Brazil’s Natura Jumps as Alessandro Carlucci Returns as CEO After Twelve Years
BRAZIL · BUSINESS
Key Facts
—What happened: Natura’s board named Alessandro Carlucci chief executive on Friday, twelve years after he left the job.
—How the market reacted: Natura shares jumped 7.67% to R$9.41 (US$1.82) on Monday morning in São Paulo.
—Who leaves: João Paulo Ferreira steps down on 30 September after ten years running the cosmetics group.
—The catch: Carlucci inherits an 82% profit slump and product shortages the company itself calls self-inflicted.
—What comes next: Carlucci takes office on 1 October; Fábio Barbosa returns as chairman of the board.
Brazil’s Natura jumped more than 7% on the São Paulo stock exchange on Monday, after the cosmetics group announced that Alessandro Carlucci will return as Natura CEO twelve years after leaving the post.
What Natura announced on Monday
The change was decided at a board meeting on Friday 28 August and announced on Monday. João Paulo Ferreira, chief executive for a decade, resigns with effect after 30 September.
The new Natura CEO is a familiar face. Alessandro Carlucci ran the company from 2005 to 2014, a period investors remember as its great expansion cycle.
He takes office on 1 October, with the transition starting immediately. The incoming Natura CEO chaired the board of directors, a seat he had to vacate on Saturday because the company’s bylaws separate the two roles.
To fill the chairmanship, the board elected Fábio Barbosa, the banker who structured Natura’s capital reorganisation. His appointment still needs shareholder ratification at the next general meeting.
How the market reacted
Investors liked the news. By 10:39 in São Paulo, Natura shares traded up 7.67% at R$9.41 (US$1.82) on the B3 exchange, among the day’s strongest movers.
JPMorgan read the move as a renewal of leadership, not a change of strategy. The bank kept its overweight recommendation, roughly a buy, with a target price of R$11 (US$2.12).
The analysts noted that the stock trades at about eight times estimated 2027 earnings. They also flagged a question the rally does not answer: why does Natura keep reaching back to former executives for its future?
It is the second time this year that governance news has moved the stock. In March, shares rose 13% in one day when private-equity firm Advent International committed to buying an 8 to 10% stake at R$9.75 (US$1.88) a share.
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The company the new Natura CEO inherits
Natura is Brazil’s biggest cosmetics group, built on door-to-door direct sales by millions of consultants. It bought its former arch-rival Avon in 2019, in a deal valued at US$3.5 billion.
The years since have been hard. The group sold Aesop and The Body Shop, shrank to Latin America and has spent 2026 digesting the Avon integration.
The second quarter showed the strain. Net income fell 82% from a year earlier, to R$35 million (about US$6.8 million), as we reported on 12 August.
Ferreira admitted then that the problems were largely internal. A migration to SAP software left products missing from shelves, and new direct-to-consumer sales policies hurt revenue.
S&P cut its outlook on the company to negative in July, citing the Avon drag on profit. That context explains why investors wanted a proven operator back as Natura CEO.
Ferreira’s decade, in the balance
The outgoing chief executive leaves with a mixed record. He led the digitalisation of direct sales, the multichannel transformation and the Avon integration across Latin America.
He also presided over the value destruction that followed the global expansion dream. Monday’s announcement stressed that strategic guidelines stay unchanged, with the focus on profitability and capital discipline.
What to watch from here
The first marker is 1 October, when the new Natura CEO formally takes over. The speed of the handover suggests the board wants no vacuum.
The second is the third-quarter report, due later in the year. Investors will look for evidence that product availability has normalised after the SAP disruption.
The third is Avon. Carlucci knows the business from his years as a senior adviser to it, and the integration’s economics remain the biggest open question on the balance sheet.
Frequently Asked Questions
Who is the new Natura CEO?
Alessandro Carlucci, who previously led Natura from 2005 to 2014, returns as chief executive on 1 October 2026. He replaces João Paulo Ferreira, who resigned after ten years.
How did Natura shares react to the CEO change?
The stock jumped 7.67% to R$9.41 (US$1.82) by mid-morning on Monday 31 August on São Paulo’s B3 exchange. JPMorgan kept its buy-equivalent rating with a R$11 target.
Why did investors welcome Carlucci’s return?
JPMorgan called it a leadership renewal rather than a strategy change. Carlucci led Natura through an earlier expansion cycle and stayed close to the business as board chairman.
What problems does the new chief executive inherit?
Second-quarter net income fell 82% to R$35 million (about US$6.8 million). The company blames product shortages after a systems migration and difficult direct-sales policy changes.
What is Natura?
Natura is Brazil’s largest cosmetics group, founded on direct sales by independent consultants. It bought Avon in 2019 for US$3.5 billion and later sold Aesop and The Body Shop.
Connected Coverage
We covered the earnings shock in Natura Q2 Net Income Slumps 82% on Brazil Woes and the credit view in S&P Cuts Natura Outlook to Negative on Avon Drag.
Sources: Natura statement via MoneyTimes, InfoMoney, Reuters, JPMorgan analyst note.
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