Brazil’s Top Companies Face Tough Q2 2025: Localiza, Natura&Co, and Automob

Brazil’s three leading companies in car rental, beauty, and retail — Localiza, Natura&Co, and Automob — recently published their official financial reports for the second quarter of 2025.

These firms, giants in their fields, reflect the real pressures of Brazil’s current economy. Localiza rents and manages fleets of cars, Natura&Co is a big cosmetics group known for the Natura and Avon brands, and Automob runs a multi-brand car dealership chain.

Localiza

Localiza leads Brazil’s car rental market. In Q2 2025, the company earned a net profit of R$768 million ($135 million), turning around last year’s net loss.

The main story behind its numbers is a new government tax policy meant to encourage greener cars. This lowered the value of Localiza’s fleet and hit profits from selling used cars.

The company made R$9,600 million ($1,684 million) in total revenue, with nearly-new car sales bringing in R$5,300 million ($930 million).

Despite these strong figures, Localiza faces lower resale prices and must act wisely to offset asset losses. These issues are not just paperwork but real, felt financial pressures for both the company and the industry.

Natura&Co

Natura&Co produces cosmetics and manages famous brands like Natura and Avon. In the latest quarter, its net profit stood at R$195 million ($34 million) after big reorganizations and cuts in costs.

The company also marked Avon’s international business for sale, showing a careful shift to focus more on Latin America. Recurring EBITDA, a key profit metric before some expenses, reached R$796 million ($140 million).

Revenue was R$5,700 million ($1,000 million), down slightly in local currency but up in constant currency terms, especially in Brazil and Spanish-speaking countries.

The main story here: Natura&Co is simplifying operations and shedding extra weight, not just chasing sales numbers. Its Latin American business is strong, but Avon’s challenges remain a drag.

Automob

Automob is part of Grupo Simpar and operates car dealerships across brands. This quarter, it posted a net loss of R$38.7 million ($7 million), a bigger deficit than last year. High interest rates and increased debt drove expenses up, despite high revenues.

Automob earned R$3,080 million ($541 million) in revenue, with EBITDA at R$115.9 million ($20 million). Sales of light vehicles grew to R$2,460 million ($432 million); trucks and buses reached R$376.8 million ($66 million).

However, agricultural machinery revenue fell sharply to R$249.2 million ($44 million). The heart of the story: business growth alone cannot compensate for heavy debt and high borrowing costs.

Related coverage: Brazil Q2 2025: Direcional, Vibra Energia, Itaúsa Face Growth and Challenges · Dollar Climbs as US-Brazil Trade Tensions Halt Reforms and Stir Market Anxiety · Hidrovias do Brasil, Caixa Seguridade, and Sabesp Report Solid Q2 2025 Gains Across Key Sectors · Vamos, Grupo SBF, and Lojas Quero-Quero Face Tight Margins in Brazil’s Q2 2025

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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