
   • Natura &Co Latam: recurring EBITDA margin of 14.7%, up 10 bps on a YoY basis, mainly driven by an
     
     

     +80bps YoY gross margin improvement - supported by contributions from more mature Wave 2 markets -but almost entirely offset by G&A deleverage from Hispanic markets and higher investments in innovation

     and systems When compared to Q1-251, margin went down 100bps amid the Wave 2 roll-out

   • Holding: corporate expenses at BRL 44 million, a 47% YoY reduction, mainly driven by the final steps in streamlining the Holding company structure ahead of the merger with Natura Cosméticos, concluded on July 1st. In addition, this quarter was also impacted by BRL -11 million phasing of expenses, which benefited Q1-25 corporate expenses
3. Q2-25 Net income of BRL +195 million, compared to a net loss of BRL -859 million in Q2-24, when it was impacted by a BRL -725 million one-off non-cash event write-off. In the quarter, discontinued operations totaled BRL - 250 million, implying a net income from continued operations of BRL +445 million. The BRL +796 million recurring EBITDA was partially offset by BRL -99 million in consolidated integration costs and BRL -40 million of other operating expenses mainly related to Holding strategic projects. Excluding non-operating impacts, underlying net income was BRL +598 million
4. Q2-25 Net Debt was BRL 4.0 billion (from BRL 2.4 billion in Q4-24), up BRL 1.6 billion YTD. Natura &Co Latam actually generated cash flow in the semester, despite the typical soft seasonality of the period. The increase in net debt is mainly explained by two factors related to Avon International. First the reclassification of the company as an asset held for sale led to a lower consolidated cash position of ~BRL 750 million. And second, the company consumed BRL 1.0 billion of cash in the semester because of (i) the typical seasonality, (ii) the significant restructuring process started this year and (iii) unfavorable FX movements. In addition, there was a BRL -140 million outflow from the share buyback program, net financials consumed BRL -299 million, all of which was partially offset by the positive impact of the USD depreciation against the BRL on total debt.

1 In Q2-25, Avon International and Avon Central America and Dominican Republic (CARD) from Latam were reclassified as assets held for sale. In 2024, Avon International and CARD were accounted for as discontinued operations. All Q2 and H1 figures are comparable. To reconcile the Q1-25 published figures, please see the Appendix.

Natura's streamlining efforts advanced in Q2-25. Strategic alternatives for Avon International continued to progress, and all necessary requirements were met to classify the business unit as an asset held for sale. Additionally, Avon Central America and the Dominican Republic (CARD), previously accounted for under Natura &Co Latam, was also reclassified as an asset held for sale.

In a subsequent event, on July 1 we announced the completion of the merger of Natura &Co into Natura Cosméticos S.A. In parallel, final simplifications were made to the Holding structure, retaining only the teams whose responsibilities were not already absorbed by the Latam organization-such as the Board of Directors and Investor Relations.

In summary, this objectively means that from now on, our continuing operations, including the P&L, cash flow, and balance sheet, exclusively reflect the remaining corporate structure and Natura &Co Latam business.

On the operational front, Q2-25 continued to deliver healthy results and slightly better than expectations. Revenue kept a positive pace in our core market, Brazil, with Natura maintaining above-market performance, more than offsetting the ongoing challenges still faced by the Avon brand. In Hispanic markets, the integration of Natura and Avon-the "Wave 2"-progressed, with implementation taking place in Mexico in May and in Argentina in July.

Despite the volatility associated with the final steps of Wave 2, profitability remained sound, coming in just 100 basis points below Q1-25. The recurring EBITDA margin reflected a combination of a solid gross margin-supported by contributions from more mature Wave 2 markets-and a balanced approach between structural investments and efficiencies unlocked through the combination of Natura and Avon.

Latam operations were positive from a cash flow to firm perspective during the semester, despite typical 1H seasonality. However, on a consolidated basis, this was more than offset by the expected cash consumption at Avon International, driven by the aggressive restructuring efforts that progressed in line with the schedule, and the normal seasonality.

In parallel with our operating progress, Natura earned this quarter its first-ever "A" rating from CDP for both Climate and Supplier Engagement-a recognition that places us among a select group of global leaders in the fight against climate change and highlights the strength of our Net-Zero roadmap and deep value chain engagement. With our Vision 2050 now published, we shift from sustainability to regeneration, placing our Bem Estar Bem (Well-Being-Well) at the core of a strategy designed to create long-term value and resilience.

There is still a lot to be done in the second half of this year. The Wave 2 project is getting closer to its completion with final systems' simplifications still needed to migrate the Avon brand into Natura's IT backbone and to complete the move from the Interlagos manufacturing plant to Cajamar. And the review of strategic alternatives for Avon International has progressed well and continue to be a top priority for both the management and the Board.

Finally, the macroeconomic environment in Latam has become less favorable, with a notable deceleration in Brazil towards the end of Q2, a mounting pressure in Mexico and a potential meaningful FX depreciation on Argentina. While the scenario remains challenging, we remain committed to expanding the recurring FY25 EBITDA margin on a year-over-year basis including through additional cost efficiencies.

We are getting ever closer to the Company we reintroduced to the market at our Natura Day on June 30-a business built on strong brands, distributed through a unique model in high-potential markets, and supported by a committed, innovative, and execution-driven team. This powerful combination is expected to translate into consistent financial growth, with high margins and strong returns.

1. Results Summary

   Consolidated

   Q2-25 Q2-24 Ch. %

   BRL million

   Ch. %

   HoldingbQ2-24

   Q2-25

   Natura &Co Latama

   Q2-25 Q2-24 Ch. %

Profit and Loss by Business

Gross revenue 7.545,9 7.782,1 (3,0) 7.545,9 7.778,8 (3,0) - 3,3 -

Net revenue 5.687,4 5.784,0 (1,7) 5.687,4 5.780,7 (1,6) - 3,3 - Constant Currency 5,5%

COGS (1.909,1) (1.992,3) (4,2) (1.909,1) (1.989,4) (4,0) - (2,9) -

Gross profit 3.778,3 3.791,8 (0,4) 3.778,3 3.791,3 (0,3) - 0,5 -

Selling, marketing and logistics expenses (2.344,4) (2.447,2) (4,2) (2.344,4) (2.447,2) (4,2) - - -

Administrative, R&D, IT and projects expenses (871,4) (752,0) 15,9 (834,5) (748,1) 11,5 (36,9) (3,9) 853,6

Corporate expenses (43,8) (82,0) (46,6) - - - (43,8) (82,0) (46,6)

Other operating income / (expenses), net 26,5 25,3 4,8 21,2 56,1 (62,2) 5,3 (30,8) (117,2)

Transformation / Integration / Group restructuring costs (98,7) (67,6) 46,0 (87,7) (66,5) 31,9 (11,0) (1,1) 877,1

EBIT 446,5 468,2 (4,6) 532,9 585,6 (9,0) (86,4) (117,3) (26,4)

Depreciation 210,6 237,4 (11,3) 210,5 237,1 (11,2) 0,1 0,3 -

EBITDA 657,1 705,6 (6,9) 743,4 822,7 (9,6) (86,3) (117,1) (26,3)

Non-recurring adjustments 138,5 55,7 148,6 93,4 23,1 303,9 45,1 32,6 38,4

Recurring EBITDA 795,6 761,3 4,5 836,8 845,8 (1,1) (41,2) (84,5) (51,3) EBIT 446,5 468,2 (4,6)

23,7	(390,8)	(106,1)
470,2	77,4	507,2
(25,4)	(950,2)	(97,3)
444,8	(872,8)	(151,0)
(249,7)	13,8	(1.909,7)
195,1	(859,0)	(122,7)

Financial income / (expenses), net

Earnings before taxes

Income tax and social contribution

Net Income from continued operations

Discontinued operationsc

Consolidated net (loss) income

Non-controlling interest - 0,2 -

Net income (loss) attributable to controlling shareholders	195,1	(858,8)	(122,7)
Gross margin	66,4%	65,6%	80 bps	66,4%	65,6%	80 bps	-	-	-
Selling, marketing and logistics as % net revenue	(41,2)%	(42,3)%	110 bps	(41,2)%	(42,3)%	110 bps	-	-	-
Admin., R&D, IT and projects exp. as % net revenue	(15,3)%	(13,0)%	-230 bps	(14,7)%	(12,9)%	-180 bps	-	-	-
EBITDA margin	11,6%	12,2%	-60 bps	13,1%	14,2%	-110 bps	-	-	-
Recurring EBITDA margin	14,0%	13,2%	80 bps	14,7%	14,6%	10 bps	-	-	-
Net margin	3,4%	(14,8)%	1820 bps	-	-	-	-	-	-

aNatura & Co Latam: includes all the brands in Latin America, & Co Pay, as well as the Natura subsidiaries in the U.S., France and the Netherlands.

bHolding results include Natura & Co International (Luxembourg)

cIn Q2-25, Avon International and Avon Central America and Dominican Republic (CARD) from Latam were reclassified as assets held for sale. In 2024, Avon International and CARD were accounted for as discontinued operations. All Q2 and H1 figures are comparable. To reconcile the Q1-25 published figures, please see the Appendix.

Consolidated

H1-25 H1-24 Ch. %

BRL million

Ch. %

HoldingbH1-24

H1-25

Natura &Co Latama

H1-25 H1-24 Ch. %

Profit and Loss by Business

Gross revenue 14.365,8 14.010,3 2,5 14.365,8 14.002,9 2,6 - 7,4 -

Net revenue 10.830,4 10.366,7 4,5 10.830,4 10.359,3 4,5 - 7,4 - Constant Currency 10,1%

COGS (3.584,9) (3.544,6) 1,1 (3.584,9) (3.538,4) 1,3 - (6,2) -

Gross profit 7.245,5 6.822,0 6,2 7.245,5 6.820,8 6,2 - 1,2 -

Selling, marketing and logistics expenses (4.588,8) (4.401,4) 4,3 (4.588,8) (4.401,4) 4,3 - - -

Administrative, R&D, IT and projects expenses (1.531,1) (1.385,0) 10,6 (1.488,2) (1.377,2) 8,1 (42,9) (7,8) 452,9

Corporate expenses (68,5) (137,3) (50,1) - - - (68,5) (137,3) (50,1)

Other operating income / (expenses), net 46,2 114,9 (59,8) 41,9 159,2 (73,7) 4,3 (44,3) (109,8)

Transformation / Integration / Group restructuring costs (224,6) (109,9) 104,4 (213,4) (108,8) 96,2 (11,2) (1,1) 894,8

EBIT 878,6 903,3 (2,7) 996,9 1.092,6 (8,8) (118,3) (189,3) (37,5)

Depreciation 429,1 459,5 (6,6) 428,9 459,1 (6,6) 0,2 0,4 -

EBITDA 1.307,7 1.362,8 (4,0) 1.425,8 1.551,7 (8,1) (118,1) (188,9) (37,5)

Non-recurring adjustments 269,4 5,3 4.949,1 219,0 (40,9) (635,9) 50,4 46,3 8,8

Recurring EBITDA 1.577,1 1.368,2 15,3 1.644,8 1.510,9 8,9 (67,7) (142,6) (52,5) EBIT 878,6 903,3 (2,7)

(327,8)	(475,2)	(31,0)
550,8	428,1	28,7
(155,0)	(1.166,4)	(86,7)
395,8	(738,2)	(153,6)
(351,4)	(1.055,9)	(66,7)
44,4	(1.794,1)	(102,5)
-	0,2	-

Financial income / (expenses), net

Earnings before taxes

Income tax and social contribution

Net Income from continued operations

Discontinued operationsc

Consolidated net (loss) income

Non-controlling interest

Net income (loss) attributable to controlling shareholders	44,4	(1.793,9)	(102,5)
Gross margin	66,9%	65,8%	110 bps	66,9%	65,8%	110 bps	-	-	-
Selling, marketing and logistics as % net revenue	(42,4)%	(42,5)%	10 bps	(42,4)%	(42,5)%	10 bps	-	-	-
Admin., R&D, IT and projects exp. as % net revenue	(14,1)%	(13,4)%	-70 bps	(13,7)%	(13,3)%	-40 bps	-	-	-
EBITDA margin	12,1%	13,1%	-100 bps	13,2%	15,0%	-180 bps	-	-	-
Recurring EBITDA margin	14,6%	13,2%	140 bps	15,2%	14,6%	60 bps	-	-	-
Net margin	0,4%	(17,3)%	1770 bps	-	-	-	-	-	-

aNatura & Co Latam: includes all the brands in Latin America, & Co Pay, as well as the Natura subsidiaries in the U.S., France and the Netherlands.

bHolding results include Natura & Co International (Luxembourg)

cIn Q2-25, Avon International and Avon Central America and Dominican Republic (CARD) from Latam were reclassified as assets held for sale. In 2024, Avon International and CARD were accounted for as discontinued operations. All Q2 and H1 figures are comparable. To reconcile the Q1-25 published figures, please see the Appendix.

1. Operational Highlights

   Channel Performance

   • Q2-25 average consultant base showed a -6.4% YoY decrease in Latam, split between -3.2% in Brazil and

     -9.7% in Hispanic markets. The latter was mostly driven by the planned reduction of Avon consultants in Argentina and Mexico amid Wave 2 preparation and implementation, with stabilization expected after a few quarters of integration roll-out, as observed in the other combined countries

   • In Brazil, following a -4.9% YoY decline on average consultant base in Q1-25 and as a result of ongoing measures being implemented to stabilize the channel on a YoY basis, this quarter showed a slight YoY improvement to -3.2%

     Net revenue change (%)

Natura &Co Latam

CFT Natura

Δ% CC

Q2-25 vs. Q2-24

Beauty Consultanta

Δ%

Q2-25 vs. Q2-24

Operational KPIs change(%)

Home & Style

Δ% CC

CFT Avon

Δ% CC

Brazil 10,3% -12,9% 2,8% -3,2%

Hispanic 17,8% -13,6% -25,9% -9,7%

Total 12,7% -13,2% -18,8% -6,4%

aConsiders the Average Available Beauty Consultants in the quarter

Wave 2 Status

• Mexico and Argentina update - As announced during our Natura Day on June 30, the integration of the Natura and Avon brands in Mexico was fully implemented during Q2-25 and was also rolled-out in Argentina in July/25. For now both integrations are progressing aligned with expectations
• Brazil learnings - Minimum order requirement for Natura and Avon brands remains separate, leveraging the multibrand platform management. To enhance the integration process, flexible ordering was launched during the quarter, allowing more flexibility in the purchase of Avon products when placing a Natura order (and vice versa). This order capability will be rolled-out to all Wave 2 countries by the end of Q3
• Latam update - 2025 marks the end of the Wave 2 integration process, with only a few final steps remaining to be completed by year-end. These include final investments in systems and simplification initiatives to fully migrate the Avon brand into Natura's IT backbone in the combined countries, as well as the complete transfer of the Interlagos manufacturing plant to Cajamar. Finally, this will also mean the end of integration-related expenses, which will no longer be incurred from next year onwards

  Natura Brand in Latam

• Natura Brazil reported a 10.3% YoY revenue increase in Q2-25, from productivity gains, driven by a richer mix and pricing increases combined with a broadly stable volume despite the slight channel reduction, as mentioned above in the "Channel Performance" section. During the quarter the brand's performance was solid, but a notable deceleration in Brazil and in the Beauty market was felt in June. Given the above-market rate growth already posted in H1-25, market share gains are foreseen for the FY

• Q2-25 retail sales in Brazil showed robust growth, fueled by healthy same-store sales and a still solid pace of store openings LTM. The brand network expanded to 152 own stores (+31 compared to Q2-24) and 870 franchised stores (+72 compared to Q2-24)

• The company continues to advance on its digitalization journey, with digital sales up by 39.8% YoY in the quarter, mainly driven by increased traffic on our digital platforms, particularly boosted by dedicated initiatives such as live commerce streaming

• Natura Hispanic reported a 17.8% YoY revenue increase in CC in Q2-25. Ex-Argentina, the YoY increase was in the low single digits, reflecting an expected deceleration from the mid-teens posted in

  Q1-25 due to the effects of the Wave 2 integration in Mexico during the quarter. In addition, the real YoY growth in Argentina decelerated with the Wave 2 preparation ahead of the expected roll-out in July

  Avon Brand in Latam (Beauty Category Only)

• Avon Brazil revenue landed at -12.9% YoY in Q2-25, a similar level to YoY Q1-25 decline and still impacted by fewer innovation SKUs launched during the quarter. Innovation investments for the brand are ramping up, but their impact will lag due to the timing of new products launches
• Avon Hispanic revenue was down -13.6% YoY in the quarter and -20.5% YoY ex-Argentina, an expected deterioration compared to the YoY figure posted in Q1-25 amid the Wave 2 integration in Mexico, as mentioned in the "Wave 2 Status" section. Additionally, the brand's performance in Argentina was severely impacted by the transition to a digital-only magazine ahead of the Q3 integration, marking the discontinuation of the physical brochure distribution in the country - a shift already implemented by the Natura brand

  Home & Style

• Home & Style recorded a -18.8% YoY revenue decrease, split between -25.9% in the Hispanic markets and

  +2.8% in Brazil, with the latest benefited by a particularly successful opportunistic campaign leading to a positive YoY performance

• This YoY revenue reduction in this segment was planned during the Natura and Avon consolidation process. In this quarter, the category was particularly impacted by the integration in Mexico and is expected to face similar temporary risks throughout the Wave 2 implementation in Argentina. It is worth noting that the impact is more pronounced in Mexico as this category accounts for a larger share of total revenues compared to other countries

  Emana Pay

• The platform has secured nearly 1,220,000 accounts since its inception, and a 8.9% YoY growth in TPV, reaching BRL 15.8 billion in Q2-25. The strong growth in the credit portfolio which reached BRL 940 million at the end of the quarter, brought increased productivity to consultants through better commercial and credit conditions. Consistent growth in cash-in (+40%), leveraged by the consultants' receivables tools and accounts bearing interests

  Distribution Channel Breakdown

• Digital sales, which include online sales and social selling, accelerated slightly again YoY in Q2-25. Natura reported a 2 percentage point (p.p.) increased contribution to 7% of total sales, which, combined with the solid retail channel performance of 6% of total sales, brings non-direct selling channels to represent 13% of the brand revenues in the quarter. QoQ, the performance was flat. The penetration of digital tools in the consultant base for Latam reached 82.1% in Q2-25 from 81.4% in Q2-24

  Net Revenue Breakdown by Channel (%)

  Natura Avon

  5%

  89%

7%

87%

5% 6%

Q2-24 Q2-25

Direct Selling Digital Retail

1% 2%

99%

98%

Q2-24 Q2-25

Direct Selling Digital

1. Results Analysis

   Net Revenues

   • Revenue was BRL 5.7 billion in Q2-25, remaining broadly stable year-over-year. This stability was a result of double-digit performance from Natura Brazil and revenue growth from the Natura brand in Hispanic markets, offset by still weak Avon brand performance in Brazil and the anticipated volatility of Avon and Home & Style in Hispanic markets related to the Wave 2 integration in Mexico and preparations in Argentina

     Gross Margin

   • Gross margin landed at 66.4% in Q2-25, +80 bps YoY and a QoQ reduction compared to 67.4%1, with most of the countries posting similar gross margins QoQ with YoY improvements, with the exception of Mexico which was impacted by the Wave 2 implementation in the period

   • Similar to other Wave 2 markets, the integration of Natura and Avon in Mexico was accompanied by temporary write-offs accounted in COGS and another negative impact related to the significantly altered beauty consultant demand - especially for the Natura brand. This was mainly explained by higher freight costs for Natura SKUs as urgent deliveries from Brazil were needed to cover inventory shortages caused by the demand shift

   • As observed this quarter, volatility from Wave 2 integration may persist throughout the year, but gross margin should remain at healthy levels, assuming inflation and FX movements in main markets are not disrupted

     Q2-25 Gross Margin

     BRL million		Consolidated		Natura &Co Latam		Holding
     	Q2-25	Q2-24	Ch. %	Q2-25 Q2-24 Ch. %	Q2-25	Q2-24	Ch. %

     Net revenue	5.687,4	5.784,0	(1,7)	5.687,4	5.780,7	(1,6)	0,0	3,3	-
     COGS	(1.909,1)	(1.992,3)	(4,2)	(1.909,1)	(1.989,4)	(4,0)	0,0	(2,9)	-
     Gross profit	3.778,3	3.791,8	(0,4)	3.778,3	3.791,3	(0,3)	0,0	0,5	-
     Gross margin	66,4%	65,6%	80 bps	66,4%	65,6%	80 bps	-	-	-
     H1-25 Gross Margin

     BRL million		Consolidated		Natura &Co Latam		Holding
     	H1-25	H1-24	Ch. %	H1-25 H1-24 Ch. %	H1-25	H1-24	Ch. %

     Net revenue	10.830,4	10.366,7	4,5	10.830,4	10.359,3	4,5	0,0	7,4	-
     COGS	(3.584,9)	(3.544,6)	1,1	(3.584,9)	(3.538,4)	1,3	0,0	(6,2)	-
     Gross profit	7.245,5	6.822,0	6,2	7.245,5	6.820,8	6,2	0,0	1,2	-
     Gross margin	66,9%	65,8%	110 bps	66,9%	65,8%	110 bps	-	-	-

     Operating Expenses

   • Latam selling, marketing and logistics expenses decreased 4.2% to BRL 2.3 billion, or 41.2% of net revenues in Q2-25, down 110 bps YoY. The improvement of selling expenses is mainly explained by efficiencies unlock by Natura and Avon integration in the region, combined with some dilution of selling expenses in Brazil amid Natura strong revenue performance and a stable YoY marketing investments as percentage of net revenues
   • Latam G&A expenses reached 14.7% of net revenues in Q2-25, up by 180 bps YoY. The increase is explained by higher investments in innovation, mainly related to Avon brand, and in systems, with the majority driven by the new integrated planning. These incremental investments combined with a deleverage of Hispanic markets G&A, amid top-line volatility in the region, explains 150 bps YoY. As noted since Q3-24 earnings release, IT and systems investments under "as-a-service" contracts have been primarily booked as Opex (previously Company used to have on-premise contracts under Capex), impacting G&A by BRL 14 million (~20 bps) in the quarter

     1 In Q2-25, Avon International and Avon Central America and Dominican Republic (CARD) from Latam were reclassified as assets held for sale. In 2024, Avon International and CARD were accounted for as discontinued operations. All Q2 and H1 figures are comparable. To reconcile the Q1-25 published figures, please see the Appendix.

   • Corporate expenses totaled BRL 44 million in Q2-25, down 47% YoY, mainly driven by the final steps in streamlining the Holding company structure ahead of the merger with Natura Cosméticos, concluded on July 1st. In addition, this quarter was also impacted by BRL -11 million phasing of expenses, which benefited

     Q1-25 corporate expenses

   • Other operating income was BRL +27 million in Q2-25, flattish vs. the same period last year, when Latam benefited from prior periods' operating income and Holding-incurred expenses from strategic projects. In

     Q2-25, Latam benefited from BRL +21 million mostly related to tax credits

   • Transformation / integration / Group restructuring costs were BRL 99 million in the quarter with BRL 88 million from Latam and BRL 11 million from Holding, related to severance from the streamline progress during Q2. Natura &Co Latam transformation expenses in the quarter were ~50% systems/IT investments, ~15% related to severance, ~15% to logistics and industrial investments, and the remaining portion to legal and other integration expenses

     BRL million		Consolidated		Natura &Co Latam		Holding
     	Q2-25	Q2-24	Ch. %	Q2-25 Q2-24 Ch. %	Q2-25	Q2-24	Ch. %

     BRL million		Consolidated		Natura &Co Latam		Holding
     	H1-25	H1-24	Ch. %	H1-25 H1-24 Ch. %	H1-25	H1-24	Ch. %

     Q2-25 Operating Expenses

     Selling, marketing and logistics expenses	(2.344,4)	(2.447,2)	(4,2)	(2.344,4)	(2.447,2)	(4,2)	0,0	0,0	-
     Administrative, R&D, IT and project	(871,4)	(752,0)	15,9	(834,5)	(748,1)	11,5	(36,9)	(3,9)	853,6
     Corporate expenses	(43,8)	(82,0)	(46,6)	0,0	0,0	-	(43,8)	(82,0)	(46,6)
     Other operating income / (expenses),	26,5	25,3	4,8	21,2	56,1	(62,2)	5,3	(30,8)	(117,2)
     Transformation / integration / group	(98,7)	(67,6)	46,0	(87,7)	(66,5)	31,9	(11,0)	(1,1)	877,1
     Operating expenses	(3.331,8)	(3.323,5)	0,2	(3.245,4)	(3.205,7)	1,2	(86,4)	(117,8)	(26,7)
     Selling, marketing and logistics expenses	(41,2)%	(42,3)%	110 bps	(41,2)%	(42,3)%	110 bps	-	-	-
     Administrative, R&D, IT and project expe	(15,3)%	(13,0)%	-230 bps	(14,7)%	(12,9)%	-180 bps	-	-	-
     Corporate expenses (% NR)	(0,8)%	(1,4)%	60 bps	-	-	-	-	-	-
     Other operating income / (expenses), net	0,5%	0,4%	10 bps	0,4%	1,0%	-60 bps	-	-	-
     Transformation/integration/group reestru	(1,7)%	(1,2)%	-50 bps	(1,5)%	(1,2)%	-30 bps	-	-	-
     Operating expenses (% NR)	(58,6)%	(57,5)%	-110 bps	(57,1)%	(55,5)%	-160 bps	-	-	-
     H1-25 Operating Expenses

     Selling, marketing and logistics expenses	(4.588,8)	(4.401,4)	4,3	(4.588,8)	(4.401,4)	4,3	0,0	0,0	-
     Administrative, R&D, IT and project	(1.531,1)	(1.385,0)	10,6	(1.488,2)	(1.377,2)	8,1	(42,9)	(7,8)	452,9
     Corporate expenses	(68,5)	(137,3)	(50,1)	0,0	0,0	-	(68,5)	(137,3)	(50,1)
     Other operating income / (expenses),	46,2	114,9	(59,8)	41,9	159,2	(73,7)	4,3	(44,3)	(109,8)
     Transformation / integration / group	(224,6)	(109,9)	104,4	(213,4)	(108,8)	96,2	(11,2)	(1,1)	894,8
     Operating expenses	(6.366,9)	(5.918,7)	7,6	(6.248,6)	(5.728,2)	9,1	(118,3)	(190,5)	(37,9)
     Selling, marketing and logistics expenses	(42,4)%	(42,5)%	10 bps	(42,4)%	(42,5)%	10 bps	-	-	-
     Administrative, R&D, IT and project expe	(14,1)%	(13,4)%	-70 bps	(13,7)%	(13,3)%	-40 bps	-	-	-
     Corporate expenses (% NR)	(0,6)%	(1,3)%	70 bps	-	-	-	-	-	-
     Other operating income / (expenses), net	0,4%	1,1%	-70 bps	0,4%	1,5%	-110 bps	-	-	-
     Transformation/integration/group reestru	(2,1)%	(1,1)%	-100 bps	(2,0)%	(1,1)%	-90 bps	-	-	-
     Operating expenses (% NR)	(58,8)%	(57,1)%	-170 bps	(57,7)%	(55,3)%	-240 bps	-	-	-

     Recurring and Consolidated EBITDA

     Recurring EBITDA reached BRL 796 million in Q2-25, up 4.5% compared to the same period last year, with a recurring EBITDA margin of 14.0% (+80 bps YoY) and reflected:

   • Latam recurring EBITDA margin of 14.7%, down from 15.7% in Q1-251 amid Wave 2 roll-out, and up 10 bps on a YoY basis, mainly driven by an +80bps YoY gross margin improvement - supported by contributions from more mature Wave 2 markets, but almost entirely offset by G&A deleverage from Hispanic markets and higher investments in innovation and systems

   • A 47% YoY reduction in corporate expenses ahead of the merger, concluded on July 1st

     Q2-25 Recurring EBITDA

     BRL million		Consolidated		Natura &Co Latam		Holding
     	Q2-25	Q2-24	Ch. %	Q2-25 Q2-24 Ch. %	Q2-25	Q2-24	Ch. %

     Consolidated EBITDA	657,1	705,6	(6,9)	743,4	822,7	(9,6)	(86,3)	(117,1)	(26,3)
     Transformation / Integration / Group Reestructuring costs	98,7	67,6	46,0	87,7	66,5	31,9	11,0	1,1	877,1
     Net non-recurring other (income) / expenses1	39,8	(11,9)	(435,0)	5,7	(43,4)	(113,1)	34,1	31,5	8,4
     Recurring EBITDA	795,6	761,3	4,5	836,8	845,8	(1,1)	(41,2)	(84,5)	(51,3)
     Recurring EBITDA margin %	14,0%	13,2%	80 bps	14,7%	14,6%	10 bps	-	-	-

     1 Net non-recurring other (income)/expenses: related to tax credits of Natura &Co Latam and credits recognized by Holding

     H1-25 Recurring EBITDA

     BRL million		Consolidated		Natura &Co Latam		Holding
     	H1-25	H1-24	Ch. %	H1-25 H1-24 Ch. %	H1-25	H1-24	Ch. %

     Consolidated EBITDA	1.307,7	1.362,8	(4,0)	1.425,8	1.551,7	(8,1)	(118,1)	(188,9)	(37,5)
     Transformation/Integration/Group reestructuring costs	224,6	109,9	104,4	213,4	108,8	96,2	11,2	1,1	894,8
     Net non-recurring other (income) / expenses1	44,8	(104,6)	(142,8)	5,6	(149,7)	(103,7)	39,2	45,2	(13,2)
     Recurring EBITDA	1.577,1	1.368,2	15,3	1.644,8	1.510,9	8,9	(67,7)	(142,6)	(52,5)
     Recurring EBITDA margin %	14,6%	13,2%	140 bps	15,2%	14,6%	60 bps	-	-	-
     Financial Income and Expenses

     The table below details the main changes in financial income and expenses:

     BRL million	Q2-25	Q2-24	Ch. %	H1-25	H1-24	Ch. %
     1. Financing, short-term investments and derivatives gains (losses)	(315,5)	(153,0)	106,2	(581,4)	(130,3)	346,1
     1.1 Financial expenses	(137,2)	(248,1)	(44,7)	(267,2)	(345,3)	(22,6)
     1.2 Financial income	22,5	88,6	(74,6)	63,9	218,0	(70,7)
     1.3 Gain (losses) on foreign exchange derivatives from financing activities, net	(200,8)	6,5	(3.176,7)	(378,0)	(3,0)	12.615,8
     2. Judicial contingencies	(9,6)	6,2	(255,1)	(21,6)	(9,0)	139,9
     3. Other financial income and (expenses)	348,8	(244,0)	(243,0)	275,2	(335,8)	(181,9)
     3.1 Lease expenses	(19,8)	(21,2)	(6,7)	(52,3)	(54,5)	(4,2)
     3.2 Other	(4,1)	7,7	(153,3)	(77,4)	(87,1)	(11,2)
     3.3 Other gains (losses) from exchange rate variation	386,8	(169,5)	(328,2)	426,3	(35,4)	(75,3)
     3.4 Hyperinflation gains (losses)	(14,0)	(60,9)	(76,9)	(21,5)	(158,7)	(51,2)
     Financial income and expenses, net	23,7	(390,8)	(106,1)	(327,8)	(475,1)	(31,0)

     Total net financial expenses were BRL +23.7 million in Q2-25, compared to BRL -391 million in Q2-24. The main drivers this quarter were:

     • Item 1.1 Financial expenses of BRL -137 million from a total gross debt of BRL 6.3 billion, benefiting from the low interest cost of the 2028 and 2029 Bonds
     • Item 1.2 Financial income of BRL +23 million from a cash position of BRL 2.3 billion impacted by lower average cash during the quarter (compared to end-of-period position) and a BRL 393 million of cash kept in USD
     • Item 1.3 Gain (losses) on foreign exchange derivatives from financing activities, net of BRL -201 million related to derivatives purchased to protect the principal of the 2028 and 2029 USD bonds held by Natura &Co Luxembourg. Aligned with Q1-25 figure, when the USD depreciated against BRL, Q2-25 also showed a similar trend and therefore posted a mark-to-market loss
     • Item 3.3 Other gains (losses) from exchange rate variation of BRL +386 million mainly related to the exchange rate variation of an intercompany loan (EUR vs USD) between Natura Lux and Avon International

       1 In Q2-25, Avon International and Avon Central America and Dominican Republic (CARD) from Latam were reclassified as assets held for sale. In 2024, Avon International and CARD were accounted for as discontinued operations. All Q2 and H1 figures are comparable. To reconcile the Q1-25 published figures, please see the Appendix.

       Underlying Net Income and Net Income

     • Reported net income was BRL 195 million in the quarter, compared to a net loss of BRL -859 million in Q2-24, when it was impacted by a BRL -725 million one-off non-cash event write-off. Q2-25 discontinued operations totaled BRL - 250 million, implying a net income from continued operations of BRL 445 million. The BRL +796 million recurring EBITDA was partially offset by BRL -99 million in consolidated integration costs and BRL -40 million of other operating expenses mainly related to Holding strategic projects. Finally, contrary to Q1-25 when tax expenses were negatively impacted by the soft Q1 seasonality adjusted by the full-year expected rate, Q2-25 tax expenses were benefited by the same full-year tax linearization and landed at BRL -25 million

     • Excluding non-operating impacts, underlying net income was BRL +564 million, compared to a net income of BRL +162 million in same period last year, mainly driven by lower net financial expenses and taxes

     Reported net income to underlying net income bridge

     564

     -35

     250

     15

     195

     139

     Net income

     Discontinued

     operations PPA

     EBITDA adjustments

     Taxes from EBITDA adjustments (@25% rate)

     Underlying net income

     
     
     

     Free Cash Flow

     The table below details the main changes in cash position:

     R$ million	H1-25	H1-24	Ch. %
     Net income (loss)	44,4	(1.793,9)	(102,5)
     Depreciation and amortization	429,0	445,5	(3,7)
     Non-cash adjustments to net income	1.285,9	2.104,5	(38,9)
     Discountinued Operations Results	351,4	1.055,9	(66,7)
     Adjusted net income	2.110,7	1.811,9	16,5
     Decrease / (increase) in working capital	(1.241,6)	(2.060,0)	(39,7)
     Inventories	(632,9)	(848,6)	(25,4)
     Accounts receivable	(169,8)	(1.349,7)	(87,4)
     Accounts payable	310,8	411,5	(24,5)
     Other assets and liabilities	(749,7)	(273,3)	174,3
     Income tax and social contribution	(134,2)	(370,9)	(63,8)
     Interest on debt and derivative settlement	(242,8)	(427,7)	(43,2)
     Lease payments	(183,3)	(155,9)	17,6
     Other operating activities	(96,5)	(73,3)	31,7
     Cash from continuing operations	212,3	(1.275,9)	(116,6)
     Capex	(165,4)	(198,3)	(16,6)
     Sale of assets	0,0	9,4	-
     Exchange rate variation on cash balance	(56,3)	281,7	(120,0)
     Free cash flow - continuing operations	(9,3)	(1.183,1)	(99,2)
     Other financing and investing activities	465,6	483,2	(3,6)
     Operating activities - discontinued operations	(1.761,8)	(1.416,8)	24,4
     Capex - discontinued operations	-	(37,7)	-
     Cash balance variations	(1.305,6)	(2.154,3)	(39,4)

     Free cash flow from continuing operations was BRL -9 million in H1-25 compared to BRL -1.2 billion in the same semester last year. Despite the historical unfavorable seasonality, at the Natura&Co level, we released BRL

     +290 million of FCFF in the semester (adding back BRL 243 million from interest on debt and derivative settlements and BRL 56 million from FX on cash balance), with Natura &Co Latam releasing BRL +408 million and Holding consuming BRL -118 million. The better seasonal cash profile is mainly related to a shorter commercial credit terms to consultants, which led to lower cash consumption from accounts receivables.

     During the first semester, discontinued operations (which combines Avon International and CARD) represented a cash outflow of BRL -1,762 million. These cash outflow is driven by the reclassification of the company as an asset held for sale and led to a lower consolidated cash position of ~BRL 750 million. In addition, the company consumed BRL 1.0 billion of cash in the semester because of (i) the typical seasonality, (ii) the significant restructuring process started this year and (iii) unfavorable FX movements.

     
     
     

     Indebtedness Ratios at both Natura &Co Holding and Natura Cosméticos

     R$ million	Natura Cos Q2-25	méticos S.A. Q2-24	Natura &Co Q2-25	Holding S.A. Q2-24
     Short-Term	77,4	77,7	88,3	92,0
     Long-Term	2.356,2	1.531,2	6.270,8	5.653,8
     Obligations with senior shareholders Natura Pay FIDC	351,8	-	351,8	-
     (=) Total funding liabilities	2.785,4	1.608,9	6.710,9	5.745,8
     (-) Obligations with senior shareholders Natura Pay FIDC	(351,8)	-	(351,8)	-
     Gross Debta		2.433,7	1.608,9	6.359,1	5.745,8
     Foreign currency and/or Interest hedging (Swaps)b		(27,8)	(25,3)	(27,8)	(76,6)
     Total Gross Debt		2.405,9	1.583,6	6.331,3	5.669,2
     (-) Cash, Cash Equivalents and Short-Term Investmentc		(2.266,8)	(2.531,0)	(2.342,5)	(3.517,2)
     (=) Net Debt		139,1	(947,4)	3.988,9	2.152,0
     Indebtedness ratio including IFRS 16 effects d
     Net Debt/EBITDA		0,05x	-0,33x	2,18x	0,97x
     Total Debt/EBITDA		0,92x	0,55x	3,46x	2,56x
     Indebtedness ratio excluding IFRS 16 effects d
     Net Debt/EBITDA		0,06x	-0,36x	2,54x	1,23x
     Total Debt/EBITDA		1,01x	0,61x	4,03x	3,23x
     aGross debt excludes exclude lease agreements bExchange rate and interest rate hedging instruments cShort-Term Investments excludes non current balances dHistorical values and ratios were presented as reported in the periods

     The graph below shows the indebtedness quarterly trajectory since Q2-24.

     Net Debt/EBITDA including IFRS 16 effects

     Net Debt/EBITDA excluding IFRS 16 effects

     1,23 1,73 1,52 1,68

     2,54

     2,18

     1,50 1,27 1,43

     0,97

     Q2-24 Q3-24 Q4-24 Q1-25 Q2-25

     Net Debt / EBITDA landed at 2.18x by the end of Q2-25, while net debt was BRL 4.0 billion (from BRL 2.4 billion in Q4-24). Gross debt reduced to BRL 6.3 billion from BRL 6.8, benefited by BRL ~500 million from the USD depreciation in our debt position, while cash & equivalents landed at BRL 2.3 billion at the end of Q2-25 from BRL

     4.5 billion in Q4-24. The BRL 2.1 billion change is mainly driven by ~BRL -750 million reclassification of previously consolidated Avon's cash position to asset held for sale account and BRL -1.0 billion of cash consumption from Avon International, split between ~BRL 700 million from operations and the remaining mainly explained by FX movements. In addition, outflows from the share buyback program of BRL -140 million, BRL -118 million from Holding, BRL -299 from financial expenses more than offset the Latam BRL 408 million cash generation during first semester, despite the soft seasonality.

     1.027 3.989

     735

     2.389

     204

     140

     299

     -516

     118

     -407

     Q4-24 Net Debt

     Usd depreciation

     Latam generation

     Holding consumption

     Financial expenses

     FX and others

     Share buyback

     Avon's cash reclass

     Avon Int…

     Q2-25 Net debt

2. Social and environmental performance

   For the first time in our fifteen-year history with CDP, Natura earned an "A" score for both Climate and Supplier Engagement Rating (SER)-an honor reserved for fewer than two percent of the 21,000-plus companies evaluated worldwide and one that no other cosmetics company in Brazil currently holds. These dual achievements places Natura among a select group of global leaders in the fight against climate change and validates the rigor of our Net-Zero roadmap, our disciplined management of climate risks and opportunities, and our deep engagement across the value chain.

   During the quarter, external stakeholders continued to confirm Natura's leadership. Kantar's Brand Blueprint Awards at Cannes Lions named us the World's Most Sustainable Brand; Brand Finance ranked Natura the leading cosmetics brand for environmental performance; Sustainable Business COP30 (SB COP) appointed our CEO, João Paulo Ferreira, to chair its Bioeconomy working group-placing Natura at the center of Brazil's official private-sector contribution to COP30 negotiations; and the Merco ESG Responsibility index recognized us for the eleventh consecutive year.

   Operationally, we advanced decarbonization at scale. Certified clean-energy power-purchase agreements (PPAs) were extended to Moreno (Argentina) and Cajamar (Brazil), where renewables will meet approximately 60 percent and 50 percent of electricity demand, respectively. Combined with our earlier PPA in Celaya (Mexico), the new agreements position us to avoid up to 5.8 kilotons of CO₂e annually-directly reinforcing Net-Zero targets and reducing exposure to long-term energy-cost volatility.

   In the Amazon, we commissioned our 20th community agro-industry-and the first solar-powered flood-plain facility-developed in partnership with ATAIC and WEG. The clean-energy processing platform improves logistical efficiency and is expected to lift participating families' income by about 60 percent. Through the Amazônia Viva Finance Mechanism, fifteen sociobiodiversity supplier associations and cooperatives have already accessed roughly R$ 13 million in low-cost credit, while an additional R$ 13.5 million in structured-investment capital has been secured to upgrade local infrastructure and financial management in line with UEBT regenerative standards-mobilizing around R$ 26.5 million to date with zero defaults. We also hosted our seventh Amazon immersion, bringing 110 community leaders together, and convened the third Mechanism meeting to deepen socio-productive collaboration. These actions unlock new bioeconomy revenue streams while safeguarding biodiversity, protecting our raw-materials pipeline, and bolstering community resilience.

   Our social-impact agenda remained equally active. Natura was cited as the brand that best represents Brazilian identity in the 2025 edition of the "Brasilidades" survey by MindMiners, further enhancing relevance among purpose-driven consumers. Internally, we rolled out the "Aprender +" financial-literacy campaign, tailoring content to the Human Development Index profiles of our consultants, and partnered with Electy to offer a clean-energy program that lowers household electricity costs-an initiative that accelerates a just energy transition across our network.

   Looking ahead, we published our Vision 2050, which shifts the company from a sustainability focus to a regenerative one. Grounded in the principle of Bem Estar Bem- our well-being-well for people, communities, and nature-this long-term vision frames regeneration as the strategic engine for value creation. By nurturing the relationships that sustain life, we aim to build a business model that is more resilient to climate, social, and regulatory shocks while opening new avenues for growth.

3. Capital Markets and Stock Performance

   NATU3 share price reached BRL 11.05 at the end of Q2-25 on the Brazilian Stock Exchange (B3), up +10.6% in the quarter. Average Daily Trading Volume (ADTV) was BRL 767.8 million for the period, +8.8% vs Q2-24.

   On June 30, 2025, the Company's market capitalization was BRL 15.2 billion, and the Company's capital was

   comprised of 1,374,557,657 common shares.

   As a subsequent event, following the June 23 (link) announcement of the approval of the merger of Natura &Co into Natura Cosméticos S.A., July 1, 2025 was recorded as the official date of consummation. In addition, on August 07, MSCI announced the migration of NATU3 from the Brazil mid-cap index to small-cap index.

4. Fixed Income

   The table below details all public debt instruments outstanding per issuer as of June 30, 2025:

   
   
   

   Ratings

   
   
   

5. Appendix

   Natura &Co Latam Revenue Breakdown

   Natura &Co Latam	Net Revenue change (%)
   	Q2-25 vs. Q2-24
   	Reported (R$)	Constant Currency
   Natura Latama	7,4%	12,7%
   Natura Brazil Natura Hispanic	10,3% 4,8%	10,3% 17,8%
   Avon Beauty + Home & Style	-27,4%	-14,5%
   Avon Brazil	-10,0%	-10,0%
   Avon Hispanic	-40,1%	-17,4%

   aNatura Latam includes Natura Brazil, Hispanic and others

   Hyperinflation impact

   • In order to address market concerns related to Argentina's FX and inflation volatility, the table below shows the accounting effects related to the hyperinflation impact (IAS-29) in Q2-25. In addition, it is worth mentioning that recurring EBITDA margin ex-Argentina was 14.0%, down 110 bps YoY

     	Q2-25 H (ex-hyperinflation)	iperinflatio	n FX EoP	Q2-25 (reported)			Q2-24 H (ex-hyperinflation)	iperinflation	FX EoP	Q2-24 (reported)
     Net revenues	5.799	59	-170	5.687		Net revenues	5.646	124	12	5.781
     Recurring EBITDA	914	-38	-39	837		Recurring EBITDA	956	-118	8	846
     % Recurring EBITDA margin	15,8%			14,7%		% Recurring EBITDA margin	16,9%			14,6%

     Reported Q1-25 to Pro-forma Q1-25

Q1-25 Reconciliation from reported version to Pro-forma

BRL million	Consolidated Q1-25 Published		Avon Internationala Adjustments		Natura &Co Latamb Adjustments	Consolidated Consolidated Adjustments Q1-25 Pro- forma
Gross revenue	8.646,4		(1.660,3)		(166,2)	6.819,9
Net revenue	6.679,4		(1.394,3)		(142,1)	5.143,0
COGS	(2.253,3)		514,0		63,5		(1.675,8)
Gross profit	4.426,1		(880,3)		(78,6)		3.467,2
Selling, marketing and logistics expenses	(2.956,1)		637,5		74,2		(2.244,4)
Administrative, R&D, IT and projects expenses	(1.024,8)		338,6		26,5		(659,7)
Corporate expenses	(24,7)			-			(24,7)
Other operating income / (expenses), net	27,7		(7,9)				19,7
Transformation / Integration / Group restructuring costs	(189,1)		63,6		(0,4)		(125,9)
EBIT	259,0		151,5		21,6		432,1
Depreciation	336,4		(111,5)		(6,4)		218,5
EBITDA	595,4		40,0		15,2		650,6
Non-recurring adjustments	194,1		(63,6)		0,4		130,9
Recurring EBITDA	789,5		23,6		(31,6)		781,5
EBIT	259,0		151,5		21,6		432,1
Financial income / (expenses), net	(250,9)					(100,7)	(351,6)
Earnings before taxes	8,0		151,5		21,6	(100,7)	80,6
Income tax and social contribution	(159,5)					29,9	(129,6)
Net Income from continued operations	(151,5)		151,5		21,6	(70,8)	(49,0)
Discontinued operationsc		-				(101,7)	(101,7)
Consolidated net (loss) income	(151,5)					0,8	(150,7)
Non-controlling interest	0,8					(0,8)		-
Net income (loss) attributable to controlling shareholders	(150,7)					0,0	(150,7)
Gross margin	66,3%						67,4%
Selling, marketing and logistics as % net revenue	(44,3)%						(43,6)%
Admin., R&D, IT and projects exp. as % net revenue	(15,3)%						(12,8)%
EBITDA margin	8,9%						12,7%
Recurring EBITDA margin	11,8%						15,2%
Net margin	(2,3)%						(2,9)%
aAvon International reclassified as assets held for sale
bCARD reclassified as assets held for sale

Free Cash Flow Reconciliation

The correspondence between Free Cash Flow and Statements of Cash Flow is shown below:

Consolidated Balance Sheet

ASSETS (R$ million)	Jun-25	Dec-24	LIABILITIES AND SHAREHOLDER'S EQUITY (R$ million)	Jun-25	Dec-24
CURRENT ASSETS			CURRENT LIABILITIES
Cash and cash equivalents	1.335,1	2.641,7	Borrowings, financing and debentures	88,3	55,9
Short-term investments	1.007,3	1.816,4	Lease	183,4	207,2
Trade accounts receivable	4.527,1	5.280,8	Trade accounts payable and reverse factoring operations	5.031,7	6.341,8
Accounts receivable - sale of subsidiary	-	-	Dividends and interest on shareholders' equity payable	0,7	1,4
Inventories	3.021,5	3.378,2	Payroll, profit sharing and social charges	650,2	1.200,9
Recoverable taxes	906,3	729,0	Tax liabilities	502,1	674,4
Income tax and social contribution	234,3	305,9	Income tax and social contribution	79,2	57,2
Derivative financial instruments	65,5	342,9	Derivative financial instruments	340,1	147,5
Other current assets	494,2	644,6	Provision for tax, civil and labor risks	11,9	20,0
Assets held for sale	7.280,5	-	Other current liabilities	317,1	901,3
			Assets held for sale	4.015,6	-
Total current assets	18.872,0	15.139,5	Total current liabilities	11.220,4	9.607,5
NON CURRENT ASSETS			NON CURRENT LIABILITIES
Accounts receivable - sale of subsidiary	425,1	427,8	Borrowings, financing and debentures	6.270,8	6.786,8
Recoverable taxes	549,5	648,3	Obligations with senior shareholders in Natura Pay FIDC	351,8	353,5
Deferred income tax and social contribution	1.718,8	1.905,2	Lease	394,8	769,6
Judicial deposits	576,1	544,1	Payroll, profit sharing and social charges	22,7	118,1
Derivative financial instruments	86,1	46,3	Tax liabilities	176,9	176,8
Short-term investments	25,3	28,7	Deferred income tax and social contribution	135,0	1.465,1
Other non-current assets	97,1	1.377,7	Provision for tax, civil and labor risks	858,3	993,4
Total long term assets	3.478,0	4.978,0	Other non-current liabilities	389,7	1.299,4
Property, plant and equipment	2.465,9	3.898,2	Total non-current liabilities	8.600,1	11.962,7
Intangible	9.364,2	12.456,2	SHAREHOLDERS' EQUITY
Right of use	684,5	1.043,0	Capital stock	12.490,0	12.484,5
Total non-current assets	15.992,6	22.375,3	Treasury shares	-	- 20,0
			Capital reserves	10.365,7	10.481,3
			Profit Reserves	-	-
			Accumulated Losses	- 8.571,9	- 8.616,6
			Other comprehensive income	760,2	1.615,3
			Equity attributable to owners of the Company	15.044,1	15.944,5
			Non-controlling interest in shareholders' equity of subsidiaries	-	0,2
TOTAL ASSETS	34.864,6	37.514,8	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	34.864,6	37.514,8

Purchase Price Allocation (PPA) Amortization

		Q2-25 Q2-24
R$ million Q2-25 Q2-24
Net Revenue

Cost of Products Sold	(1,6)	(1,6)	(1,6)	(1,6)
Gross Profit	(1,6)	(1,6)	(1,6)	(1,6)
Selling, Marketing and Logistics Expenses	(16,6)	(16,6)	(16,6)	(16,6)
Administrative, R&D, IT and Project Expense	(0,4)	(0,4)	(0,4)	(0,4)
Other Operating Income (Expenses), Net	0,0	0	0,0	0
Financial Income/(Expenses), net	(0,2)	(1,4)
Income Tax and Social Contribution	3,9	(9,6)
LOSS FROM CONTINUED OPERATIONS	(14,8)	(29,6)
Depreciation	(18,6)	(18,6)	(18,6)	(18,6)

Consolidated Statement of Cash Flow

R$ million Jun - 25 Jun - 24

Free Cash Flow Reconciliation

(a)	Net income
(b)	Depreciation/amortization
(c)	Non-cash adjustments to net income
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(c)
(d2)	Accounts receivable
(d1)	Inventories
(d4)	Other Assets and Liabilities
(d4)	Other Assets and Liabilities
(d3)	Accounts payable
(d4)	Other Assets and Liabilities
(d4)	Other Assets and Liabilities
(d4)	Other Assets and Liabilities
(e)	Income Tax and Social Contribuion
(h)	Other Operating Activities
(h)
(f)	Interest on Debt and derivative settlement
(g)	Lease Payments
(f)	Interest on Debt and derivative settlement
(m)	Operating activities - discountinued operations
(j)	Capex
(i)	Capex
(j)	Sale of Assets
(l)	Other financing and investing activities
(l)
(o) & (l)	Capex - discountinued operations & Other financing and investing activities

CASH FLOW FROM OPERATING ACTIVITIES

Net (loss) income for the period 43,4 (1.794,2)

Adjustments to reconciliate net (loss) income for the period with net cash used in operating activities:

Depreciation and amortization 429,0 445,5

Interest and exchange variation on short-term investments (6,4) (219,1)

Loss from swap and forward derivative contracts 391,6 70,8

Increse (reversion) of provision for tax, civil and labor risks 54,0 18,0

Monetary adjustment of judicial deposits (19,5) (13,5)

Monetary adjustment of provision for tax, civil and labor risks 21,7 27,5

Income tax and social contribution 154,9 1.156,8

Income from sale and write-off of property, plant and equipment and intagible 35,1 15,6

Interest and exchange rate variation on leases 52,3 47,3

Interest and exchange rate variation on borrowings, financing and debentures, net of acquisition costs 281,5 224,4 Provision (reversal) for losses on property, plant and equipment, intangible assets and leases 0,0 (1,8) Increase (reversion) of provision for stock option plans 13,1 16,3

Provision for losses with trade accounts receivables, net of reversals 286,5 257,4

Provision for inventory losses, net of reversals 112,0 118,7

Effect from hyperinflationary economy 21,5 387,5

Credit taxes (61,7) 0,0

Other movements (50,8) (1,4)

Increase (Decrease) in:

Trade accounts receivable and related parties (169,8) (1.349,7)

Inventories (632,9) (848,6)

Recoverable taxes (135,7) 114,2

Other assets (198,7) (183,5)

Domestic and foreign trade accounts payable and related parties 310,8 411,5

Payroll, profit sharing and social charges, net (251,4) (16,1)

Tax liabilities (56,0) 4,8

Other liabilities (108,0) (192,8)

OTHER CASH FLOWS FROM OPERATING ACTIVITIES

Payment of income tax and social contribution (134,2) (370,9)

Release of judicial deposits (17,9) 11,4

Payments related to tax, civil and labor lawsuits (78,6) (84,7)

(Payments) proceeds due to settlement of derivative transactions (9,3) (120,2)

Payment of interest on lease (51,7) (46,6)

Payment of interest on borrowings, financing and debentures (233,4) (307,5)

Operating Activities Discontinued Operations (1.410,4) (360,9)

NET CASH (USED IN) OPERATING ACTIVITIES (1.418,8) (2.583,7)

CASH FLOW FROM INVESTING ACTIVITIES

Additions of property, plant and equipment and intangible (165,4) (198,3)

Proceeds from sale of property, plant and equipment and intangible 0,0 9,4 Short-term acquisition (9.697,8) (14.966,5)

Redemption of short-term investments 10.250,6 17.158,8

Redemption of interest on short-term investments 44,5 176,4

Investing activities - discontinued operations 0,0 (37,7)

NET CASH GENERATED BY (USED IN) INVESTING ACTIVITIES

431,8

2.142,1

CASH FLOW FROM FINANCING ACTIVITIES

(g)

(l)

(l)

Lease payments

Other financing and investing activities

Repayment of lease - principal (131,6) (109,3)

Repayment of borrowings, financing and debentures - principal 0,0 (949,9)

New borrowings, financing, and debentures 2,3 131,5

Payment of dividends and interest on equity	(0,7)	(982,8)		(l)
Receipt (payment) of funds due to settlement of derivative transactions	(17,4)	(5,2)		(l)
Share buyback program	(121,3)	0,0
Equity raise	5,5
Financing activities - discontinued operations	0,0	(79,0)		(n)	Payment of lease - discountinued operations
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(263,3)	(1.994,8)
Effect of exchange rate variation on cash and cash equivalents	(56,3)	281,7		(k)	Exchange Rate Effect
DECREASE IN CASH AND CASH EQUIVALENTS	(1.306,5)	(2.154,6)
Opening balance of cash and cash equivalents	2.641,7	3.750,9
Closing balance of cash and cash equivalents	1.335,1	1.596,3
DECREASE IN CASH AND CASH EQUIVALENTS	(1.306,5)	(2.154,6)

1. Conference Call and Webcast

   
   
   
   
   

2. Glossary

APAC: Asia and Pacific ARS: the foreign exchange market symbol for the Argentine peso Avon representatives: Self-employed resellers who do not have a formal labor relationship with Avon B3: Brazilian Stock Exchange BPS: Basis Points; a basis point is equivalent to one percentage point * 100 Brand Power: A methodology used by Natura &Co to measure how its brands are perceived by consumers, based on metrics of significance, differentiation and relevance. BRL: Brazilian Reais CDI: The overnight rate for interbank deposits CEE: Central and Eastern Europe CFT: Cosmetics, Fragrances and Toiletries Market (CFT = Fragrances, Body Care and Oil Moisture, Make-up (without Nails), Face

Care, Hair Care (without Colorants), Soaps, Deodorants, Men's Grooming (without Razors) and Sun Protection

COGS: Costs of Goods Sold Constant currency ("CC") or constant exchange rates: when exchange rates used to convert financial figures into a reporting currency are the same for the years under comparison, excluding foreign currency fluctuation effects CO2e: Carbon dioxide equivalent; for any quantity and type of greenhouse gas, CO2e signifies the amount of CO2 which would have the equivalent global warming impact. EBITDA: Earnings Before Interests, Tax, Depreciation and Amortization EMEA: Europe, Middle East and Africa EP&L: Environmental Profit & Loss Foreign currency translation: conversion of figures from a foreign currency into the currency of the reporting entity FX: foreign exchange FY: fiscal year G&A: General and administrative expenses IAS 29: "Financial Reporting in Hyperinflationary Economies' requires the financial statements of any entity whose functional currency is the currency of a hyperinflationary economy to be restated for changes in the general purchasing power of that currency so that the financial information provided is more meaningful IBOV: Ibovespa Index is the main performance indicator of the stocks traded in B3 and lists major companies in the Brazilian capital market IFRS - International Financial Reporting Standards Hispanic Latam: Often used to refer to the countries in Latin America, excluding Brazil P&L: Profit and loss PP: Percentage point PPA: Purchase Price Allocation - effects of the fair market value assessment as a result of a business combination Profit Sharing: The share of profit allocated to employees under the profit-sharing program Quarter on quarter ("QoQ"): is a measuring technique that calculates the change between one fiscal quarter and the previous fiscal quarter Recurring EBITDA: Excludes effects that are not considered usual, recurring or not comparable between the periods under analysis SG&A: Selling, general and administrative expenses TBS: The Body Shop. Task Force on Climate-Related Financial Disclosures ("TCFD"): climate-related disclosure recommendations enable stakeholders to understand carbon-related assets and their exposures to climate-related risks Task force on Nature-related Financial Disclosures ("TNFD"): The TNFD Framework seeks to provide organisations and financial institutions with a risk management and disclosure framework to identify, assess, manage and report on nature-related dependencies, impacts, risks and opportunities ("nature-related issues"), encouraging organisations to integrate nature into strategic and capital allocation decision making TPV: Total Payment Volume Year-over-year ("YOY"): is a financial term used to compare data for a specific period of time with the corresponding period from the previous year. It is a way to analyze and assess the growth or decline of a particular variable over a twelve-month period Year to date ("YTD"): refers to the period of time beginning the first day of the current calendar year or fiscal year up to the current date. YTD information is useful for analyzing business trends over time or comparing performance data to competitors or peers in the same industry

10 Disclaimer

EBITDA is not a measure under IFRS and does not represent cash flow for the periods presented. EBITDA should not be considered an alternative to net income as an indicator of operating performance or an alternative to cash flow as an indicator of liquidity. EBITDA does not have a standardized meaning and the definition of EBITDA used by Natura may not be comparable with that used by other companies. Although EBITDA does not provide under IFRS a measure of cash flow, Management has adopted its use to measure the Company's operating performance. Natura also believes that certain investors and financial analysts use EBITDA as an indicator of performance of its operations and/or its cash flow.

This report contains forward-looking statements. These forward-looking statements are not historical fact, but rather reflect the wishes and expectations of Natura's management. Words such as "anticipate," "wish," "expect," "foresee," "intend," "plan," "predict," "project," "desire" and similar terms identify statements that necessarily involve known and unknown risks. Known risks include uncertainties that are not limited to the impact of price and product competitiveness, the acceptance of products by the market, the transitions of the Company's products and those of its competitors, regulatory approval, currency fluctuations, supply and production difficulties and changes in product sales, among other risks. This report also contains certain pro forma data, which are prepared by the Company exclusively for informational and reference purposes and as such are unaudited. This report is updated up to the present date and Natura does not undertake to update it in the event of new information and/or future events.

Investor Relations Team [e-mail]