Cover page
Cover page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Entity Registrant Name | Natura &Co Holding S.A. |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001776967 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2022 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39169 |
Entity Incorporation, State or Country Code | D5 |
Entity Address, Address Line One | Avenida Alexandre Colares |
Entity Address, Address Line Two | No. 1188, Sala A17-Bloco A |
Entity Address, Address Line Three | Parque Anhanguera |
Entity Address, City or Town | São Paulo |
Entity Address, Postal Zip Code | 05106-000 |
Entity Address, Country | BR |
Entity Common Stock, Shares Outstanding | 1,373,238,715 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Name | PricewaterhouseCoopers |
Auditor Firm ID | 1351 |
Auditor Location | São Paulo, Brazil |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Guilherme Strano Castellan |
Entity Address, Address Line One | Avenida Alexandre Colares |
Entity Address, Address Line Two | No. 1188, Sala A17-Bloco A |
Entity Address, Address Line Three | Parque Anhanguera |
Entity Address, City or Town | São Paulo |
Entity Address, Postal Zip Code | 05106-000 |
Entity Address, Country | BR |
City Area Code | +55 (11) |
Local Phone Number | 4389-7881 |
Common Shares [Member] | |
Document Information [Line Items] | |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Title of 12(b) Security | Common shares, no par value (the “Natura &Co Holding Shares”) |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Security Exchange Name | NYSE |
Trading Symbol | NTCO |
Title of 12(b) Security | American Depositary Shares (the “ADSs”) (as evidenced by American Depositary Receipts), each representing two Natura &Co Holding Shares |
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
CURRENT | |||
Cash and cash equivalents | R$ 4195713 | R$ 4007257 | |
Short-term investments | 1,800,439 | 1,978,740 | |
Trade accounts receivable | 3,502,399 | 3,476,359 | |
Inventories | 4,516,874 | 5,403,526 | |
Recoverable taxes | 911,410 | 1,029,625 | |
Income tax and social contribution | 196,143 | 446,418 | |
Derivative financial instruments | 235,114 | 81,159 | |
Other current assets | 763,384 | 912,160 | |
Current assets other than assets held for sale | 16,121,476 | 17,335,244 | |
Assets held for sale | 51 | 52,921 | |
Total current assets | 16,121,527 | 17,388,165 | |
NON-CURRENT | |||
Recoverable taxes | 1,356,868 | 1,349,624 | |
Deferred income tax and social contribution | [1] | 3,519,515 | 3,100,515 |
Judicial deposits | 457,550 | 585,284 | |
Derivative financial instruments | 773,251 | 893,970 | |
Short-term investments | 35,235 | 36,921 | |
Other non-current assets | 1,252,437 | 1,763,051 | |
Total noncurrent assets | 7,394,856 | 7,729,365 | |
Property, plant and equipment | 4,966,150 | 5,377,408 | |
Intangible | 23,260,970 | 26,857,583 | |
Right of use | 2,941,887 | 3,095,969 | |
Total non-current assets | 38,563,863 | 43,060,325 | |
TOTAL ASSETS | 54,685,390 | 60,448,490 | |
CURRENT | |||
Borrowings, financing and debentures | 331,151 | 945,069 | |
Lease | 878,448 | 1,005,523 | |
Trade accounts payable and reverse factoring operations | 6,375,930 | 6,770,579 | |
Dividends and interest on shareholders' equity payable | 260 | 180,772 | |
Payroll, profit sharing and social charges | 1,276,977 | 1,255,348 | |
Tax liabilities | 828,125 | 766,430 | |
Income tax and social contribution | 70,294 | 272,798 | |
Derivative financial instruments | 1,613,968 | 458,492 | |
Provision for tax, civil and labor risks | 463,655 | 230,097 | |
Other current liabilities | 1,499,060 | 1,716,110 | |
Total current liabilities | 13,337,868 | 13,601,218 | |
NON-CURRENT | |||
Borrowings, financing and debentures | 13,261,135 | 11,771,763 | |
Lease | 2,392,289 | 2,542,339 | |
Payroll, profit sharing and social charges | 26,152 | 53,748 | |
Tax liabilities | 117,358 | 114,797 | |
Deferred income tax and social contribution | [1] | 934,414 | 994,041 |
Income tax and social contribution | 448,532 | 773,058 | |
Derivative financial instruments | 191,274 | ||
Provision for tax, civil and labor risks | 873,618 | 1,088,345 | |
Other non-current liabilities | 751,566 | 942,456 | |
Total non-current liabilities | 18,996,338 | 18,280,547 | |
TOTAL LIABILITIES | 32,334,206 | 31,881,765 | |
SHAREHOLDERS' EQUITY | |||
Capital stock | 12,484,424 | 12,481,683 | |
Treasury shares | (262,360) | (151,342) | |
Capital reserves | 10,540,885 | 10,478,804 | |
Legal profit reserve | 871,223 | ||
Accumulated losses | (1,994,555) | ||
Other comprehensive income | 1,564,340 | 4,865,202 | |
Shareholders' equity attributed to the Company's shareholders | 22,332,734 | 28,545,570 | |
Non-controlling interest in shareholders' equity of subsidiaries | 18,450 | 21,155 | |
Total shareholders' equity | 22,351,184 | 28,566,725 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | R$ 54685390 | R$ 60448490 | |
[1] Balance as presented in the balance sheet including the jurisdictional netting effects of deferred tax assets and liabilities of the same nature, originating in the same taxpayer and taxing authority. 2021 |
STATEMENT OF PROFIT OR LOSS
STATEMENT OF PROFIT OR LOSS - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
STATEMENT OF PROFIT OR LOSS | |||
Net revenue | R$ 36349623 | R$ 40164687 | R$ 36921980 |
Cost of Sales | (13,155,019) | (14,097,888) | (13,299,720) |
GROSS PROFIT | 23,194,604 | 26,066,799 | 23,622,260 |
OPERATING (EXPENSES) INCOME | |||
Selling, marketing and logistics expenses | (15,554,569) | (16,912,862) | (15,632,782) |
Administrative, R&D, IT and project expenses | (6,711,533) | (6,958,866) | (5,955,996) |
Impairment loss on trade receivables | (605,995) | (837,822) | (727,695) |
Other operating income (expenses), net | (780,288) | (239,019) | (516,190) |
OPERATING (LOSS) PROFIT BEFORE FINANCIAL RESULT | (457,781) | 1,118,230 | 789,597 |
Finance income | 5,380,798 | 4,006,563 | 4,738,391 |
Finance expense | (7,281,659) | (5,033,540) | (5,773,810) |
(LOSS) PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION | (2,358,642) | 91,253 | (245,822) |
Income tax and social contribution | (119,568) | 1,047,986 | (274,744) |
NET (LOSS) INCOME FOR THE YEAR FROM CONTINUING OPERATIONS | (2,478,210) | 1,139,239 | (520,566) |
DISCONTINUED OPERATIONS | |||
NET LOSS FROM DISCONTINUED OPERATIONS | (380,416) | (98,550) | (143,112) |
NET (LOSS) INCOME FOR THE YEAR | (2,858,626) | 1,040,689 | (663,678) |
ATTRIBUTABLE TO | |||
The Company´s shareholders | (2,859,629) | 1,047,960 | (650,196) |
Non-controlling shareholders | 1,003 | (7,271) | (13,482) |
NET (LOSS) INCOME FOR THE YEAR | R$ 2858626 | R$ 1040689 | R$ 663678 |
INCOME (LOSS) PER SHARE IN THE YEAR -R$ | |||
Basic | R$ 2.0843 | R$ 0.761 | R$ 0.522 |
Diluted | R$ 2.0843 | R$ 0.7503 | R$ 0.522 |
STATEMENT OF COMPREHENSIVE INCO
STATEMENT OF COMPREHENSIVE INCOME - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
STATEMENT OF COMPREHENSIVE INCOME | |||
NET (LOSS) INCOME FOR THE YEAR | R$ 2858626 | R$ 1040689 | R$ 663678 |
Other comprehensive income to be reclassified to income statement in subsequent years: | |||
Conversion of financial statements of controlled companies abroad | (2,962,142) | (148,696) | 3,711,781 |
Exchange rate effect on the conversion from hyperinflationary economy | 24,956 | 218,227 | 32,160 |
Earnings (losses) from cash flow hedge operations | (790,479) | (210,150) | 178,006 |
Tax effects on (losses) earnings from cash flow hedge operations | 270,035 | 72,939 | (61,658) |
Other comprehensive income not reclassified for the income of the year in subsequent years: | |||
Actuarial gain (loss) | 21,764 | 459,875 | (104,650) |
Tax effects on (losses) earnings from actuarial | (61,965) | (106,979) | 23,694 |
Comprehensive income for the year, net of tax effects | (6,356,457) | 1,325,905 | 3,115,655 |
ATTRIBUTABLE TO | |||
The Company's shareholders | (6,353,752) | 1,327,531 | 3,120,429 |
Noncontrolling shareholders | (2,705) | (1,626) | (4,774) |
Comprehensive income for the year, net of tax effects | R$ 6356457 | R$ 1325905 | R$ 3115655 |
STATEMENT OF CHANGES IN SHAREHO
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - BRL (R$) R$ in Thousands | Total | Sharesholders' equity attributed to controlling shareholders [member] | Capital stock [member] | Treasury shares [member] | Surplus on issue/sale of shares [member] | Special reserve [member] | Additional paid-in capital [member] | Income from transactions with non-controlling shareholders [member] | Tax Incentives [member] | Unrealized profit reserve [member] | Retained earnings [member] | Retained losses [member] | Other comprehensive income [member] | Non-Controlling Shareholders [member] |
Beginning balance at Dec. 31, 2019 | R$ 3362346 | R$ 3362346 | R$ 1485436 | R$ 793339 | R$ 206592 | R$ 92066 | R$ 1428 | R$ 155467 | R$ 815006 | |||||
Net income (loss) for the year | (663,678) | (650,196) | (650,196) | R$ 13482 | ||||||||||
Exchange rate effect on the conversion from hyperinflationary economy | 32,160 | 32,160 | 32,160 | |||||||||||
Other comprehensive income | 3,747,173 | 3,738,465 | 3,738,465 | 8,708 | ||||||||||
Comprehensive income for the year, net of tax effects | 3,115,655 | 3,120,429 | (650,196) | 3,770,625 | (4,774) | |||||||||
Subscription of shares through the Board of Directors' Meeting held on January 3, 2020 | 13,302,449 | 13,274,894 | 3,397,746 | 9,877,148 | 27,555 | |||||||||
Subscription of shares through the Board of Directors' Meeting held on June 30, 2020 | 2,001,118 | 2,001,118 | 2,000,000 | 1,118 | ||||||||||
Subscription of shares through the Board of Directors' Meeting held on July 27, 2020 | 14,723 | 14,723 | 14,723 | |||||||||||
Subscription of shares through the Board of Directors' Meeting held on September 30, 2020 | 18,863 | 18,863 | 18,863 | |||||||||||
Subscription of shares through the Board of Directors' Meeting held on October 8, 2020 | 5,614,750 | 5,614,750 | 5,614,750 | |||||||||||
Share repurchase | (54,936) | (54,936) | R$ 54936 | |||||||||||
Expenses on the issue of equity values | (212,770) | (212,770) | (212,770) | |||||||||||
Transactions in stock and restricted shares option plans: | ||||||||||||||
Provision for stock and restricted shares option plans | 163,322 | 163,322 | R$ 163322 | |||||||||||
Exercise of stock and restricted shares option plans | (5,200) | (5,200) | 59,251 | 43,269 | (111,281) | 3,561 | ||||||||
Constitution of tax incentive reserve | R$ 113302 | (113,302) | ||||||||||||
Effect of Hyperinflationary economy adjustment | 66,788 | 66,788 | 58,496 | 8,292 | ||||||||||
Losses absorption | 155,467 | (155,467) | ||||||||||||
Ending balance at Dec. 31, 2020 | 27,387,108 | 27,364,327 | 12,377,999 | (11,667) | 10,671,605 | 362,059 | 110,537 | (92,066) | 113,302 | 6,864 | (759,937) | 4,585,631 | 22,781 | |
Net income (loss) for the year | 1,040,689 | 1,047,960 | 1,047,960 | (7,271) | ||||||||||
Exchange rate effect on the conversion from hyperinflationary economy | 218,227 | 218,227 | 218,227 | |||||||||||
Other comprehensive income | 66,989 | 61,344 | 61,344 | 5,645 | ||||||||||
Comprehensive income for the year, net of tax effects | 1,325,905 | 1,327,531 | 1,047,960 | 279,571 | (1,626) | |||||||||
Share repurchase | (174,113) | (174,113) | (174,113) | |||||||||||
Transactions in stock and restricted shares option plans: | ||||||||||||||
Provision for stock and restricted shares option plans | 237,655 | 237,655 | 275,632 | (37,977) | ||||||||||
Exercise of stock and restricted shares option plans | (29,058) | (29,058) | 103,684 | 34,438 | (198,767) | 31,587 | ||||||||
Reclassification of grant reserve - Natura Cosméticos | R$ 113302 | 113,302 | ||||||||||||
Dividends declared and not yet distributed | (180,772) | (180,772) | (180,772) | |||||||||||
Unrealized profit reserve | R$ 133616 | (133,616) | ||||||||||||
Constitution of tax incentive reserve | 737,133 | (737,133) | ||||||||||||
Losses absorption | (650,196) | 650,196 | ||||||||||||
Ending balance at Dec. 31, 2021 | 28,566,725 | 28,545,570 | 12,481,683 | (151,342) | 10,021,409 | 362,059 | 187,402 | (92,066) | 133,616 | 737,607 | 4,865,202 | 21,155 | ||
Net income (loss) for the year | (2,858,626) | (2,859,629) | (2,859,629) | 1,003 | ||||||||||
Exchange rate effect on the conversion from hyperinflationary economy | 24,956 | 24,956 | 24,956 | |||||||||||
Other comprehensive income | (3,522,787) | (3,519,079) | (3,519,079) | (3,708) | ||||||||||
Comprehensive income for the year, net of tax effects | (6,356,457) | (6,353,752) | (2,859,629) | (3,494,123) | (2,705) | |||||||||
Share repurchase | (120,300) | (120,300) | (120,300) | |||||||||||
Transactions in stock and restricted shares option plans: | ||||||||||||||
Provision for stock and restricted shares option plans | 255,756 | 255,756 | 255,756 | |||||||||||
Exercise of stock and restricted shares option plans | 5,460 | 5,460 | 2,741 | 9,282 | (8,708) | 2,145 | ||||||||
Reclassification of hyperinflationary economy adjustment effect | (126,473) | (58,494) | (8,294) | 193,261 | ||||||||||
Losses absorption | R$ 133616 | R$ 731458 | 865,074 | |||||||||||
Ending balance at Dec. 31, 2022 | R$ 22351184 | R$ 22332734 | R$ 12484424 | R$ 262360 | R$ 9894936 | R$ 362059 | R$ 375956 | R$ 92066 | R$ 1994555 | R$ 1564340 | R$ 18450 |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
CASH FLOW FROM OPERATING ACTIVITIES | |||||
Net income (loss) for the year | R$ 2858626 | R$ 1040689 | R$ 663678 | ||
Adjustments to reconciliate net (loss) income for the year with net cash (used in) generated by operating activities: | |||||
Depreciation and amortization | 2,591,854 | 2,791,523 | 2,718,856 | ||
Interest and exchange variation on short-term investments | (537,289) | (264,764) | (103,310) | ||
Earnings (loss) from swap and forward derivative contracts | 992,813 | (441,554) | (1,090,299) | ||
Provision for tax, civil and labor risks | 409,260 | (56,177) | 347,563 | ||
Monetary adjustment of provision for tax, civil and labor risks | (35,508) | (15,246) | (11,242) | ||
Monetary adjustment of provision for tax, civil and labor risks | 79,280 | 25,731 | 37,966 | ||
Income tax and social contribution | 119,568 | (1,047,986) | 274,744 | ||
Income from sale and write-off of property, plant and equipment, lease and non-current assets held for sale | 55,701 | 231,965 | 35,555 | ||
Interest and exchange rate variation on leases | 200,246 | 210,669 | 62,250 | ||
Interest and exchange rate variation on borrowings, financing and debentures, net of acquisition costs | 368,314 | 913,619 | 2,003,147 | ||
Inflation adjustment and exchange rate variation on other assets and liabilities | 2,757 | 2,198 | (71,974) | ||
Impairment | 348,734 | 3,017 | 155,463 | ||
Provision for stock option plans | 258,475 | 275,632 | (44,142) | ||
Provision for losses with trade accounts receivables, net of reversals | 605,995 | 837,822 | 640,676 | ||
Provision for inventory losses, net of reversals | 305,705 | 407,207 | 341,799 | ||
Reversal for the provision for carbon credits | (17,948) | (13,618) | 46,583 | ||
Effect from hyperinflationary economy | 349,859 | 165,826 | 55,277 | ||
Other adjustments to reconcile net (loss) profit | 12,510 | (70) | (114,286) | ||
Cash flows from (used in) operations before changes in working capital | 3,251,700 | 5,066,483 | 4,620,948 | ||
DECREASE (INCREASE) IN ASSETS | |||||
Trade accounts receivable and related parties | (686,691) | (645,157) | (1,308,030) | ||
Inventories | 485,787 | (1,117,671) | (1,444,671) | ||
Recoverable taxes | 106,221 | (315,458) | (770,102) | ||
Other assets | 223,508 | (1,223,245) | 152,811 | ||
Subtotal | 128,825 | (3,301,531) | (3,369,992) | ||
(DECREASE) INCREASE IN LIABILITIES | |||||
Domestic and foreign trade accounts payable and related parties | 39,730 | 467,538 | 1,004,231 | ||
Payroll, profit sharing and social charges, net | (19,783) | (42,274) | 749,609 | ||
Tax liabilities | 46,730 | (13,232) | 382,695 | ||
Other liabilities | (370,854) | (165,386) | (93,252) | ||
Subtotal | (304,176) | 246,646 | 2,043,283 | ||
CASH (USED IN) GENERATED BY OPERATING ACTIVITIES | 3,076,349 | 2,011,598 | 3,294,239 | ||
OTHER CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Payment of income tax and social contribution | (580,163) | (976,542) | (331,450) | ||
Release of judicial deposits net of withdrawals | 40,054 | (3,893) | 66,192 | ||
Payments related to tax, civil and labor lawsuits | (261,731) | (132,784) | (221,429) | ||
(Payments) proceeds due to settlement of derivative transactions | (594,225) | (9,040) | (38,835) | ||
Payment of interest on lease | (199,769) | (219,574) | (225,420) | ||
Payment of interest on borrowings, financing and debentures | (808,976) | (783,935) | (1,257,665) | ||
NET CASH (USED IN) GENERATED BY OPERATING ACTIVITIES | 671,539 | (114,170) | 1,285,632 | ||
CASH FLOW FROM INVESTING ACTIVITIES | |||||
Cash from acquisition of subsidiary | 2,661,878 | ||||
Additions of property, plant and equipment and intangible | (1,102,820) | (1,479,227) | (674,211) | ||
Proceeds from sale of property, plant and equipment, intangible and non-current assets held for sale | 14,794 | 114,473 | 104,204 | ||
Short-term investments | (12,763,990) | (11,739,911) | (10,371,483) | ||
Redemption of short-term investments | 12,927,831 | 12,325,210 | 9,008,931 | ||
Redemption of interest on short-term investments | 152,398 | 127,416 | 52,667 | ||
Investments in subsidiaries | (102,898) | ||||
NET CASH GENERATED BY (USED IN) INVESTING ACTIVITIES | (771,787) | (652,039) | 679,088 | ||
CASH FLOW FROM FINANCING ACTIVITIES | |||||
Repayment of lease - principal | (953,048) | (1,077,611) | (843,338) | ||
Repayment of borrowings, financing and debentures – principal | (6,826,628) | [1] | (7,989,607) | [2] | (8,483,892) |
New borrowings, financing, and debentures | 8,557,507 | [3] | 6,425,565 | [2],[4] | 1,354,765 |
Acquisition of treasury shares, net of receipt of option strike price | (120,300) | (174,113) | 51,145 | ||
(Payment) receipt of funds due to settlement of derivative transactions | 118,707 | 1,570,584 | 211,722 | ||
Payment of dividends and interest on equity for the previous year | (180,512) | (133,937) | |||
Acquired company's liability incurred by acquiror | (370,791) | ||||
Capital Increase | 2,741 | 7,436,684 | |||
NET CASH (USED IN) GENERATED BY FINANCING ACTIVITIES | 598,467 | (1,245,182) | (777,642) | ||
Effect of exchange rate variation on cash and cash equivalents | (309,763) | 196,976 | 121,012 | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 188,456 | (1,814,415) | 1,308,090 | ||
Opening balance of cash and cash equivalents | 4,007,257 | 5,821,672 | 4,513,582 | ||
Closing balance of cash and cash equivalents | 4,195,713 | 4,007,257 | 5,821,672 | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | R$ 188456 | R$ 1814415 | R$ 1308090 | ||
[1] The amortizations made in the year ended December 31, 2022 refer mainly to the: (i) early redemption of debt securities of the subsidiary Avon ("Notes"), (ii) the early redemption of the 9 10 4131 62 The repayment made during the year ended December 31, 2021 mainly refer to the early redemption of the subsidiary Natura Cosméticos's Notes in the amount of USD 750 million (corresponding to roughly R$4.0 billion, carried out in May 2021 (see note 19 .1 2 7 2 9 Natura redeemed the total principal amount due under their respective promissory notes, equivalent to R$500 million of the Company and R$250 million of the subsidiary Natura ; New borrowing and financing during the year ended December 31, 2022 refer basically to: (i) utilization of a revolving credit facility in the principal amount of up to US$ 625 million by the subsidiary Natura &Co Luxemburgo; (ii) issue of debt securities by the subsidiary Natura &Co Luxembourg maturing on April 19, 2029 in the principal amount of US$600 million (approximately R$2,809 million), subject to interest of 6.00% per year, which are guaranteed by Natura &Co Holding and by the subsidiary Natura Cosméticos, (iii) issue of the 11 2025 12 2025 2032 2025 New borrowing and financing raised within the year ended December 31, 2021 basically refer to the offer carried out by the subsidiary Natura Cosméticos of the notes linked to the sustainability goals in the amount of USD 1 billion, approximately R$5.6 billion (see note 19.1.iii) and the new credit facility in the amount of one |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
GENERAL INFORMATION | |
GENERAL INFORMATION | 1 GENERAL INFORMATION Natura &Co Holding S.A. (“Natura &Co” or “Natura &Co Holding” or “Company”) 1188 , Vila Jaguará, CEP 05106 - 000 . Natura &Co and its subsidiaries are hereinafter referred to as the “Company”. Additionally, Natura &Co trades American Depositary Receipts (“ADRs”) on the New York Stock Exchange (“NYSE”), under the ticker “NTCO”. Brands managed by the Company include “Natura”, “Avon”, “The Body Shop” and “Aesop”. In addition to using the retail market, e-commerce, business-to-business (B 2 B) and franchises as sales channels for the products, the subsidiaries highlight the performance of the direct sales channel carried out by the Natura, Avon and The Body Shop Consultant(s). |
MANAGEMENT STATEMENT AND BASIS
MANAGEMENT STATEMENT AND BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
MANAGEMENT STATEMENT AND BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS | |
MANAGEMENT STATEMENT AND BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS | 2. MANAGEMENT STATEMENT AND BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS The consolidated financial statements (herein referred to as “financial statements”) have been prepared and are being presented in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The financial statements show all the relevant information specific to the financial statements, and only them, which are consistent with those used by the Management in its activities. The Company’s financial statements were approved by the Board of Directors and authorized for issuance at the meeting held on April 26, 2023. The financial statements were prepared based on historical cost, except for derivative instruments and short-term investments that were measured at fair value and non-current assets held for sale measured at the lower of their carrying amount and the fair value net of selling expenses. The financial statements are expressed in thousands of Reais (“R$”), rounded to the nearest thousand, and the disclosures of amounts in other currencies, when necessary, were also made in thousands. The items disclosed in other currencies are duly identified, whenever applicable. 2.1 During the current year the Company has performed certain reclassifications on balances presented in the comparative periods (2021 for the statement of financial position and 2021 and 2020 for the statement of profit or loss) to adjust and align certain balances from subsidiaries that while of similar nature had been presented in separate financial statement line items. The Company has concluded that the reclassification adjustments do not have a material effect on the information in the statement of financial position at the beginning of the preceding period and that proper comparability is achieved as a result of the retrospective adjustments to the set of financial statements which include the Statement of Financial Position as of December 31, 2021 and the Statement of Profit or Loss for the years ended December 31, 2020 and 2021. As such, no additional comparatives have been included to the financial statements as a result of the reclassifications performed. Those reclassifications related mainly to: a) Provisions for uncertain tax positions previously presented as part of current tax liabilities (in the total amount of R$92,659) and provision for Tax, Civil and Labor risks (non-current, in the total amount of R$680,399) that are being reclassified to non-current b) Income tax credits arising from the “Taxation on a Universal Basis” taxation regime (“TBU”) previously presented as part of current income tax and social contribution (in the total amount of R$61,712) and non-current income tax and social contribution (in the total amount of R$84,729) that are being reclassified to deferred income tax and social contribution (non-current assets); c) Reclassification referring to certain costs related to the cost of sales previously presented as part of selling, marketing and logistics expenses in the subsidiary Aesop in the amount for 2021 and R$70,006 for 2020; d) A s of January 1, and December 31, 2021, the balance referring to predecessor adjustment presented in share premium in capital reserve e) As of January 1, 2021, the balances referring to the effects of the conversion of balance sheets of subsidiaries in hyperinflationary economies previously presented in retained earnings in the statement of changes in equity were reclassified to Other comprehensive income, also a component of the Company's equity, for a better consolidated presentation of these impacts in this statement. This reclassification in the amount of R$ 202,677 does not have any effect on the equity and financial position presented by the Company in that period; and f) Inclusion of the provision for current taxes in the amount of R$923,475 (as the originally presented information only included deferred taxation as an adjustment to net profit while current taxation was included as part of further changes in other assets) on December 31, 2021. This adjustment does not change the net cash used by operating activities as originally presented in the Statement of Cash Flows. As a result of the reclassifications disclosed above, the value of non-current assets on December 31, 2021 was increased by and current assets reduced by the same amount. Additionally, the amount of non-current liabilities was increased by and current liabilities were reduced by the same amount. Total assets and liabilities, on December 31, 2021, did not change due to these reclassifications. The reclassification of item "c)" did not impact the total amount of operating loss or net income for the year ended December 31, 2021. The reclassifications disclosed in items "d)" and "e)" disclosed above increase the statement of comprehensive income by R$202,677 and reduce the reserves in the statement of changes in equity by the same amount. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The main accounting policies applied in the preparation of these financial statements are defined below. These practices have been applied consistently in all the years presented, except for the accounting policies adopted for the first time in 2022 3.28 3.1 Current versus non-current classification The Company presents assets and liabilities in the balance sheet based on the classification of current and non-current, according to the expectation for realization and/or expected consumption during the ordinary course of the operating cycle, as defined in CPC 26 2 1 Deferred tax assets and liabilities are classified as non-current assets and liabilities, as disclosed in note 3.17 3.2 Foreign currency translation Functional currency The items included in the financial statements of the Company and each of the companies included in the financial statements are measured using the currency of the main economic environment in which each of the companies operates (“functional currency”). The financial statements are presented in the Company’s functional and presentation currency, the Brazilian Real. 3.2.1 Transactions and balances in a currency other than the functional currency Transactions in foreign currency, that is, any currency other than the functional currency, are translated into the functional currency of the entities included in these consolidated financial statements using the exchange rates prevailing on the dates of the transactions. Balance sheet account balances are translated using the exchange rates prevailing on the dates of the reporting period. Gains and losses from exchange rate variation arising from the settlement of such transactions and the translation of monetary assets and monetary liabilities denominated in foreign currency are recognized in the statement of profit or loss as “finance income” and “finance expenses”. 3.2.2 Subsidiaries with different functional currency In preparing the consolidated financial statements, the statement of profit or loss and cash flow statement and all other changes of assets and liabilities of foreign subsidiaries, whose functional currency is not the Brazilian Real, are translated into Brazilian Reais at the monthly average exchange rates, which approximates the exchange rate in effect on the date of the transactions. The balance sheet is translated into Brazilian Reais at the exchange rate prevailing at each reporting date. The effects of exchange rate variations resulting from these translations are presented under item Other Comprehensive Income (“OCI”) in the statement of comprehensive income in shareholders’ equity. The translation calculation is different for Natura Cosméticos S.A. – Argentina (“Natura Argentina”), Cosmeticos Avon Sociedad Anonima Comercial e Industrial (“Avon Argentina") and Avon Kozmetik Urunleri Sanayi ve Ticaret Anonim Siketi (“Avon Turkey”), which became hyperinflationary economies as of July 1, 2018 for Argentina and June 1, 2022 for Turkey, in which other than the balance sheet, the revenue and expenses are also translated into Reais at the exchange rates prevailing at each reporting date. 3.2.3 Hyperinflationary economy On July 1, 2018 and June 1, 2022, Argentina and Turkey were considered hyperinflationary economies, respectively considering the rise in the official price indices of the respective countries accumulated on those dates (Consumer Price Index, or “IPC” for the Argentina and the Internal Wholesale Price Index, or “IPIM” for Turkey. Since the Company does not operate in an economy that became hyperinflationary in the year, but its subsidiaries indicated above, the restatement of the comparative balances of previous years does not is carried out, in accordance with the provisions of CPC 02 2 21 Non-monetary assets and liabilities recorded at historical cost in these subsidiaries were restated based on the respective indices mentioned above, with the effects resulting from changes in general purchasing power being presented in the statement of income. The net effect of the inflation adjustment for the years ended December 31, 2022 and 2021 For the purpose of converting the accounting balances of the respective subsidiaries into the presentation currency (reais R$) used in the Company's financial statements, the following procedures were adopted: ➢ and liabilities were translated at the exchange rate prevailing at the reporting date (0.02955 and 0.05437 Argentine peso for each Brazilian Real and 0.2786 2021 ➢ and expenses of the year were translated at the exchange rate prevailing at the reporting date (the same as indicated above), instead of the average exchange rate of the year, which is used to translate currencies in non-hyperinflationary economies. The accumulated inflation for the year ended December 31, 2022 was 94.8% in Argentina and 64.3% in Turkey (50.6% in Argentina as of December 31, 2021), as per IPC index. 3.3 Consolidation The following procedures are applied in the preparation of the financial statements: a) Investments in subsidiaries The Company controls an entity when it is exposed to, or is entitled to, the variable returns arising from its involvement with the entity and can affect those returns by exercising its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date when the Company obtains control until the date when the control ceases to exist. In the financial statements, the investments in subsidiaries are accounted for using the equity method. The financial statements of the subsidiaries are prepared at the same reporting date as the parent company. Whenever necessary, adjustments are made to suit subsidiaries’ accounting policies to those of the Company. In accordance with the equity method, the portion attributable to the Company on the net income or loss for the year regarding these investments is recorded in the statement of profit or loss of the parent company under the item “share of profit (loss) of equity investees”. All intra-group balances, income and expenses and unrealized gains and losses arising from intra-group transactions are eliminated completely. The other comprehensive income (“OCI”) of subsidiaries is recorded directly in the Company’s shareholders’ equity under the item “OCI”. Below is a list of the Company’s direct subsidiaries as of December 31, 2022 and 2021 Interest - % 2022 2021 Direct interest: Avon Products, Inc. 100.00 100.00 Natura Cosméticos S.A. 100.00 100.00 Natura &Co International S.à r.l. 100.00 100.00 Aesop Holdings Ltd. 100.00 - The activities of the direct subsidiaries are described below: ➢ (“Avon Products”) 1886 ➢ (“Natura Cosméticos”) e-commerce ➢ International S.à r.l. (“Natura &Co International”) ➢ Holdings Ltd. (“Aesop Holdings”) As of December 31, 2022 and 2021 3.4 Goodwill Goodwill arising from a business combination is initially measured at cost, with the exceeding aggregate amount of: (i) the consideration transferred, measured at fair value; (ii) the amount of any non-controlling interest in the acquiree; and (iii) in a business combination achieved in stages, the fair value of the acquirer’s previously held equity interest in the acquiree at the acquisition date; over the net assets acquired (identifiable net assets acquired and assumed liabilities). When this aggregate amount is lower than the net amount of the identifiable assets acquired and the assumed liabilities, a gain on a bargain purchase is immediately recognized in the statement of profit or loss. Subsequently, goodwill is measured at cost less any accumulated impairment losses. For impairment testing purposes, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the group of Cash-Generating Units (“CGU”) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units and annually tested, and whenever circumstances indicate that the carrying amount may present impairment losses. 3.5 Cash and cash equivalents Cash and cash equivalents are maintained for the purpose of meeting short-term cash commitments, not for investment or other purposes. Cash and cash equivalents include cash, demand deposits and short-term investments realizable within 90 days 3.6 Financial instruments 3.6.1 Financial assets Initial recognition and measurement Upon initial recognition, a financial asset is measured at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Subsequently, financial assets are measured at amortized cost, at fair value through other comprehensive income (“FVTOCI”), or at fair value through profit or loss (“FVTPL”). The classification of financial assets at initial recognition depends on the characteristics of the contractual cash flows of the financial asset and the business model of the Company for the management of these financial assets. The business model of the Company for managing financial assets refers to how the Company manages its financial assets to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are “non-derivative” financial assets held within a business model with the objective to hold financial assets to collect contractual cash flows, while financial assets classified and measured at fair value through OCI are held within a business model with the objective of holding financial assets to collect contractual cash flows and selling them. Subsequent measurement Financial assets at amortized cost Financial assets at amortized cost are subsequently measured using the effective interest method and are subject to impairment analysis. Gains or losses are recognized in the statement of profit or loss when the asset is written off, modified, or impaired. The main financial assets of the Company classified as amortized cost include balances of trade accounts receivable, other current assets and non-current assets balances (see note 5.5 Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are presented in the balance sheet at fair value with net changes in fair value recognized in the statement of profit or loss. This category includes derivative instruments and short-term investments which the Company had not irrevocably elected to classify according to the fair value through OCI. The financial assets measured at fair value through profit or loss are investment funds, government securities, restricted cash, treasury bills, mutual investment fund, Dynamo Beauty Ventures Ltd. fund (“DBV Fund”), Certificate of Bank Deposits (“CDB”), repurchase operations, financial and operating derivatives, as presented in note 5.5. Derecognition (write-off) of financial instruments A financial asset (or, where applicable, part of a financial asset or part of a group of similar financial assets) is written off when the rights to receive cash flows from the asset have expired, when the Company transfers its rights or risk to receive cash flows from the asset or when the Company has assumed an obligation to pay the full amount of received cash flows, without significant delay, to a third party under an on-lending agreement and either (i) the Company has transferred substantially all risks and benefits of the asset, or (ii) the Company has neither transferred nor retained substantially all risks and benefits of the asset, but transferred the asset control. When the Company transfers its rights to receive cash flows of an asset or executes an on-lending agreement, it assesses whether, and at which extent, it has retained the risks and benefits of ownership. When the Company has neither transferred nor retained substantially all risks and benefits of the asset, nor transferred the control over the asset, the Company continues to recognize the asset transferred to the extent of its continued involvement. In this case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Impairment of financial assets The Company recognizes an allowance for expected credit losses (“ECL”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted by an approximation of the original effective interest rate. ECLs are recognized in two 12 12 For trade accounts receivable, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes an allowance for losses based on the ECL at each reporting date. The Company has recorded a provision that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Further details are disclosed in note 4.6. The Company considers a financial asset in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. 3.6.2 Financial liabilities Initial recognition and measurement All financial liabilities are recognized initially at fair value and, in the case of borrowing, financing and debentures, net of directly attributable transaction costs. The Company’s main financial liabilities include borrowing in local and foreign currency, financing and debentures (note 19 5 20 32 18 23 24 Subsequent measurement For purposes of subsequent measurement, financial liabilities are classified in two Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities classified upon initial recognition at fair value through profit or loss. During the year, considering the fair value hedge established to protect against interest rate variability associated with the issuance of real estate receivable certificates (“CRI”), the respective liabilities presented in borrowing, financing and debentures were designated at fair value through profit or loss Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the short term. This category also includes derivative instruments entered into by the Company that are not classified as hedging instruments in the hedge relationships defined by CPC 48 9 Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. Financial liabilities designated on initial recognition at fair value through profit or loss are designated on the initial recognition date and only if the criteria of CPC 48 9 Financial liabilities at amortized cost This is the most relevant category for the Company. After initial recognition, interest-bearing borrowings, financing and debentures are subsequently measured (except issuance of the aforementioned real estate receivables certificates) at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are written off as well as through the effective interest rate amortization process. Any difference between raised and settled amounts is recognized in the statement of profit or loss, using the effective interest rate method during the year in which the borrowings, financing and debentures are outstanding. Amortized cost is calculated by considering any premium or discount on acquisition and fees or costs that are an integral part of the effective interest rate method. The effective interest rate amortization is included as finance expenses in the statement of profit or loss. This category generally applies to t rade accounts payable and reverse factoring operations (see note 20 19 18 Derecognition A financial liability is written off when the obligation under the liability is discharged, canceled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as derecognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. The offsetting of financial instruments is also applied to bank balances subject to the central treasury management system (“cash pooling”) instituted with the financial institution, in which the current account positions of the Company (including overdraft balances) are offset since the Company has a legally enforceable right to settle at the net amount and intends to settle the positions on a net basis. 3.6.3 Derivative financial instruments Derivative financial instruments transactions contracted by the Company consist of swaps and currency and Non-deliverable interest rate forwards (“NDF”) intended exclusively to hedge against foreign exchange risks related to (i) exchange rate risks associated to balance sheet position, purchase of goods and property, plant and equipment, forecast exports in addition to and foreign-denominated cash flows for capital contributions in foreign subsidiaries; and (ii) variability in interest rates associated with contracted debt. They are measured at fair value, and changes are recognized through profit or loss, except when they are designated as cash flow hedge accounting, which changes in fair value are recorded in OCI. The fair value of derivative instruments is measured by the treasury department of the Company based on information on each contracted transaction and related market inputs as of the reporting date of the financial statements, such as interest and exchange rates. For the purpose of hedge accounting, hedges are classified as: (i) fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment; (ii) cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment; and that may affect the result or (iii) hedge At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting, the risk management goal and strategy for hedging. The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Company will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing and future basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. Any imbalance between the hedge index of the object and the hedge instrument that is not in compliance with the hedge purpose is adjusted so that the index returns to the standards established in the protection strategy. During the years ended December 31, 2022 and 2021 Fair value Hedge It consists in providing protection against variation at fair value of assets or liabilities recognized or firm commitments not recognized, or a component of any such items, that is attributed to a specific risk and that may affect the result. Any gain or loss arising from variations at fair value of the derivative instruments designated as hedge instruments and the hedged assets or liabilities are recognized in the financial result. In the year ending on December 31, 2022, the Company used derivative instruments, and the hedge accounting was used at fair value, as disclosed in note No. 5.3 Cash flow hedges It consists in providing hedge against variation in cash flows attributable to a specific risk related to a known asset or liability or a highly probable forecast transaction and that may affect statement of profit or loss. The effective portion of changes in fair value of derivative instruments that is designated and qualified as cash flow hedge is recognized in OCI and accumulated in the “gains (losses) from cash flow hedge operations” and “tax effect on gain (loss) from cash flow hedge operations”. In a cash flow hedge, the effective portion of gain or loss from the hedge instrument is recognized directly in OCI, in shareholders’ equity, while the ineffective portion of hedge is immediately recognized as finance income (expense). For the years ended December 31, 2022 and 2021 5.3 Discontinuing hedge accounting Hedge accounting is discontinued when the Company terminates the hedge relationship, the hedge instrument matures or is sold, revoked or executed, or no longer qualifies to hedge accounting. Any gains or losses recognized in OCI and accumulated in shareholders’ equity up to that date remain in shareholders’ equity related to cash flow hedge and are recognized when the forecast transaction is eventually recognized in the statement of profit or loss. If a forecast transaction results in the subsequent recognition of a non-financial asset or liability, the cumulative gain or loss in OCI is recycled to profit or loss during the same year for which the non-financial asset acquired or non-financial liability assumed affects the profit or loss. For example, when the non-financial asset is depreciated or sold. On the other hand, if a forecast transaction results in the subsequent recognition of a financial asset or liability, the cumulative gain or loss in OCI is recycled to profit or loss during the same period for which the financial asset acquired or financial liability assumed affects the profit or loss. For example, when financial income or expense is recognized. When the forecast transaction is no longer expected, cumulative gains or losses and deferred in the statement of changes in shareholders' equity are immediately recognized in the statement of profit or loss. The Company assesses, on a prospective basis, throughout the hedge term, the effectiveness of its derivative instruments, as well as changes in their fair value. The fair values of derivative instruments are disclosed in note 5.5 3.7 Trade accounts receivable Trade accounts receivable correspond to amounts receivable for the sale of goods and services in the ordinary course of the activities of the Company and are recognized to the extent that the consideration, which is unconditional, is due by the customer (that is, only the passage of time is required before payment of the consideration is due) and are measured on initial recognition at cost for the consideration to which the Company expects to be entitled in exchange for the products promised to the client. Subsequently, trade accounts receivable are measured at amortized cost by using the interest rate method and they are subject to impairment test. 3.8 Inventories Inventories are valued at their average cost and the net realizable value, whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. The Company considers the following items when determining its allowance for inventory losses: discontinued products, products with slow turnover, expired products or products nearing the expiration date and products that do not meet quality standards, recorded as “cost of sales”. 3.9 Carbon credits – carbon neutral program In 2007 This commitment, which presently refers to the operations of all Company and does not reflect a legal obligation to the extent in which the specific regulations still have not been promulgated by the legislative branch. Thus, considering the practices historically applied by the Company and the specificity of the commitments assumed and disclosed to the market and society, this commitment is considered a non-formalized obligation, according to CPC 25 37 The liability is estimated through audited carbon emission inventories carried out annually and valued based on the best estimate of the cash disbursement that will be required to settle the current obligation at the reporting date, considering the history of similar transactions carried out by the Company for such end. As of December 31, 2022 and 2021 2007 2022 The Company elected to make purchases of carbon credits by investing in projects with environmental benefits arising from the voluntary market. Thus, the costs incurred will generate carbon credits after completion or maturation of these projects. Such expenses are recorded in the line item “other current assets” (see note 14 Upon effective delivery of the related carbon neutral certificates to the Company, and duly filed, the obligation of being carbon neutral is effectively fulfilled; therefore, the asset balances are offset against those of the liabilities. 3.10 Property, plant and equipment Property, plant and equipment is measured at cost of acquisition or construction, plus interest capitalized during construction period, in the case of qualifying assets, and reduced by accumulated depreciation and impairment losses, if applicable. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if applicable. Land is not depreciated. Depreciation of the other assets is calculated to reduce the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their useful lives and is recognized in the statement of profit or loss. The estimated useful lives of the assets are mentioned in note 16 Gains and losses on disposals are calculated by comparing the proceeds from the sale with the carrying residual amount and are recognized in the statement of profit or loss as “other operating income (expenses), net”. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company. 3.11 Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are reported at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the method for an intangible asset with a finite useful life are reviewed at least at each reporting date. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense regarding intangible assets with finite lives is recognized in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, and when circumstances indicate that the carrying amount may be impaired, either individually or at the CGU level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the useful life is changed from indefinite to finite on a prospective basis. An intangible asset is written off upon disposal (i.e., at the date the receiver of the asset obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon write-offs of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss in item “other operating income (expenses), net”. The main classes of intangible assets and useful life are detailed below and described in note No. 17 3.11.1 Software Licenses of software and enterprise management systems acquired are capitalized and amortized according to the useful lives, and maintenance costs are recognized as expenses when incurred. Business management system acquisition and implementation costs are capitalized as intangible assets when the asset is identified, when there is evidence that future economic benefits will be generated and when the asset is controlled by the Company, taking into consideration its economic and technological viability. Contracts involving hosting and/or processing of information in the cloud (“cloud computing arrangements”) generate intangible assets to the extent that on the contract start date, the Company obtains control of the software. Contracts which only provide the right of access to the supplier's software during the term of the contract are treated as a service contract and, consequently, recognized as an expense in the statement of profit or loss as the service is provided (since the right of receiving access to the supplier's software does not give the Company, at the commencement date of the contract, the power to obtain the future economic benefits arising from the software itself and to restrict third parties' access to those benefits). The amounts incurred on software development recognized as assets are amortized under the straight-line method over its estimated useful life. The expenditures related to software maintenance are recognized in profit or loss of the year when incurred. 3.11.2 Trademarks and patents Separately acquired trademarks and patents are stated at their historical cost. Trademarks and patents acquired in a business combination are recognized at fair value on the date of acquisition. For trademarks and patents with a defined useful life, amortization is calculated using the straight-line method. 3.11.3 Relationship with retail clients, franchisees, sub-franchisees and agents Relationships with retail clients, franchisees, sub-franchisees and agents acquired in business combinations are recognized at fair value on the date of acquisition and amortization is calculated using the straight-line method. 3.11.4 Key money with defined useful life Key money with defined useful life is recorded at the acquisition cost and amortized using the straight-line method during the rental period. 3.11.5 Technologies developed Technologies developed include technology for product development (including formulas, labeling data, manufacturing processes, regulatory approvals, product packaging and designs) arising from business combination, and are recognized at fair value on the date of acquisition and its amortization is calculated using the straight-line method. 3.12 Impairment of non-financial assets The Company reviews, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when the annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable am |
CRITICAL ACCOUNTING ESTIMATES A
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS | 12 Months Ended |
Dec. 31, 2022 | |
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS | |
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS | 4 CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS The preparation of the financial statements requires management to make certain judgments and use assumptions and estimates based on experience and other factors considered relevant, which affect the values of assets and liabilities, and which may present results that differ from actual results. The areas that require a higher level of judgment and have greater complexity, as well as the areas in which assumptions and estimates are significant for the financial statements, are disclosed below. 4.1 Income tax, social contribution, and other taxes Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies and other sources of income. The Company has R$12,735,337 of reportable unrecognized tax losses as of December 31, 2022 (R$ 12,324,912 on December 31, 2021). These losses relate to subsidiaries that have a history of losses, do not expire, and may not be used to offset taxable income in other subsidiaries. The subsidiaries neither have any taxable temporary difference nor any tax planning opportunities available that could partly support the recognition of these losses as deferred tax assets. Based on this, the Company determined that it cannot recognize deferred tax assets on these tax losses carried forward. 4.2 Provision for tax, civil and labor risks The Company is party to several legal and administrative procedures as described in note 22 4.3 Post-employment health care plan The cost of the post-employment health care plan is determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These are based on a series of financial and demographic assumptions, such as the discount rate, medical inflation, and percentage of adhesion to the plan, which are disclosed in note 23 4.4 Stock option plan, restricted share plan, strategy-acceleration program and performance share program Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option or appreciation right, volatility and dividend yield and making assumptions about it. The stock option plan, restricted share plan, strategy-acceleration program and performance share program are measured at fair value at the grant date and the expense is recognized in profit or loss during the vesting period and in “Additional paid-in capital” in shareholders’ equity. At the balance sheet dates, Management reviews the estimates as to the number of purchase options/restricted shares and, where applicable, recognizes the effect arising from this review in profit or loss for period against shareholders’ equity. The assumptions and models used to estimate the fair value of the stock option plan, restricted share plan and strategy-acceleration program are disclosed in note 28.1 4.5 Impairment of non-financial assets An impairment loss exists when the carrying amount of an asset or CGU exceeds its recoverable amount, which is the higher of fair value less cost of disposal and value in use. Fair value less costs of disposal is calculated based on information available about similar assets sold or market prices less additional costs to dispose of the asset. Value in use is calculated based on the discounted cash flow model. Cash flow derive from financial budgets approved by Board of Directors for period of three ten ten 4.6 Allowance for trade accounts receivables expected losses The allowance for expected losses on trade accounts receivables from customers is estimated based on the loss risk in an aging list model. The characteristics of the Company’s trade accounts receivable are (i) immaterial financial component; (ii) non-complex receivables portfolio; and (iii) low credit risk. For trade accounts receivable, the Company applies the simplified approach in calculating expected credit losses (“ECL”) based on expected credit losses at each reporting date. The allowance determined based on (i) each of the subsidiaries credit losses historical experience, observed in each group of the trade accounts receivable aging list, and (ii) adjustments for specific forward-looking factors for defaulters and the economic environment. An estimated range is used based on the weighted average of the losses for the last 12 4.7 Allowance The allowance for inventory losses is estimated using a methodology to contemplate discontinued products, materials with slow turnover, materials with an expired expiration date or close to the expiration date, and materials outside the quality parameters. 4.8 Leases - Incremental borrowing rate The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (“IBR”) to measure lease liabilities. The IBR is the interest rate that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company “would have to pay”, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 5 FINANCIAL RISK MANAGEMENT 5.1 General considerations and policies Risks and financial instruments are managed through policies, the definition of strategies and implementation of control systems, defined by the risk management committees of the entities of the group, and approved by the Company’s Board of Directors. The compliance of treasury financial instruments positions, including derivatives, in relation to these policies, is presented and assessed on a monthly basis by the Company’s Treasury Committee and subsequently submitted to the analysis of the Audit and Risk Management and Finance Committees, the Executive Committee and, if necessary, the Board of Directors. Risk management of the Company’s operations is performed by the Company’s Corporate Treasury, which is also responsible for approving short-term investments and borrowings transactions. Risk management of the subsidiaries Aesop, The Body Shop, Avon and Natura Cosméticos is conducted by local treasury teams, subject to monitoring and approval of the Company’s Corporate Treasury. 5.2 Risks associated with the conflict between Russia and Ukraine In February 2022, Russia launched a full-scale military invasion and is now engaged in a wide-ranging military conflict with Ukraine. In response, governments, and authorities around the world, including the United States, United Kingdom and the European Union, announced sanctions and export restriction on certain companies, financial institutions, individuals and economic sectors of Russia and Belarus. In response, Russia announced countermeasures aimed at punishing foreign companies for interrupt their activities. Such sanctions and other measures could adversely affect our business. So far, the conflict resulted in the suspension of the operations of the subsidiaries The Body Shop and Aesop in Russia and of exports from the Russian manufacturing unit to other countries in the region, which are now supplied by our unit in Poland. Avon, however, continues to provide a basic earning opportunity to its Representatives through a simplified operating model. The administrative operations in Ukraine that were carried out within the Company's facilities have been idle since the beginning of the conflict. As of the date of these financial statements, the Company confirms that the facilities, as well as the goods and stocks held therein, have not been damaged and are in a suitable condition to be operated as activities resume in the future. There is no material impact considering the matter above until the issue date of the Company’s financial statements. Regarding operations of the subsidiary Avon in Russia, as of the date of these financial statements, no significant impacts were identified that affect the business model for managing financial assets or the classification of these assets. Additionally, there are no indications of a significant increase in the expected credit loss associated with operations, considering the maintenance of receivables collection levels and the increase in cash transactions (considering the reduction in credit operations as a result of restrictions imposed locally and of credit card processing companies in the country). During the quarter ended June 30, 2022, the Company's Management decided not to continue the operations of subsidiary The Body Shop in Russia and the related impacts are disclosed in note 30 Considering the maintenance of collection levels and sales operations for the local market in Russia, as well as the inexistence of significant restrictions that affect the Company's ability to carry out the management and cash changes necessary to maintain its operations, there is no significant risk of liquidity related to these events that affect this financial statement. Similarly, market risks associated with the transaction, including interest rate, currency and other price risks, including raw materials, did not significantly affect the Company's financial assets, considering the expectation of recoverability of the amounts in the ordinary course of business. Regarding the operations in Ukraine, the temporary suspension of sales in March and the reduction in the collection of outstanding receivables resulted in an increase in the allowance for losses on trade accounts receivable on December 31, 2022, this effect, however, not being material for this consolidated interim accounting information. Additionally, considering the absence of restrictions imposed on the changes in cash and cash equivalents, raising funds in the ordinary course of business and making payments and receipts, at the date of the financial statements, there are no significant impacts on the liquidity of the operations in that location. As a result of the developments of the conflict in the year ended December 31, 2022, there were still no impacts resulting from possible breaches of covenants or losses related to derecognition and/or modification of financial instruments or reclassification of cash flow hedge reserve amounts as a result of loss of effectiveness of derivatives recognized by hedge accounting or by the loss of expectation that transactions evaluated as highly probable will actually occur. The Company's Management is continuously monitoring developments to assess any possible future impacts that may arise as a result of the ongoing crisis, including the impairment of financial and non-financial assets, which the Company’s Management assesses based on the best information available. 5.3 Financial risk factors The Company’s activities expose them to several financial risks: market risks (including foreign currency and interest rate risks), credit risk and liquidity risk. The Company’s overall risk management program is focused on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance, using financial instruments to hedge certain risk exposures. The Company does not operate derivative instruments with the purpose of speculation. a) Market risks Market risks reflect the risks that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices, including foreign exchange risk, interest rate risk and other price risks. The Company is exposed to market risks arising from their business activities. These market risks mainly comprise possible fluctuations in exchange and interest rates (detailed below in this note). Other price risks include, among others, exposures to financial instruments due to changes in commodity and raw material prices. Climatic aspects, such as the availability of natural raw material used in the products and/or significant changes in the cost of these items in view of their dependence on an environment conducive to harvesting and/or extraction in accordance with the sustainability assumptions and the commitments assumed by the Company with the environment may expose the Company to additional market risks that affect the entity's operations as well as the measurement and/or recoverability of financial instruments. As of December 31, 2022, the Company’s Management assessed these risks and concluded that they are not material. The disclosures about interest rate and liquidity risks discussed below also bring other considerations about sustainability and climate change issues. To hedge the current balance sheet positions of the Company against market risks, the following derivative instruments are used and consist of the balances in the following table, as of December 31, 2022 and 2021 Description – Balance sheet position Fair value (Level 2 Consolidated 2022 2021 Financial derivatives (785,733 ) 516,386 Operating derivatives (11,144 ) 251 Total (796,877 ) 516,637 b) Foreign exchange risk The Company is exposed to foreign exchange risk resulting from financial instruments and operations in currencies other than their functional currencies, as well as to operating cash flows in foreign currencies. To reduce this exposure, policies were implemented to hedge the Company from foreign exchange risk, which establish exposure levels related to these risks. The treasury procedures defined by the current policies include quarterly projection and assessment of the consolidated foreign exchange rate exposure of the Company, on which Management’s decision-making is based. The Company’s foreign exchange hedging policy considers the amounts of foreign currency of receivables and payables balances from commitments already assumed and recorded in the financial statements, as well as future cash flows, with a six-month Pursuant to the Foreign Exchange Hedging Policy, the derivatives entered into by the Company should eliminate the foreign exchange risk of financial instruments in currencies other than their functional currencies and should also limit losses due to exchange rate variation on future cash flows. To hedge from the foreign exchange exposures in relation to foreign currency, the Company enters transactions with derivative instruments such as swap and non-deliverable forward (“NDF”). Derivative instruments to hedge foreign exchange rate risk The Company classifies derivatives financial instruments between financial and operating derivatives. Financial derivatives include swaps or forwards engaged to hedge the foreign exchange risk the borrowing, financing, debt securities and intercompany borrowings denominated in foreign currency. Operating derivatives financial instruments are used to hedge the foreign exchange risk from the business’s operating cash flows. On December 31, 2022 and 2021 , the derivative financial instrument balances are composed as follows: Financial derivatives Fair value Gains (losses) of fair value adjustment Description 2022 2021 2022 2021 Swap agreements: (a) Asset portion: Dollar long position 6,108,505 6,881,981 34,867 978,350 Liability portion: Post-fixed CDI Rate: Short position in CDI (6,874,285 ) (6,348,442 ) (697,678 ) (823,887 ) Forward contracts and NDF: Liability portion: Post-fixed CDI Rate: (521 ) (137 ) (521 ) (137 ) Short position at interbank rate (19,432 ) (17,016 ) 3,723 94 Total derivative instruments, net: (785,733 ) 516,386 (659,609 ) 154,420 a) Swap transactions consist of swapping the exchange rate variation for a correction related to a percentage of the fluctuation of the Certificate of bank deposits (post-fixed CDI), in the case of Brazil. Below are the changes in net derivatives balances for the years ended on December 31, 2022 and 2021 Balance as of December 31, 2020 1,846,777 Gain from swap and forward derivative contracts for the year (unrealized) 441,554 Receipt of funds due to settlement of derivative transactions - operational activity (1,570,584 ) Payment of funds due to settlements of derivative instruments - financing activity 9,040 Losses in cash flow hedge operations (other comprehensive income) (210,150 ) Balance as of December 31, 2021 516,637 Losses from swap and forward derivative contracts for the year (unrealized) (992,813 ) Payment of funds due to settlement of derivative transactions - operational activity 594,225 Receipt of funds due to settlements of derivative instruments - financing activity (118,707 ) Losses in cash flow hedge operations (other comprehensive income) (790,479 ) Other movements (5,740 ) Balance as of December 31, 2022 ( ) For the derivative instruments held by the Company as of December 31, 2022 and 2021 “Operating” derivatives As of December 31, 2022 and 2021 Description Fair value 2022 2021 Net position in GBP and USD (4,510 ) (404 ) Forward contracts (6,634 ) 655 Total of derivative instruments, net (11,144 ) 251 Sensitivity analysis For the foreign exchange risk sensitivity analysis, the Company’s Management believes that it is important to consider, in addition to the assets and liabilities with exposure to fluctuations in exchange rates recorded in the balance sheet, the fair value of the financial instruments entered into by the Company to hedge certain exposures as of December 31, 2022 and 2021 2022 2021 Borrowing and financing in foreign currency in Brazil (a) (5,252,376 ) (5,897,015 ) Trade accounts receivable in foreign currency in Brazil 521,427 307,433 Trade accounts payable in foreign currencies in Brazil (15,214 ) (37,390 ) Fair value of financial derivatives 6,101,350 6,882,499 Net asset exposure 1,355,187 1,255,527 a) Excluding transaction costs. This analysis considers only financial assets and liabilities recorded in Brazil in foreign currency, since exposure to the foreign exchange rate variation in other countries is close to zero The following table shows the projection of the incremental loss that would have been recognized in profit or loss for the subsequent year, if the current net foreign exchange exposure remains static, based on the following scenarios: Parity - R$ vs US$ 5.2177 5.3798 4.0348 2.6899 Scenario Scenario Scenario I Scenario II Operation/Instrument Brazilian Real Probable Depreciation 25% Depreciation 50% Assets denominated in US$ Fair value of “financial” derivatives 6,101,350 6,290,873 4,718,155 3,145,436 Trade accounts receivable in foreign currency in Brazil 521,427 537,624 403,218 268,812 Liabilities denominated in US$ Borrowing and financing in foreign currency in Brazil (5,252,376 ) (5,415,528 ) (4,061,646 ) (2,707,764 ) Trade accounts payable in foreign currencies in Brazil (15,214 ) (15,686 ) (11,765 ) (7,843 ) Impact on net income and shareholders’ equity 1,355,187 42,096 (307,225 ) (656,546 ) The probable scenario considers future US dollar rates for a 90 days-term. According to quotations obtained at the Brazilian Stock Exchange (“B 3 1.00 1.00 1.00 7 40 Derivative instruments designated for hedge accounting The Company formally designated its operations subject to hedge accounting for derivative instruments to hedge borrowings, financing and debentures denominated in foreign currency and other expenses of Company, for derivative instruments contracted to hedge the purchase of nationalized materials of indirect subsidiaries Avon Industrial and Natura Industria and for derivative instruments contracted to hedge the operating cash flows from subsidiary The Body Shop’s foreign currency purchase and sales transactions. For years ending on December 31, 2022 and 2021 The positions of derivative instruments designated as outstanding cash flow hedge on December 31, 2022 and 2021 are set out below: Cash flow hedge instrument As of December 31, 2021 Other comprehensive income Hedged item Notional currency Fair value Accumulated contract gain (loss) Gain (loss) in the year Currency swap – US$/R$ Currency BRL 533,539 64,145 (215,944 ) Forward contracts (The Body Shop and Avon) Currency BRL - - 5,173 Forward agreements (Natura Indústria) Currency BRL (129) (129 ) 621 Total 533,410 64,016 ( 210,150 ) As of December 31, 2022 Other comprehensive income Hedged item Notional currency Fair value Accumulated contract gain (loss) Gain (loss) in the year Currency swap – US$/R$ Currency BRL (766,302 ) (765,286 ) (798,363 ) Forward contracts (Aesop) Currency BRL (1,350 ) (1,350 ) (1,350 ) Forward contracts (The Body Shop) Currency BRL 4,757 4,757 4,757 Forward agreements (Natura Indústria) Currency BRL 1,673 1,673 1,665 Forward contracts (Natura Holding) Currency BRL - - 89 Forward contracts (Avon) Currency BRL 74 2,723 2,723 Total (761,148 ) (757,483 ) ( 790,479 ) (*) The positions of derivative financial instruments designated as a fair value hedge are not material, therefore we are not disclosing them. The changes in cash flow hedge reserve recorded in OCI are shown below: Cash flow hedge balance as of December 31, 2020 159,077 Change in the fair value of hedge instrument recognized in OCI (210,150 ) Tax effects on fair value of hedge instrument 72,939 Cash flow hedge balance as of December 31, 2021 21,866 Change in the fair value of hedge instrument recognized in OCI (790,479 ) Tax effects on fair value of hedge instrument 270,035 Cash flow hedge balance as of December 31, 2022 (498,578 ) The Company designates as cash flow hedge There is an economic relationship between the hedged items and the hedging instruments, as the terms of the contracts correspond to (i) the terms of anticipated and highly probable transactions (for example, the notional amount and expected payment date) to the case of derivative instruments contracted to protect highly probable purchases; and (ii) terms associated with debts contracted in foreign currency which are hedged by derivatives that aim to eliminate the variability of cash flows associated with dollar-denominated debt. The Company established a hedge ratio of 1:1 for the hedge relationships, as the underlying risks of the contracts are identical to the protected risk components. To test the effectiveness of the hedge, the Company uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments with the changes in the fair value of the hedged items attributable to the hedged risks. The sources of ineffectiveness, historically immaterial, may come from: (i) differences in the timing of cash flows from hedged items and hedging instruments; (ii) different indices (and, consequently, different curves) associated with the hedged risk of hedged items and hedging instruments; (iii) counterparty credit risk having a different impact on fair value movements of hedging instruments and hedged items; and (iv) changes in the expected amount of cash flows from hedged items and hedging instruments. c) Interest rate risk The interest rate risk arises from short and long-term investments, borrowing, financing and debentures. Financial instruments issued at variable rates expose the Company to cash flow risk associated with interest rate. Financial instruments issued at fixed rates expose the Company to the fair value risk associated with the interest rate. The Company’s cash flow risk associated with interest rate arises from short-term and long-term investments, borrowing and financing issued at floating rates. The Company’s Management holds, for the most part, the indexes of its exposures to deposit and lending interest rates tied to floating rates. Short-term investments are adjusted by the Certificate interbank deposits (“CDI”) whereas borrowing and financing are adjusted by the CDI and fixed rates, according to the contracts entered into with financial institutions and through the negotiation of securities with investors in that market. Additionally, the Company considered potential aspects related to sustainability and climate change commitments as part of the risks to which it is exposed in relation to the interest rate on financial instruments, except for the risks associated with the ESG notes (disclosed in item (f) below), there is no exposure to material risks which should be subject to specific disclosure. Sensitivity analysis As of December 31, 2022, there are borrowing, financing and debentures contracts denominated in foreign currency that are linked to interest swap agreements, changing the liability index rate to the CDI variation. Accordingly, the risk of the Company becomes the exposure to the variation of the CDI. The following table presents the exposure to interest rate risks of transactions related to CDI, including derivative transactions (borrowing, financing and debentures in Brazil were considered in full, Total borrowing, financing and debentures - in local currency (note 19 (8,419,320 ) Operations in foreign currency with derivatives related to CDI (a) (5,172,966 ) Short-term investments (notes 6 7 3,091,344 Net exposure (10,500,942 ) (a) Refers to transactions involving derivatives related to CDI to hedge the borrowing, financing and debentures arrangements raised in foreign currency in Brazil. The sensitivity analysis considers the exposure of borrowing, financing and debentures, net of short-term investments, linked to CDI (notes 6 7 The following tables show the projection of incremental loss that would have been recognized in profit or loss for the following year, assuming that the current net liability exposure is static and the following scenarios: Description Company Risk Probable scenario Scenario II Scenario III Net liability Rate increase (1,944 ) (168,307 ) (334,670 ) The probable scenario considers future interest rates for 90 days-term, according to B 3 d) Credit risk Credit risk refers to risk of a counterparty not complying with its contract obligations, which would result in financial losses for the Company. The Company’s sales are made to a high number of Natura and Avon Consultants and this risk is managed through a credit granting process. The result of this management is reflected under item “allowance for expected credit losses” in “trade accounts receivables”, as shown in note 8 The Company is also subject to credit risks related to financial instruments entered for the management of its business, mainly represented by cash and cash equivalents, short-term investments and derivative instruments. The Company believes that the credit risk of transactions with financial institutions is low, as these are considered as first tier by the Management. The short-term investments policy adopted by the Company’s Management establishes the financial institutions with which the Company is allowed to do business, in addition to defining limits on funds allocation percentages and absolute amounts that may be allocated in each of these financial institutions. e) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash, short-term investments, funds available through credit facilities and the ability to settle market positions. Management monitors the Company’s liquidity level considering the expected cash flows in exchange for unused credit facilities, as shown in the following table: 2022 2021 Total current assets 16,121,527 17,388,165 Total current liabilities (13,337,868 ) (13,601,218 ) Total net working capital 2,783,659 3,786,947 As of December 31, 2022, the carrying amount of financial liabilities, measured using the amortized cost method, considering interest payments at a floating rate and the value of debt securities reflecting the forward market interest rates, may be changed due to the variation in floating interest rates. Their corresponding maturities, considering that the Company is in compliance with contractual covenants, are evidenced below: Less than a year One five More than five Total expected contractual cash flow Interest to be accrued Carrying amount Borrowing, financing and debentures 722,146 3,228,866 13,140,599 17,091,611 (3,499,325 ) 13,592,286 Derivatives 640,257 1,504,007 (1,347,387 ) 796,877 - 796,877 Lease liability 1,070,253 2,019,723 856,402 3,946,378 (675,641 ) 3,270,737 Trade accounts payables, related parties and reverse factoring operations 6,375,930 - - 6,375,930 - 6,375,930 Dividends payable 260 - - 260 - 260 New borrowing and financing in the year ended December 31, 2022 refer basically to: Utilization of a revolving credit facility in the principal amount of up to US$ 625.0 million by the indirect subsidiary Natura &Co Luxembourg; Issue of debt securities by the indirect subsidiary Natura &Co Luxembourg maturing on April 19, 2029 in the principal amount of US$600 million (approximately R$2,809 million), subject to interest of 6.125% per year, which are guaranteed by Natura &Co Holding and by the subsidiary Natura Cosméticos; Issue of promissory notes by the subsidiary Natura Cosméticos in the amount of R$ 500.0 million with maturity in 2025 The subsidiary Natura Cosméticos celebrated its 11 one The subsidiary Natura Cosméticos celebrated its 12 one 2027 2032 Matters related to climatic factors and other sustainability commitments assumed may expose the Company to possible risks related to its financial instruments, especially related to the potential variability of cash flows required to settle obligations with third parties on financing that involve such commitments. subject to foreign exchange risk, 2026 may affect the Company's liquidity, as it would 5.4 Capital Management The Company’s objectives in managing its capital are to safeguard the Company’s ability to continue to provide returns to shareholders and benefits to other stakeholders, in addition to maintaining an ideal capital structure to reduce this cost. The Company monitors capital based on the financial leverage ratios. This ratio corresponds to the net debt divided by Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”). The net debt corresponds to total borrowing and financing (including short and long-term borrowing and financing, as shown in the balance sheet), deducted from cash and cash equivalents and short-term investments (except for “Crer para Ver” funds and Dynamo Beauty Ventures Ltd. Fund (“DBV”). 5.5 Fair value estimate Financial instruments that are measured at fair value at the reporting dated as prescribed by IFRS 13 46 ➢ Level 1 : Valuation based on quoted (unadjusted) prices in active markets for identical assets and liabilities on the reporting date. A market is seen as active if quoted prices are readily and regularly available from a Commodities and Securities Exchange, a broker, industry group, pricing service or regulatory agency, and those prices represent actual market transactions, which occur regularly on a purely commercial basis; ➢ Level 2 : Used for financial instruments that are not traded in active markets (for example, over-the-counter derivatives), whose valuation is based on techniques that, in addition to the quoted prices included in Level 1 , use other inputs adopted by the market for the asset or direct liabilities (i.e., as prices) or indirectly (i.e., derived from prices); and ➢ Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value estimate is unobservable. The carrying amounts and fair values of the Company’s financial instruments as of December 31, 2022 and 2021 Carrying amount Fair value Note Classification by category Fair value hierarchy 2022 2021 2022 2021 Financial assets Cash and cash equivalent 6 Cash and banks Amortized cost Level 2 2,904,808 3,349,398 2,904,808 3,349,398 Certificate of bank deposits Fair value through profit or loss Level 2 46,864 7,639 46,864 7,639 Repurchase operations Fair value through profit or loss Level 2 1,244,041 650,220 1,244,041 650,220 4,195,713 4,007,257 4,195,713 4,007,257 Short-term investments 7 Government securities Fair value through profit or loss Level 2 31,415 435,898 31,415 435,898 Restricted cash Fair value through profit or loss Level 2 1,481 44 1,481 44 Financial treasury bills Fair value through profit or loss Level 2 539,450 646,586 539,450 646,586 Loan investment fund Fair value through profit or loss Level 2 1,228,093 896,212 1,228,093 896,212 DBV fund Fair value through profit or loss Level 3 35,235 36,921 35,235 36,921 1,835,674 2,015,661 1,835,674 2,015,661 Trade accounts receivables - related parties 8 32.1 Amortized cost Level 2 3,502,399 3,476,359 3,502,399 3,476,359 Judicial deposits 12 Amortized cost Level 2 457,550 585,284 457,550 585,284 Sublease receivables 14 Amortized cost Level 2 262,108 347,174 262,108 347,174 Receivables from service providers 14 Amortized cost Level 1 110,214 162,268 110,214 162,268 4,332,271 4,571,085 4,332,271 4,571,085 Financial and operating derivatives instruments Fair value through profit or loss Level 2 1,008,365 975,129 1,008,365 975,129 Financial liabilities Borrowing, financing and debentures 19 Borrowing in local currency Amortized cost Level 2 (8,419,320 ) (6,914,117 ) (8,419,320 ) (2,100,465 ) Foreign currency borrowings Amortized cost Level 2 (5,172,966 ) (5,802,715 ) (5,172,966 ) (5,755,272 ) (13,592,286 ) (12,716,832 ) (13,592,286 ) (7,855,737 ) Financial and operating derivative instruments Fair value through profit or loss Level 2 (1,805,242 ) (458,492 ) (1,805,242 ) (458,492 ) Lease 18 Amortized cost Level 2 (3,270,737 ) (3,547,862 ) (3,270,737 ) (3,547,862 ) Trade accounts payables, related-parties’ and reverse factoring operations 20 32.1 Amortized cost Level 2 (6,375,930 ) (6,770,579 ) (6,375,930 ) (6,770,579 ) Insurance payables 23 Amortized cost Level 2 (69,364 ) (127,413 ) (69,364 ) (127,413 ) Dividends payable 24 Amortized cost Level 2 (260 ) (180,772 ) (260 ) (180,772 ) To measure the fair value, the carrying amount represents an amount that is reasonably near to the fair value, as described below: (i) the balances of cash and cash equivalents, trade accounts receivables, accounts payable to suppliers and other current liabilities are equivalent to their carrying amounts, mainly due to the short-term maturities of these instruments; (ii) the short-term investment balances measured at (a) amortized cost approximate their fair values as the operations are carried out at floating interest rates and (b)fair value against profit or loss consider the rates agreed between the parties upon contracting investments, including market information that render this calculation possible. (iii) except for the issuance of real estate receivables certificates in 2022 (iv) the fair value of exchange rate derivatives (swap and forwards) is determined based on the future exchange rates at the dates of the balance sheets, with the resulting amount being discounted at present value. The fair value of the investment in the Dynamo Beauty Ventures Ltd. (“DBV”) Fund, classified at level 3 2021 There were no transfers between measurement levels in the fair value hierarchy for the year ended December 31, 2022 and 2021 Additionally, in the year ended December 31, 2022, there were no material effects on the fair value of financial assets and liabilities as a result of the increase in price volatility in markets affected by the conflict between Russia and Ukraine, counterparty risk in financial assets or inactivity of markets considered in the valuation. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2022 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 6. CASH AND CASH EQUIVALENTS 2022 2021 Cash and banks 2,904,808 3,349,398 Certificate of bank deposits 46,864 7,639 Repurchase operations (a) 1,244,041 650,220 4,195,713 4,007,257 (a) Repurchase operations are securities issued by banks with a commitment by the bank to repurchase the securities, and by the client to resell the security, at a defined interest rate and within a predetermined term, which are backed by public or private securities (depending on the financial institution) and are registered within the Central Agency for Custody and Financial Settlement of Securities (“CETIP”), being short-term investments and with high liquidity. As of December 31, 2022, repurchase operations are remunerated at an average rate of 100.0 100.0 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Short Term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 7 SHORT-TERM INVESTMENTS 2022 2021 Exclusive Investment fund (a) - - Mutual investment funds (b) 1,228,093 896,212 Treasury bills (c) 539,450 646,586 Government securities (LFT) (d) 31,415 435,898 DBV fund 35,235 36,921 Restricted cash 1,481 44 1,835,674 2,015,661 Current 1,800,439 1,978,740 Non-current 35,235 36,921 (a) The Company concentrate most of its investments in an Exclusive Investment Fund, which holds interest in shares of the Essential Investment Fund. The balance as of December 31, 2022, related to the “Crer para Ver” line within the exclusive investment fund is R$ 91,340 96,070 (b) Mutual investment funds refer to the investments of some subsidiaries of the Company, which are concentrated in the entities of Argentina, Chile, Colombia and Mexico. (c) As of December 31, 2022, investments in treasury bills are remunerated at an average rate of 109.69 120.0 (d) As of December 31, 2022, investments in Government securities (LFT) are remunerated at an average rate of 100.02 102.0 The breakdown of securities constituting the Essential Investment Fund portfolio, regarding which the Company holds 100% interest, on December 31, 2022 and 2021 is as follows: 2022 2021 Certificate of bank deposits (CDB) 2,012 - Repurchase operations (cash and cash equivalents) 937,645 569,349 Treasury bills 539,450 646,586 Government securities (LFT) 46,071 428,865 1,525,178 1,644,800 These amounts are presented together with the other investments of the same nature of the Company in the consolidated. |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
TRADE RECEIVABLES | 8 TRADE ACCOUNTS RECEIVABLE 2022 2021 Trade accounts receivable 3,933,550 3,930,340 (-) Allowance for expected credit losses (431,151 ) (453,981 ) 3,502,399 3,476,359 Maximum exposure to credit risk on the date of the financial statements is the carrying amount of each maturity date range, net of the allowance for expected credit losses. The following table shows trade accounts receivables by exposure to allowance for expected credit losses as of December 31, 2022 and 2021 2022 2021 Trade accounts receivable Allowance for expected credit losses Trade accounts receivable Allowance for expected credit losses Current 2,814,843 (94,148 ) 2,488,412 (80,087 ) Past due: Up to 30 621,711 (59,764 ) 937,227 (68,782 ) 31 60 142,507 (53,609 ) 140,757 (56,784 ) 61 90 106,124 (48,851 ) 97,713 (49,731 ) 91 180 248,365 (174,779 ) 266,231 (198,597 ) 3,933,550 (431,151 ) 3,930,340 (453,981 ) The changes in the allowance for expected credit losses for the year ended December 31, 2022 and 2021 Balance as of December 31, 2020 (432,108 ) Additions, net of reversals (837,822 ) Write-off (a) 817,446 Translation adjustment (1,497 ) Balance as of December 31, 2021 (453,981 ) Additions, net of reversals (605,995 ) Write-off (a) 592,857 Translation adjustment 35,968 Balance as of December 31, 2022 (431,151 ) (a) Refers to accounts overdue for more than 180 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES | |
INVENTORIES | 9 INVENTORIES 2022 2021 Finished products 3,634,068 4,619,237 Raw materials and packaging 1,159,507 1,166,681 Auxiliary materials 146,409 195,364 Products in progress 68,849 38,189 (-) Provision for inventory losses (491,959 ) (615,945 ) 4,516,874 5,403,526 The changes in the allowance for inventory losses for the years ended December 31, 2022 and 2021 B alance as of December 31, 2020 (602,314 ) Additions, net of reversals (a) (407,207 ) Write-offs (b) 396,233 Translation adjustment (2,657 ) Balance as of December 31, 2021 (615,945 ) Additions, net of reversals (a) (305,705 ) Write-offs (b) 366,198 Translation adjustment 63,493 Balance as of December 31, 2022 (491,959 ) a) This refers to the recognition of net allowance for losses due to discontinuation, expiration and quality, to cover expected losses on the realization of inventories, pursuant to the policy of the Company. b) It consists of write-offs of products for which there already had an allowance for losses, where the Company has no expectation of sales/realization. |
RECOVERABLE TAXES
RECOVERABLE TAXES | 12 Months Ended |
Dec. 31, 2022 | |
RECOVERABLE TAXES | |
RECOVERABLE TAXES | 10 RECOVERABLE TAXES 2022 2021 ICMS on purchase of goods (a) 704,018 732,853 Taxes on purchase of goods – foreign subsidiaries 245,955 313,214 ICMS on purchases of property, plant and equipment and purchase of goods 14,365 12,138 PIS and COFINS on purchase of property, plant and equipment and purchase of goods (b) 950,307 984,737 Withholding PIS, COFINS and CSLL 1,671 1,673 Tax on Manufactured Goods - IPI (c) 152,686 114,179 Other 199,276 220,455 2,268,278 2,379,249 Current 911,410 1,029,625 Non-current 1,356,868 1,349,624 a) Tax credits related to the tax on the circulation of goods, interstate and inter-municipal transport and communication services (ICMS) were generated mainly by purchases, whose tax rate is higher than the average of sales. The Company expects to realize these credits during the ordinary course of business through offsetting with sales operations in the domestic market. b) The accumulated tax credits of PIS and COFINS basically arise from credits on purchases of raw materials used in the production and from purchase of property, plant and equipment, as well as credits arising out of the exclusion of ICMS from the calculation basis of the PIS/COFINS. The realization of these credits normally occurs through offsetting with sales operations in the domestic market. c) The balance will be used to offset IPI (Taxes over industrialized products) payable in future operations of the Company. |
INCOME TAX AND SOCIAL CONTRIBUT
INCOME TAX AND SOCIAL CONTRIBUTION | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAX AND SOCIAL CONTRIBUTION | |
INCOME TAX AND SOCIAL CONTRIBUTION | 11 INCOME TAX AND SOCIAL CONTRIBUTION 11.1 Deferred The deferred Corporate Income Tax - IRPJ and Social Contribution on Net Income - CSLL amounts arise from temporary differences in the subsidiaries. For certain subsidiaries and the Company, deferred tax balances on tax losses were also recognized. The Company’s Management assesses the possibility of offsetting deferred income tax assets and deferred income tax liabilities according to each jurisdiction. The amounts are as follows: i) Breakdown of deferred income tax and social contribution: 2022 2021 Tax loss carryforwards 2,465,805 2,543,720 Receivables 192,260 224,231 Inventory 219,367 244,854 Fixed and Intangible Assets 160,716 308,406 Lease liabilities 444,444 441,860 Accruals, reserves and provision for tax, civil and labor risks (b) 649,768 695,989 Employee benefits 373,817 317,835 Non-functional currency positions, including derivatives and hedge accounting transactions (c) 307,732 - Foreign Tax Credit Carryforwards (a) 363,493 146,441 Other temporary differences 124,689 423,839 Total Deferred Tax Assets 5,302,091 5,347,175 Non-functional currency positions, including derivatives and hedge accounting transactions (c) - (137,410 ) Fixed and intangible assets (339,627 ) (312,914 ) Employee benefits (132,609 ) (215,235 ) Right to use assets (359,072 ) (423,095 ) Fair value of identifiable net assets in business combination (d) (1,561,946 ) (1,714,045 ) Other temporary differences (323,736 ) (438,002 ) Total Deferred Tax Liabilities (2,716,990 ) (3,240,701 ) Total of Deferred income tax and social contribution, net 2,585,101 2,106,474 Deferred income taxes and social contribution assets, net (e) 3,519,515 3,100,515 Deferred income taxes and social contribution liabilities, net (e) (934,414 ) (994,041 ) a) Primarily relates to Foreign Tax Credit Carryforwards in Brazil that had historically been reported as Prepaid Income Taxes rather than Deferred Tax Assets. b) Includes (i) expenses under the accrual basis, reflecting authentic expenses incurred in the year, (ii) deferred revenue, (iii) accrued and unpaid compensation and (iv) other reserves not currently deductible for tax. c) Due to underlying changes in non-functional currencies relative to the Brazilian Real, the balance at 2022 2021 . d) The balance includes deferred income tax liability on the fair value of net identifiable assets in the acquisition of the subsidiaries Avon, The Body Shop and Aesop. e) Balance as presented in the balance sheet including the jurisdictional netting effects of deferred tax assets and liabilities of the same nature, originating in the same taxpayer and taxing authority. 2021 See Footnote 3 As of December 31, 2022, there are deferred tax assets recognized in the current and prior periods for tax losses carried forward and/or other deferred tax assets arising from operations of subsidiaries Avon Mexico and Avon Brasil that are currently loss-making in the total amount of R$186 million and R$392 million, respectively (R$159 million and R$322 million, respectively, as of December 31, 2021). In regard to Avon Mexico and Avon Brazil, Management of the Company has critically assessed the recoverability relating to such deferred tax assets in light of all available information, including future taxable income projected and embedded in forecasts as well as the monitoring of initiatives (which also involve the restructuring of operations in Latin America) that have been approved at the highest levels of governance and concluded that the realization of the assets is still probable. The forecasts are also consistent with those prepared and used internally for business planning and impairment testing purposes. Based on such forecasts and the underlying facts and circumstances, it was determined there would be sufficient taxable income generated to realize the benefit of the recognized deferred tax assets. In addition, Avon Brasil also considers taxable profits arising from the release of provision which will generate taxable income in future periods (for which reserves have been provided and have been netted against the deferred tax assets) and the reversal of existing taxable temporary differences. The impact of such provisions release as of December 31, 2022 is of approximately R$405 million, leading to a net deferred tax liability of R$13 million (as of December 31, 2021, the impact of such provisions release Unrecognized deferred tax assets are substantially associated with the acquisition of Avon’s operations, especially from operations in Luxembourg, United Kingdom and United States. During the second half of 2021 20 2022 2021 The changes in deferred asset and liability income tax and social contribution for the years ended December 31, 2022 and 2021 Asset Liability Balance at December 31, 2020 1,339,725 (1,288,045 ) Effect on statement of profit or loss 1,874,722 243,180 Transfer between income tax and deferred social contribution – assets and liabilities 16,437 (16,437 ) Reserve for grant of options and restricted shares (106,979 ) - Tax effects on (losses) earnings from cash flow hedge operations 72,939 - Translation adjustment (96,329 ) 67,261 Balance at December 31, 2021 3,100,515 (994,041 ) Effect on 599,136 (1,071 ) Reserve for grant of options and restricted shares 28,750 (1,617 ) Tax effects on (losses) earnings from cash flow hedge operations 270,035 - Translation adjustment (478,921 ) 62,315 Balance at December 31, 2022 3,519,515 (934,414 ) As of December 31, 2022, the Company had the following unrecognized deferred tax assets: Item Amount Indefinite Expiration Definite Expiration Net operating loss (a) 9,629,484 8,901,326 728,158 Credits (b) 627,489 - 627,489 Other future deductible Items 2,193,465 2,193,465 - Total 12,450,438 11,094,791 1,355,647 a) During 2023 2024 2027 b) During 2023 2024 2027 11.2 Reconciliation of income tax and social contribution: 2022 2021 Income (loss) before income tax and social contribution (2,358,642 ) 91,253 Income tax and social contribution at the rate of 34% 801,938 (31,026 ) Brazil Investment subsidies 207,608 469,863 Share of profit of equity investees - - Effect from differences of tax rates of entities abroad (117,757 ) (51,614 ) Taxation of profits of foreign subsidiaries (a) 38,862 (77,072 ) Unrecognized Deferred income tax (b) (789,129 ) 909,596 Non-Deductible donation and contribution (36,213 ) (8,381 ) United Kingdom Tax Law rate change (c) - (180,174 ) Withholding and Sub-national taxes (73,677 ) (75,499 ) Goodwill impairment (d) (70,730 ) - Other permanent differences (80,470 ) 92,293 Income tax and social contribution revenue (expenses) ( 119,568 ) 1,047,986 Income tax and social contribution - current (717,633 ) (1,069,916 ) Income tax and social contribution - deferred 598,065 2,117,902 Effective Rate- % (5.1% ) (1,148.4% ) a) Certain earnings of foreign subsidiaries may be subjected to income taxation net of applicable credits, if any, by their parent holding companies in addition to the local taxing jurisdictions in which they conduct operations. Within the Natura Group, these types of taxation regimes exist in various jurisdictions including but not limited to Brazil, Australia, United Kingdom, United States. b) During 2021 The benefits recorded in 2021 2022 c) During 2021 2021 19 25% 2021 d) During 2022 11.3 Income tax and social contribution included in discontinued operations: During the years ended December 31, 2022 and December 31, 2021, pre-tax losses of R$ million and R$ million were generated for which no tax benefits could be recognized. As a result, in each year, no income tax benefit was able to be reflected in the results of discontinued operations. See section 11.1 for the cumulative amount of unrecognized tax benefits that exist for the Company related to its assets, liabilities and tax attributes (net operating loss and income tax credit attributes that exist as of December 31, 2022). |
JUDICIAL DEPOSITS
JUDICIAL DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
JUDICIAL DEPOSITS | |
JUDICIAL DEPOSITS | 12 JUDICIAL DEPOSITS Judicial deposits represent restricted assets of the Company and are related to the amounts deposited and held in court until the resolution of the disputes to which they are related. The judicial deposits held by the Company as of December 31, 2022 and 2021 2022 2021 Unaccrued tax proceedings (a) 274,273 273,295 Accrued tax proceedings (b) 150,929 266,828 Unaccrued civil proceedings 5,783 8,212 Accrued civil proceedings 1,470 2,821 Unaccrued labor proceedings 11,014 11,970 Accrued labor proceedings 14,081 22,158 Total judicial deposits 457,550 585,284 a) The tax proceedings related to these judicial deposits refer mainly to the ICMS-ST, disclosed in note 22.2, contingent liabilities - possible risk of loss. b) The tax proceedings related to these judicial deposits refer, substantially, to the sum of the amounts highlighted in Note 21 , and the amounts provisioned according to Note 22 . Changes in judicial deposits balances for the year ended December 31, 2022 and 2021 are presented below: Balance as of December 31, 2020 566,190 New deposits 39,071 Redemptions in favor of the Company (21,533 ) Monetary adjustment 15,246 Application in the liquidation of proceedings (13,645 ) Translation adjustment (45 ) Balance as of December 31, 2021 585,284 New deposits 27,479 Redemptions in favor of the Company (67,533 ) Monetary adjustment 35,508 Application in the liquidation of proceedings (121,025 ) Transfers 25 Translation adjustment (2,188 ) Balance as of December 31, 2022 457,550 In addition to judicial deposits, the Company has contracted insurance policies for certain lawsuits. |
CURRENT ASSETS HELD FOR SALE
CURRENT ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2022 | |
CURRENT ASSETS HELD FOR SALE | |
CURRENT ASSETS HELD FOR SALE | 13 CURRENT ASSETS HELD FOR SALE The changes in the balance for the years ended December 31, 2022 and 2021 Balance as of December 31, 2020 181,279 Transfer from property, plant and equipment (a) 9,028 Transfer from assets and liabilities (b) (25,779 ) Transfer to property, plant and equipment - Transfer to assets and liabilities - Sale (c) (97,905 ) Translation adjustment (13,702 ) Balance as of December 31, 2021 52,921 Balance as of December 31, 2021 52,921 Transfers from property, plant and equipment, other assets and liabilities 13,235 Impairment (12,510 ) Sale (c) (55,034 ) Translation adjustment 1,439 Balance as of December 31, 2022 51 a) During the third quarter of 2021 b) In the first quarter of 2021 2020 c) During the third and fourth quarters of 2021 14,600 2022 |
OTHER CURRENT AND NONCURRENT AS
OTHER CURRENT AND NONCURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER CURRENT AND NONCURRENT ASSETS | |
OTHER CURRENT AND NONCURRENT ASSETS | 14. OTHER CURRENT AND NON-CURRENT ASSETS 2022 2021 Marketing and advertising advances 43,509 80,078 Supplier advances 290,205 350,830 Employee advances 20,267 17,402 Rent advances and guarantee deposit (a) 160,437 172,465 Advance insurance expenses 124,293 160,911 Overfunded pension plan (b) 694,527 1,043,799 Customs broker advances - Import taxes 38,398 60,739 Sublease receivables (c) 262,108 347,174 Carbon credits 14,297 11,479 Receivables from service providers (d) 110,214 162,268 Other 257,566 268,066 2,015,821 2,675,211 Current 763,384 912,160 Non-current 1,252,437 1,763,051 a) Mainly related to: (i) advances for lease agreements that were not included in the initial measurement of lease liabilities / right-of-use of the subsidiary The Body Shop, in accordance with the exemptions of IFRS 16 06 2 b) Pension plan arising from the acquisition of Avon. The change in balance refers to reviewing the mortality tables and the impact on the exchange rate variation due to the valorization of the real. c) Refers to the sublease receivable from the New York office owned by the subsidiary Avon. d) Refers to receivables mainly arising from damage that occurred with carriers and insurance companies. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 15 PROPERTY, PLANT AND EQUIPMENT Useful life range (in years) 2021 Additions Write-offs (Impairment) reversal of impairment Transfers Translation adjustment 2022 Cost: Vehicles 2 to 5 38,902 8 (6,559 ) - 49,285 (7,274 ) 74,362 Tooling 3 191,840 - (2,310 ) - 14,976 (329 ) 204,177 Tools and accessories 3 to 20 110,998 17,261 (8,177 ) - (43,369 ) 98,739 175,452 Facilities 3 to 60 303,452 181 (564 ) - 13,147 (8,768 ) 307,448 Machinery and accessories 3 to 15 1,959,943 23,188 (63,473 ) - 520,561 (168,083 ) 2,272,136 Leasehold improvements 2 to 20 1,128,504 68,980 (54,148 ) (1,665 ) 106,151 (119,736 ) 1,128,086 Buildings 14 to 60 1,982,245 7,174 (19,104 ) - 120,512 (173,888 ) 1,916,939 Furniture and fixtures 2 to 25 660,126 71,960 (41,095 ) (7,629 ) 53,632 (62,932 ) 674,062 Land - 628,373 - - - 10,043 7,241 645,657 IT equipment 3 to 15 634,580 26,602 (34,279 ) (191 ) 84,452 (83,394 ) 627,770 Other assets - 31,636 - (4,227 ) - - (1,179 ) 26,230 Projects in progress - 561,488 495,771 (1,739 ) - (429,391 ) (45,502 ) 580,627 Total cost 8,232,087 711,125 (235,675 ) (9,485 ) 499,999 (565,105 ) 8,632,946 Depreciation value: Vehicles (9,457 ) (6,057 ) 5,508 - (40,920 ) 12,856 (38,070 ) Tooling (174,164 ) (7,841 ) 2,310 - - 210 (179,485 ) Tools and accessories (65,740 ) (16,385 ) 1,823 - 46,967 (102,105 ) (135,440 ) Facilities (183,420 ) (17,051 ) 192 - (8,804 ) 7,776 (201,307 ) Machinery and accessories (728,408 ) (172,480 ) 56,142 - (397,740 ) 124,147 (1,118,339 ) Leasehold improvements (602,622 ) (133,533 ) 50,379 - (12,257 ) 71,602 (626,431 ) Buildings (298,327 ) (103,822 ) 14,111 - (136,601 ) 69,237 (455,402 ) Furniture and fixtures (369,610 ) (90,731 ) 31,606 - (18,576 ) 38,479 (408,832 ) IT equipment (392,095 ) (119,870 ) 36,065 - (71,041 ) 71,273 (475,668 ) Other assets (30,836 ) (2,287 ) 3,868 - - 1,433 (27,822 ) Total depreciation (2,854,679 ) (670,057 ) 202,004 - (638,972 ) 294,908 (3,666,796 ) Net total 5,377,408 41,068 (33,671 ) (9,485 ) (138,973 ) (270,197 ) 4,966,150 Useful life range (in years) 2020 Additions Write-offs (Impairment) reversal of impairment Transfers Translation adjustment 2021 Cost: Vehicles 2 to 5 79,228 4,951 (59,053 ) - 6,702 7,074 38,902 Tooling 3 187,852 2,097 - - 2,042 (151 ) 191,840 Tools and accessories 3 to 20 85,678 19,526 (538 ) - 5,233 1,099 110,998 Facilities 3 to 60 293,471 700 (14,486 ) - 21,231 2,536 303,452 Machinery and accessories 3 to 15 1,819,693 37,229 (98,228 ) - 85,451 115,798 1,959,943 Leasehold improvements 2 to 20 963,957 104,795 (51,588 ) (2,074 ) 93,589 19,825 1,128,504 Buildings 14 to 60 1,899,134 6,233 (13,322 ) 394 (6,944 ) 96,750 1,982,245 Furniture and fixtures 2 to 25 566,547 107,077 (40,259 ) 3,948 19,304 3,509 660,126 Land - 661,613 295 (1,203 ) - (2,372 ) (29,960 ) 628,373 IT equipment 3 to 15 543,772 58,192 (57,574 ) - 68,645 21,545 634,580 Other assets - 36,687 - (3,628 ) - - (1,423 ) 31,636 Projects in progress - 408,427 606,440 (26,425 ) - (429,760 ) 2,806 561,488 Total cost 7,546,059 947,535 (366,304 ) 2,268 (136,879 ) 239,408 8,232,087 Depreciation value: Vehicles (33,042 ) (19,229 ) 47,501 - (5,738 ) 1,051 (9,457 ) Tooling (166,536 ) (7,705 ) - - - 77 (174,164 ) Tools and accessories (39,159 ) (32,867 ) 750 - 3,145 2,391 (65,740 ) Facilities (176,726 ) (16,453 ) 13,072 - (2,705 ) (608 ) (183,420 ) Machinery and accessories (578,762 ) (198,805 ) 91,864 - 8,463 (51,168 ) (728,408 ) Leasehold improvements (480,554 ) (153,822 ) 48,057 - (5,561 ) (10,742 ) (602,622 ) Buildings (179,730 ) (89,292 ) 13,835 - 2,801 (45,941 ) (298,327 ) Furniture and fixtures (318,615 ) (95,673 ) 31,464 (291 ) (353 ) 13,858 (369,610 ) IT equipment (311,856 ) (115,735 ) 52,971 - (7,982 ) (9,493 ) (392,095 ) Other assets (26,022 ) (16,013 ) 1,369 - - 9,830 (30,836 ) Total depreciation (2,311,002 ) (745,594 ) 300,883 (291 ) (7,930 ) (90,745 ) (2,854,679 ) Net total 5,235,057 201,941 (65,421 ) 1,977 (144,809 ) 148,663 5,377,408 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 16 INTANGIBLE ASSETS Useful life range (in years) 2021 Additions Write-offs (Impairment) reversal of impairment Transfers Translation Adjustment 2022 Cost: Software 2.5 to 10 2,492,616 155,044 (43,333 ) (21,381 ) 640,903 (274,036 ) 2,949,813 Trademarks and patents (defined useful life) 20 to 25 889,834 - - - - (76,630 ) 813,204 Trademarks and patents (indefinite useful life) - 5,888,623 - (43 ) - - (1,070,550 ) 4,818,030 Goodwill Avon (a) - 13,381,191 - - (282,921 ) - (790,405 ) 12,307,865 Goodwill Emeis Brazil Pty Ltd. (b) - 143,180 - - - - (18,865 ) 124,315 Goodwill The Body Shop (c) - 2,063,672 - - (2,599 ) - (415,546 ) 1,645,527 Goodwill acquisition of The Body Shop stores - 1,456 - - - - - 1,456 Relationship with retail clients 10 2,880 - - - - (297 ) 2,583 Key money (indefinite useful life) (d) - 24,985 268 (152 ) (623 ) - (2,165 ) 22,313 Key money (defined useful life) (e) 3 to 18 14,363 - (3,618 ) (940 ) - (1,977 ) 7,828 Relationship with franchisees and sub franchisees and sales representative (f) 7 to 15 2,990,558 - - - - (313,995 ) 2,676,563 Technology developed (by acquired subsidiary) 5 1,580,808 - - - - (123,769 ) 1,457,039 Other intangible assets and intangible under development 2 to 10 277,776 207,911 (21 ) - (336,346 ) (15,917 ) 133,403 Total cost 29,751,942 363,223 (47,167 ) (308,464 ) 304,557 (3,104,152 ) 26,959,939 Accumulated amortization: Software (1,369,767 ) (417,253 ) 42,462 - (179,645 ) 204,034 (1,720,169 ) Trademarks and patents (143,186 ) (36,791 ) - - - 10,357 (169,620 ) Key money (16,517 ) - 4,505 - - 1,909 (10,103 ) Relationship with retail clients (3,218 ) (42 ) - - - 292 (2,968 ) Relationship with franchisees and sub franchisees (729,049 ) (264,320 ) - - - 74,375 (918,994 ) Technology developed (632,326 ) (272,297 ) - - - 30,398 (874,225 ) Other intangible assets (296 ) (3,228 ) - - (48 ) 682 (2,890 ) Total accrued amortization (2,894,359 ) (993,931 ) 46,967 - (179,693 ) 322,047 (3,698,969 ) Net total 26,857,583 (630,708 ) (200 ) (308,464 ) 124,864 (2,782,105 ) 23,260,970 Useful life range (in years) 2020 Additions Write-offs (Impairment) reversal of impairment Transfers Translation Adjustment 2021 Cost: Software 2.5 to 10 2,059,149 88,101 (114,805 ) - 280,959 179,212 2,492,616 Trademarks and patents (defined useful life) 20 to 25 894,578 - - - - (4,744 ) 889,834 Trademarks and patents (indefinite useful life) - 5,747,057 - - - - 141,566 5,888,623 Goodwill Avon (a) - 13,299,850 - - - - 81,341 13,381,191 Goodwill Emeis Brazil Pty Ltd. (b) - 142,090 - - - - 1,090 143,180 Goodwill The Body Shop (c) - 1,946,741 - - - - 116,931 2,063,672 Goodwill acquisition of The Body Shop stores - 1,456 - - - - - 1,456 Relationship with retail clients 10 2,785 - - - - 95 2,880 Key money (indefinite useful life) (d) - 26,769 - (3,619 ) 1,984 - (149) 24,985 Key money (defined useful life) (e) 3 to 18 10,860 2,500 - (2,288 ) (5,555 ) 8,846 14,363 Relationship with franchisees and sub franchisees and sales representative (f) 7 to 15 2,959,519 - (446 ) - - 31,485 2,990,558 Technology developed (by acquired subsidiary) 5 1,595,041 - - - (14,233 ) 1,580,808 Other intangible assets and intangible under development 2 to 10 108,275 359,834 (1,326 ) - (147,768 ) (41,239 ) 277,776 Total cost 28,794,170 450,435 (120,196 ) (304 ) 127,636 500,201 29,751,942 Accumulated amortization: Software (1,022,498 ) (373,753 ) 116,429 - 3,760 (93,705 ) (1,369,767 ) Trademarks and patents (100,042 ) (45,782 ) - - - 2,638 (143,186 ) Key money (8,871 ) (185 ) - - 1,667 (9,128 ) (16,517 ) Relationship with retail clients (2,839 ) (286 ) - - - (93 ) (3,218 ) Relationship with franchisees and sub franchisees (419,061 ) (306,451 ) 446 - - (3,983 ) (729,049 ) Technology developed (319,009 ) (320,183 ) - - - 6,866 (632,326 ) Other intangible assets (4,722 ) (1,280 ) 1,326 - - 4,380 (296 ) Total accrued amortization (1,877,042 ) (1,047,920 ) 118,201 - 5,427 (93,025 ) (2,894,359 ) Net total 26,917,128 (597,485 ) (1,995 ) (304 ) 133,063 407,176 26,857,583 a) Goodwill related to the acquisition of subsidiary Avon. It does not have defined useful life and it is subject to annual impairment tests. b) Goodwill related to the acquisition of subsidiary Emeis Holdings Pty Ltd. acquisition. It does not have defined useful life and it is subject to annual impairment tests. c) Goodwill related to the acquisition of subsidiary The Body Shop, classified as future economic benefits from synergies. It does not have defined useful life and it is subject to annual impairment tests. In addition, on June 30, 2021, the subsidiary The Body Shop International Limited acquired the entity Aeon Forest Co. Ltd, for R$ 133,275 2,632,000 d) Key money with indefinite useful life refers to payments made to former tenants, to get the right to rent the property under lease and can be subsequently negotiated with future tenants in the case of termination of the lease agreement. e) Key money with defined useful life refers to payments made to ex-tenants or lessors, to obtain the right to rent the property under the terms of the lease and which cannot be negotiated or recovered later. f) The balance refers to identifiable intangible assets from relationship with the subsidiary The Body Shop franchisees and sub-franchisees (relationship where the franchisee owns all rights to operate within a territory) and sub-franchisees (relationship where a franchisee operate a single store within a market), with estimated useful life of 15 years. a) Impairment test of intangible assets with indefinite useful lives The goodwill balances of the acquired companies, as well as the intangible assets with indefinite useful lives were allocated to the CGU groups which expect to benefit from the synergy of the business combinations. The accordance with CPC 01 1 36 CGU groups Trademarks and patents Goodwill Total 2022 2021 2022 2021 2022 2021 Natura &Co Latam - - 9,765,077 10,041,156 9,765,077 10,041,156 Avon International 2,396,290 2,824,961 2,542,788 3,340,035 4,939,078 6,164,996 TBS International 2,421,740 3,063,662 1,645,527 2,063,672 4,067,267 5,127,334 Aesop International (*) - - 124,315 143,180 124,315 143,180 Total 4,818,030 5,888,623 14,077,707 15,588,043 18,895,737 21,476,666 (*) The trademarks and patents recognized as part of the acquisition of Aesop were assessed as having a determined useful life and, therefore, are not presented in the table above. The main assumptions used to calculate the value in use as of December 31, 2022 are presented below: Aesop The Body Shop Avon International Natura &Co Latam Impairment estimate (value in use) Discounted cash flow based on financial budgets approved by Board of Directors for period of three years and complemented for a discretionary period of ten years estimated by Management, with a terminal value projected for the end of the period. The ten-year period was considered for better aligning and smoothing the effects projected between the discretionary period and the effects calculated in perpetuity. Operating margin Operating margins are based on average amounts obtained in the 2 years prior to the beginning of the budgeted period and projections for the next ten years. These margins are increased over the budget period to improve the expected efficiency. Estimated cost Costs based on historical data and market trends, optimization of retail and direct sales operations (renewal of the geographical presence of stores, revitalization of the franchise network) and physical expansion with growth in market share. Revenue Growth rates Growth rates are initially based on published industry research and adjusted by the expected performance for each CGUs group (which, considering the level of goodwill monitoring by the Company, reflects the operating segments), given the initiatives in place for each segment as well as the respective macroeconomic environment that apply to each segment and are included in the budgets approved by governance leadership bodies (including the Board of Directors). Perpetuity growth rate (*) Constant growth of 5.21% Constant growth of 3.46% Constant growth of 4.60% Constant growth of 7.39% Discount rate Discount rates represent the risk assessment in the current market, specific to each group of CGU, taking into account the value of money over time and the individual risks of related assets that were not incorporated in the assumptions included in the cash flow model. Such cash flows were discounted at the discount rate calculated before tax and at the currency consistent with the one (*) The rates are based on published market analyzes and projections regarding the reporting segment in which they operate and adjusted to reflect the assumptions considered by Management in the approved projections and to reflect the inflation differential of other currencies, when applicable. Such rates are also calculated in a currency consistent with those used for the projects and the discount rates. The Company considers the correlation between its market capitalization and its book value, among other factors, such as the decline in the performance of certain operations and macroeconomic indicators that involve the sector in which it operates, when evaluating potential indications of impairment. On December 31, 2022, the Company's market capitalization was lower than the book equity value. In addition, inflationary pressures and uncertainty in the markets, impacting the economic recovery in the retail and cosmetics sectors, in addition to the generalized effects of the conflict between Russia and Ukraine, negatively affected the results and prospects of some of the Company's operations, in particular for the Group of Avon International CGUs. In this context, an impairment of R$282.9 million was recognized on the goodwill balance of Avon International (also recognized in this segment in note 30 In relation to the other UGC Groups, the Company performed a sensitivity analysis considering any deterioration in: (i) discount rate; (ii) growth rate in perpetuity, given its potential impacts on cash flows and (iii) estimated future operating margin. An increase of 1 1 1 |
RIGHT OF USE AND LEASE LIABILIT
RIGHT OF USE AND LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
RIGHT OF USE AND LEASE LIABILITIES | |
RIGHT OF USE AND LEASE LIABILITIES | 17 RIGHT OF USE AND LEASE LIABILITIES a) Right-of-use assets Useful life in Years (a) 2021 Additions Write-offs (Impairment) Transfers (c) Translation adjustment 2022 Cost: Vehicles 3 168,062 38,241 (25,734 ) - - (15,908 ) 164,661 Machinery and equipment 3 to 10 33,629 13,455 (11,166 ) - - (4,702 ) 31,216 Buildings 3 to 10 1,543,018 296,161 (185,967 ) - (35,484 ) (47,640 ) 1,570,088 IT equipment 10 31,803 2,618 (4,151 ) - - (1,218 ) 29,052 Retail stores 3 to 10 3,417,595 712,979 (373,830 ) ( ) 36,401 (400,928 ) 3,361,432 Software 3 to 4 - 13,527 - - - - 13,527 Tools and accessories 3 1,053 - (394 ) - - (161 ) 498 Total cost 5,195,160 1,076,981 (601,242 ) (30,785 ) 917 (470,557 ) 5,170,474 Depreciation value: Vehicles (91,509 ) (46,287 ) 24,354 - - 7,985 (105,457 ) Machinery and equipment (17,133 ) (9,986 ) 11,166 - - 2,166 (13,787 ) Buildings (507,045 ) (249,796 ) 137,349 - 31,917 30,920 (556,655 ) IT equipment (24,410 ) (6,608 ) 4,345 - - 2,716 (23,957 ) Retail stores (1,458,512 ) (611,862 ) 367,247 - (31,960 ) 209,779 (1,525,308 ) Software - (3,121 ) - - - - (3,121 ) Tools and accessories (582 ) (206 ) 394 - - 92 (302 ) Total accrued depreciation (2,099,191 ) (927,866 ) 544,855 - (43 ) 253,658 (2,228,587 ) Net total 3,095,969 149,115 (56,387 ) (30,785 ) 874 (216,899 ) 2,941,887 Useful life in Year (a) 2020 Additions Write-offs (Impairment) (b) Transfers (c) Translation adjustment 2021 Cost: Vehicles 3 157,867 32,288 (23,519 ) - - 1,426 168,062 Machinery and equipment 3 to 10 53,048 4,278 (24,140 ) - - 443 33,629 Buildings 3 to 10 1,616,833 300,181 (436,405 ) (4,690 ) 3,363 63,736 1,543,018 IT equipment 10 30,000 4,224 (3,904 ) - - 1,483 31,803 Retail stores 3 to 10 3,338,104 505,871 (489,808 ) - 3,888 59,540 3,417,595 Tools and accessories 3 3,187 256 (2,460 ) - - 70 1,053 Total cost 5,199,039 847,098 (980,236 ) (4,690 ) 7,251 126,698 5,195,160 Depreciation value: Vehicles (63,422 ) (50,181 ) 20,808 - - 1,286 (91,509 ) Machinery and equipment (21,045 ) (10,772 ) 15,067 - - (383 ) (17,133 ) Buildings (399,765 ) (268,902 ) 182,535 - (3,069 ) (17,844 ) (507,045 ) IT equipment (19,161 ) (8,364 ) 3,904 - - (789 ) (24,410 ) Retail stores (1,291,346 ) (659,109 ) 485,123 - - 6,820 (1,458,512 ) Tools and accessories (2,253 ) (681 ) 2,460 - - (108 ) (582 ) Total accrued depreciation (1,796,992 ) (998,009 ) 709,897 - (3,069 ) (11,018 ) (2,099,191 ) Net total 3,402,047 (150,912 ) (270,338 ) (4,690 ) 4,182 115,680 3,095,969 a) The useful lives applied refer to the term of the contracts in which the Company is sure that it will use the assets underlying the lease contracts according to the contractual terms. b) On December 31, 2021, an impairment of R$ 4,690 was recorded referring to the impairment loss of some stores of the and The Body Shop. c) Refers to key money related to store rentals. This amount is transferred from “right of use” to "intangible assets” when a new commercial agreement with the lessor is not yet signed. Amounts recognized in the statement of income and losses 2022 2021 Financial expense on lease 200,246 210,669 Amortization of right of use 927,866 998,009 Appropriation in the result of variable lease installments not included in the measurement of lease liabilities 68,483 70,075 Sublease revenue (24,762 ) (30,026 ) Short-term lease expenses and low-value assets 69,773 83,468 Benefits granted by lessor related to Covid- 19 (19,740 ) (80,037 ) Other lease-related expenses 69,284 58,609 Adjustment to recoverable value of right-of-use assets - impairment 30,785 4,690 Total 1,321,935 1,315,457 Amounts recognized in the financing activities in the cash flow statement Lease payments (principal) 953,048 1,077,611 Amounts recognized in the operating activities in the cash flow statement: Lease payments (interest) 199,769 219,574 Variable lease payments, not included in the measurement of lease liabilities 65,157 70,787 Short-term and low-value assets lease payments 54,727 74,188 Other lease-related payments 102,354 95,824 Total 1,375,055 1,537,984 b) Lease liability 2022 2021 Current 878,448 1,005,523 Non-current 2,392,289 2,542,339 Total 3,270,737 3,547,862 Below are the changes in lease liability balances for the year ended December 31, 2022 and 2021 : Balance as of December 31, 2020 3,858,455 New agreements and modifications 737,899 Payments (principal amount) (1,077,611 ) Payments (interest) (219,574 ) Appropriation of financial charges 210,669 Write-offs (a) (105,790 ) Translation adjustment 143,814 Balance as of December 31, 2021 3,547,862 New agreements and modifications 1,065,794 Payments (principal amount) (953,048 ) Payments (interest) (199,769 ) Appropriation of financial charges 200,246 Write-offs (a) (19,763 ) Translation adjustment (370,585 ) Balance as of December 31, 2022 3,270,737 a) Mainly related to termination of agreements related to lease of stores. The amount of lease liability payments, considering the interests payments, and corresponding maturities, are disclosed in note 5.3 The table below set forth the rates applied, according to the lease terms: As described in note 3.13 02 19 Contractual payments Maturity Average discount rate 2023 2024 2025 2026 2027 Onwards 2028 2023 2024 5.5% to 16.3% 29,697 13,790 - - - - 2025 2027 5.4% to 18.7% 862,139 680,217 578,275 600,647 391,059 51,096 2028 2030 7.3% to 20.5% 14,803 16,777 17,962 19,895 22,042 28,994 2031 2036 7.7% to 21.9% 8,945 9,342 9,202 7,401 7,651 48,710 Total 915,584 720,126 605,439 627,943 420,752 128,800 Projected inflation 1 5% 4% 4% 4% 4% 4% 1 Rates obtained through future prices of DI coupons versus National Consumer Price Index (IPCA) observed in B 3 |
BORROWING, FINANCING AND DEBENT
BORROWING, FINANCING AND DEBENTURES | 12 Months Ended |
Dec. 31, 2022 | |
BORROWING, FINANCING AND DEBENTURES | |
BORROWING, FINANCING AND DEBENTURES | 18 BORROWING, FINANCING AND DEBENTURES Reference 2022 2021 Local currency: Financing Agency for Studies and Projects FINEP 16,979 44,193 Debentures A 1,913,204 1,922,732 Business Notes B 519,044 - Working capital – The Body Shop Operation C - 526,743 Working capital – Avon Operation 113,664 164,491 Working Capital - Natura &Co Luxemburgo operation D 1,304,425 - Notes – Avon ( 1 E 1,421,272 4,255,958 Notes – Lux F 3,130,732 - Total in local currency 8,419,320 6,914,117 Foreign currency: Notes G 5,172,966 5,523,287 Resolution No. 4131 62 - 279,428 Total in foreign currency 5,172,966 5,802,715 Grand total 13,592,286 12,716,832 Current 331,151 945,069 Non-current 13,261,135 11,771,763 Debentures Current 77,601 350,145 Non-current 1,835,603 1,572,587 ( 1 Balance recognized at fair value at the time of the business combination with subsidiary Avon and subsequently measured at amortized cost. Reference Currency Maturity Charges Effective interest rate Guarantees A Brazilian Real July 2027 to September 2032 CDI + 1.65%; CDI + 0.8%; IPCA + 6.8% and IPCA + 6.9% with bi-annual payments CDI+1.65%, CDI+0.8%, CDI+1.34% and CDI+1.60% Guarantee of Natura &Co Holding S.A. B Brazilian Real September 2025 CDI interest + 1.55% with bi-annual payments CDI +1.55% Guarantee of Natura &Co Holding S.A. C Pounds April 2024 Sonia + interest 2.9% p.a. with bi-annual payments Sonia + interest 2.9% p.a. “Corporate” guarantee from the Company until December 2021 and “Aval” guarantee from parent company Natura &Co Holding S.A. from January 2022. D US Dollar November 2025 SOFR + 2.47% p.a. with bi-annual payments SOFR + 2.47% p.a. Guarantee Natura &Co Holding and Natura Cosméticos E US Dollar March 2023 and March 2043 Interest of 6.45% of p.a. and 8.45% of p.a. with bi-annual payments Interest of 6.45% of p.a. and 8.45% of p.a. None F US Dollar April 2029 Interest of 6.00% p.a. with bi-annual payments Interest of 6.125% p.a. Guarantee Natura &Co Holding and Natura Cosméticos G US Dollar May 2028 Interest of 4.125% (with real cost equivalent to the CDI + 3.33% p.a. Considering the derivate contracted to hedge the variation of the associated cash flows) with bi-annual payments CDI + 3.33% Guarantee from Natura &Co Holding S.A. Changes in the balances of borrowing, financing and debentures for the year ended December 31, 2022 and 2021 Balance as of December 31, 2020 13,822,913 New borrowing and financing (a) 6,425,565 Repayment (b) (7,989,607 ) Appropriation of financial charges, net of costs of new borrowing and financing 661,429 Financial charges payment (783,935 ) Exchange rate variation 252,190 Translation effects (OCI) 328,277 Balance as of December 31, 2021 12,716,832 New borrowing and financing (c) 8,557,507 Repayment (d) (6,826,628 ) Appropriation of financial charges, net of costs of new borrowing and financing 762,703 Financial charges payment (808,976 ) Exchange rate variation (394,389 ) Translation effects (OCI) (414,763 ) Balance as of December 31, 2022 13,592,286 a) New borrowing and financing raised within the year ended December 31, 2021 basically refer to the offer carried out by the subsidiary Natura Cosméticos of the notes linked to the sustainability goals in the amount of USD 1 billion, approximately R$5.6 billion (see note 19.1.iii) and the new credit facility in the amount of one b) The repayment made during the year ended December 31, 2021 mainly refer to the early redemption of the subsidiary Natura Cosméticos's Notes in the amount of USD 750 million (corresponding to roughly R$4.0 billion, carried out in May 2021 (see note 19 .1 2 7 2 9 Natura redeemed the total principal amount due under their respective promissory notes, equivalent to R$500 million of the Company and R$250 million of the subsidiary Natura ; c) New borrowing and financing during the year ended December 31, 2022 refer basically to: (i) utilization of a revolving credit facility in the principal amount of up to US$ 625 million by the subsidiary Natura &Co Luxemburgo; (ii) issue of debt securities by the subsidiary Natura &Co Luxembourg maturing on April 19, 2029 in the principal amount of US$600 million (approximately R$2,809 million), subject to interest of 6.00% per year, which are guaranteed by Natura &Co Holding and by the subsidiary Natura Cosméticos, (iii) issue of the 11 2025 12 2025 2032 2025 d) The amortizations made in the year ended December 31, 2022 refer mainly to the: (i) early redemption of debt securities of the subsidiary Avon ("Notes"), (ii) the early redemption of the 9 10 4131 62 The maturities of non-current portion of borrowing, financing and debentures recorded as non-current liabilities are as follows: 2022 2021 2023 - 2,812,260 2024 - 2,249,609 2025 (2025 onwards for 2021) 1,763,902 6,709,894 2026 11,497,233 - Total 13,261,135 11,771,763 18.1 Description of the main changes in bank borrowings and financing i) Debentures On September 28, 2017, the subsidiary Natura Cosméticos carried out the 7 1 2 On September 21, 2018, the subsidiary Natura Cosméticos carried out the 9 three 476 8 1 2 3 On July 22, 2019, the subsidiary Natura Cosméticos carried out the 10 four 476 four 1 2 3 4 100% of the cumulative variation of the Brazilian Interbank Deposits (“DI”) average daily rates plus 1% 1 100% of the cumulative variation of the Brazilian Interbank Deposits (“DI”) average daily rates plus 1.15% for other series The funds from the 10 1 8 2 3 6 3 1 7 4 1 9 On September 21, 2021, the 2 9 On September 28, 2021, the 2 7 On July 25, 2022, the Company carried out the 11 476 476 eight twenty-six thirty one The funds arising from the 11 3 9 1 10 2 10 3 10 4 10 On October 6, 2022, the subsidiary Natura Cosméticos 12 three Cosméticos Debentures of the 12 Title Contractual fee Maturity Total Amount Number of Debentures 1 100 09/14/2027 R$ 255,889 255,889 2 IPCA +6.8% 09/14/2029 R$ 487,214 487,214 3 IPCA + 6.9% 09/14/2032 R$ 306,897 306,897 The net proceeds obtained by the subsidiary Natura Cosméticos with the issue of the Debentures will be used to pay rents not yet incurred and to reimburse expenses with rents already incurred in the 24 twenty-four On December 6, 2022, the subsidiary Natura Cosméticos fully repaid the 4 10 The appropriation of costs related to the issue of debentures in the period ended December 31, 2022 was R$7,704 (R$3,096 as of December 31, 2021), recorded monthly under finance expenses, in accordance with the effective interest rate method. As of December 31, 2022, the balance of issue costs to be appropriated is R$ 31,955 (R$ 6,370 as of December 31, 2021). ii) Working capital – The Body Shop On April 23, 2021, the indirect subsidiary The Body Shop International Limited contracted a facility agreement with UK Export Finance and HSBC Bank PLC in the amount of one Sonia rate + 2.9% per annum On December 23, 2022, this operation was fully amortized by the indirect subsidiary The Body Shop, with no outstanding balance related to this facility agreement. iii) ESG Notes On May 4, 2021, subsidiary Natura Cosméticos concluded the offer of the notes linked to the sustainability goals subject to annual interest of 4.125% and with maturity date on May 3, 2028 (“ESG Notes”) in the total principal amount of US$1 billion (approximately R$5.6 billion) and these are guaranteed by the Company. For this offer of notes, derivative instruments were contracted for foreign exchange hedging purposes. The targets, to be met by 2026 The appropriation of costs related to the issue of the Company’s ESG Notes on December 31, 2022 was R$14,889 (R$9,777 on December 30, 2021), recorded monthly under finance expenses, in accordance with the terms of the respective issues. As of December 31, 2022, the balance of issue costs to be appropriated is R$ 79,410 (R$ 94,293 as of December 31, 2021). iv) Notes - Avon As of December 31, 2022 the subsidiary Avon has the following note issued: Notes - Avon Main US$ Main R$ Annual percentage interest rate Maturity Unguaranteed 216,085 1,127,467 8.45% March 15, 2043 v) Commercial notes On September 19, 2022, the 1 476 2009 2025 The appropriation of costs related to the issue of commercial notes in the year ended December 31, 2022 was R$126, recorded monthly under finance expenses, in accordance with the effective interest rate method. The balance of issue costs to be appropriated on December 31, 2022 is R$1,266. 18.2 As of December 31, 2022, the Group no longer has the obligation to calculate and disclose restrictive clauses (covenants), which establish the maintenance of minimum financial indicators resulting from the quotient of dividing the net debt of treasury by the EBITDA of the last 12 months, function the maturity and early settlement of the 9 th 10 th The Group also has covenants related to non-financial indicators according to each contract. The Company was in compliance with such covenants as of December 31, 2022 and 2021 |
TRADE ACCOUNTS PAYABLE AND REVE
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS | |
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS | 19 TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS 2022 2021 Domestic trade accounts payable 4,644,534 5,248,462 Foreign trade accounts payable (a) 877,496 1,104,189 Subtotal 5,522,030 6,352,651 Reverse factoring operations (b) 853,900 417,928 Total 6,375,930 6,770,579 a) Refers to imports mainly denominated in US dollars, Euros and British pounds. b) The Company has contracts signed with first-line financial institutions, mainly Banco Itaú S.A. to directly structure a reverse factoring operation with the Company’s main suppliers. Further details on these operations are included in note 3.15 |
TAX LIABILITIES
TAX LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
TAX LIABILITIES | |
TAX LIABILITIES | 20. TAX LIABILITIES 2022 2021 ICMS (ordinary) (a) 180,708 150,396 ICMS-ST provision (b) 60,945 58,188 Taxes on invoicing abroad 346,407 340,648 Withholding tax 138,293 148,081 Other taxes payable - foreign subsidiaries 147,056 138,461 Income tax 18,170 7,062 PIS and COFINS payable 140 144 INSS and service tax (ISS) payable 31,895 29,359 Other 21,869 8,888 Total 945,483 881,227 Current 828,125 766,430 Non-current 117,358 114,797 a) Refers to ICMS on the Company's sales of goods in Brazil. b) The Company has discussions about the illegality of changes in state laws to charge ICMS-ST. Part of the amount recorded as tax payable but not yet paid is being discussed in court by the Company, and in some cases, the amounts are deposited in court, as mentioned in Note 12 |
PROVISION FOR TAX, CIVIL AND LA
PROVISION FOR TAX, CIVIL AND LABOR RISKS | 12 Months Ended |
Dec. 31, 2022 | |
PROVISION FOR TAX, CIVIL AND LABOR RISKS | |
PROVISION FOR TAX, CIVIL AND LABOR RISKS | 21 PROVISION FOR TAX, CIVIL AND LABOR RISKS 21.1 Contingencies assessed as probable risk of loss The changes in the provision for tax, civil and labor risks and contingent liabilities are presented below: Tax Civil Labor Contingent liabilities (business combination (2) Total 2022 2021 (3) 2022 2021 2022 2021 2022 2021 2022 2021 Balance at the beginning of the year 181,694 217,536 305,690 219,374 233,472 251,339 597,585 797,693 1,318,441 1,485,942 Additions (3) 78,410 24.090 425,398 181,856 91,694 90,855 - - 595,502 296,801 Reversals ( 1 (45,902 ) (44.726 ) (12,791 ) (35,433 ) (51,649 ) (77,727 ) (196,925 ) (195,092 ) (307,267 ) (352,978 ) Payments (31,354 ) (4.965 ) (162,953 ) (88,266 ) (67,424 ) (39,553 ) - - (261,731 ) (132,784 ) Monetary adjustment 36,155 4.698 16,477 2,723 5,093 7,860 21,555 10,450 79,280 25,731 Translation adjustment (31,884 ) (909 ) (13,110 ) 12,471 (25,068 ) 2,201 (15,787 ) (15,466 ) (85,849 ) (1,703 ) Transfers (67 ) (14.030 ) (1,036 ) 12,965 - (1,503 ) - - (1,103 ) (2,567 ) Balance as of the end of the year 187,052 181,694 557,675 305,690 186,118 233,472 406,428 597,585 1,337,273 1,318,442 Current 463,655 230,097 Non-current 873,618 1,088,345 ( 1 Reversals of contingent liabilities (business combination) refer mainly to the adhesion to state tax amnesty programs, and change in estimates for civil and labor lawsuits, which took place in the first and third quarter of 2022 ( 2 The business combination amounts as of December 31, 2022 are segregated between tax (R$ 380,259 9,053 17,116 ( 3 During the year ended December 31, 2022, certain balances included in provisions for tax risks on December 31, 2021 were reclassified for better alignment between the Group's subsidiaries, as disclosed in note No. 2 a) Disputes related to talc (Civil) The subsidiary Avon Products, Inc. was named a defendant in numerous personal injury proceedings brought in the US courts, alleging that certain talc products the company sold in the past were contaminated with asbestos. Many of these actions involve a number of co-defendants, including manufacturers of cosmetics and manufacturers of other products that, unlike the subsidiary Avon's products, were designed to contain asbestos. As of December 31, 2022, there were individual active claims pending against the subsidiary Avon International new cases were filed and cases were dismissed, settled or otherwise resolved) In December 2022, one case, captioned Chapman, et al. v. Avon Products, Inc., et al., No. 22STCV05968, resulted in an adverse jury verdict after a trial, with the jury awarding Plaintiffs a total of US$36 million in compensatory damages and US$10.3 million in punitive damages against the subsidiary Avon. The Company believes it has strong grounds for seeking to overturn the verdict in this case and in January 2023 began the process of appealing the verdict by seeking relief from the trial court. On March 1, 2023, following post-trial arguments, the trial court issued a conditional order reducing the compensatory damages award against the subsidiary Avon to US$29.3 million. If Plaintiffs reject this reduction, there will be a new trial on the compensatory damages portion of the jury’s verdict. The subsidiary Avon will proceed with its appeal of the jury’s verdict in any event. The subsidiary Avon accounts for these claims in accordance with our loss contingency accounting policy as set out in Note 3. The subsidiary Avon believes that the claims asserted against the Company in all of these cases are without merit and is defending vigorously against these claims and will continue to do so. However, additional similar cases arising out of the use of the subsidiary Avon's talc products are reasonably anticipated. Given the inherent uncertainties of litigation, it is not possible to predict the outcome of all individual cases pending against the subsidiary Avon or potential unasserted claims, and therefore a specific estimate and associated provision is made for a small number of individual cases that have advanced to the later stages of legal proceedings. This estimated liability for claims and associated legal costs incurred to date includes an amount for the Chapman case, however taking into consideration the strong grounds for appeal and seeking to overturning the verdict as noted above, should the subsidiary Avon ultimately lose the case, additional amounts representing a significant portion of the original awarded damages could be incurred. For the remaining filed cases, an estimate of exposure loss on an aggregated and ongoing basis is recorded, which takes into account the historical outcomes of all cases we have resolved to date. Any adverse outcomes, either in an individual case or in the aggregate, could be material. Future costs to litigate these cases, which we expense as incurred, are not known but may be significant, though some costs will be covered by insurance. b) Adherence to state tax amnesty programs During the first and third quarters of 2022 Other contingent liabilities associated with these amnesties that had not been recognized because they were not part of balances arising from business combinations were recognized in the accounts to the extent of the amounts due, in the net amount of R$20,492. The adhesion to the tax amnesty processes terminated legal disputes in the amount of approximately R$ 123,266, which had probability of loss considered as possible by the Company's Management. 21.2 The Company has administrative and judicial contingencies for which the expectation of loss, evaluated by Company Management and supported by its legal advisors, is classified as possible and, therefore, no provision has been recorded. As of December 31, 2022, the contingencies classified as possible loss totaled R$ 8,806,935 (R$ 10,193,858 as of December 31, 2021). 2022 2021 Tax 8,480,614 9,884,541 Civil 161,859 128,479 Labor 164,462 180,838 Total contingent liabilities 8,806,935 10,193,858 Tax On July 5, 2022, the National Congress overrode veto No. 58 2110 19 14,395 2022 Below are the most relevant tax contingencies related to the following matters: a) Lawsuits in which the industrial establishment equivalence is discussed, as provided for in the Decree No. 8393 2015 b) Administrative and judicial processes that discuss the illegality of changes in Federal State laws regarding the collection of ICMS and ICMS-ST. As of December 31, 2022, the total amount under discussion is R$ 1,374,933 (R$1,560,023 as of December 31, 2021). c) Infraction notices in which the Brazilian Federal Revenue Office requires IRPJ and CSLL tax debts to challenge the tax deductibility of the amortization of goodwill generated in the context of a corporate reorganization between related parties. Currently, the legality of the administrative decisions that rejected the motions for clarification presented to challenge the special appeals dismissed is being discussed in the courts. As of December 31, 2022, the total amount under discussion classified as possible loss is R$ 1,509,890 (R$1,419,237 as of December 31, 2021). d) Infraction notices in which the Finance Department of the São Paulo Federal State requires the collection of ICMS-ST, which was fully collected by the recipient of the goods, the distributor. Currently, the process is pending judgment at the administrative court level. As of December 31, 2022, the total amount under discussion classified as possible loss is R$ 633,370 (R$539,561 as of December 31, 2021). e) Infraction notices in which the Brazilian Federal Revenue Office requires IPI tax debts for disagreeing with the tax classification adopted by the Company for some products. The tax assessment notices are awaiting judgment at the administrative court level. As of December 31, 2022, the total amount under discussion is R$ 719,920 (R$662,991 as of December 31, 2021). 21.3 In June 2022, the subsidiary Avon Products concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon Products received cash compensation in the amount of R$136,200, of which R$16,762 is related to settlement of historically recognized revenues, and the remaining of R$119,438 recognized as other operating income in the year ended on December 31, 2022. These balances were fully received in cash on December 31, 2022. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | 22 OTHER LIABILITIES 2022 2021 Pension and post-employment health care plans (a) 463,948 673,458 Deferred revenue from performance obligations with customers (b) 313,204 393,046 Provision for incentives to consultants 217,349 286,791 Provision for operating expenses (marketing / technology, etc.) (c) 604,064 601,841 Provision for store renovation 116,137 105,165 Crer Para Ver (d) 87,420 90,655 Provision for restructuring (e) 175,809 103,760 Insurance payables 69,364 127,413 Other Liabilities (f) 203,331 276,437 Total 2,250,626 2,658,566 Current 1,499,060 1,716,110 Non-current 751,566 942,456 a) As of December 31, 2022, there is R$282,295 (R$445,804 as of December 31, 2021) referring to pension plans, and R$28,456 referring to post-employment plans (R$34,774 as of December 31, 2021) of subsidiary Avon International, and R$129,697 (R$124,649 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura Cosméticos and R$51,956 (R$68,230 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura &Co International. b) Refers to the deferral of revenue from performance obligations related to loyalty programs based on points, sale of gift cards not yet converted into products and programs and events to honor direct sales consultants, of which R$ 190,790 c) Refers to the Company's operating provisions arising mainly from expenses with the provision of technology, marketing and advertising services. d) C of the social program to the development of the quality of education. e) Provision for costs directly related to the integration plan and changes in the organizational structure of the subsidiary Avon and Group corporate structure review. f) Refers to miscellaneous provisions such as indemnities and non-current contractual obligations. Post-employment health care and Pension plan a) Defined benefit pension and post-retirement plans (Avon) The subsidiary Avon has contributory and noncontributory defined benefit retirement plans for substantially all of its employees. Benefits under these plans are generally based on an employee’s length of service and average compensation near retirement, and certain plans have vesting requirements. The plans are funded based on legal requirements and cash flow. The largest defined benefit pension plan of the subsidiary Avon outside the United States (“US”) is in the United Kingdom (“UK”). The UK defined benefit pension plan was frozen for future accruals as of April 1, 2013. The US defined benefit pension plan, the Avon Products, Inc. Personal Retirement Account Plan (the “PRA”), is closed to employees hired on or after January 1, 2015. Qualified retirement benefits for US-based employees hired on or after January 1, 2015 will be provided exclusively through Avon Personal Savings Account Plan (the “PSA”), as described in note 28.2 The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation was carried out on December 31, 2022. The present value of the defined benefit obligation and the respective cost of current services and cost of past services were measured at projected unit credit method. The change in actuarial liabilities for the years ended December 31, 2022 and 2021 Pension plan 2022 2021 Balance at the beginning of the year 445,804 609,961 Cost of services – current 19,707 24,660 Interest cost – recognized in the statement of profit or loss 15,568 10,934 Administrative costs 2,698 2,698 Company contributions ( 4,299 ) (49,516 ) Benefits paid (22,262 ) (6,413 ) Actuarial loss in OCI (a) (254,913 ) (99,991 ) Reclassifications 24,956 18,045 Other 88,474 (72,252 ) Translation adjustment 18,518 7,678 Balance at end of year 334,251 445,804 (a) The actuarial loss recorded throughout 2022 is directly related to the update of the mortality tables, as they were impacted by the effects of the Covid-19 pandemic. The significant actuarial assumptions for the determination of the actuarial liability are discount rate and rate of compensation increase. The details of the assumptions are as follows: 2022 2021 Discount rate 1.30% to 12.00% 0.65% to 9.20% Rate of compensa tion increase 2.55 % to 7.40% 1.80 % to 6.60% The fair values of each major class of pension plan assets are presented below: 2022 2021 Cash and cash equivalent 7,330 191,958 Equity instruments of other entities 520,799 1,066,370 Government bonds 1,013,584 1,482,650 Corporate bonds 1,317,122 1,802,394 Real estate 10,957 12,834 Other (121,574 ) 12,276 Total 2,748,218 4,568,482 b) Post-employment health care plan (Natura Cosméticos) Post-employment health care plan as detailed in note 3.18.4 2021 ➢ 2021 ➢ 2021 The actuarial liability was calculated, as of December 31, 2022 and 2021 2022 2021 Discount rate 10.43% 9.01% Initial growth rate of medical cost 4.25% 4.25% Inflation rate 4.00% 3.40% Final growth rate of medical cost 8.42% 7.79% Growth rate of medical costs due to aging - costs Per age range 1.25% to 4.75% p.a. Per age range 1.25% to 4.75% p.a. Growth rate of medical costs by aging - contributions 0.00% 0.00% Percentage of adherence to the plan in retirement Bradesco Plan 58.00% / Unimed Plan 85.00% Bradesco Plan 60.00% / Unimed Plan 85.00% Schedule of disabled mortality Mercer Disability Mercer Disability Schedule of mortality AT-2000 AT-2000 Schedule of turnover Proportional calculation at the time of service Proportional calculation at the time of service Increasing the initial level of growth in medical costs at a real rate of 4.25% and increasing the annual discount rate from 9.01% to 10.43% generated a loss of R$3,444 in OCI. The table below sets forth the medical inflation rate and the discount rate sensitivity analysis, and their respective effect on the balance (present value of the obligation, or “PVO”) accounted as on the actuarial liabilities (maintaining the other assumptions): Rate Chance PVO Discount rate 10.43% 1% increase 114,832 Discount rate 10.43% 1% decrease 157,168 Rate of compensation 8.42% 1% increase 164,604 Rate of compensation 8.42% 1% decrease 120,307 The changes of actuarial liabilities for the years ended December 31, 2022 and 2021 , is set forth in the table below: 2022 2021 Balance at the beginning of the year 124,649 134,194 Cost of the current service of subsidiary Natura Cosméticos 812 939 Cost of interest 11,078 9,326 Expenses paid (3,398 ) (2,679 ) Actuarial gains in OCI (3,444 ) (17,131 ) Balance as of the end of the year 129,697 124,649 |
SHAREHOLDER'S EQUITY
SHAREHOLDER'S EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
SHAREHOLDER'S EQUITY | |
SHAREHOLDER'S EQUITY | 23 SHAREHOLDER’S EQUITY 23.1 Share capital On December 31, 2022, the share capital of the Company is of R$ 12,484,424, composed of 1,383,206,405 registered common shares without par value (R$ 12,481,683 composed of 1,379,584,737 registered common shares without par value on December 31, 2021). 23.2 Dividends payment policy The shareholders are entitled to receive every year a mandatory minimum dividend of 30% of net income, considering principally the following adjustments: Increase in the amounts resulting from the reversal, in the period, of previously recognized reserves for contingencies. Decrease in the amounts intended for the recognition, in the period, of the legal reserve and reserve for contingencies. Whenever the amount of the minimum mandatory dividend exceeds the realized portion of net income for the year, management may propose, and the General Meeting approves, allocate the excess to the constitution of the unrealized profit reserve (article 197 6,404 76 In addition, dividends were proposed for the year ended December 31, 2021 in the amount of R$ 180,772, equivalent to the remuneration of R$0.1315 per share based on the net income in the period which were paid on December 27, 2022. According to the Company’s bylaws and in the article 197 6,404 76 The Board of Directors may pay or credit interest on net equity in accordance with applicable law. For the year ended December 31, 2022, the Company recorded a loss, not resulting in the dividend payment. 23.3 Treasury shares As of December 31, 2022 and 2021 Number of shares Amount R$ (thousands) Average price per share - R$ Balance as of December 31, 2020 316,701 11,667 38.04 Used (754,719 ) (34,438 ) 45.63 Acquired 5,337,558 174,113 32.62 Balance as of December 31, 2021 4,899,540 151,342 30.89 Used (377,585 ) (9,282 ) 24.58 Acquired 5,391,900 120,300 22.31 Balance as of December 31, 2022 9,913,855 262,360 26.46 The minimum and maximum cost of the balance of treasury shares as of December 31, 2022 are R$21.11 and R$24.07 (R$25.74 and R$50.93 in December 31,2021), respectively. 23.4 Capital reserve In the year ended December 31, 2022, there was an increase of R$247,048 (R$76,865 on December 31, 2021) related to changes in stock option plans and restricted shares. In the year ended December 31, 2021, the capital reserve had decreased by R$ , due to the absorption of losses, for the year ended December 31, 2020. The capital reserve as of December 31, 2022 amounted to R$10,540,885 (R$10,478,804 as of December 31, 2021). During the year-end period ended December 31, 2022, the balance referring to the effects of the conversion of balance sheets of subsidiaries in hyperinflationary economies presented in capital reserves (share premium and additional paid-in capital) and in profit reserves (retained earnings) in the statement of changes in equity was reclassified to other comprehensive income, also a component of the Company's equity, for a better consolidated presentation of these impacts in this statement. This reclassification in the amount of R$ 193,261 does not have any effect on the equity and financial position presented by the Company in this period; 23.5 Profit reserve The Company used the remaining balance of profit reserves to absorb the accumulated losses at the end of the 2022. 23.6 Cumulative translation adjustment – Other comprehensive income The Company recognizes in this equity item the exchange rate variation effect from investments in foreign subsidiaries, including exchange rate variations in a hyperinflationary economy, actuarial gains and losses arising from the employee benefit plan, and the effect from cash flow hedge operations. For exchange rate variation, the accumulated effect will be reversed to statement of profit or loss as a gain or loss only in the event of disposal or write-off of the investment. For actuarial losses and gains, the amounts will be recognized when the actuarial liability is remeasured. The cash flow hedge transactions are transferred to the statement of profit or loss in case an ineffective portion is identified or when the hedge relationship is terminated. |
INFORMATION ON SEGMENTS
INFORMATION ON SEGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
INFORMATION ON SEGMENTS | |
INFORMATION ON SEGMENTS | 24 INFORMATION ON SEGMENTS There was no change in the composition of the operating segments and information by geographic area in relation to that disclosed in the financial statements for the year ended December 31, 2021. Net revenue by segment is as follows for the year ended December 31, 2022: Natura &Co Latam – 60.6% Avon International – 19.8% The Body Shop – 12.1% Aesop – 7.5% The accounting policies for each segment are applied uniformly as described in note 3 The following tables provide the summarized financial information related to the segments and geographic distribution of the Company’s commercial operations for December 31, 2022 and 2021 24.1 2022 Reconciliation to net income (loss) for the year Net Revenue Performance assessed by the Company Depreciation and amortization Discontinued operations Finance income Finance expense Income Tax Net income (loss) Natura &Co Latam 22,027,612 1,912,609 (912,472 ) - 3,360,427 (4,772,694 ) 98,712 (313,418 ) Avon International 1 7,196,044 (74,733 ) (683,845 ) (380,416 ) 765,176 (1,431,754 ) (200,474 ) (2,006,046 ) The Body Shop 1 4,407,246 363,577 (692,089 ) - 162,790 (244,467 ) 39,254 (370,935 ) Aesop 1 2,718,721 536,657 (303,408 ) - 89,298 (123,405 ) (66,465 ) 132,677 Corporate expenses - (604,037 ) (40 ) - 1,003,107 (709,339 ) 9,405 (300,904 ) 36,349,623 2,134,073 (2,591,854 ) (380,416 ) 5,380,798 (7,281,659 ) (119,568 ) (2,858,626 ) 2021 Reconciliation to net income (loss) for the year Net Revenue Performance assessed by the company Depreciation and amortization Discontinued operations Finance income Finance expense Income Tax Net Income (Loss) Natura &Co Latam 22,413,401 2,595,653 (871,973 ) - 3,181,237 (3,881,418 ) 165,137 1,188,636 Avon International 1 9,329,325 272,655 (830,931 ) (98,550 ) 421,123 (894,318 ) 210,705 (919,316 ) The Body Shop 1 5,821,776 1,023,095 (795,127 ) - 63,939 (137,834 ) (158,973 ) (4,900 ) Aesop 1 2,600,185 622,944 (293,492 ) - 30,380 (75,372 ) (90,277 ) 194,183 Corporate expenses - (604,594 ) - - 309,884 (44,598 ) 921,394 582,086 40,164,687 3,909,753 (2,791,523 ) (98,550 ) 4,006,563 (5,033,540 ) 1,047,986 1,040,689 2020 Reconciliation to net income (loss) for the year Net Revenue Performance assessed by the company Depreciation and amortization Discontinued operations Finance income Finance expense Income Tax Net Income (Loss) Natura &Co Latam 20,542,345 2,369,517 (874,584 ) - 3,402,578 (3,891,641 ) ( 428,191 ) 577,679 Avon International 1 9,097,375 315,477 (814,678 ) (143,112 ) 979,267 (1,442,216 ) ( 108,053 ) (1,213,315 ) The Body Shop 1 5,332,922 935,255 (761,224 ) - 82,736 (157,705 ) (66,626 ) 32,436 Aesop 1 1,949,338 606,543 (268,092 ) - 23,152 (72,056 ) (55,219 ) 234,328 Corporate expenses - (718,339 ) ( 278 ) - 250,658 (210,192 ) 383,345 ( 294,806 ) 36,921,980 3,508,453 (2,718,856 ) (143,112 ) 4,738,391 (5,773,810 ) ( 274,744 ) ( 663,678 ) 2022 2021 Non-current assets Total assets Current liabilities Non-current liabilities Non-current assets Total assets Current liabilities Non-current liabilities Natura &Co Latam 18,256,204 29,762,132 8,363,130 10,164,706 18,060,879 29,580,551 7,369,891 8,887,502 Avon International 1 11,197,014 14,259,571 1,894,856 1,838,328 14,286,498 17,512,750 2,783,907 5,100,109 The Body Shop 1 6,565,913 7,928,270 1,292,903 1,669,625 8,166,363 10,813,064 1,690,622 2,485,200 Aesop 1 1,621,126 2,735,417 731,018 776,512 1,520,514 2,542,125 610,451 648,695 Corporate expenses 923,606 - 1,055,961 4,547,167 1,026,071 - 1,146,347 1,159,041 38,563,863 54,685,390 13,337,868 18,996,338 43,060,325 60,448,490 13,601,218 18,280,547 1 The operations of these segments located in Latin American countries (Latam) are presented in the Natura &Co Latam segment 24.2 Net revenue Non-current assets 2022 2021 2020 2022 2021 Asia 3,443,454 3,719,131 2,929,063 1,284,783 1,216,942 North America 5,708,847 6,227,104 5,120,953 6,261,545 6,459,026 Mexico 3,570,990 3,879,033 3,205,609 3,631,768 3,640,644 Other 2,137,858 2,348,070 1,915,344 2,629,777 2,818,382 South America 17,513,597 17,436,131 16,484,363 14,508,816 14,312,260 Brazil 11,280,690 10,481,869 11,113,810 12,656,298 12,015,037 Argentina 3,003,214 2,973,638 1,999,461 694,172 1,036,205 Other 3,229,693 3,980,624 3,371,092 1,158,346 1,261,018 Europe, Middle East and Africa (EMEA) 8,739,179 11,771,600 11,580,586 15,271,251 19,276,178 United Kingdom 2,836,316 4,187,200 4,117,699 10,894,799 12,162,597 Other 5,902,863 7,584,400 7,462,887 4,376,452 7,113,581 Oceania 944,546 1,010,721 807,015 1,237,468 1,795,919 36,349,623 40,164,687 36,921,980 38,563,863 43,060,325 No individual or aggregate customer (economic group) represents more than 10% of the Company’s net revenue. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE | |
REVENUE | 25 REVENUE Gross revenue: 2022 2021 2020 Direct Selling 34,665,365 38,529,367 37,607,816 Retail 6,049,381 6,231,776 3,959,008 Online 3,129,568 3,412,849 3,061,239 Other sales 3,264,388 3,468,884 3,069,555 Subtotal 47,108,702 51,642,876 47,697,618 Returns and cancellations (636,642 ) (644,693 ) (617,140 ) Commercial discounts and rebates (1,123,746 ) (1,238,667 ) ( 1,062,204 ) Taxes on sales (8,998,691 ) (9,594,829 ) ( 9,096,294 ) Subtotal (10,759,079 ) (11,478,189 ) ( 10,775,638 ) Total net revenue 36,349,623 40,164,687 36,921,980 |
OPERATING EXPENSES AND COST OF
OPERATING EXPENSES AND COST OF SALES | 12 Months Ended |
Dec. 31, 2022 | |
OPERATING EXPENSES AND COST OF SALES | |
OPERATING INCOME (EXPENSES) AND COST OF SALES | 26 OPERATING EXPENSES AND COST OF SALES 2022 2021 2020 Classified by function Cost of sales 13,155,019 14,097,888 13,299,720 Selling, marketing and logistics expenses 15,554,569 16,912,862 15,632,782 Administrative, R&D, IT and project expenses 6,711,533 6,958,866 5,955,996 Total 35,421,121 37,969,616 34,888,498 Classified by nature Cost of sales 13,155,019 14,097,888 13,299,720 Raw material/packaging material/resale (*) 11,956,059 12,851,587 11,964,959 Employee benefits expense (note 28 575,158 568,936 638,525 Depreciation and amortization 175,156 254,476 215,355 Other (*) 448,646 422,889 480,881 Selling, marketing and logistics expenses 15,554,569 16,912,862 15,632,782 Logistics costs 2,300,256 2,654,546 2,479,156 Personnel expenses (note 28 4,182,428 4,547,391 4,198,147 Marketing, sales force and other selling expenses 7,735,735 8,302,485 7,498,360 Depreciation and amortization 1,295,880 1,405,423 1,301,657 Impairment 40,270 3,017 155,462 Administrative, R&D, IT and project expenses 6,711,533 6,958,866 5,955,996 Innovation expenses 273,430 223,472 270,256 Personnel expenses (note 28 2,902,540 2,886,281 2,498,024 Restructuring expenses 125,804 - - Other administrative expenses 2,288,941 2,717,489 1,985,872 Depreciation and amortization 1,120,818 1,131,624 1,201,844 Total 35,421,121 37,969,616 34,888,498 (*) From the balances originally presented on December 31, 2021, R$649,418 from the cost of goods sold group was reclassified between lines for better presentation. This reclassification does not affect the subtotal of costs originally presented. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 27 EMPLOYEE BENEFITS 2022 2021 2020 Payroll, profit sharing and bonuses 5,746,324 5,911,837 5,407,990 Pension Plan 233,029 243,511 186,373 Share-based payments and charges on restricted shares 123,931 228,131 231,962 Health care, food and other benefits 704,449 712,983 684,992 Charges, taxes and social contributions 642,850 701,521 635,248 INSS 209,543 204,625 188,131 Total 7,660,126 8,002,608 7,334,696 27.1 Share-based payments Natura &Co offers long-term incentives to senior executives and employees responsible for implementing its long-term strategy . Overview of plans The share-based payment programs granted before the corporate restructuring, on December 18, 2019, were originally granted considering the shares of Natura Cosméticos that were traded on B 3 3 Awards outstanding as of December 31, 2022 relate to various share-based plans, the terms of which are summarized in the tables below. In 2022 Under the “Co-Investment Plan”, eligible employees may invest part of their payout from the Profit Share Program in the purchase of Company’s shares. Company will grant awards ("Matching Awards”) to match such purchased shares on a 1: 1 In the “Long-Term Incentive Plan”, Company shares are granted to eligible employees. Certain “Long-Term Incentive Plan” awards are only subject to a requirement to remain in employment at the Company over the vesting period. While the awards referred to as “Performance Shares” are subject to both a requirement to remain employed at the Company over the vesting period and meeting certain performance conditions. For the outstanding awards presented in this note, there are generally no cash settlement alternatives (awards are settled with shares). Changes in the number of awards based on shares outstanding are shown below: Stock option plan and Strategy Acceleration Plan Weighted average strike price per option – R$ Options (thousands) Balance as of December 31, 2021 21.05 20,137 Granted 16.45 1,710 Change from stock options to restricted shares 48.98 (1,100 ) Expired/Canceled 27.22 (861 ) Exercised 11.98 (226 ) Balance as of December 31, 2022 18.92 19,660 Restricted shares (thousands) Performance shares (thousands) Balance as of December 31, 2021 5,494 8,045 Granted 2,359 6,485 Change from stock options to restricted shares 1,100 - Expired/Canceled (442 ) (1,902 ) Exercised (2,453 ) (573 ) Balance as of December 31, 2022 6,058 12,055 The number of shares above and throughout this disclosure: ( I) The plans are presented using B 3 to ensure consistency; and (II) The number of performance shares is disclosed considering achievement of the performance conditions target, whereas the expense recognized reflects the latest reassessment of the number of awards expected to vest. The share-based payment expense recognized in the year ended December 31, 2022 was R$8,249 in the parent company and R$123,938 in the consolidated (R$74,734 and R$228,133, respectively for the year ended December 31, 2021), net of social charges. The outstanding stock options, restricted shares and performance shares as of the end of the period have the following maturity dates, fair values and strike prices: As of December 31, 2022 – Stock options Grant date Conditions for acquisition of right as of the grant date Strike Price (R$) Fair value at grant date (R$) Existing shares (thousands) Maximum remaining contractual life (years) Exercisable options (thousands) March 16, 2015 2 to 4 years of service 13.47 4.85 to 5.29 104 0.2 104 July 28, 2015 (Acceleration strategy) 4 to 5 years of service 12.77 6.20 to 6.23 495 0.6 495 March 15, 2016 2 to 4 years of service 12.71 7.16 to 7.43 93 1.2 93 July 11, 2016 (Acceleration strategy) 4 to 5 years of service 11.28 6.84 to 6.89 1,540 1.5 1,540 March 10, 2017 2 to 4 years of service 12.46 6.65 to 6.68 376 2.2 376 March 10, 2017 (Acceleration Strategy) 4 to 5 years of service 12.46 6.87 to 6.89 1,890 2.2 1,890 March 12, 2018 2 to 4 years of service 16.83 7.96 to 8.21 1,537 3.2 1,537 March 12, 2018 (Acceleration strategy) 3 to 5 years of service 12.04 to 16.83 8.21 to 9.67 3,800 3.2 2,850 April 12, 2019 2 to 4 years of service 23.41 11.71 to 11.82 1,415 4.2 907 April 12, 2019 (Acceleration strategy) 4 to 5 years of service 23.41 11.51 to 11.71 1,900 4.2 - December 17, 2021 3 to 4 years of service 27.28 13.85 to 18.16 4,800 9.0 - September 14, 2022 3 to 4 years of service 16.45 8.39 to 10.32 1,710 9.7 - 19,660 9,792 As of December 31, 2022 – Restricted shares Grant date Conditions for acquisition of right as of the grant date Existing shares (thousands) Fair value at grant date (R$) Maximum remaining contractual life (years) April 12, 2019 – Plan I 2 to 4 years of service 269 21.62 to 22.53 0.2 March 27, 2020 – Co-Investment Plan 1 to 3 years of service 621 29.00 0.3 March 31, 2021 1 to 3 years of service 1,936 48.13 1.3 April 14, 2022 1 to 3 years of service 2,132 24.91 to 24.99 2.3 March 31, 2021 (as modified in September 2022)* 4 to 5 years of service 1,100 7.41 to 24.77 3.3 6,058 * The original grant of March 31, 2021 was stock options, but became a restricted share award as a result of the September 2022 amendment. As of December 31, 2022 – Performance shares Grant date Conditions for acquisition of right as of the grant date Existing shares (thousands) Fair value at grant date (R$) Maximum remaining contractual life (years) September 30, 2020 Achievement of performance conditions, 2.5 years of service plus an additional holding period of 1 year for certain awards. 3,725 48.56 to 73.46 0.3 to 1.3 March 31, 2021 Achievement of performance conditions, 3 years of service plus an additional holding period of 1 year for certain awards. 2,735 46.57 to 50.98 1.3 to 2.3 April 14, 2022 Achievement of performance conditions, 3 years of service plus an additional holding period of 1 year for certain awards. 5,595 18.66 to 24.99 2.3 to 3.3 12,055 Assumptions Ranges of valuation assumptions for the new granting of restricted and performance shares in April 2022 are set out below. The valuation models used were Black-Scholes, Stochastic and Finnerty, depending on the type of award. Assumptions B 3 ADRs Share price (also used as strike price on Finnerty) R$25.00 USD 10.60 Strike price R$ 0.01 USD 0.00424 Expected volatility 42.09% to 50.39% 49.07% to 57.72% Expected term 1 to 3 years 1 to 3 years Expected dividend yield 0.00% 0.00% Risk-free interest rate 12.30% to 13.27% 1.69% to 2.73% Volatility was calculated over the period of time consistent with the expected grant term (or over the remainder of the performance period, where applicable) immediately prior to the grant date. In the Finnerty model, volatility is calculated over the period proportional to the holding period immediately prior to the grant date. As of December 31, 2022, the market price was R$ 11.61 (R$25.43 as of December 31, 2021) per share. 27.2 Employee benefit plans The Company and some of its subsidiaries grant defined contribution retirement plans to eligible employees and, through some of their foreign subsidiaries, grant defined benefit plans to employees that are eligible. Defined contribution plans The Company, through its subsidiary Avon, offers a defined contribution plan for Avon employees in the United Kingdom (“UK”), which allows eligible participants to contribute eligible compensation through payroll deductions. The Company double employee contributions up to the first 5% of eligible compensation and therefore the maximum level provided by Avon is 10% of eligible compensation. In the year ended December 31, 2022, Avon made matching contributions to the contribution plan defined in the UK in the total amount of R$33,915 (R$45,155 in the year ended December 31, 2021), which follow the same investment allocation that the participant has selected for his or her own contributions. The Company, through its subsidiary Avon, offers a qualified defined contribution plan for U.S.-based employees, the Avon Personal Savings Account Plan (the “PSA”), which allows eligible participants to contribute up to 25% of eligible compensation through payroll deductions. The Company matches contributions dollar for dollar up to the first 3% of eligible compensation and fifty 2022 2021 For U.S.-based employees hired on or after January 1, 2015, the Company made additional contributions to a Retirement Savings Account (“RSA”) within the PSA. Such contributions will range from 3% to 6% of a participant’s eligible compensation depending on the sum of the participant’s age and length of service (as of December 31 of the prior year). Investment of such contributions will follow the same investment allocation that the participant has selected for his or her own contributions to the PSA. A participant will be vested in the RSA generally after three Defined and post-retirement benefit plans The Company, through its subsidiary Avon and certain subsidiaries, have contributory and noncontributory defined benefit retirement plans for substantially all employees of those subsidiaries. Benefits under these plans are generally based on an employee’s length of service and average compensation near retirement, and certain plans have vesting requirements. The actuarial liability for the health care plan of the Company refers to a post-employment benefit plan for employees and former employees who made fixed contributions to the cost of the health plan until April 30, 2010, date when the design of the health plan was changed, and the employees’ fixed contributions were eliminated. For those who have contributed to the medical plan for ten years or more, the right to maintenance is guaranteed as an indefinite (lifetime) beneficiary, and for those who have contributed for less than ten years Avon’s largest defined benefit pension plan outside the United States (“US”) is in the UK, which has been frozen for future accruals as of April 1 st, 2013 . The U.S. defined benefit pension plan, the Personal Retirement Account Plan (the "PRA"), is closed to employees hired on or after January 1 2015 , so that qualified retirement benefits for US-based employees hired on or after January 1 2015 will be provided solely through the PSA. |
FINANCE INCOME (EXPENSES)
FINANCE INCOME (EXPENSES) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCE INCOME (EXPENSES) | |
FINANCE INCOME (EXPENSES) | 28 FINANCE INCOME (EXPENSES) 2022 2021 2020 FINANCE INCOME: Interest on short-term investments 537,289 264,764 167,967 Gains on monetary and exchange rate variations (a) 2,643,894 1,785,259 1,752,503 Gains on swap and forward transactions (c) 1,977,465 1,814,450 2,532,487 Gains on swap and forward derivatives mark to market 33,569 20,929 12,314 Inflation adjustment reversal on provision for tax risks and tax liabilities - - 42,378 Hyperinflationary economy adjustment 139,503 82,202 39,292 Debt structuring revenue for acquisition of Avon - - 95,145 Other finance income 49,078 38,959 96,305 Subtotal 5,380,798 4,006,563 4,738,391 FINANCE EXPENSES: Interest on financing (*) (744,607 ) (634,201 ) ( 709,323 ) Interest on leases (200,246 ) (210,669 ) (229,544 ) Losses from monetary and exchange rate variations (2,551,486 ) (2,075,306 ) (2,671,372 ) Losses on swap and forward transactions (2,942,045 ) (1,533,611 ) (1,579,695 ) Losses on swap and forward derivatives mark to market (61,802 ) (26,214 ) (13,691 ) Monetary adjustment of provision for tax, civil and labor risks and tax liabilities (79,280 ) (25,731 ) ( 47,928 ) Appropriation of funding costs (debentures and notes) (18,096 ) (27,228 ) (11,082 ) Interest on pension plan (2,468 ) (11,339 ) (10,323 ) Hyperinflationary economy adjustment (327,115 ) (108,730 ) (20,625 ) Debt structuring expenses for acquisition of Avon - - ( ) Other finance expenses (354,514 ) (380,511 ) (369,486 ) Subtotal (7,281,659 ) (5,033,540 ) (5,773,810 ) Net finance income (expenses), net (1,900,861 ) (1,026,977 ) (1,035,419 ) The breakdown set forth below is intended to provide a summarized view of the net of financial expense based on the nature of the related transactions. 2022 2021 2020 Finance expenses (debt interest) (744,607 ) (634,201 ) (709,323 ) Financial short-term investments and others income 537,289 264,764 167,967 Exchange variations on financial activities, net 394,389 (252,190 ) (950,369 ) Gains (losses) with derivatives on exchange rate variations on financial activities, net (383,178 ) 257,964 940,308 Gains (losses) on derivatives on interest payments and other financial activities, net (609,635 ) 17,590 28,971 Monetary adjustment of provision for tax, civil and labor risks and tax liabilities (79,280 ) (25,731 ) (5,550 ) Leases expenses (200,246 ) (210,669 ) (229,544 ) Hyperinflationary economy adjustment (187,612 ) (26,528 ) 18,667 Other finance expenses (326,000 ) (380,119 ) (310,182 ) Other gains (losses) from (301,981 ) (37,857 ) 13,636 Net finance income (expenses), net (1,900,861 ) (1,026,977 ) (1,035,419 ) |
OTHER OPERATING EXPENSES, NET
OTHER OPERATING EXPENSES, NET | 12 Months Ended |
Dec. 31, 2022 | |
OTHER OPERATING EXPENSES, NET | |
OTHER OPERATING EXPENSES, NET | 29 OTHER OPERATING EXPENSES, NET 2022 2021 2020 Other operating income, net Result on write-off of property, plant and equipment - - 11,855 ICMS-ST (h) - - 18,653 Tax credits (a) 71,720 215,085 105,234 Tax benefit from amnesty program (b) 102,469 82,140 - Revenue from the sale of the customer portfolio 11,874 16,113 - Revenue with royalties (c) 119,438 - - Other operating income 2,318 30,214 10,757 Total other operating income 307,819 343,552 146,499 Other operating expenses, net Result on write-off of property, plant and equipment - (3,610 ) - Crer para Ver (d) (54,062 ) (47,523 ) (54,500 ) Expenses related to Avon acquisition - - ( 303,916 ) Impairment (e) (340,385 ) - - Transformation and integration plan (f) (482,346 ) (511,048 ) ( 256,700 ) Restructuring expenses (g) (50,903 ) - - Other operating expenses (160,411 ) (20,390 ) ( 47,573 ) Total other operating expenses (1,088,107 ) (582,571 ) ( 662,689 ) Other operating expenses, net (780,288 ) (239,019 ) ( 516,190 ) a) Refers to tax credits from PIS and COFINS. During 2021 b) Refers to tax benefits in Brazil arising from the adhesion to state tax amnesty programs by the subsidiaries Natura Cosméticos S.A. and Avon Cosméticos Ltda . c) Refers to royalties received by the subsidiary Avon from its representative in Japan, after a judicial dispute as mentioned in note 22 d) Refers to appropriation of operating profit obtained on the sales of the non-cosmetic product line called "Crer Para " to , specifically earmarked for social projects aimed at developing the quality of education. e) From the total amount, R$ 282,921 refers to the impairment of goodwill generated on Avon’s acquisition (please see note 17 balance refers to impairment of other projects and stores. f) Expenses related to the implementation of the integration plan between Natura and Avon brands, which is mainly supported by the operations and logistics , structure reorganization, credit and collection review and commercial model optimizations. g) Refers to the expenses incurred to close the operations of the subsidiary The Body Shop in Russia, the main expenses being indemnities to employees and fines for termination of store lease agreement. h) Refers to the requirement of ICMS tax substitution, for different Federal States of Brazil (details in note 22). During 2020, provision reversals were made due to the change in the loss estimate for some Federal States. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 30 EARNINGS PER SHARE The basic earnings per share are calculated by dividing the profit (loss) attributable to the Company’s shareholders by the weighted average number of outstanding common shares, excluding common shares purchased by the Company and held as treasury shares. 2022 2021 (Loss) net income attributable to the Company’s controlling shareholders (2,859,629 ) 1,047,960 Weighted average of the number of issued common shares 1,381,594,182 1,377,932,809 Weighted average treasury shares (9,613,311 ) (788,866 ) Weighted average of the number of outstanding common shares 1,371,980,871 1,377,143,943 Basic (loss) earnings per share – R$ (2.0843 ) 0.7610 Diluted earnings per share are calculated by adjusting the weighted average number of outstanding common shares, assuming the conversion of all potential common shares that would cause dilution. The Company has stock options, restricted shares and strategy acceleration that would have a dilutive effect on any earnings per share. Considering that in the year ended December 31, 2022, the Company recorded a loss, any adjustment would have an anti-diluting effect and, therefore, the diluted earnings per share for the year ended December 31, 2022 are equivalent to the basic earnings per share. The diluted earnings per share for net income for the year ended December 31, 2021 are presented below: 2021 Gain attributable to the Company’s controlling shareholders 1,047,960 Weighted average of the number of issued common shares 1,377,143,943 Weighted average number of treasury shares 19,531,951 Weighted average of the number of ordinary shares for diluted earnings calculation 1,396,675,894 Diluted earnings per share – R$ 0.7503 The basic and diluted loss per share for net loss of discontinued operations for the year ended December 31, 2022 and 2021 2022 2021 Loss attributable to the Company’s controlling shareholders (380,416 ) (98,550 ) Weighted average of the number of issued common shares 1,381,594,182 1,377,932,809 Adjustment for stock options and restricted shares (9,613,311 ) (788,866 ) Weighted average of the number of ordinary shares 1,371,980,871 1,377,143,943 Basic loss per share - R$ (0.2773 ) (0.0716 ) |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
TRANSACTIONS WITH RELATED PARTIES | |
TRANSACTIONS WITH RELATED PARTIES | 31 TRANSACTIONS WITH RELATED PARTIES In the course of the Company’s operations, rights and obligations are generated between related parties, arising from administrative expenses and provision of services. 32 1 Transactions with uncontrolled and unconsolidated related parties Instituto Natura holds shares in the Essential Investment Fund. As of December 31, 2022, the balance is R$ R$ 6,805 (R$ 3,835 as of December 31, 2021). On June 5, 2012, an agreement was entered between Indústria e Comércio de Cosméticos Natura Ltda., and Bres Itupeva Empreendimentos Imobiliários Ltda., (“Bres Itupeva”), for the construction and leasing of processing center to distribution and warehousing of products (HUB), in Itupeva, State of São Paulo. In 2019 On January 8, 2021, a related-party transaction was carried out between the Company, as lessee and owner, the subsidiary Indústria e Comércio de Cosméticos Natura Ltda. and Natura &Co Holding S.A., as guarantors, and a special purpose company (Bresco IX) indirectly held by Messrs. Antônio Luiz da Cunha Seabra, Guilherme Peirão Leal and Pedro Luiz Barreiros Passos, as lessor and surface-right owner (Co-Chairmen of the Board of Directors of the Company and shareholders members of the controlling group of Natura &Co Holding S.A., Company's parent company). This transaction was entered into with the purpose of expanding the Company’s distribution network and increasing its logistical efficiency through the installation of a new distribution hub in the State of Alagoas. The amount involved in the transaction is recorded under item “Right of Use” of “Buildings” in the amount of R$46,608 and in the year ended December 31, 2022, the total amount paid as rent was R$6,201. On May 12, 2021, a transaction was entered between the Company, as lessee, and Bresco Logística Fundo de Investimento Imobiliário, as lessor, indirectly held by Messrs. Antônio Luiz da Cunha Seabra, Guilherme Peirão Leal and Pedro Luiz Barreiros Passos. (Co-Chairmen of the Board of Directors of Natura &Co Holding S.A. and shareholders members of the controlling group of Natura &Co Holding S.A). This transaction had the purpose of keeping the Company’s distribution hub activities in the city of Canoas, State of Rio Grande do Sul. The amount involved in the transaction is recorded under item “Right of Use” of “Buildings” in the amount of R$4,996 (R$ 5,840 in the year ended December 31, 2021) and in the year ended December 31, 2022, the total amount paid as rent was R$2,152 (R$1,488 in the year ended December 31, 2021). In the year ended December 31, 2022, the Company and its subsidiaries transferred to Instituto Natura as a donation associated with the net income from sales of the Natura Crer Para Ver product line in the amount of R$55,000 (R$35,000 on December 31, 2021). The Company has a structure of internal controls to support the identification, monitoring and approval of transactions between related parties. 31 2 Key management personnel compensation T he total compensation of the Company's key Management personnel is as follows: 2022 2021 2020 Compensation Compensation Compensation Fixed Variable Total Fixed Variable Total Fixed Variable Total Board of Directors 13,252 146,603 159,855 15,043 72,187 87,230 16,123 65,011 81,134 Executive Board 34,403 50,423 84,826 51,576 71,162 122,738 49,187 80,218 129,405 47,655 197,026 244,681 66,619 143,349 209,968 65,310 145,229 210,539 The totals in the table above include the employer's social security charges. The amounts include increases and / or reversals of the cumulative expense recognized in the previous years due to reassessments of the number of awards expected to vest and re-estimation of the social security charges expected to be payable by the Company on vesting. Amounts in the variable category for the twelve |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS | |
COMMITMENTS | 32 COMMITMENTS In the ordinary course of its business, the Company enters into long-term agreements for provision of manufacturing, transportation, information technology services and electric power supply (with physical delivery, for its manufacturing activities). The agreements have termination clauses for noncompliance with essential obligations. In general, the minimum agreed upon is acquired and therefore there are no liabilities recorded in addition to the amount recognized on the accrual basis. Total minimum supply payments, measured at nominal value, according to the contract, are: 2022 2021 Less than one 614,075 929,288 One five 659,626 460,081 Above 5 49,331 10,738 Total 1,323,032 1,400,107 |
INSURANCE
INSURANCE | 12 Months Ended |
Dec. 31, 2022 | |
INSURANCE | |
INSURANCE | 33 INSURANCE The Company adopted an insurance policy that mainly considers risk concentration and its materiality, considering the nature of their activities and the guidance of their insurance advisors. As of December 31, 2022 and 2021 Item Type of coverage Amount insured 2022 2021 Industrial complex and administrative sites Any damages to buildings, facilities, inventories, and machinery and equipment 4,924,868 6,008,031 Vehicles Fire, theft and collision for the vehicles insured by the Company 221,523 261,953 Loss of profits No loss of profits due to material damages to facilities buildings and production machinery and equipment 2,056,000 1,962,509 Transport Damages to products in transit 97,308 103,857 Civil liability Protection against error or complaints in the exercise of professional activity that affect third parties 1,991,888 2,445,664 Environmental liability Protection against environmental accidents that may result in environmental lawsuits 30,000 30,000 |
ADDITIONAL INFORMATION RELATING
ADDITIONAL INFORMATION RELATING TO THE STATEMENTS OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2022 | |
ADDITIONAL INFORMATION RELATING TO THE STATEMENTS OF CASH FLOWS | 34 ADDITIONAL INFORMATION RELATING TO THE STATEMENTS OF CASH FLOWS The following table presents additional information on transactions related to the cash flow statement: 2022 2021 2020 Non-cash items Hedge accounting, net of tax effects (520,444 ) (137,211 ) 116,348 Dividends declared and not yet paid - 180,772 - Dividends receivable declared and not yet received - - - Stock and restricted share option plans - 138,122 102,508 Net effect of acquisition of property, plant and equipment and intangible assets not yet paid 28,472 81,257 172,104 Application of judicial deposits in the settlement of legal proceedings 121,025 13,645 - Consideration for acquisition of subsidiary - - 13,366,114 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 35 SUBSEQUENT EVENTS Sale of Aesop On April 3 2023 2,525 The transaction price will be received in cash at the closing date, which is expected to occur in the third quarter of 2023 As from April 3, 2023, the binding agreement date, Aesop was classified as a non-current asset held for sale and as a discontinued operation in accordance with IFRS 5 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Current versus non-current classification | 3.1 Current versus non-current classification The Company presents assets and liabilities in the balance sheet based on the classification of current and non-current, according to the expectation for realization and/or expected consumption during the ordinary course of the operating cycle, as defined in CPC 26 2 1 Deferred tax assets and liabilities are classified as non-current assets and liabilities, as disclosed in note 3.17 |
Foreign currency translation | 3.2 Foreign currency translation Functional currency The items included in the financial statements of the Company and each of the companies included in the financial statements are measured using the currency of the main economic environment in which each of the companies operates (“functional currency”). The financial statements are presented in the Company’s functional and presentation currency, the Brazilian Real. 3.2.1 Transactions and balances in a currency other than the functional currency Transactions in foreign currency, that is, any currency other than the functional currency, are translated into the functional currency of the entities included in these consolidated financial statements using the exchange rates prevailing on the dates of the transactions. Balance sheet account balances are translated using the exchange rates prevailing on the dates of the reporting period. Gains and losses from exchange rate variation arising from the settlement of such transactions and the translation of monetary assets and monetary liabilities denominated in foreign currency are recognized in the statement of profit or loss as “finance income” and “finance expenses”. 3.2.2 Subsidiaries with different functional currency In preparing the consolidated financial statements, the statement of profit or loss and cash flow statement and all other changes of assets and liabilities of foreign subsidiaries, whose functional currency is not the Brazilian Real, are translated into Brazilian Reais at the monthly average exchange rates, which approximates the exchange rate in effect on the date of the transactions. The balance sheet is translated into Brazilian Reais at the exchange rate prevailing at each reporting date. The effects of exchange rate variations resulting from these translations are presented under item Other Comprehensive Income (“OCI”) in the statement of comprehensive income in shareholders’ equity. The translation calculation is different for Natura Cosméticos S.A. – Argentina (“Natura Argentina”), Cosmeticos Avon Sociedad Anonima Comercial e Industrial (“Avon Argentina") and Avon Kozmetik Urunleri Sanayi ve Ticaret Anonim Siketi (“Avon Turkey”), which became hyperinflationary economies as of July 1, 2018 for Argentina and June 1, 2022 for Turkey, in which other than the balance sheet, the revenue and expenses are also translated into Reais at the exchange rates prevailing at each reporting date. 3.2.3 Hyperinflationary economy On July 1, 2018 and June 1, 2022, Argentina and Turkey were considered hyperinflationary economies, respectively considering the rise in the official price indices of the respective countries accumulated on those dates (Consumer Price Index, or “IPC” for the Argentina and the Internal Wholesale Price Index, or “IPIM” for Turkey. Since the Company does not operate in an economy that became hyperinflationary in the year, but its subsidiaries indicated above, the restatement of the comparative balances of previous years does not is carried out, in accordance with the provisions of CPC 02 2 21 Non-monetary assets and liabilities recorded at historical cost in these subsidiaries were restated based on the respective indices mentioned above, with the effects resulting from changes in general purchasing power being presented in the statement of income. The net effect of the inflation adjustment for the years ended December 31, 2022 and 2021 For the purpose of converting the accounting balances of the respective subsidiaries into the presentation currency (reais R$) used in the Company's financial statements, the following procedures were adopted: ➢ and liabilities were translated at the exchange rate prevailing at the reporting date (0.02955 and 0.05437 Argentine peso for each Brazilian Real and 0.2786 2021 ➢ and expenses of the year were translated at the exchange rate prevailing at the reporting date (the same as indicated above), instead of the average exchange rate of the year, which is used to translate currencies in non-hyperinflationary economies. The accumulated inflation for the year ended December 31, 2022 was 94.8% in Argentina and 64.3% in Turkey (50.6% in Argentina as of December 31, 2021), as per IPC index. |
Consolidation | 3.3 Consolidation The following procedures are applied in the preparation of the financial statements: a) Investments in subsidiaries The Company controls an entity when it is exposed to, or is entitled to, the variable returns arising from its involvement with the entity and can affect those returns by exercising its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date when the Company obtains control until the date when the control ceases to exist. In the financial statements, the investments in subsidiaries are accounted for using the equity method. The financial statements of the subsidiaries are prepared at the same reporting date as the parent company. Whenever necessary, adjustments are made to suit subsidiaries’ accounting policies to those of the Company. In accordance with the equity method, the portion attributable to the Company on the net income or loss for the year regarding these investments is recorded in the statement of profit or loss of the parent company under the item “share of profit (loss) of equity investees”. All intra-group balances, income and expenses and unrealized gains and losses arising from intra-group transactions are eliminated completely. The other comprehensive income (“OCI”) of subsidiaries is recorded directly in the Company’s shareholders’ equity under the item “OCI”. Below is a list of the Company’s direct subsidiaries as of December 31, 2022 and 2021 Interest - % 2022 2021 Direct interest: Avon Products, Inc. 100.00 100.00 Natura Cosméticos S.A. 100.00 100.00 Natura &Co International S.à r.l. 100.00 100.00 Aesop Holdings Ltd. 100.00 - The activities of the direct subsidiaries are described below: ➢ (“Avon Products”) 1886 ➢ (“Natura Cosméticos”) e-commerce ➢ International S.à r.l. (“Natura &Co International”) ➢ Holdings Ltd. (“Aesop Holdings”) As of December 31, 2022 and 2021 |
Goodwill | 3.4 Goodwill Goodwill arising from a business combination is initially measured at cost, with the exceeding aggregate amount of: (i) the consideration transferred, measured at fair value; (ii) the amount of any non-controlling interest in the acquiree; and (iii) in a business combination achieved in stages, the fair value of the acquirer’s previously held equity interest in the acquiree at the acquisition date; over the net assets acquired (identifiable net assets acquired and assumed liabilities). When this aggregate amount is lower than the net amount of the identifiable assets acquired and the assumed liabilities, a gain on a bargain purchase is immediately recognized in the statement of profit or loss. Subsequently, goodwill is measured at cost less any accumulated impairment losses. For impairment testing purposes, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the group of Cash-Generating Units (“CGU”) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units and annually tested, and whenever circumstances indicate that the carrying amount may present impairment losses. |
Cash and cash equivalents | 3.5 Cash and cash equivalents Cash and cash equivalents are maintained for the purpose of meeting short-term cash commitments, not for investment or other purposes. Cash and cash equivalents include cash, demand deposits and short-term investments realizable within 90 days |
Financial instruments | 3.6 Financial instruments 3.6.1 Financial assets Initial recognition and measurement Upon initial recognition, a financial asset is measured at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Subsequently, financial assets are measured at amortized cost, at fair value through other comprehensive income (“FVTOCI”), or at fair value through profit or loss (“FVTPL”). The classification of financial assets at initial recognition depends on the characteristics of the contractual cash flows of the financial asset and the business model of the Company for the management of these financial assets. The business model of the Company for managing financial assets refers to how the Company manages its financial assets to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are “non-derivative” financial assets held within a business model with the objective to hold financial assets to collect contractual cash flows, while financial assets classified and measured at fair value through OCI are held within a business model with the objective of holding financial assets to collect contractual cash flows and selling them. Subsequent measurement Financial assets at amortized cost Financial assets at amortized cost are subsequently measured using the effective interest method and are subject to impairment analysis. Gains or losses are recognized in the statement of profit or loss when the asset is written off, modified, or impaired. The main financial assets of the Company classified as amortized cost include balances of trade accounts receivable, other current assets and non-current assets balances (see note 5.5 Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are presented in the balance sheet at fair value with net changes in fair value recognized in the statement of profit or loss. This category includes derivative instruments and short-term investments which the Company had not irrevocably elected to classify according to the fair value through OCI. The financial assets measured at fair value through profit or loss are investment funds, government securities, restricted cash, treasury bills, mutual investment fund, Dynamo Beauty Ventures Ltd. fund (“DBV Fund”), Certificate of Bank Deposits (“CDB”), repurchase operations, financial and operating derivatives, as presented in note 5.5. Derecognition (write-off) of financial instruments A financial asset (or, where applicable, part of a financial asset or part of a group of similar financial assets) is written off when the rights to receive cash flows from the asset have expired, when the Company transfers its rights or risk to receive cash flows from the asset or when the Company has assumed an obligation to pay the full amount of received cash flows, without significant delay, to a third party under an on-lending agreement and either (i) the Company has transferred substantially all risks and benefits of the asset, or (ii) the Company has neither transferred nor retained substantially all risks and benefits of the asset, but transferred the asset control. When the Company transfers its rights to receive cash flows of an asset or executes an on-lending agreement, it assesses whether, and at which extent, it has retained the risks and benefits of ownership. When the Company has neither transferred nor retained substantially all risks and benefits of the asset, nor transferred the control over the asset, the Company continues to recognize the asset transferred to the extent of its continued involvement. In this case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Impairment of financial assets The Company recognizes an allowance for expected credit losses (“ECL”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted by an approximation of the original effective interest rate. ECLs are recognized in two 12 12 For trade accounts receivable, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes an allowance for losses based on the ECL at each reporting date. The Company has recorded a provision that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Further details are disclosed in note 4.6. The Company considers a financial asset in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. 3.6.2 Financial liabilities Initial recognition and measurement All financial liabilities are recognized initially at fair value and, in the case of borrowing, financing and debentures, net of directly attributable transaction costs. The Company’s main financial liabilities include borrowing in local and foreign currency, financing and debentures (note 19 5 20 32 18 23 24 Subsequent measurement For purposes of subsequent measurement, financial liabilities are classified in two Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities classified upon initial recognition at fair value through profit or loss. During the year, considering the fair value hedge established to protect against interest rate variability associated with the issuance of real estate receivable certificates (“CRI”), the respective liabilities presented in borrowing, financing and debentures were designated at fair value through profit or loss Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the short term. This category also includes derivative instruments entered into by the Company that are not classified as hedging instruments in the hedge relationships defined by CPC 48 9 Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. Financial liabilities designated on initial recognition at fair value through profit or loss are designated on the initial recognition date and only if the criteria of CPC 48 9 Financial liabilities at amortized cost This is the most relevant category for the Company. After initial recognition, interest-bearing borrowings, financing and debentures are subsequently measured (except issuance of the aforementioned real estate receivables certificates) at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are written off as well as through the effective interest rate amortization process. Any difference between raised and settled amounts is recognized in the statement of profit or loss, using the effective interest rate method during the year in which the borrowings, financing and debentures are outstanding. Amortized cost is calculated by considering any premium or discount on acquisition and fees or costs that are an integral part of the effective interest rate method. The effective interest rate amortization is included as finance expenses in the statement of profit or loss. This category generally applies to t rade accounts payable and reverse factoring operations (see note 20 19 18 Derecognition A financial liability is written off when the obligation under the liability is discharged, canceled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as derecognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. The offsetting of financial instruments is also applied to bank balances subject to the central treasury management system (“cash pooling”) instituted with the financial institution, in which the current account positions of the Company (including overdraft balances) are offset since the Company has a legally enforceable right to settle at the net amount and intends to settle the positions on a net basis. 3.6.3 Derivative financial instruments Derivative financial instruments transactions contracted by the Company consist of swaps and currency and Non-deliverable interest rate forwards (“NDF”) intended exclusively to hedge against foreign exchange risks related to (i) exchange rate risks associated to balance sheet position, purchase of goods and property, plant and equipment, forecast exports in addition to and foreign-denominated cash flows for capital contributions in foreign subsidiaries; and (ii) variability in interest rates associated with contracted debt. They are measured at fair value, and changes are recognized through profit or loss, except when they are designated as cash flow hedge accounting, which changes in fair value are recorded in OCI. The fair value of derivative instruments is measured by the treasury department of the Company based on information on each contracted transaction and related market inputs as of the reporting date of the financial statements, such as interest and exchange rates. For the purpose of hedge accounting, hedges are classified as: (i) fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment; (ii) cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment; and that may affect the result or (iii) hedge At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting, the risk management goal and strategy for hedging. The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Company will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing and future basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. Any imbalance between the hedge index of the object and the hedge instrument that is not in compliance with the hedge purpose is adjusted so that the index returns to the standards established in the protection strategy. During the years ended December 31, 2022 and 2021 Fair value Hedge It consists in providing protection against variation at fair value of assets or liabilities recognized or firm commitments not recognized, or a component of any such items, that is attributed to a specific risk and that may affect the result. Any gain or loss arising from variations at fair value of the derivative instruments designated as hedge instruments and the hedged assets or liabilities are recognized in the financial result. In the year ending on December 31, 2022, the Company used derivative instruments, and the hedge accounting was used at fair value, as disclosed in note No. 5.3 Cash flow hedges It consists in providing hedge against variation in cash flows attributable to a specific risk related to a known asset or liability or a highly probable forecast transaction and that may affect statement of profit or loss. The effective portion of changes in fair value of derivative instruments that is designated and qualified as cash flow hedge is recognized in OCI and accumulated in the “gains (losses) from cash flow hedge operations” and “tax effect on gain (loss) from cash flow hedge operations”. In a cash flow hedge, the effective portion of gain or loss from the hedge instrument is recognized directly in OCI, in shareholders’ equity, while the ineffective portion of hedge is immediately recognized as finance income (expense). For the years ended December 31, 2022 and 2021 5.3 Discontinuing hedge accounting Hedge accounting is discontinued when the Company terminates the hedge relationship, the hedge instrument matures or is sold, revoked or executed, or no longer qualifies to hedge accounting. Any gains or losses recognized in OCI and accumulated in shareholders’ equity up to that date remain in shareholders’ equity related to cash flow hedge and are recognized when the forecast transaction is eventually recognized in the statement of profit or loss. If a forecast transaction results in the subsequent recognition of a non-financial asset or liability, the cumulative gain or loss in OCI is recycled to profit or loss during the same year for which the non-financial asset acquired or non-financial liability assumed affects the profit or loss. For example, when the non-financial asset is depreciated or sold. On the other hand, if a forecast transaction results in the subsequent recognition of a financial asset or liability, the cumulative gain or loss in OCI is recycled to profit or loss during the same period for which the financial asset acquired or financial liability assumed affects the profit or loss. For example, when financial income or expense is recognized. When the forecast transaction is no longer expected, cumulative gains or losses and deferred in the statement of changes in shareholders' equity are immediately recognized in the statement of profit or loss. The Company assesses, on a prospective basis, throughout the hedge term, the effectiveness of its derivative instruments, as well as changes in their fair value. The fair values of derivative instruments are disclosed in note 5.5 |
Trade accounts receivable | 3.7 Trade accounts receivable Trade accounts receivable correspond to amounts receivable for the sale of goods and services in the ordinary course of the activities of the Company and are recognized to the extent that the consideration, which is unconditional, is due by the customer (that is, only the passage of time is required before payment of the consideration is due) and are measured on initial recognition at cost for the consideration to which the Company expects to be entitled in exchange for the products promised to the client. Subsequently, trade accounts receivable are measured at amortized cost by using the interest rate method and they are subject to impairment test. |
Inventories | 3.8 Inventories Inventories are valued at their average cost and the net realizable value, whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. The Company considers the following items when determining its allowance for inventory losses: discontinued products, products with slow turnover, expired products or products nearing the expiration date and products that do not meet quality standards, recorded as “cost of sales”. |
Carbon credits – carbon neutral program | 3.9 Carbon credits – carbon neutral program In 2007 This commitment, which presently refers to the operations of all Company and does not reflect a legal obligation to the extent in which the specific regulations still have not been promulgated by the legislative branch. Thus, considering the practices historically applied by the Company and the specificity of the commitments assumed and disclosed to the market and society, this commitment is considered a non-formalized obligation, according to CPC 25 37 The liability is estimated through audited carbon emission inventories carried out annually and valued based on the best estimate of the cash disbursement that will be required to settle the current obligation at the reporting date, considering the history of similar transactions carried out by the Company for such end. As of December 31, 2022 and 2021 2007 2022 The Company elected to make purchases of carbon credits by investing in projects with environmental benefits arising from the voluntary market. Thus, the costs incurred will generate carbon credits after completion or maturation of these projects. Such expenses are recorded in the line item “other current assets” (see note 14 Upon effective delivery of the related carbon neutral certificates to the Company, and duly filed, the obligation of being carbon neutral is effectively fulfilled; therefore, the asset balances are offset against those of the liabilities. |
Property, plant and equipment | 3.10 Property, plant and equipment Property, plant and equipment is measured at cost of acquisition or construction, plus interest capitalized during construction period, in the case of qualifying assets, and reduced by accumulated depreciation and impairment losses, if applicable. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if applicable. Land is not depreciated. Depreciation of the other assets is calculated to reduce the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their useful lives and is recognized in the statement of profit or loss. The estimated useful lives of the assets are mentioned in note 16 Gains and losses on disposals are calculated by comparing the proceeds from the sale with the carrying residual amount and are recognized in the statement of profit or loss as “other operating income (expenses), net”. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company. |
Intangible assets | 3.11 Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are reported at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the method for an intangible asset with a finite useful life are reviewed at least at each reporting date. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense regarding intangible assets with finite lives is recognized in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, and when circumstances indicate that the carrying amount may be impaired, either individually or at the CGU level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the useful life is changed from indefinite to finite on a prospective basis. An intangible asset is written off upon disposal (i.e., at the date the receiver of the asset obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon write-offs of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss in item “other operating income (expenses), net”. The main classes of intangible assets and useful life are detailed below and described in note No. 17 3.11.1 Software Licenses of software and enterprise management systems acquired are capitalized and amortized according to the useful lives, and maintenance costs are recognized as expenses when incurred. Business management system acquisition and implementation costs are capitalized as intangible assets when the asset is identified, when there is evidence that future economic benefits will be generated and when the asset is controlled by the Company, taking into consideration its economic and technological viability. Contracts involving hosting and/or processing of information in the cloud (“cloud computing arrangements”) generate intangible assets to the extent that on the contract start date, the Company obtains control of the software. Contracts which only provide the right of access to the supplier's software during the term of the contract are treated as a service contract and, consequently, recognized as an expense in the statement of profit or loss as the service is provided (since the right of receiving access to the supplier's software does not give the Company, at the commencement date of the contract, the power to obtain the future economic benefits arising from the software itself and to restrict third parties' access to those benefits). The amounts incurred on software development recognized as assets are amortized under the straight-line method over its estimated useful life. The expenditures related to software maintenance are recognized in profit or loss of the year when incurred. 3.11.2 Trademarks and patents Separately acquired trademarks and patents are stated at their historical cost. Trademarks and patents acquired in a business combination are recognized at fair value on the date of acquisition. For trademarks and patents with a defined useful life, amortization is calculated using the straight-line method. 3.11.3 Relationship with retail clients, franchisees, sub-franchisees and agents Relationships with retail clients, franchisees, sub-franchisees and agents acquired in business combinations are recognized at fair value on the date of acquisition and amortization is calculated using the straight-line method. 3.11.4 Key money with defined useful life Key money with defined useful life is recorded at the acquisition cost and amortized using the straight-line method during the rental period. 3.11.5 Technologies developed Technologies developed include technology for product development (including formulas, labeling data, manufacturing processes, regulatory approvals, product packaging and designs) arising from business combination, and are recognized at fair value on the date of acquisition and its amortization is calculated using the straight-line method. |
Impairment of non-financial assets | 3.12 Impairment of non-financial assets The Company reviews, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when the annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset or the CGU fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written off to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their current value using a pre-tax discount rate that reflects the subsidiary’s weighted average cost of capital in which the CGU operates, which reflects the risks specific to the CGU and is derived from its existing business and respective risks. The Company bases its impairment calculation on most recent budgets and forecast calculations, which are prepared separately for each of the Company’s CGU (or groups of cash-generating units with respect to goodwill for future profitability) to which the individual assets are allocated and monitored for the purpose of its recoverability. These budgets and forecast calculations generally cover a period of ten years Impairment losses are recognized in the statement of profit or loss in expense categories consistent with the function of the impaired asset. For non-financial assets, excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the assets or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no Goodwill and other intangible assets with indefinite useful lives are tested for impairment annually as of December 31, and when circumstances indicate that the carrying amount may be impaired. Impairment losses relating to goodwill cannot be reversed in future periods. |
Lease liability | 3.13 Lease liability The Company reviews, at the beginning of the contract, whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company (as a lessee) applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the strike price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the current value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate that is implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (i.e., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Company's lease liabilities are disclosed in Note 18 On May 28, 2020, the IASB issued “Covid- 19 16 06 2 16 19 19 19 06 2 16 As of December 31, 2022, the positive impact arising from the relief provided by the amended standard totaled 3.13.1 Right-of-use assets Right-of-use assets are recognized at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated using the straight-line method over the shorter of the lease term and the estimated useful lives of the assets, disclosed in note 18 The right-of-use assets are also subject to impairment, as disclosed in note 3.12 3.13.2 Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to its short-term leases regardless of their nature (that is, those leases that have a lease term of 12 months or less from the start date and do not contain a call option). The Company also applied the lease of low-value assets recognition exemption for leases that, according to its policy, are considered of low value, regardless of their nature. Lease payments in short-term and leases of low-value assets are recognized as an expense using the straight-line method over the lease term. |
Current assets held for sale and discontinued operations | 3.14 Current assets held for sale and discontinued operations The Company classifies current assets and disposal groups as held for sale if their carrying amounts will be recovered mainly through a sale transaction rather than through continuous use. Current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance expenses and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the asset or (disposal group) is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the expectation to sell to be completed within one year from the date of the classification. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale. Assets and liabilities classified as held for sale are presented separately as current items in the balance sheet. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: (i) represents a separate major line of business or geographical area of operations; (ii) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or (iii) is a subsidiary acquired exclusively for the purpose of resale. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount in the statement of profit or loss as profit or loss after taxes in the statement of profit and loss. The amounts presented as held for sale and discontinued operations come from the subsidiary Avon’s business combination process. Discontinued operations basically refer to costs incurred with the resolution of lawsuits associated with the operation that the subsidiary Avon kept in North America, which was sold prior to the acquisition of subsidiary Avon by the Company. The Company presents these effects as part of its discontinued operations since it considers the discontinued operations of the subsidiary Avon as an extension of the Company and for assessing that this presentation reliably represents the essence of the associated transaction. |
Trade accounts payables and reverse factoring operations | 3.15 Trade accounts payables and reverse factoring operations The Company is party of a reverse factoring operation (supplier finance arrangement) This operation does not change the amounts, nature and timing of the liability (including previously agreed-upon terms, prices and conditions) and it does not affect the Company with financial charges practiced by the financial institution, on performing a thorough analysis of suppliers by category. There is no guarantee given by the Company. Additionally, the payments made by the Company represent purchases of goods and services, are directly related to invoices from trade accounts payables and do not change the Company’s cash flows. Thus, the Company continues to recognize the liability as a trade accounts payables and these transactions are presented as operating activities in the cash flow statement. |
Provisions for tax, civil and labor risks | 3.16 Provisions for tax, civil and labor risks Provisions are recognized when the Company have a legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and its value can be reliably estimated. Provisions are quantified at the current value of the expected outflow of resources to settle the obligations using the appropriate discount rate according to risks related to the liability. The provisions for tax, civil and labor risks are monetarily adjusted through the end of the year to cover probable losses, based on the nature of the risk and the opinion of the Company’s legal advisors. The monetary adjustments are recorded in finance expenses, see note 29 Contingent assets are not recognized by the Company and are only disclosed, in case of probable receipt of economic benefits. If it is practically certain that economic benefits will be received, the asset and the corresponding gain are recorded in the financial statements of the year corresponding to the change in the estimate. A contingent liability recognized in a business combination is initially measured at its fair value. Subsequently, it is measured at the higher of the amount that would be recognized in accordance with the requirements for provisions above or the amount initially recognized less (when appropriate) cumulative amortization recognized in accordance with the requirements for revenue recognition. The Company has contracts that provide for the payment of success fees arising from tax, civil and labor proceedings in which it is a defendant. The Company, based on its best estimate, calculated, and provisioned the amounts for which it understands that there is an expectation of future disbursement. |
Current and deferred income tax and social contribution | 3.17 Current and deferred income tax and social contribution Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities based on the tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Company operates and generates taxable income. The Company periodically assesses the tax treatment assumed in the determination of taxes on profit with respect to situations in which the applicable tax regulation gives rise to interpretations that may be different and considers whether it is likely that the tax authority would accept the uncertain tax treatment. The Company assesses these taxes balances based on the most probable or expected value, depending on which method is assessed as the one The Company has material uncertain tax positions, and which - in case of any unfavorable outcome under litigation - could result in a material adverse impact to the financial statements. In Brazil, they include the corporate income tax (“IRPJ”) and the social contribution on net income (“CSLL”), which are calculated based on taxable income by applying the 15% rate plus additional of 10% on taxable income exceeding R$ 240 for IRPJ and 9% for CSLL and considers the offset of tax losses, limited to 30% of annual taxable income. Taxable income reflects profit before taxes adjusted by non-taxable and non-deductible items (both temporary and permanent items). Deferred taxes represent tax debits and credits on temporary differences between tax base and accounting base of assets and liabilities on accrued tax losses. Deferred tax assets and liabilities are classified as non-current as required by CPC 32 12 The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. The estimate future taxable income requires judgements, estimates and interpretation of tax laws. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted at the reporting date and reflect the uncertainties relating to these taxes, when applicable. Deferred tax assets and liabilities are offset if there is a legal feasible right to offset tax liabilities against tax assets, and if they are related to taxes registered by the same tax authority under the same taxable entity. Thus, for presentation purposes, tax asset and liability balances are disclosed separately. |
Employee benefits | 3.18 Employee benefits 3.18.1 Short-term benefits The obligations of short-term benefits for employees are recognized as personnel expenses as the corresponding service is rendered. The liability is recognized at the amount of the expected payment if the Company has a legal or non-formalized obligation to pay the amount due to services rendered by the employee in the past and the obligation can be reliably estimated. 3.18.2 Profit sharing program The Company recognizes a liability and an expense for its profit-sharing program based on criteria that considers the profit attributable to its shareholders and which is tied to the achievement of specific operational goals and objectives established and approved in the beginning of each year. 3.18.3 Defined contribution plans Obligations to contribute to defined contribution plans are recognized in the statement of profit or loss as personnel expenses when the related services are rendered by employees. Contributions paid in advance are recognized as an asset to the extent that a cash refund or a reduction in future payments is possible. 3.18.4 Defined benefit plans The Company’s net obligation for defined benefit plans (retirement and post-employment health care) is calculated for each plan based on the estimated amount of the future benefit that beneficiaries will receive in return for services rendered in previous years. This amount is discounted to its current value and is presented net of any plan asset’s fair value. The calculation of the defined benefit plan obligation is carried out annually by an external and independent actuary using the Projected Unit Credit Method. When the calculation results in a potential asset for the Company, the asset to be recognized is limited to the current value of economic benefits available in the form of future reimbursements or reductions in future contributions. To calculate the current value of economic benefits, any applicable minimum cost requirements are considered. The current service cost and accrued interest on the present value of the liability are recognized in the statement of income and the actuarial gains and losses, generated by the remeasurement of the liability due to changes in actuarial assumptions, are recognized in “OCI”. In case of changes or reductions in the plan, the effects of the cost of past services are recognized in the statement of profit or loss on its occurrence date. |
Share-based payments | 3.19 Share-based payments The Company’s executive officers are granted the following purchase option plans, settled exclusively with its own shares. i) Stock option plans; ii) Restricted share purchase program; iii) Stock option plan related to the strategy acceleration; and iv) Performance share purchase program. The plans are measured at fair value at the grant date. In determining the fair value, the Company uses an adequate valuation method, details of which are disclosed in note 28.1 The cost of transactions settled with equity instruments is recognized, together with a corresponding increase in shareholders’ equity under “additional paid-in capital”, throughout the period in which the service conditions are fulfilled, ending on the date on which the employee is fully vested in the right to the award (vesting date). The cumulative expense recognized for equity instruments transactions settled on each base date up to the vesting date reflects the extent to which the vesting period has transpired and the Company’s best estimate of the number of equity instruments to be vested. The expense or credit of the year is recorded in the statement of profit or loss under “selling or administrative expenses”, depending on the internal department where the eligible employee is allocated. For the stock options plan and the strategy-acceleration program, even after expiration of the term for exercise, the recognized expense is not reversed since the right has been vested in executive officers. When an award of equity instruments settlement is canceled (except when the cancellation occurs due to loss of right over the equity instrument for not fulfilling the grant conditions), it is treated as if it had been acquired on the date of cancellation, and any expense not recognized is registered immediately. This includes any award for which the Company or the counterparty have the option of not fulfilling the non-vesting obligation. The dilution effect of options granted is reflected as additional share dilution in the calculation of diluted earnings per share. |
Dividends and interest on net equity | 3.20 Dividends and interest on net equity The proposed payment of dividends and interest on net equity made by the Management that is within the portion equivalent to the minimum mandatory dividend is recorded in the line item “dividends and interest on net equity” in current liabilities, as it is considered a legal obligation provided for by the Company’s bylaws; However, the portion of dividends exceeding minimum mandatory dividends, as declared by the Management after the reporting date, referred to in the financial statements, but before the authorization date for the issuing of the financial statements, is recognized in the line item “Additional proposed dividend”, in shareholders’ equity. For corporate and accounting purposes, interest on net equity is stated as allocation of income directly in shareholders’ equity. |
Treasury shares | 3.21 Treasury shares The Company’s own equity instruments which are reacquired (treasury shares) are recognized at acquisition cost and deducted from shareholders’ equity. No gain or loss is recognized in the statement of profit or loss regarding the purchase, sale, issue or cancellation of the Company’s own equity instruments. Upon disposal or transfer of treasury shares to beneficiaries of share-based payment plans (settled in shares), the amount of the consideration received is recognized as an increase in shareholders’ equity, and any gain or loss resulting from the transaction is recorded as a capital reserve. |
Operating segments | 3.22 Operating segments The information per business segment is presented in note 25 The main decision-making body of the Company, which is responsible for defining the allocation of funds and for the performance assessment of the operating segments, is the Board of Directors. Additionally, the Company has a Group’s Operational Committee (“GOC”) that includes the CEOs of Natura &Co Holding, Natura &Co Latam, Avon International, The Body Shop and Aesop, in addition to representatives of key business areas (Finance, Legal, Operations and Corporate Governance), which advises the Board of Directors and is responsible for, among others things, monitoring the implementation of short and long-term strategies and making recommendations to the Board of Directors regarding the management of the Company, from the perspective of its results, allocation of funds among business units, cash flow and talent management. |
Revenue from contracts with customers | 3.23 Revenue from contracts with customers Revenue from contracts with customer is recognized when control of the goods or services is transferred to the customer at an amount that reflects the fair value of the consideration the Company expects to be entitled in exchange for those goods or services. The Company has concluded that it is the principal in its revenue arrangements. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the effects of variable consideration, existence of a significant financing component, non-cash consideration, and consideration payable to the customer (if any) are considered. The nature and other considerations on the transaction price and the moment in which the performance obligation is fulfilled for each of the main revenue streams are shown below. 3.23.1 Direct sales Revenue from direct sales is generated by sales to the Company’s consultants (our customers) based on the fair value of consideration received/receivable, excluding discounts, rebates and taxes or charges on sales. Revenue from sales is recognized when the performance obligation is fulfilled, i.e., when the promised product is physically delivered, and the Consultant obtains control over the product. 3.23.2 Direct sales – Additional charges and penalties for late payments The Company charges their customers (Consultants) additional charges and penalties for late payments in the settlement of sales receivables. Due to the level of uncertainty in collecting these amounts (variable consideration), the subsidiaries recognize revenue from additional charges and penalties based on the consideration that Company expects to be entitled given its history of collection from customers. 3.23.3 Retail sales The Company, which operates in the retail market, measures sales revenues based on the fair value of the consideration received/receivable, excluding discounts, rebates and taxes or charges on sales. These revenues are recognized when the performance obligation is fulfilled, i.e., when the promised product is physically delivered, and the consumer obtains control over the product. 3.23.4 Other performance obligation 3.23.4.1 Loyalty program (points campaign) The Company offers points campaign (loyalty program), in which customers accumulate points - while buying the Company’s products - to be exchanged (redeemed) for products in the future. Measurement of points is based on their expected cost, plus a margin. The amount allocated to the loyalty program is deferred and the revenue is recognized upon redemption of the points accumulated by consultants for retail and direct sales, or when they expire or are no longer considered redeemable. The loyalty program points are valid for up to approximately five months 3.23.4.2 Program for recognition of Natura and Avon consultants’ performance The Company has performance recognition programs, in which the consultants are awarded based on different indicators, for example, volume of purchases, length of service, among others. The Company believes that this performance recognition program has an added value and hence is considered a commitment to our network. Measurement of performance recognition programs is based on their expected cost, plus a margin. The amount allocated to performance recognition programs is deferred and revenue is recognized when awards are delivered to the Company’s Consultants. 3.23.4.3 Events The Company organizes events to encourage and recognize the best Consultants. The Company believes that these events have an added value for the Consultants, in addition to generating in them an expectation to participate in these events. Thus, the Company has determined that these events are a performance obligation. Measurement of events is based on their expected cost, plus a margin. The amount allocated to events is deferred and the revenue is recognized when the event is held. 3.23.4.4 Franchises (courses, training and consulting/outfit and opening) Upon execution of the agreement, the Company charges from franchisees a fixed amount, part of which is allocated to courses, training and consultancy to train and instruct the franchisee to sell “Natura” and “The Body Shop” brand products. In addition, other part of the charged amounts refers to outfit (specific products to be used at the franchisee store) and inauguration (franchisee’s store opening event). The Company believes that these items represent a material right and, for such, they are considered a performance obligation. Measurement is based on the market value of these items, being initially recognized as deferred revenue. When the franchisee’s store is opened, this deferred revenue is allocated to the statement of profit or loss. 3.23.4.5 Franchisees (advertising fund) Upon the execution of the agreement, the Company charges from franchisees a fixed amount, a part of which is for the advertising fund (monthly delivery of showcases). The Company believes that this item represents a material right and, for such, it was considered a performance obligation. Measurement is based on the market value of this item, being initially recognized as deferred revenue. This deferred revenue is allocated to statement of profit or loss upon the delivery of showcases to the franchisees. 3.23.4.6 Franchises (brand right of use) Upon the execution of the agreement, the Company charges from franchisees a fixed amount, part of which is for the use of the “Natura” brand. The Company believes that this item represents a material right and, for such, it was considered a performance obligation. Measurement is based on residual value, i.e., the remaining value after excluding the market value of courses, training and consultancy services, outfit and inauguration, and the advertising fund. This amount is initially recognized as deferred revenue. This deferred revenue is allocated to statement of profit or loss, on a straight-line basis, over the term of the franchise agreement. 3.23.4.7 Royalty revenues Sales by franchisees and sub-franchisees of the subsidiary The Body Shop are recognized when performance obligations are satisfied, goods are transferred to the customer and the customer is in control. The performance obligation is the license to operate in the market. Revenues are allocated to the license and are recognized over time, in accordance with the license agreement. Under CPC 47 15 3.23.4.8 Incentives related to “free-of-charge” products and promotional gifts The Company grants incentives related to “free-of-charge” products and promotional gifts for its customers (Natura and Avon consultants and/or end consumers). Since it is considered a material right, the Company recognizes it as a performance obligation. Considering that the delivery of products and the fulfillment of the performance obligation to deliver “free-of-charge” products or promotional gifts occurs at the same time, the Company concluded that an allocation of prices and monitoring these two performance obligations separately are not applicable. |
Sales taxes | 3.24 Sales taxes Sales taxes are recognized net of sales taxes, except (i) when sales taxes incurred on the purchase of goods or services are not recoverable from the tax authorities, in which case the sales tax is recognized as part of the acquisition cost of the asset or expense item, as the case may be; (ii) when the amounts receivable and payable are presented together with the sales taxes amount; and (iii) when the net amount of sales taxes, recoverable or payable, is included as a component of the amounts receivable or payable in the balance sheet. Tax incentives related to taxes on sales for the current year are recognized in the Company's statement of profit or loss for the year and recorded in net sales. 3.24.1 Exclusion of ICMS from the tax bases for calculating contributions to PIS and COFINS On March 31, 2017, the Company - based on the conclusion of the judgment by the Full Bench of the Federal Supreme Court (STF) of Extraordinary Appeal No. 574,706 Until 2021 On May 13, 2021, the STF partially granted the motion to clarify filed by the Federal Government (Extraordinary Appeal No. 574,706 one 3.24.2 Concept of supplies for calculating credits of PIS and COFINS contributions The Company claims that PIS and COFINS credits are measured and calculated reliably and based on the best interpretation of current legislation and the country’s jurisprudential scenario, whose evolution is permanently assessed by the Company and its legal advisors. |
Statement of added value | 3.25 Statement of added value The purpose of this statement is to show the wealth created by the Company and its distribution during a certain period and it is presented by the Company, as required by Brazilian corporate law. The statement of added value was prepared using information obtained in the same accounting records used to prepare the financial statements and pursuant to the provisions of the Brazilian accounting standard CPC 09 |
Earnings per share | 3.26 Earnings per share The basic earnings per share are calculated by dividing the profit (loss) attributable to the Company’s shareholders by the weighted average number of outstanding common shares, excluding common shares purchased by the Company and held as treasury shares. Diluted earnings per share are calculated by adjusting the weighted average number of outstanding common shares, assuming the conversion of all potential common shares that would cause dilution. The Company has stock options, restricted shares, strategy acceleration and performance shares that would have a dilutive effect on any earnings per share. Considering that the Company recorded a loss for year ended December 31, 2022, any adjustment would have an anti-dilution effect and, therefore, the diluted loss per share is equal to the basic loss per share (see note 31 The Company chose to present the basic and diluted amounts per share resulting from discontinued operations together with the information on earnings per share of continuing operations in note 31 |
New standards, amendments and interpretations issued but not yet effective | 3.27 New standards, amendments and interpretations issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issue of the Company’s financial statements are disclosed below, except for those which, in the Management’s assessment, cannot produce any effect on the financial statements. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. 3.27.1 Amendments to IAS 8 23 In February 2021, the IASB issued amendments to IAS 8 23 The amendments are applicable for years beginning on or after January 1, 2023 and shall be applicable to changes in accounting policies and estimates that may occur on or after such period. The Company does not expect these changes will have a material impact. In the financial statements. 3.27.2 Amendments to IAS 1 26 1 2 In February 2021, the IASB issued amendments to IAS 1 26 1 Practice Statement 2 The amendments are applicable for years beginning on or after January 1, 2023. While the Company is reviewing the disclosure of accounting policies to ensure consistency with the new requirements, a material impact in the financial statements is not expected. 3.27.3 Amendments to IAS 12 32 IASB issued amendments to IAS (CPC 32 12 32 The amendments must be made to transactions that are carried out on or after the start of the oldest comparison period presented. In addition, at the start of the oldest comparison period presented, a deferred tax asset (as long as there is taxable profit) and a deferred tax liability must also be recognized for all temporary taxable and deductible differences associated with leases and deactivation obligations. The amendments to the IAS 12 32 3.27.4 Amendments to IAS 1 26 1 IASB issued amendments to IAS 1 26 1 least twelve twelve The amendments are effective for years beginning on or after January 1, 2024. While the Company is reviewing the disclosure of accounting policies to ensure consistency with the new requirements, a material impact in the financial statements is not expected due to the history of the Company of satisfying covenants and based on the disclosure currently provided. 3.27.5 Amendments to IFRS 16 06 2 IASB changed the amendments issued for 16 06 2 15 47 The amendments are effective for years beginning on or after January 1, 2024. Given the low history of the Company with sale and leaseback transactions, a material impact in its financial statements is not expected. |
New standards, amendments and interpretations of standards adopted for the first time for the year beginning on January 1, 2022 | 3.28 New standards, amendments and interpretations of standards adopted for the first time for the year beginning on January 1, 2022 Standards and changes that came into force as of the years started on or after January 1, 2022 did not have any material impact on the Company’s financial statements. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Additionally, the Company adopted IFRS 9 48 39 38 9 48 9 48 9 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Polices (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block [Abstract] | |
Summary of Information About Company Principal Subsidiaries | Below is a list of the Company’s direct subsidiaries as of December 31, 2022 and 2021 Interest - % 2022 2021 Direct interest: Avon Products, Inc. 100.00 100.00 Natura Cosméticos S.A. 100.00 100.00 Natura &Co International S.à r.l. 100.00 100.00 Aesop Holdings Ltd. 100.00 - |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL RISK MANAGEMENT | |
Summary of Derivative Instruments | To hedge the current balance sheet positions of the Company against market risks, the following derivative instruments are used and consist of the balances in the following table, as of December 31, 2022 and 2021 Description – Balance sheet position Fair value (Level 2 Consolidated 2022 2021 Financial derivatives (785,733 ) 516,386 Operating derivatives (11,144 ) 251 Total (796,877 ) 516,637 |
Summary of financial derivative positions | Financial derivatives Fair value Gains (losses) of fair value adjustment Description 2022 2021 2022 2021 Swap agreements: (a) Asset portion: Dollar long position 6,108,505 6,881,981 34,867 978,350 Liability portion: Post-fixed CDI Rate: Short position in CDI (6,874,285 ) (6,348,442 ) (697,678 ) (823,887 ) Forward contracts and NDF: Liability portion: Post-fixed CDI Rate: (521 ) (137 ) (521 ) (137 ) Short position at interbank rate (19,432 ) (17,016 ) 3,723 94 Total derivative instruments, net: (785,733 ) 516,386 (659,609 ) 154,420 a) Swap transactions consist of swapping the exchange rate variation for a correction related to a percentage of the fluctuation of the Certificate of bank deposits (post-fixed CDI), in the case of Brazil. |
Schedule of changes in net financial derivatives | Below are the changes in net derivatives balances for the years ended on December 31, 2022 and 2021 Balance as of December 31, 2020 1,846,777 Gain from swap and forward derivative contracts for the year (unrealized) 441,554 Receipt of funds due to settlement of derivative transactions - operational activity (1,570,584 ) Payment of funds due to settlements of derivative instruments - financing activity 9,040 Losses in cash flow hedge operations (other comprehensive income) (210,150 ) Balance as of December 31, 2021 516,637 Losses from swap and forward derivative contracts for the year (unrealized) (992,813 ) Payment of funds due to settlement of derivative transactions - operational activity 594,225 Receipt of funds due to settlements of derivative instruments - financing activity (118,707 ) Losses in cash flow hedge operations (other comprehensive income) (790,479 ) Other movements (5,740 ) Balance as of December 31, 2022 ( ) |
Schedule of operating forward derivative instruments | As of December 31, 2022 and 2021 Description Fair value 2022 2021 Net position in GBP and USD (4,510 ) (404 ) Forward contracts (6,634 ) 655 Total of derivative instruments, net (11,144 ) 251 |
Disclosure Of Net Asset Exposure | For the foreign exchange risk sensitivity analysis, the Company’s Management believes that it is important to consider, in addition to the assets and liabilities with exposure to fluctuations in exchange rates recorded in the balance sheet, the fair value of the financial instruments entered into by the Company to hedge certain exposures as of December 31, 2022 and 2021 2022 2021 Borrowing and financing in foreign currency in Brazil (a) (5,252,376 ) (5,897,015 ) Trade accounts receivable in foreign currency in Brazil 521,427 307,433 Trade accounts payable in foreign currencies in Brazil (15,214 ) (37,390 ) Fair value of financial derivatives 6,101,350 6,882,499 Net asset exposure 1,355,187 1,255,527 a) Excluding transaction costs. |
Disclosure Of Net Foreign Exchange Exposure | The following table shows the projection of the incremental loss that would have been recognized in profit or loss for the subsequent year, if the current net foreign exchange exposure remains static, based on the following scenarios: Parity - R$ vs US$ 5.2177 5.3798 4.0348 2.6899 Scenario Scenario Scenario I Scenario II Operation/Instrument Brazilian Real Probable Depreciation 25% Depreciation 50% Assets denominated in US$ Fair value of “financial” derivatives 6,101,350 6,290,873 4,718,155 3,145,436 Trade accounts receivable in foreign currency in Brazil 521,427 537,624 403,218 268,812 Liabilities denominated in US$ Borrowing and financing in foreign currency in Brazil (5,252,376 ) (5,415,528 ) (4,061,646 ) (2,707,764 ) Trade accounts payable in foreign currencies in Brazil (15,214 ) (15,686 ) (11,765 ) (7,843 ) Impact on net income and shareholders’ equity 1,355,187 42,096 (307,225 ) (656,546 ) |
Disclosure of Detailed Information About Cash Flow Hedged Items | The positions of derivative instruments designated as outstanding cash flow hedge on December 31, 2022 and 2021 are set out below: Cash flow hedge instrument As of December 31, 2021 Other comprehensive income Hedged item Notional currency Fair value Accumulated contract gain (loss) Gain (loss) in the year Currency swap – US$/R$ Currency BRL 533,539 64,145 (215,944 ) Forward contracts (The Body Shop and Avon) Currency BRL - - 5,173 Forward agreements (Natura Indústria) Currency BRL (129) (129 ) 621 Total 533,410 64,016 ( 210,150 ) As of December 31, 2022 Other comprehensive income Hedged item Notional currency Fair value Accumulated contract gain (loss) Gain (loss) in the year Currency swap – US$/R$ Currency BRL (766,302 ) (765,286 ) (798,363 ) Forward contracts (Aesop) Currency BRL (1,350 ) (1,350 ) (1,350 ) Forward contracts (The Body Shop) Currency BRL 4,757 4,757 4,757 Forward agreements (Natura Indústria) Currency BRL 1,673 1,673 1,665 Forward contracts (Natura Holding) Currency BRL - - 89 Forward contracts (Avon) Currency BRL 74 2,723 2,723 Total (761,148 ) (757,483 ) ( 790,479 ) (*) The positions of derivative financial instruments designated as a fair value hedge are not material, therefore we are not disclosing them. |
Disclosure of changes in cash flow hedge reserve recorded in OCI | The changes in cash flow hedge reserve recorded in OCI are shown below: Cash flow hedge balance as of December 31, 2020 159,077 Change in the fair value of hedge instrument recognized in OCI (210,150 ) Tax effects on fair value of hedge instrument 72,939 Cash flow hedge balance as of December 31, 2021 21,866 Change in the fair value of hedge instrument recognized in OCI (790,479 ) Tax effects on fair value of hedge instrument 270,035 Cash flow hedge balance as of December 31, 2022 (498,578 ) |
Disclosure of Detailed Information About Interest Rate Risks of Transactions | Total borrowing, financing and debentures - in local currency (note 19 (8,419,320 ) Operations in foreign currency with derivatives related to CDI (a) (5,172,966 ) Short-term investments (notes 6 7 3,091,344 Net exposure (10,500,942 ) (a) Refers to transactions involving derivatives related to CDI to hedge the borrowing, financing and debentures arrangements raised in foreign currency in Brazil. |
Summary of Net Exposure to Interest Rate Risk by Scenario | Description Company Risk Probable scenario Scenario II Scenario III Net liability Rate increase (1,944 ) (168,307 ) (334,670 ) |
Summary of net working capital | Management monitors the Company’s liquidity level considering the expected cash flows in exchange for unused credit facilities, as shown in the following table: 2022 2021 Total current assets 16,121,527 17,388,165 Total current liabilities (13,337,868 ) (13,601,218 ) Total net working capital 2,783,659 3,786,947 |
Disclosure of Maturity Analysis for Non-Derivative Financial Liabilities | As of December 31, 2022, the carrying amount of financial liabilities, measured using the amortized cost method, considering interest payments at a floating rate and the value of debt securities reflecting the forward market interest rates, may be changed due to the variation in floating interest rates. Their corresponding maturities, considering that the Company is in compliance with contractual covenants, are evidenced below: Less than a year One five More than five Total expected contractual cash flow Interest to be accrued Carrying amount Borrowing, financing and debentures 722,146 3,228,866 13,140,599 17,091,611 (3,499,325 ) 13,592,286 Derivatives 640,257 1,504,007 (1,347,387 ) 796,877 - 796,877 Lease liability 1,070,253 2,019,723 856,402 3,946,378 (675,641 ) 3,270,737 Trade accounts payables, related parties and reverse factoring operations 6,375,930 - - 6,375,930 - 6,375,930 Dividends payable 260 - - 260 - 260 |
Disclosure of carrying amounts and fair values of the Company’s financial instruments | The carrying amounts and fair values of the Company’s financial instruments as of December 31, 2022 and 2021 Carrying amount Fair value Note Classification by category Fair value hierarchy 2022 2021 2022 2021 Financial assets Cash and cash equivalent 6 Cash and banks Amortized cost Level 2 2,904,808 3,349,398 2,904,808 3,349,398 Certificate of bank deposits Fair value through profit or loss Level 2 46,864 7,639 46,864 7,639 Repurchase operations Fair value through profit or loss Level 2 1,244,041 650,220 1,244,041 650,220 4,195,713 4,007,257 4,195,713 4,007,257 Short-term investments 7 Government securities Fair value through profit or loss Level 2 31,415 435,898 31,415 435,898 Restricted cash Fair value through profit or loss Level 2 1,481 44 1,481 44 Financial treasury bills Fair value through profit or loss Level 2 539,450 646,586 539,450 646,586 Loan investment fund Fair value through profit or loss Level 2 1,228,093 896,212 1,228,093 896,212 DBV fund Fair value through profit or loss Level 3 35,235 36,921 35,235 36,921 1,835,674 2,015,661 1,835,674 2,015,661 Trade accounts receivables - related parties 8 32.1 Amortized cost Level 2 3,502,399 3,476,359 3,502,399 3,476,359 Judicial deposits 12 Amortized cost Level 2 457,550 585,284 457,550 585,284 Sublease receivables 14 Amortized cost Level 2 262,108 347,174 262,108 347,174 Receivables from service providers 14 Amortized cost Level 1 110,214 162,268 110,214 162,268 4,332,271 4,571,085 4,332,271 4,571,085 Financial and operating derivatives instruments Fair value through profit or loss Level 2 1,008,365 975,129 1,008,365 975,129 Financial liabilities Borrowing, financing and debentures 19 Borrowing in local currency Amortized cost Level 2 (8,419,320 ) (6,914,117 ) (8,419,320 ) (2,100,465 ) Foreign currency borrowings Amortized cost Level 2 (5,172,966 ) (5,802,715 ) (5,172,966 ) (5,755,272 ) (13,592,286 ) (12,716,832 ) (13,592,286 ) (7,855,737 ) Financial and operating derivative instruments Fair value through profit or loss Level 2 (1,805,242 ) (458,492 ) (1,805,242 ) (458,492 ) Lease 18 Amortized cost Level 2 (3,270,737 ) (3,547,862 ) (3,270,737 ) (3,547,862 ) Trade accounts payables, related-parties’ and reverse factoring operations 20 32.1 Amortized cost Level 2 (6,375,930 ) (6,770,579 ) (6,375,930 ) (6,770,579 ) Insurance payables 23 Amortized cost Level 2 (69,364 ) (127,413 ) (69,364 ) (127,413 ) Dividends payable 24 Amortized cost Level 2 (260 ) (180,772 ) (260 ) (180,772 ) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CASH AND CASH EQUIVALENTS | |
Schedule of Detailed Information About Cash And Cash Equivalents | 2022 2021 Cash and banks 2,904,808 3,349,398 Certificate of bank deposits 46,864 7,639 Repurchase operations (a) 1,244,041 650,220 4,195,713 4,007,257 (a) Repurchase operations are securities issued by banks with a commitment by the bank to repurchase the securities, and by the client to resell the security, at a defined interest rate and within a predetermined term, which are backed by public or private securities (depending on the financial institution) and are registered within the Central Agency for Custody and Financial Settlement of Securities (“CETIP”), being short-term investments and with high liquidity. As of December 31, 2022, repurchase operations are remunerated at an average rate of 100.0 100.0 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short Term Investments [Abstract] | |
Schedule of Short-Term Investments | 2022 2021 Exclusive Investment fund (a) - - Mutual investment funds (b) 1,228,093 896,212 Treasury bills (c) 539,450 646,586 Government securities (LFT) (d) 31,415 435,898 DBV fund 35,235 36,921 Restricted cash 1,481 44 1,835,674 2,015,661 Current 1,800,439 1,978,740 Non-current 35,235 36,921 (a) The Company concentrate most of its investments in an Exclusive Investment Fund, which holds interest in shares of the Essential Investment Fund. The balance as of December 31, 2022, related to the “Crer para Ver” line within the exclusive investment fund is R$ 91,340 96,070 (b) Mutual investment funds refer to the investments of some subsidiaries of the Company, which are concentrated in the entities of Argentina, Chile, Colombia and Mexico. (c) As of December 31, 2022, investments in treasury bills are remunerated at an average rate of 109.69 120.0 (d) As of December 31, 2022, investments in Government securities (LFT) are remunerated at an average rate of 100.02 102.0 |
Schedule of Detailed Information About Investment Portfolio | The breakdown of securities constituting the Essential Investment Fund portfolio, regarding which the Company holds 100% interest, on December 31, 2022 and 2021 is as follows: 2022 2021 Certificate of bank deposits (CDB) 2,012 - Repurchase operations (cash and cash equivalents) 937,645 569,349 Treasury bills 539,450 646,586 Government securities (LFT) 46,071 428,865 1,525,178 1,644,800 |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement [Line Items] | |
Schedule of Detailed Information About Trade Receivables | 2022 2021 Trade accounts receivable 3,933,550 3,930,340 (-) Allowance for expected credit losses (431,151 ) (453,981 ) 3,502,399 3,476,359 |
Schedule of Trade Receivables by Exposure to Doubtful Accounts | Maximum exposure to credit risk on the date of the financial statements is the carrying amount of each maturity date range, net of the allowance for expected credit losses. The following table shows trade accounts receivables by exposure to allowance for expected credit losses as of December 31, 2022 and 2021 2022 2021 Trade accounts receivable Allowance for expected credit losses Trade accounts receivable Allowance for expected credit losses Current 2,814,843 (94,148 ) 2,488,412 (80,087 ) Past due: Up to 30 621,711 (59,764 ) 937,227 (68,782 ) 31 60 142,507 (53,609 ) 140,757 (56,784 ) 61 90 106,124 (48,851 ) 97,713 (49,731 ) 91 180 248,365 (174,779 ) 266,231 (198,597 ) 3,933,550 (431,151 ) 3,930,340 (453,981 ) |
Trade receivables [member] | |
Statement [Line Items] | |
Schedule of Allowance For Credit Losses | The changes in the allowance for expected credit losses for the year ended December 31, 2022 and 2021 Balance as of December 31, 2020 (432,108 ) Additions, net of reversals (837,822 ) Write-off (a) 817,446 Translation adjustment (1,497 ) Balance as of December 31, 2021 (453,981 ) Additions, net of reversals (605,995 ) Write-off (a) 592,857 Translation adjustment 35,968 Balance as of December 31, 2022 (431,151 ) (a) Refers to accounts overdue for more than 180 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES | |
Schedule of Inventories | 2022 2021 Finished products 3,634,068 4,619,237 Raw materials and packaging 1,159,507 1,166,681 Auxiliary materials 146,409 195,364 Products in progress 68,849 38,189 (-) Provision for inventory losses (491,959 ) (615,945 ) 4,516,874 5,403,526 |
Schedule of Changes In The Allowance For Inventory Losses | The changes in the allowance for inventory losses for the years ended December 31, 2022 and 2021 B alance as of December 31, 2020 (602,314 ) Additions, net of reversals (a) (407,207 ) Write-offs (b) 396,233 Translation adjustment (2,657 ) Balance as of December 31, 2021 (615,945 ) Additions, net of reversals (a) (305,705 ) Write-offs (b) 366,198 Translation adjustment 63,493 Balance as of December 31, 2022 (491,959 ) a) This refers to the recognition of net allowance for losses due to discontinuation, expiration and quality, to cover expected losses on the realization of inventories, pursuant to the policy of the Company. b) It consists of write-offs of products for which there already had an allowance for losses, where the Company has no expectation of sales/realization. |
RECOVERABLE TAXES (Tables)
RECOVERABLE TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RECOVERABLE TAXES | |
Schedule of Current Tax Assets | 2022 2021 ICMS on purchase of goods (a) 704,018 732,853 Taxes on purchase of goods – foreign subsidiaries 245,955 313,214 ICMS on purchases of property, plant and equipment and purchase of goods 14,365 12,138 PIS and COFINS on purchase of property, plant and equipment and purchase of goods (b) 950,307 984,737 Withholding PIS, COFINS and CSLL 1,671 1,673 Tax on Manufactured Goods - IPI (c) 152,686 114,179 Other 199,276 220,455 2,268,278 2,379,249 Current 911,410 1,029,625 Non-current 1,356,868 1,349,624 a) Tax credits related to the tax on the circulation of goods, interstate and inter-municipal transport and communication services (ICMS) were generated mainly by purchases, whose tax rate is higher than the average of sales. The Company expects to realize these credits during the ordinary course of business through offsetting with sales operations in the domestic market. b) The accumulated tax credits of PIS and COFINS basically arise from credits on purchases of raw materials used in the production and from purchase of property, plant and equipment, as well as credits arising out of the exclusion of ICMS from the calculation basis of the PIS/COFINS. The realization of these credits normally occurs through offsetting with sales operations in the domestic market. c) The balance will be used to offset IPI (Taxes over industrialized products) payable in future operations of the Company. |
INCOME TAX AND SOCIAL CONTRIB_2
INCOME TAX AND SOCIAL CONTRIBUTION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAX AND SOCIAL CONTRIBUTION | |
Summary of breakdown of deferred income tax and social contribution – Assets | The amounts are as follows: i) Breakdown of deferred income tax and social contribution: 2022 2021 Tax loss carryforwards 2,465,805 2,543,720 Receivables 192,260 224,231 Inventory 219,367 244,854 Fixed and Intangible Assets 160,716 308,406 Lease liabilities 444,444 441,860 Accruals, reserves and provision for tax, civil and labor risks (b) 649,768 695,989 Employee benefits 373,817 317,835 Non-functional currency positions, including derivatives and hedge accounting transactions (c) 307,732 - Foreign Tax Credit Carryforwards (a) 363,493 146,441 Other temporary differences 124,689 423,839 Total Deferred Tax Assets 5,302,091 5,347,175 Non-functional currency positions, including derivatives and hedge accounting transactions (c) - (137,410 ) Fixed and intangible assets (339,627 ) (312,914 ) Employee benefits (132,609 ) (215,235 ) Right to use assets (359,072 ) (423,095 ) Fair value of identifiable net assets in business combination (d) (1,561,946 ) (1,714,045 ) Other temporary differences (323,736 ) (438,002 ) Total Deferred Tax Liabilities (2,716,990 ) (3,240,701 ) Total of Deferred income tax and social contribution, net 2,585,101 2,106,474 Deferred income taxes and social contribution assets, net (e) 3,519,515 3,100,515 Deferred income taxes and social contribution liabilities, net (e) (934,414 ) (994,041 ) a) Primarily relates to Foreign Tax Credit Carryforwards in Brazil that had historically been reported as Prepaid Income Taxes rather than Deferred Tax Assets. b) Includes (i) expenses under the accrual basis, reflecting authentic expenses incurred in the year, (ii) deferred revenue, (iii) accrued and unpaid compensation and (iv) other reserves not currently deductible for tax. c) Due to underlying changes in non-functional currencies relative to the Brazilian Real, the balance at 2022 2021 . d) The balance includes deferred income tax liability on the fair value of net identifiable assets in the acquisition of the subsidiaries Avon, The Body Shop and Aesop. e) Balance as presented in the balance sheet including the jurisdictional netting effects of deferred tax assets and liabilities of the same nature, originating in the same taxpayer and taxing authority. 2021 |
Summary of changes in deferred asset and liability income tax and social contribution | The changes in deferred asset and liability income tax and social contribution for the years ended December 31, 2022 and 2021 Asset Liability Balance at December 31, 2020 1,339,725 (1,288,045 ) Effect on statement of profit or loss 1,874,722 243,180 Transfer between income tax and deferred social contribution – assets and liabilities 16,437 (16,437 ) Reserve for grant of options and restricted shares (106,979 ) - Tax effects on (losses) earnings from cash flow hedge operations 72,939 - Translation adjustment (96,329 ) 67,261 Balance at December 31, 2021 3,100,515 (994,041 ) Effect on 599,136 (1,071 ) Reserve for grant of options and restricted shares 28,750 (1,617 ) Tax effects on (losses) earnings from cash flow hedge operations 270,035 - Translation adjustment (478,921 ) 62,315 Balance at December 31, 2022 3,519,515 (934,414 ) |
Schedule of tax losses carryforwards for which no deferred tax asset recognised | As of December 31, 2022, the Company had the following unrecognized deferred tax assets: Item Amount Indefinite Expiration Definite Expiration Net operating loss (a) 9,629,484 8,901,326 728,158 Credits (b) 627,489 - 627,489 Other future deductible Items 2,193,465 2,193,465 - Total 12,450,438 11,094,791 1,355,647 a) During 2023 2024 2027 b) During 2023 2024 2027 |
Summary of reconciliation of income tax and social contribution | 11.2 Reconciliation of income tax and social contribution: 2022 2021 Income (loss) before income tax and social contribution (2,358,642 ) 91,253 Income tax and social contribution at the rate of 34% 801,938 (31,026 ) Brazil Investment subsidies 207,608 469,863 Share of profit of equity investees - - Effect from differences of tax rates of entities abroad (117,757 ) (51,614 ) Taxation of profits of foreign subsidiaries (a) 38,862 (77,072 ) Unrecognized Deferred income tax (b) (789,129 ) 909,596 Non-Deductible donation and contribution (36,213 ) (8,381 ) United Kingdom Tax Law rate change (c) - (180,174 ) Withholding and Sub-national taxes (73,677 ) (75,499 ) Goodwill impairment (d) (70,730 ) - Other permanent differences (80,470 ) 92,293 Income tax and social contribution revenue (expenses) ( 119,568 ) 1,047,986 Income tax and social contribution - current (717,633 ) (1,069,916 ) Income tax and social contribution - deferred 598,065 2,117,902 Effective Rate- % (5.1% ) (1,148.4% ) a) Certain earnings of foreign subsidiaries may be subjected to income taxation net of applicable credits, if any, by their parent holding companies in addition to the local taxing jurisdictions in which they conduct operations. Within the Natura Group, these types of taxation regimes exist in various jurisdictions including but not limited to Brazil, Australia, United Kingdom, United States. b) During 2021 The benefits recorded in 2021 2022 c) During 2021 2021 19 25% 2021 d) During 2022 |
JUDICIAL DEPOSITS (Tables)
JUDICIAL DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
JUDICIAL DEPOSITS | |
Summary of detailed information about judicial deposits | 2022 2021 Unaccrued tax proceedings (a) 274,273 273,295 Accrued tax proceedings (b) 150,929 266,828 Unaccrued civil proceedings 5,783 8,212 Accrued civil proceedings 1,470 2,821 Unaccrued labor proceedings 11,014 11,970 Accrued labor proceedings 14,081 22,158 Total judicial deposits 457,550 585,284 a) The tax proceedings related to these judicial deposits refer mainly to the ICMS-ST, disclosed in note 22.2, contingent liabilities - possible risk of loss. b) The tax proceedings related to these judicial deposits refer, substantially, to the sum of the amounts highlighted in Note 21 , and the amounts provisioned according to Note 22 . |
Summary of detailed information about changes in judicial deposits | Changes in judicial deposits balances for the year ended December 31, 2022 and 2021 are presented below: Balance as of December 31, 2020 566,190 New deposits 39,071 Redemptions in favor of the Company (21,533 ) Monetary adjustment 15,246 Application in the liquidation of proceedings (13,645 ) Translation adjustment (45 ) Balance as of December 31, 2021 585,284 New deposits 27,479 Redemptions in favor of the Company (67,533 ) Monetary adjustment 35,508 Application in the liquidation of proceedings (121,025 ) Transfers 25 Translation adjustment (2,188 ) Balance as of December 31, 2022 457,550 |
CURRENT ASSETS HELD FOR SALE (T
CURRENT ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CURRENT ASSETS HELD FOR SALE | |
Schedule of the changes in assets classified as held for sale | The changes in the balance for the years ended December 31, 2022 and 2021 Balance as of December 31, 2020 181,279 Transfer from property, plant and equipment (a) 9,028 Transfer from assets and liabilities (b) (25,779 ) Transfer to property, plant and equipment - Transfer to assets and liabilities - Sale (c) (97,905 ) Translation adjustment (13,702 ) Balance as of December 31, 2021 52,921 Balance as of December 31, 2021 52,921 Transfers from property, plant and equipment, other assets and liabilities 13,235 Impairment (12,510 ) Sale (c) (55,034 ) Translation adjustment 1,439 Balance as of December 31, 2022 51 a) During the third quarter of 2021 b) In the first quarter of 2021 2020 c) During the third and fourth quarters of 2021 14,600 2022 |
OTHER CURRENT AND NONCURRENT _2
OTHER CURRENT AND NONCURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER CURRENT AND NONCURRENT ASSETS | |
Summary of detailed information about other assets | 2022 2021 Marketing and advertising advances 43,509 80,078 Supplier advances 290,205 350,830 Employee advances 20,267 17,402 Rent advances and guarantee deposit (a) 160,437 172,465 Advance insurance expenses 124,293 160,911 Overfunded pension plan (b) 694,527 1,043,799 Customs broker advances - Import taxes 38,398 60,739 Sublease receivables (c) 262,108 347,174 Carbon credits 14,297 11,479 Receivables from service providers (d) 110,214 162,268 Other 257,566 268,066 2,015,821 2,675,211 Current 763,384 912,160 Non-current 1,252,437 1,763,051 a) Mainly related to: (i) advances for lease agreements that were not included in the initial measurement of lease liabilities / right-of-use of the subsidiary The Body Shop, in accordance with the exemptions of IFRS 16 06 2 b) Pension plan arising from the acquisition of Avon. The change in balance refers to reviewing the mortality tables and the impact on the exchange rate variation due to the valorization of the real. c) Refers to the sublease receivable from the New York office owned by the subsidiary Avon. d) Refers to receivables mainly arising from damage that occurred with carriers and insurance companies. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
Summary Of Detailed Information About Property, Plant And Equipment | Useful life range (in years) 2021 Additions Write-offs (Impairment) reversal of impairment Transfers Translation adjustment 2022 Cost: Vehicles 2 to 5 38,902 8 (6,559 ) - 49,285 (7,274 ) 74,362 Tooling 3 191,840 - (2,310 ) - 14,976 (329 ) 204,177 Tools and accessories 3 to 20 110,998 17,261 (8,177 ) - (43,369 ) 98,739 175,452 Facilities 3 to 60 303,452 181 (564 ) - 13,147 (8,768 ) 307,448 Machinery and accessories 3 to 15 1,959,943 23,188 (63,473 ) - 520,561 (168,083 ) 2,272,136 Leasehold improvements 2 to 20 1,128,504 68,980 (54,148 ) (1,665 ) 106,151 (119,736 ) 1,128,086 Buildings 14 to 60 1,982,245 7,174 (19,104 ) - 120,512 (173,888 ) 1,916,939 Furniture and fixtures 2 to 25 660,126 71,960 (41,095 ) (7,629 ) 53,632 (62,932 ) 674,062 Land - 628,373 - - - 10,043 7,241 645,657 IT equipment 3 to 15 634,580 26,602 (34,279 ) (191 ) 84,452 (83,394 ) 627,770 Other assets - 31,636 - (4,227 ) - - (1,179 ) 26,230 Projects in progress - 561,488 495,771 (1,739 ) - (429,391 ) (45,502 ) 580,627 Total cost 8,232,087 711,125 (235,675 ) (9,485 ) 499,999 (565,105 ) 8,632,946 Depreciation value: Vehicles (9,457 ) (6,057 ) 5,508 - (40,920 ) 12,856 (38,070 ) Tooling (174,164 ) (7,841 ) 2,310 - - 210 (179,485 ) Tools and accessories (65,740 ) (16,385 ) 1,823 - 46,967 (102,105 ) (135,440 ) Facilities (183,420 ) (17,051 ) 192 - (8,804 ) 7,776 (201,307 ) Machinery and accessories (728,408 ) (172,480 ) 56,142 - (397,740 ) 124,147 (1,118,339 ) Leasehold improvements (602,622 ) (133,533 ) 50,379 - (12,257 ) 71,602 (626,431 ) Buildings (298,327 ) (103,822 ) 14,111 - (136,601 ) 69,237 (455,402 ) Furniture and fixtures (369,610 ) (90,731 ) 31,606 - (18,576 ) 38,479 (408,832 ) IT equipment (392,095 ) (119,870 ) 36,065 - (71,041 ) 71,273 (475,668 ) Other assets (30,836 ) (2,287 ) 3,868 - - 1,433 (27,822 ) Total depreciation (2,854,679 ) (670,057 ) 202,004 - (638,972 ) 294,908 (3,666,796 ) Net total 5,377,408 41,068 (33,671 ) (9,485 ) (138,973 ) (270,197 ) 4,966,150 Useful life range (in years) 2020 Additions Write-offs (Impairment) reversal of impairment Transfers Translation adjustment 2021 Cost: Vehicles 2 to 5 79,228 4,951 (59,053 ) - 6,702 7,074 38,902 Tooling 3 187,852 2,097 - - 2,042 (151 ) 191,840 Tools and accessories 3 to 20 85,678 19,526 (538 ) - 5,233 1,099 110,998 Facilities 3 to 60 293,471 700 (14,486 ) - 21,231 2,536 303,452 Machinery and accessories 3 to 15 1,819,693 37,229 (98,228 ) - 85,451 115,798 1,959,943 Leasehold improvements 2 to 20 963,957 104,795 (51,588 ) (2,074 ) 93,589 19,825 1,128,504 Buildings 14 to 60 1,899,134 6,233 (13,322 ) 394 (6,944 ) 96,750 1,982,245 Furniture and fixtures 2 to 25 566,547 107,077 (40,259 ) 3,948 19,304 3,509 660,126 Land - 661,613 295 (1,203 ) - (2,372 ) (29,960 ) 628,373 IT equipment 3 to 15 543,772 58,192 (57,574 ) - 68,645 21,545 634,580 Other assets - 36,687 - (3,628 ) - - (1,423 ) 31,636 Projects in progress - 408,427 606,440 (26,425 ) - (429,760 ) 2,806 561,488 Total cost 7,546,059 947,535 (366,304 ) 2,268 (136,879 ) 239,408 8,232,087 Depreciation value: Vehicles (33,042 ) (19,229 ) 47,501 - (5,738 ) 1,051 (9,457 ) Tooling (166,536 ) (7,705 ) - - - 77 (174,164 ) Tools and accessories (39,159 ) (32,867 ) 750 - 3,145 2,391 (65,740 ) Facilities (176,726 ) (16,453 ) 13,072 - (2,705 ) (608 ) (183,420 ) Machinery and accessories (578,762 ) (198,805 ) 91,864 - 8,463 (51,168 ) (728,408 ) Leasehold improvements (480,554 ) (153,822 ) 48,057 - (5,561 ) (10,742 ) (602,622 ) Buildings (179,730 ) (89,292 ) 13,835 - 2,801 (45,941 ) (298,327 ) Furniture and fixtures (318,615 ) (95,673 ) 31,464 (291 ) (353 ) 13,858 (369,610 ) IT equipment (311,856 ) (115,735 ) 52,971 - (7,982 ) (9,493 ) (392,095 ) Other assets (26,022 ) (16,013 ) 1,369 - - 9,830 (30,836 ) Total depreciation (2,311,002 ) (745,594 ) 300,883 (291 ) (7,930 ) (90,745 ) (2,854,679 ) Net total 5,235,057 201,941 (65,421 ) 1,977 (144,809 ) 148,663 5,377,408 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS | |
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill | Useful life range (in years) 2021 Additions Write-offs (Impairment) reversal of impairment Transfers Translation Adjustment 2022 Cost: Software 2.5 to 10 2,492,616 155,044 (43,333 ) (21,381 ) 640,903 (274,036 ) 2,949,813 Trademarks and patents (defined useful life) 20 to 25 889,834 - - - - (76,630 ) 813,204 Trademarks and patents (indefinite useful life) - 5,888,623 - (43 ) - - (1,070,550 ) 4,818,030 Goodwill Avon (a) - 13,381,191 - - (282,921 ) - (790,405 ) 12,307,865 Goodwill Emeis Brazil Pty Ltd. (b) - 143,180 - - - - (18,865 ) 124,315 Goodwill The Body Shop (c) - 2,063,672 - - (2,599 ) - (415,546 ) 1,645,527 Goodwill acquisition of The Body Shop stores - 1,456 - - - - - 1,456 Relationship with retail clients 10 2,880 - - - - (297 ) 2,583 Key money (indefinite useful life) (d) - 24,985 268 (152 ) (623 ) - (2,165 ) 22,313 Key money (defined useful life) (e) 3 to 18 14,363 - (3,618 ) (940 ) - (1,977 ) 7,828 Relationship with franchisees and sub franchisees and sales representative (f) 7 to 15 2,990,558 - - - - (313,995 ) 2,676,563 Technology developed (by acquired subsidiary) 5 1,580,808 - - - - (123,769 ) 1,457,039 Other intangible assets and intangible under development 2 to 10 277,776 207,911 (21 ) - (336,346 ) (15,917 ) 133,403 Total cost 29,751,942 363,223 (47,167 ) (308,464 ) 304,557 (3,104,152 ) 26,959,939 Accumulated amortization: Software (1,369,767 ) (417,253 ) 42,462 - (179,645 ) 204,034 (1,720,169 ) Trademarks and patents (143,186 ) (36,791 ) - - - 10,357 (169,620 ) Key money (16,517 ) - 4,505 - - 1,909 (10,103 ) Relationship with retail clients (3,218 ) (42 ) - - - 292 (2,968 ) Relationship with franchisees and sub franchisees (729,049 ) (264,320 ) - - - 74,375 (918,994 ) Technology developed (632,326 ) (272,297 ) - - - 30,398 (874,225 ) Other intangible assets (296 ) (3,228 ) - - (48 ) 682 (2,890 ) Total accrued amortization (2,894,359 ) (993,931 ) 46,967 - (179,693 ) 322,047 (3,698,969 ) Net total 26,857,583 (630,708 ) (200 ) (308,464 ) 124,864 (2,782,105 ) 23,260,970 Useful life range (in years) 2020 Additions Write-offs (Impairment) reversal of impairment Transfers Translation Adjustment 2021 Cost: Software 2.5 to 10 2,059,149 88,101 (114,805 ) - 280,959 179,212 2,492,616 Trademarks and patents (defined useful life) 20 to 25 894,578 - - - - (4,744 ) 889,834 Trademarks and patents (indefinite useful life) - 5,747,057 - - - - 141,566 5,888,623 Goodwill Avon (a) - 13,299,850 - - - - 81,341 13,381,191 Goodwill Emeis Brazil Pty Ltd. (b) - 142,090 - - - - 1,090 143,180 Goodwill The Body Shop (c) - 1,946,741 - - - - 116,931 2,063,672 Goodwill acquisition of The Body Shop stores - 1,456 - - - - - 1,456 Relationship with retail clients 10 2,785 - - - - 95 2,880 Key money (indefinite useful life) (d) - 26,769 - (3,619 ) 1,984 - (149) 24,985 Key money (defined useful life) (e) 3 to 18 10,860 2,500 - (2,288 ) (5,555 ) 8,846 14,363 Relationship with franchisees and sub franchisees and sales representative (f) 7 to 15 2,959,519 - (446 ) - - 31,485 2,990,558 Technology developed (by acquired subsidiary) 5 1,595,041 - - - (14,233 ) 1,580,808 Other intangible assets and intangible under development 2 to 10 108,275 359,834 (1,326 ) - (147,768 ) (41,239 ) 277,776 Total cost 28,794,170 450,435 (120,196 ) (304 ) 127,636 500,201 29,751,942 Accumulated amortization: Software (1,022,498 ) (373,753 ) 116,429 - 3,760 (93,705 ) (1,369,767 ) Trademarks and patents (100,042 ) (45,782 ) - - - 2,638 (143,186 ) Key money (8,871 ) (185 ) - - 1,667 (9,128 ) (16,517 ) Relationship with retail clients (2,839 ) (286 ) - - - (93 ) (3,218 ) Relationship with franchisees and sub franchisees (419,061 ) (306,451 ) 446 - - (3,983 ) (729,049 ) Technology developed (319,009 ) (320,183 ) - - - 6,866 (632,326 ) Other intangible assets (4,722 ) (1,280 ) 1,326 - - 4,380 (296 ) Total accrued amortization (1,877,042 ) (1,047,920 ) 118,201 - 5,427 (93,025 ) (2,894,359 ) Net total 26,917,128 (597,485 ) (1,995 ) (304 ) 133,063 407,176 26,857,583 a) Goodwill related to the acquisition of subsidiary Avon. It does not have defined useful life and it is subject to annual impairment tests. b) Goodwill related to the acquisition of subsidiary Emeis Holdings Pty Ltd. acquisition. It does not have defined useful life and it is subject to annual impairment tests. c) Goodwill related to the acquisition of subsidiary The Body Shop, classified as future economic benefits from synergies. It does not have defined useful life and it is subject to annual impairment tests. In addition, on June 30, 2021, the subsidiary The Body Shop International Limited acquired the entity Aeon Forest Co. Ltd, for R$ 133,275 2,632,000 d) Key money with indefinite useful life refers to payments made to former tenants, to get the right to rent the property under lease and can be subsequently negotiated with future tenants in the case of termination of the lease agreement. e) Key money with defined useful life refers to payments made to ex-tenants or lessors, to obtain the right to rent the property under the terms of the lease and which cannot be negotiated or recovered later. f) The balance refers to identifiable intangible assets from relationship with the subsidiary The Body Shop franchisees and sub-franchisees (relationship where the franchisee owns all rights to operate within a territory) and sub-franchisees (relationship where a franchisee operate a single store within a market), with estimated useful life of 15 years. |
Disclosure Of Information For Cash-generating Units | CGU groups Trademarks and patents Goodwill Total 2022 2021 2022 2021 2022 2021 Natura &Co Latam - - 9,765,077 10,041,156 9,765,077 10,041,156 Avon International 2,396,290 2,824,961 2,542,788 3,340,035 4,939,078 6,164,996 TBS International 2,421,740 3,063,662 1,645,527 2,063,672 4,067,267 5,127,334 Aesop International (*) - - 124,315 143,180 124,315 143,180 Total 4,818,030 5,888,623 14,077,707 15,588,043 18,895,737 21,476,666 (*) The trademarks and patents recognized as part of the acquisition of Aesop were assessed as having a determined useful life and, therefore, are not presented in the table above. |
Disclosure Of Detailed Information About Assumptions Used To Calculate The Fair Value Less Cost To Sell | The main assumptions used to calculate the value in use as of December 31, 2022 are presented below: Aesop The Body Shop Avon International Natura &Co Latam Impairment estimate (value in use) Discounted cash flow based on financial budgets approved by Board of Directors for period of three years and complemented for a discretionary period of ten years estimated by Management, with a terminal value projected for the end of the period. The ten-year period was considered for better aligning and smoothing the effects projected between the discretionary period and the effects calculated in perpetuity. Operating margin Operating margins are based on average amounts obtained in the 2 years prior to the beginning of the budgeted period and projections for the next ten years. These margins are increased over the budget period to improve the expected efficiency. Estimated cost Costs based on historical data and market trends, optimization of retail and direct sales operations (renewal of the geographical presence of stores, revitalization of the franchise network) and physical expansion with growth in market share. Revenue Growth rates Growth rates are initially based on published industry research and adjusted by the expected performance for each CGUs group (which, considering the level of goodwill monitoring by the Company, reflects the operating segments), given the initiatives in place for each segment as well as the respective macroeconomic environment that apply to each segment and are included in the budgets approved by governance leadership bodies (including the Board of Directors). Perpetuity growth rate (*) Constant growth of 5.21% Constant growth of 3.46% Constant growth of 4.60% Constant growth of 7.39% Discount rate Discount rates represent the risk assessment in the current market, specific to each group of CGU, taking into account the value of money over time and the individual risks of related assets that were not incorporated in the assumptions included in the cash flow model. Such cash flows were discounted at the discount rate calculated before tax and at the currency consistent with the one (*) The rates are based on published market analyzes and projections regarding the reporting segment in which they operate and adjusted to reflect the assumptions considered by Management in the approved projections and to reflect the inflation differential of other currencies, when applicable. Such rates are also calculated in a currency consistent with those used for the projects and the discount rates. |
RIGHT OF USE AND LEASE LIABIL_2
RIGHT OF USE AND LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RIGHT OF USE AND LEASE LIABILITIES | |
Schedule of Quantitative Information About Right-Of-Use Assets | a) Right-of-use assets Useful life in Years (a) 2021 Additions Write-offs (Impairment) Transfers (c) Translation adjustment 2022 Cost: Vehicles 3 168,062 38,241 (25,734 ) - - (15,908 ) 164,661 Machinery and equipment 3 to 10 33,629 13,455 (11,166 ) - - (4,702 ) 31,216 Buildings 3 to 10 1,543,018 296,161 (185,967 ) - (35,484 ) (47,640 ) 1,570,088 IT equipment 10 31,803 2,618 (4,151 ) - - (1,218 ) 29,052 Retail stores 3 to 10 3,417,595 712,979 (373,830 ) ( ) 36,401 (400,928 ) 3,361,432 Software 3 to 4 - 13,527 - - - - 13,527 Tools and accessories 3 1,053 - (394 ) - - (161 ) 498 Total cost 5,195,160 1,076,981 (601,242 ) (30,785 ) 917 (470,557 ) 5,170,474 Depreciation value: Vehicles (91,509 ) (46,287 ) 24,354 - - 7,985 (105,457 ) Machinery and equipment (17,133 ) (9,986 ) 11,166 - - 2,166 (13,787 ) Buildings (507,045 ) (249,796 ) 137,349 - 31,917 30,920 (556,655 ) IT equipment (24,410 ) (6,608 ) 4,345 - - 2,716 (23,957 ) Retail stores (1,458,512 ) (611,862 ) 367,247 - (31,960 ) 209,779 (1,525,308 ) Software - (3,121 ) - - - - (3,121 ) Tools and accessories (582 ) (206 ) 394 - - 92 (302 ) Total accrued depreciation (2,099,191 ) (927,866 ) 544,855 - (43 ) 253,658 (2,228,587 ) Net total 3,095,969 149,115 (56,387 ) (30,785 ) 874 (216,899 ) 2,941,887 Useful life in Year (a) 2020 Additions Write-offs (Impairment) (b) Transfers (c) Translation adjustment 2021 Cost: Vehicles 3 157,867 32,288 (23,519 ) - - 1,426 168,062 Machinery and equipment 3 to 10 53,048 4,278 (24,140 ) - - 443 33,629 Buildings 3 to 10 1,616,833 300,181 (436,405 ) (4,690 ) 3,363 63,736 1,543,018 IT equipment 10 30,000 4,224 (3,904 ) - - 1,483 31,803 Retail stores 3 to 10 3,338,104 505,871 (489,808 ) - 3,888 59,540 3,417,595 Tools and accessories 3 3,187 256 (2,460 ) - - 70 1,053 Total cost 5,199,039 847,098 (980,236 ) (4,690 ) 7,251 126,698 5,195,160 Depreciation value: Vehicles (63,422 ) (50,181 ) 20,808 - - 1,286 (91,509 ) Machinery and equipment (21,045 ) (10,772 ) 15,067 - - (383 ) (17,133 ) Buildings (399,765 ) (268,902 ) 182,535 - (3,069 ) (17,844 ) (507,045 ) IT equipment (19,161 ) (8,364 ) 3,904 - - (789 ) (24,410 ) Retail stores (1,291,346 ) (659,109 ) 485,123 - - 6,820 (1,458,512 ) Tools and accessories (2,253 ) (681 ) 2,460 - - (108 ) (582 ) Total accrued depreciation (1,796,992 ) (998,009 ) 709,897 - (3,069 ) (11,018 ) (2,099,191 ) Net total 3,402,047 (150,912 ) (270,338 ) (4,690 ) 4,182 115,680 3,095,969 a) The useful lives applied refer to the term of the contracts in which the Company is sure that it will use the assets underlying the lease contracts according to the contractual terms. b) On December 31, 2021, an impairment of R$ 4,690 was recorded referring to the impairment loss of some stores of the and The Body Shop. c) Refers to key money related to store rentals. This amount is transferred from “right of use” to "intangible assets” when a new commercial agreement with the lessor is not yet signed. |
Schedule Of Detailed Information About Cash Outflow Related To Leases | Amounts recognized in the statement of income and losses 2022 2021 Financial expense on lease 200,246 210,669 Amortization of right of use 927,866 998,009 Appropriation in the result of variable lease installments not included in the measurement of lease liabilities 68,483 70,075 Sublease revenue (24,762 ) (30,026 ) Short-term lease expenses and low-value assets 69,773 83,468 Benefits granted by lessor related to Covid- 19 (19,740 ) (80,037 ) Other lease-related expenses 69,284 58,609 Adjustment to recoverable value of right-of-use assets - impairment 30,785 4,690 Total 1,321,935 1,315,457 Amounts recognized in the financing activities in the cash flow statement Lease payments (principal) 953,048 1,077,611 Amounts recognized in the operating activities in the cash flow statement: Lease payments (interest) 199,769 219,574 Variable lease payments, not included in the measurement of lease liabilities 65,157 70,787 Short-term and low-value assets lease payments 54,727 74,188 Other lease-related payments 102,354 95,824 Total 1,375,055 1,537,984 |
Schedule Of Lease Obligation | b) Lease liability 2022 2021 Current 878,448 1,005,523 Non-current 2,392,289 2,542,339 Total 3,270,737 3,547,862 |
Schedule Of Changes In The Balance Of Lease Obligation | Below are the changes in lease liability balances for the year ended December 31, 2022 and 2021 : Balance as of December 31, 2020 3,858,455 New agreements and modifications 737,899 Payments (principal amount) (1,077,611 ) Payments (interest) (219,574 ) Appropriation of financial charges 210,669 Write-offs (a) (105,790 ) Translation adjustment 143,814 Balance as of December 31, 2021 3,547,862 New agreements and modifications 1,065,794 Payments (principal amount) (953,048 ) Payments (interest) (199,769 ) Appropriation of financial charges 200,246 Write-offs (a) (19,763 ) Translation adjustment (370,585 ) Balance as of December 31, 2022 3,270,737 a) Mainly related to termination of agreements related to lease of stores. |
Schedule of lease rates applied, according to the lease terms based on maturity. | The table below set forth the rates applied, according to the lease terms: As described in note 3.13 02 19 Contractual payments Maturity Average discount rate 2023 2024 2025 2026 2027 Onwards 2028 2023 2024 5.5% to 16.3% 29,697 13,790 - - - - 2025 2027 5.4% to 18.7% 862,139 680,217 578,275 600,647 391,059 51,096 2028 2030 7.3% to 20.5% 14,803 16,777 17,962 19,895 22,042 28,994 2031 2036 7.7% to 21.9% 8,945 9,342 9,202 7,401 7,651 48,710 Total 915,584 720,126 605,439 627,943 420,752 128,800 Projected inflation 1 5% 4% 4% 4% 4% 4% 1 Rates obtained through future prices of DI coupons versus National Consumer Price Index (IPCA) observed in B 3 |
BORROWING, FINANCING AND DEBE_2
BORROWING, FINANCING AND DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
BORROWING, FINANCING AND DEBENTURES | |
Schedule Of Detailed Information About Borrowing | Reference 2022 2021 Local currency: Financing Agency for Studies and Projects FINEP 16,979 44,193 Debentures A 1,913,204 1,922,732 Business Notes B 519,044 - Working capital – The Body Shop Operation C - 526,743 Working capital – Avon Operation 113,664 164,491 Working Capital - Natura &Co Luxemburgo operation D 1,304,425 - Notes – Avon ( 1 E 1,421,272 4,255,958 Notes – Lux F 3,130,732 - Total in local currency 8,419,320 6,914,117 Foreign currency: Notes G 5,172,966 5,523,287 Resolution No. 4131 62 - 279,428 Total in foreign currency 5,172,966 5,802,715 Grand total 13,592,286 12,716,832 Current 331,151 945,069 Non-current 13,261,135 11,771,763 Debentures Current 77,601 350,145 Non-current 1,835,603 1,572,587 ( 1 Balance recognized at fair value at the time of the business combination with subsidiary Avon and subsequently measured at amortized cost. |
Schedule Of Additional Information About Borrowings | Reference Currency Maturity Charges Effective interest rate Guarantees A Brazilian Real July 2027 to September 2032 CDI + 1.65%; CDI + 0.8%; IPCA + 6.8% and IPCA + 6.9% with bi-annual payments CDI+1.65%, CDI+0.8%, CDI+1.34% and CDI+1.60% Guarantee of Natura &Co Holding S.A. B Brazilian Real September 2025 CDI interest + 1.55% with bi-annual payments CDI +1.55% Guarantee of Natura &Co Holding S.A. C Pounds April 2024 Sonia + interest 2.9% p.a. with bi-annual payments Sonia + interest 2.9% p.a. “Corporate” guarantee from the Company until December 2021 and “Aval” guarantee from parent company Natura &Co Holding S.A. from January 2022. D US Dollar November 2025 SOFR + 2.47% p.a. with bi-annual payments SOFR + 2.47% p.a. Guarantee Natura &Co Holding and Natura Cosméticos E US Dollar March 2023 and March 2043 Interest of 6.45% of p.a. and 8.45% of p.a. with bi-annual payments Interest of 6.45% of p.a. and 8.45% of p.a. None F US Dollar April 2029 Interest of 6.00% p.a. with bi-annual payments Interest of 6.125% p.a. Guarantee Natura &Co Holding and Natura Cosméticos G US Dollar May 2028 Interest of 4.125% (with real cost equivalent to the CDI + 3.33% p.a. Considering the derivate contracted to hedge the variation of the associated cash flows) with bi-annual payments CDI + 3.33% Guarantee from Natura &Co Holding S.A. |
Schedule Of Changes In Balances Of Borrowing | Balance as of December 31, 2020 13,822,913 New borrowing and financing (a) 6,425,565 Repayment (b) (7,989,607 ) Appropriation of financial charges, net of costs of new borrowing and financing 661,429 Financial charges payment (783,935 ) Exchange rate variation 252,190 Translation effects (OCI) 328,277 Balance as of December 31, 2021 12,716,832 New borrowing and financing (c) 8,557,507 Repayment (d) (6,826,628 ) Appropriation of financial charges, net of costs of new borrowing and financing 762,703 Financial charges payment (808,976 ) Exchange rate variation (394,389 ) Translation effects (OCI) (414,763 ) Balance as of December 31, 2022 13,592,286 a) New borrowing and financing raised within the year ended December 31, 2021 basically refer to the offer carried out by the subsidiary Natura Cosméticos of the notes linked to the sustainability goals in the amount of USD 1 billion, approximately R$5.6 billion (see note 19.1.iii) and the new credit facility in the amount of one b) The repayment made during the year ended December 31, 2021 mainly refer to the early redemption of the subsidiary Natura Cosméticos's Notes in the amount of USD 750 million (corresponding to roughly R$4.0 billion, carried out in May 2021 (see note 19 .1 2 7 2 9 Natura redeemed the total principal amount due under their respective promissory notes, equivalent to R$500 million of the Company and R$250 million of the subsidiary Natura ; c) New borrowing and financing during the year ended December 31, 2022 refer basically to: (i) utilization of a revolving credit facility in the principal amount of up to US$ 625 million by the subsidiary Natura &Co Luxemburgo; (ii) issue of debt securities by the subsidiary Natura &Co Luxembourg maturing on April 19, 2029 in the principal amount of US$600 million (approximately R$2,809 million), subject to interest of 6.00% per year, which are guaranteed by Natura &Co Holding and by the subsidiary Natura Cosméticos, (iii) issue of the 11 2025 12 2025 2032 2025 d) The amortizations made in the year ended December 31, 2022 refer mainly to the: (i) early redemption of debt securities of the subsidiary Avon ("Notes"), (ii) the early redemption of the 9 10 4131 62 |
Schedule Of Maturity Analysis For Noncurrent Borrowings | 2022 2021 2023 - 2,812,260 2024 - 2,249,609 2025 (2025 onwards for 2021) 1,763,902 6,709,894 2026 11,497,233 - Total 13,261,135 11,771,763 |
Schedule of main features of the debentures | Debentures of the 12 Title Contractual fee Maturity Total Amount Number of Debentures 1 100 09/14/2027 R$ 255,889 255,889 2 IPCA +6.8% 09/14/2029 R$ 487,214 487,214 3 IPCA + 6.9% 09/14/2032 R$ 306,897 306,897 |
Schedule of detailed information about Notes - Avon | Notes - Avon Main US$ Main R$ Annual percentage interest rate Maturity Unguaranteed 216,085 1,127,467 8.45% March 15, 2043 |
TRADE ACCOUNTS PAYABLE AND RE_2
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS | |
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS | 2022 2021 Domestic trade accounts payable 4,644,534 5,248,462 Foreign trade accounts payable (a) 877,496 1,104,189 Subtotal 5,522,030 6,352,651 Reverse factoring operations (b) 853,900 417,928 Total 6,375,930 6,770,579 a) Refers to imports mainly denominated in US dollars, Euros and British pounds. b) The Company has contracts signed with first-line financial institutions, mainly Banco Itaú S.A. to directly structure a reverse factoring operation with the Company’s main suppliers. Further details on these operations are included in note 3.15 |
TAX LIABILITIES (Tables)
TAX LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TAX LIABILITIES | |
Schedule of detailed information about tax liabilities | 2022 2021 ICMS (ordinary) (a) 180,708 150,396 ICMS-ST provision (b) 60,945 58,188 Taxes on invoicing abroad 346,407 340,648 Withholding tax 138,293 148,081 Other taxes payable - foreign subsidiaries 147,056 138,461 Income tax 18,170 7,062 PIS and COFINS payable 140 144 INSS and service tax (ISS) payable 31,895 29,359 Other 21,869 8,888 Total 945,483 881,227 Current 828,125 766,430 Non-current 117,358 114,797 a) Refers to ICMS on the Company's sales of goods in Brazil. b) The Company has discussions about the illegality of changes in state laws to charge ICMS-ST. Part of the amount recorded as tax payable but not yet paid is being discussed in court by the Company, and in some cases, the amounts are deposited in court, as mentioned in Note 12 |
PROVISION FOR TAX, CIVIL AND _2
PROVISION FOR TAX, CIVIL AND LABOR RISKS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROVISION FOR TAX, CIVIL AND LABOR RISKS | |
Schedule of tax, civil and labor provision and contingent liabilities | The changes in the provision for tax, civil and labor risks and contingent liabilities are presented below: Tax Civil Labor Contingent liabilities (business combination (2) Total 2022 2021 (3) 2022 2021 2022 2021 2022 2021 2022 2021 Balance at the beginning of the year 181,694 217,536 305,690 219,374 233,472 251,339 597,585 797,693 1,318,441 1,485,942 Additions (3) 78,410 24.090 425,398 181,856 91,694 90,855 - - 595,502 296,801 Reversals ( 1 (45,902 ) (44.726 ) (12,791 ) (35,433 ) (51,649 ) (77,727 ) (196,925 ) (195,092 ) (307,267 ) (352,978 ) Payments (31,354 ) (4.965 ) (162,953 ) (88,266 ) (67,424 ) (39,553 ) - - (261,731 ) (132,784 ) Monetary adjustment 36,155 4.698 16,477 2,723 5,093 7,860 21,555 10,450 79,280 25,731 Translation adjustment (31,884 ) (909 ) (13,110 ) 12,471 (25,068 ) 2,201 (15,787 ) (15,466 ) (85,849 ) (1,703 ) Transfers (67 ) (14.030 ) (1,036 ) 12,965 - (1,503 ) - - (1,103 ) (2,567 ) Balance as of the end of the year 187,052 181,694 557,675 305,690 186,118 233,472 406,428 597,585 1,337,273 1,318,442 Current 463,655 230,097 Non-current 873,618 1,088,345 ( 1 Reversals of contingent liabilities (business combination) refer mainly to the adhesion to state tax amnesty programs, and change in estimates for civil and labor lawsuits, which took place in the first and third quarter of 2022 ( 2 The business combination amounts as of December 31, 2022 are segregated between tax (R$ 380,259 9,053 17,116 ( 3 During the year ended December 31, 2022, certain balances included in provisions for tax risks on December 31, 2021 were reclassified for better alignment between the Group's subsidiaries, as disclosed in note No. 2 |
Schedule of contingent liabilities | 2022 2021 Tax 8,480,614 9,884,541 Civil 161,859 128,479 Labor 164,462 180,838 Total contingent liabilities 8,806,935 10,193,858 |
OTHER LIABILITIES (Table)
OTHER LIABILITIES (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of defined benefit plans [line items] | |
Schedule of Detailed Information about Other Liabilities [Table Text Block] | 2022 2021 Pension and post-employment health care plans (a) 463,948 673,458 Deferred revenue from performance obligations with customers (b) 313,204 393,046 Provision for incentives to consultants 217,349 286,791 Provision for operating expenses (marketing / technology, etc.) (c) 604,064 601,841 Provision for store renovation 116,137 105,165 Crer Para Ver (d) 87,420 90,655 Provision for restructuring (e) 175,809 103,760 Insurance payables 69,364 127,413 Other Liabilities (f) 203,331 276,437 Total 2,250,626 2,658,566 Current 1,499,060 1,716,110 Non-current 751,566 942,456 a) As of December 31, 2022, there is R$282,295 (R$445,804 as of December 31, 2021) referring to pension plans, and R$28,456 referring to post-employment plans (R$34,774 as of December 31, 2021) of subsidiary Avon International, and R$129,697 (R$124,649 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura Cosméticos and R$51,956 (R$68,230 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura &Co International. b) Refers to the deferral of revenue from performance obligations related to loyalty programs based on points, sale of gift cards not yet converted into products and programs and events to honor direct sales consultants, of which R$ 190,790 c) Refers to the Company's operating provisions arising mainly from expenses with the provision of technology, marketing and advertising services. d) C of the social program to the development of the quality of education. e) Provision for costs directly related to the integration plan and changes in the organizational structure of the subsidiary Avon and Group corporate structure review. f) Refers to miscellaneous provisions such as indemnities and non-current contractual obligations. |
Avon [member] | |
Disclosure of defined benefit plans [line items] | |
Schedule of detailed information about movements of actuarial liabilities | The change in actuarial liabilities for the years ended December 31, 2022 and 2021 Pension plan 2022 2021 Balance at the beginning of the year 445,804 609,961 Cost of services – current 19,707 24,660 Interest cost – recognized in the statement of profit or loss 15,568 10,934 Administrative costs 2,698 2,698 Company contributions ( 4,299 ) (49,516 ) Benefits paid (22,262 ) (6,413 ) Actuarial loss in OCI (a) (254,913 ) (99,991 ) Reclassifications 24,956 18,045 Other 88,474 (72,252 ) Translation adjustment 18,518 7,678 Balance at end of year 334,251 445,804 (a) The actuarial loss recorded throughout 2022 is directly related to the update of the mortality tables, as they were impacted by the effects of the Covid-19 pandemic. The significant actuarial assumptions for the determination of the actuarial liability are discount rate and rate of compensation increase. The details of the assumptions are as follows: |
Schedule of significant actuarial assumptions for the determination of the actuarial liability | 2022 2021 Discount rate 1.30% to 12.00% 0.65% to 9.20% Rate of compensa tion increase 2.55 % to 7.40% 1.80 % to 6.60% |
Schedule of fair values of each major class of plan assets | The fair values of each major class of pension plan assets are presented below: 2022 2021 Cash and cash equivalent 7,330 191,958 Equity instruments of other entities 520,799 1,066,370 Government bonds 1,013,584 1,482,650 Corporate bonds 1,317,122 1,802,394 Real estate 10,957 12,834 Other (121,574 ) 12,276 Total 2,748,218 4,568,482 |
Natura Cosmticos SA [Member] | |
Disclosure of defined benefit plans [line items] | |
Schedule of detailed information about movements of actuarial liabilities | The changes of actuarial liabilities for the years ended December 31, 2022 and 2021 , is set forth in the table below: 2022 2021 Balance at the beginning of the year 124,649 134,194 Cost of the current service of subsidiary Natura Cosméticos 812 939 Cost of interest 11,078 9,326 Expenses paid (3,398 ) (2,679 ) Actuarial gains in OCI (3,444 ) (17,131 ) Balance as of the end of the year 129,697 124,649 |
Schedule of significant actuarial assumptions for the determination of the actuarial liability | 2022 2021 Discount rate 10.43% 9.01% Initial growth rate of medical cost 4.25% 4.25% Inflation rate 4.00% 3.40% Final growth rate of medical cost 8.42% 7.79% Growth rate of medical costs due to aging - costs Per age range 1.25% to 4.75% p.a. Per age range 1.25% to 4.75% p.a. Growth rate of medical costs by aging - contributions 0.00% 0.00% Percentage of adherence to the plan in retirement Bradesco Plan 58.00% / Unimed Plan 85.00% Bradesco Plan 60.00% / Unimed Plan 85.00% Schedule of disabled mortality Mercer Disability Mercer Disability Schedule of mortality AT-2000 AT-2000 Schedule of turnover Proportional calculation at the time of service Proportional calculation at the time of service |
Schedule of detailed information about sensitivity analysis for actuarial assumptions | The table below sets forth the medical inflation rate and the discount rate sensitivity analysis, and their respective effect on the balance (present value of the obligation, or “PVO”) accounted as on the actuarial liabilities (maintaining the other assumptions): Rate Chance PVO Discount rate 10.43% 1% increase 114,832 Discount rate 10.43% 1% decrease 157,168 Rate of compensation 8.42% 1% increase 164,604 Rate of compensation 8.42% 1% decrease 120,307 |
SHAREHOLDER'S EQUITY (Table)
SHAREHOLDER'S EQUITY (Table) | 12 Months Ended |
Dec. 31, 2022 | |
SHAREHOLDER'S EQUITY | |
Schedule of Composition of Share Capital | As of December 31, 2022 and 2021 Number of shares Amount R$ (thousands) Average price per share - R$ Balance as of December 31, 2020 316,701 11,667 38.04 Used (754,719 ) (34,438 ) 45.63 Acquired 5,337,558 174,113 32.62 Balance as of December 31, 2021 4,899,540 151,342 30.89 Used (377,585 ) (9,282 ) 24.58 Acquired 5,391,900 120,300 22.31 Balance as of December 31, 2022 9,913,855 262,360 26.46 |
INFORMATION ON SEGMENTS (Tables
INFORMATION ON SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INFORMATION ON SEGMENTS | |
Summary of operating segment | 2022 Reconciliation to net income (loss) for the year Net Revenue Performance assessed by the Company Depreciation and amortization Discontinued operations Finance income Finance expense Income Tax Net income (loss) Natura &Co Latam 22,027,612 1,912,609 (912,472 ) - 3,360,427 (4,772,694 ) 98,712 (313,418 ) Avon International 1 7,196,044 (74,733 ) (683,845 ) (380,416 ) 765,176 (1,431,754 ) (200,474 ) (2,006,046 ) The Body Shop 1 4,407,246 363,577 (692,089 ) - 162,790 (244,467 ) 39,254 (370,935 ) Aesop 1 2,718,721 536,657 (303,408 ) - 89,298 (123,405 ) (66,465 ) 132,677 Corporate expenses - (604,037 ) (40 ) - 1,003,107 (709,339 ) 9,405 (300,904 ) 36,349,623 2,134,073 (2,591,854 ) (380,416 ) 5,380,798 (7,281,659 ) (119,568 ) (2,858,626 ) 2021 Reconciliation to net income (loss) for the year Net Revenue Performance assessed by the company Depreciation and amortization Discontinued operations Finance income Finance expense Income Tax Net Income (Loss) Natura &Co Latam 22,413,401 2,595,653 (871,973 ) - 3,181,237 (3,881,418 ) 165,137 1,188,636 Avon International 1 9,329,325 272,655 (830,931 ) (98,550 ) 421,123 (894,318 ) 210,705 (919,316 ) The Body Shop 1 5,821,776 1,023,095 (795,127 ) - 63,939 (137,834 ) (158,973 ) (4,900 ) Aesop 1 2,600,185 622,944 (293,492 ) - 30,380 (75,372 ) (90,277 ) 194,183 Corporate expenses - (604,594 ) - - 309,884 (44,598 ) 921,394 582,086 40,164,687 3,909,753 (2,791,523 ) (98,550 ) 4,006,563 (5,033,540 ) 1,047,986 1,040,689 2020 Reconciliation to net income (loss) for the year Net Revenue Performance assessed by the company Depreciation and amortization Discontinued operations Finance income Finance expense Income Tax Net Income (Loss) Natura &Co Latam 20,542,345 2,369,517 (874,584 ) - 3,402,578 (3,891,641 ) ( 428,191 ) 577,679 Avon International 1 9,097,375 315,477 (814,678 ) (143,112 ) 979,267 (1,442,216 ) ( 108,053 ) (1,213,315 ) The Body Shop 1 5,332,922 935,255 (761,224 ) - 82,736 (157,705 ) (66,626 ) 32,436 Aesop 1 1,949,338 606,543 (268,092 ) - 23,152 (72,056 ) (55,219 ) 234,328 Corporate expenses - (718,339 ) ( 278 ) - 250,658 (210,192 ) 383,345 ( 294,806 ) 36,921,980 3,508,453 (2,718,856 ) (143,112 ) 4,738,391 (5,773,810 ) ( 274,744 ) ( 663,678 ) |
Summary of operating segments of assets and liabilities | 2022 2021 Non-current assets Total assets Current liabilities Non-current liabilities Non-current assets Total assets Current liabilities Non-current liabilities Natura &Co Latam 18,256,204 29,762,132 8,363,130 10,164,706 18,060,879 29,580,551 7,369,891 8,887,502 Avon International 1 11,197,014 14,259,571 1,894,856 1,838,328 14,286,498 17,512,750 2,783,907 5,100,109 The Body Shop 1 6,565,913 7,928,270 1,292,903 1,669,625 8,166,363 10,813,064 1,690,622 2,485,200 Aesop 1 1,621,126 2,735,417 731,018 776,512 1,520,514 2,542,125 610,451 648,695 Corporate expenses 923,606 - 1,055,961 4,547,167 1,026,071 - 1,146,347 1,159,041 38,563,863 54,685,390 13,337,868 18,996,338 43,060,325 60,448,490 13,601,218 18,280,547 |
Summary of revenue and assets by geographical area wise | Net revenue Non-current assets 2022 2021 2020 2022 2021 Asia 3,443,454 3,719,131 2,929,063 1,284,783 1,216,942 North America 5,708,847 6,227,104 5,120,953 6,261,545 6,459,026 Mexico 3,570,990 3,879,033 3,205,609 3,631,768 3,640,644 Other 2,137,858 2,348,070 1,915,344 2,629,777 2,818,382 South America 17,513,597 17,436,131 16,484,363 14,508,816 14,312,260 Brazil 11,280,690 10,481,869 11,113,810 12,656,298 12,015,037 Argentina 3,003,214 2,973,638 1,999,461 694,172 1,036,205 Other 3,229,693 3,980,624 3,371,092 1,158,346 1,261,018 Europe, Middle East and Africa (EMEA) 8,739,179 11,771,600 11,580,586 15,271,251 19,276,178 United Kingdom 2,836,316 4,187,200 4,117,699 10,894,799 12,162,597 Other 5,902,863 7,584,400 7,462,887 4,376,452 7,113,581 Oceania 944,546 1,010,721 807,015 1,237,468 1,795,919 36,349,623 40,164,687 36,921,980 38,563,863 43,060,325 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE | |
Summary of revenue by Sales Channels Wise | Gross revenue: 2022 2021 2020 Direct Selling 34,665,365 38,529,367 37,607,816 Retail 6,049,381 6,231,776 3,959,008 Online 3,129,568 3,412,849 3,061,239 Other sales 3,264,388 3,468,884 3,069,555 Subtotal 47,108,702 51,642,876 47,697,618 Returns and cancellations (636,642 ) (644,693 ) (617,140 ) Commercial discounts and rebates (1,123,746 ) (1,238,667 ) ( 1,062,204 ) Taxes on sales (8,998,691 ) (9,594,829 ) ( 9,096,294 ) Subtotal (10,759,079 ) (11,478,189 ) ( 10,775,638 ) Total net revenue 36,349,623 40,164,687 36,921,980 |
OPERATING EXPENSES AND COST O_2
OPERATING EXPENSES AND COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OPERATING EXPENSES AND COST OF SALES | |
Summary of operating income (expenses) and cost of sales classified by function and nature | 2022 2021 2020 Classified by function Cost of sales 13,155,019 14,097,888 13,299,720 Selling, marketing and logistics expenses 15,554,569 16,912,862 15,632,782 Administrative, R&D, IT and project expenses 6,711,533 6,958,866 5,955,996 Total 35,421,121 37,969,616 34,888,498 Classified by nature Cost of sales 13,155,019 14,097,888 13,299,720 Raw material/packaging material/resale (*) 11,956,059 12,851,587 11,964,959 Employee benefits expense (note 28 575,158 568,936 638,525 Depreciation and amortization 175,156 254,476 215,355 Other (*) 448,646 422,889 480,881 Selling, marketing and logistics expenses 15,554,569 16,912,862 15,632,782 Logistics costs 2,300,256 2,654,546 2,479,156 Personnel expenses (note 28 4,182,428 4,547,391 4,198,147 Marketing, sales force and other selling expenses 7,735,735 8,302,485 7,498,360 Depreciation and amortization 1,295,880 1,405,423 1,301,657 Impairment 40,270 3,017 155,462 Administrative, R&D, IT and project expenses 6,711,533 6,958,866 5,955,996 Innovation expenses 273,430 223,472 270,256 Personnel expenses (note 28 2,902,540 2,886,281 2,498,024 Restructuring expenses 125,804 - - Other administrative expenses 2,288,941 2,717,489 1,985,872 Depreciation and amortization 1,120,818 1,131,624 1,201,844 Total 35,421,121 37,969,616 34,888,498 (*) From the balances originally presented on December 31, 2021, R$649,418 from the cost of goods sold group was reclassified between lines for better presentation. This reclassification does not affect the subtotal of costs originally presented. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFITS | |
Summary of Employee Benefit Expense | 2022 2021 2020 Payroll, profit sharing and bonuses 5,746,324 5,911,837 5,407,990 Pension Plan 233,029 243,511 186,373 Share-based payments and charges on restricted shares 123,931 228,131 231,962 Health care, food and other benefits 704,449 712,983 684,992 Charges, taxes and social contributions 642,850 701,521 635,248 INSS 209,543 204,625 188,131 Total 7,660,126 8,002,608 7,334,696 |
Summary of Number and Weighted Average Number of Shares | Changes in the number of awards based on shares outstanding are shown below: Stock option plan and Strategy Acceleration Plan Weighted average strike price per option – R$ Options (thousands) Balance as of December 31, 2021 21.05 20,137 Granted 16.45 1,710 Change from stock options to restricted shares 48.98 (1,100 ) Expired/Canceled 27.22 (861 ) Exercised 11.98 (226 ) Balance as of December 31, 2022 18.92 19,660 Restricted shares (thousands) Performance shares (thousands) Balance as of December 31, 2021 5,494 8,045 Granted 2,359 6,485 Change from stock options to restricted shares 1,100 - Expired/Canceled (442 ) (1,902 ) Exercised (2,453 ) (573 ) Balance as of December 31, 2022 6,058 12,055 |
Summary of Terms and Conditions of Share-based Payment Arrangement | As of December 31, 2022 – Stock options Grant date Conditions for acquisition of right as of the grant date Strike Price (R$) Fair value at grant date (R$) Existing shares (thousands) Maximum remaining contractual life (years) Exercisable options (thousands) March 16, 2015 2 to 4 years of service 13.47 4.85 to 5.29 104 0.2 104 July 28, 2015 (Acceleration strategy) 4 to 5 years of service 12.77 6.20 to 6.23 495 0.6 495 March 15, 2016 2 to 4 years of service 12.71 7.16 to 7.43 93 1.2 93 July 11, 2016 (Acceleration strategy) 4 to 5 years of service 11.28 6.84 to 6.89 1,540 1.5 1,540 March 10, 2017 2 to 4 years of service 12.46 6.65 to 6.68 376 2.2 376 March 10, 2017 (Acceleration Strategy) 4 to 5 years of service 12.46 6.87 to 6.89 1,890 2.2 1,890 March 12, 2018 2 to 4 years of service 16.83 7.96 to 8.21 1,537 3.2 1,537 March 12, 2018 (Acceleration strategy) 3 to 5 years of service 12.04 to 16.83 8.21 to 9.67 3,800 3.2 2,850 April 12, 2019 2 to 4 years of service 23.41 11.71 to 11.82 1,415 4.2 907 April 12, 2019 (Acceleration strategy) 4 to 5 years of service 23.41 11.51 to 11.71 1,900 4.2 - December 17, 2021 3 to 4 years of service 27.28 13.85 to 18.16 4,800 9.0 - September 14, 2022 3 to 4 years of service 16.45 8.39 to 10.32 1,710 9.7 - 19,660 9,792 As of December 31, 2022 – Restricted shares Grant date Conditions for acquisition of right as of the grant date Existing shares (thousands) Fair value at grant date (R$) Maximum remaining contractual life (years) April 12, 2019 – Plan I 2 to 4 years of service 269 21.62 to 22.53 0.2 March 27, 2020 – Co-Investment Plan 1 to 3 years of service 621 29.00 0.3 March 31, 2021 1 to 3 years of service 1,936 48.13 1.3 April 14, 2022 1 to 3 years of service 2,132 24.91 to 24.99 2.3 March 31, 2021 (as modified in September 2022)* 4 to 5 years of service 1,100 7.41 to 24.77 3.3 6,058 * The original grant of March 31, 2021 was stock options, but became a restricted share award as a result of the September 2022 amendment. As of December 31, 2022 – Performance shares Grant date Conditions for acquisition of right as of the grant date Existing shares (thousands) Fair value at grant date (R$) Maximum remaining contractual life (years) September 30, 2020 Achievement of performance conditions, 2.5 years of service plus an additional holding period of 1 year for certain awards. 3,725 48.56 to 73.46 0.3 to 1.3 March 31, 2021 Achievement of performance conditions, 3 years of service plus an additional holding period of 1 year for certain awards. 2,735 46.57 to 50.98 1.3 to 2.3 April 14, 2022 Achievement of performance conditions, 3 years of service plus an additional holding period of 1 year for certain awards. 5,595 18.66 to 24.99 2.3 to 3.3 12,055 |
Summary of Measurement Inputs for Fair Value of Shares | Ranges of valuation assumptions for the new granting of restricted and performance shares in April 2022 are set out below. The valuation models used were Black-Scholes, Stochastic and Finnerty, depending on the type of award. Assumptions B 3 ADRs Share price (also used as strike price on Finnerty) R$25.00 USD 10.60 Strike price R$ 0.01 USD 0.00424 Expected volatility 42.09% to 50.39% 49.07% to 57.72% Expected term 1 to 3 years 1 to 3 years Expected dividend yield 0.00% 0.00% Risk-free interest rate 12.30% to 13.27% 1.69% to 2.73% |
FINANCE INCOME (EXPENSES)_ (Tab
FINANCE INCOME (EXPENSES) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCE INCOME (EXPENSES) | |
Summary of Detailed Information About Financial Income Expense | 2022 2021 2020 FINANCE INCOME: Interest on short-term investments 537,289 264,764 167,967 Gains on monetary and exchange rate variations (a) 2,643,894 1,785,259 1,752,503 Gains on swap and forward transactions (c) 1,977,465 1,814,450 2,532,487 Gains on swap and forward derivatives mark to market 33,569 20,929 12,314 Inflation adjustment reversal on provision for tax risks and tax liabilities - - 42,378 Hyperinflationary economy adjustment 139,503 82,202 39,292 Debt structuring revenue for acquisition of Avon - - 95,145 Other finance income 49,078 38,959 96,305 Subtotal 5,380,798 4,006,563 4,738,391 FINANCE EXPENSES: Interest on financing (*) (744,607 ) (634,201 ) ( 709,323 ) Interest on leases (200,246 ) (210,669 ) (229,544 ) Losses from monetary and exchange rate variations (2,551,486 ) (2,075,306 ) (2,671,372 ) Losses on swap and forward transactions (2,942,045 ) (1,533,611 ) (1,579,695 ) Losses on swap and forward derivatives mark to market (61,802 ) (26,214 ) (13,691 ) Monetary adjustment of provision for tax, civil and labor risks and tax liabilities (79,280 ) (25,731 ) ( 47,928 ) Appropriation of funding costs (debentures and notes) (18,096 ) (27,228 ) (11,082 ) Interest on pension plan (2,468 ) (11,339 ) (10,323 ) Hyperinflationary economy adjustment (327,115 ) (108,730 ) (20,625 ) Debt structuring expenses for acquisition of Avon - - ( ) Other finance expenses (354,514 ) (380,511 ) (369,486 ) Subtotal (7,281,659 ) (5,033,540 ) (5,773,810 ) Net finance income (expenses), net (1,900,861 ) (1,026,977 ) (1,035,419 ) |
Summary of net of financial expense based on the nature of the related transactions | The breakdown set forth below is intended to provide a summarized view of the net of financial expense based on the nature of the related transactions. 2022 2021 2020 Finance expenses (debt interest) (744,607 ) (634,201 ) (709,323 ) Financial short-term investments and others income 537,289 264,764 167,967 Exchange variations on financial activities, net 394,389 (252,190 ) (950,369 ) Gains (losses) with derivatives on exchange rate variations on financial activities, net (383,178 ) 257,964 940,308 Gains (losses) on derivatives on interest payments and other financial activities, net (609,635 ) 17,590 28,971 Monetary adjustment of provision for tax, civil and labor risks and tax liabilities (79,280 ) (25,731 ) (5,550 ) Leases expenses (200,246 ) (210,669 ) (229,544 ) Hyperinflationary economy adjustment (187,612 ) (26,528 ) 18,667 Other finance expenses (326,000 ) (380,119 ) (310,182 ) Other gains (losses) from (301,981 ) (37,857 ) 13,636 Net finance income (expenses), net (1,900,861 ) (1,026,977 ) (1,035,419 ) |
OTHER OPERATING EXPENSES, NET (
OTHER OPERATING EXPENSES, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER OPERATING EXPENSES, NET | |
Summary of detailed information about other operating expense, net | 2022 2021 2020 Other operating income, net Result on write-off of property, plant and equipment - - 11,855 ICMS-ST (h) - - 18,653 Tax credits (a) 71,720 215,085 105,234 Tax benefit from amnesty program (b) 102,469 82,140 - Revenue from the sale of the customer portfolio 11,874 16,113 - Revenue with royalties (c) 119,438 - - Other operating income 2,318 30,214 10,757 Total other operating income 307,819 343,552 146,499 Other operating expenses, net Result on write-off of property, plant and equipment - (3,610 ) - Crer para Ver (d) (54,062 ) (47,523 ) (54,500 ) Expenses related to Avon acquisition - - ( 303,916 ) Impairment (e) (340,385 ) - - Transformation and integration plan (f) (482,346 ) (511,048 ) ( 256,700 ) Restructuring expenses (g) (50,903 ) - - Other operating expenses (160,411 ) (20,390 ) ( 47,573 ) Total other operating expenses (1,088,107 ) (582,571 ) ( 662,689 ) Other operating expenses, net (780,288 ) (239,019 ) ( 516,190 ) a) Refers to tax credits from PIS and COFINS. During 2021 b) Refers to tax benefits in Brazil arising from the adhesion to state tax amnesty programs by the subsidiaries Natura Cosméticos S.A. and Avon Cosméticos Ltda . c) Refers to royalties received by the subsidiary Avon from its representative in Japan, after a judicial dispute as mentioned in note 22 d) Refers to appropriation of operating profit obtained on the sales of the non-cosmetic product line called "Crer Para " to , specifically earmarked for social projects aimed at developing the quality of education. e) From the total amount, R$ 282,921 refers to the impairment of goodwill generated on Avon’s acquisition (please see note 17 balance refers to impairment of other projects and stores. f) Expenses related to the implementation of the integration plan between Natura and Avon brands, which is mainly supported by the operations and logistics , structure reorganization, credit and collection review and commercial model optimizations. g) Refers to the expenses incurred to close the operations of the subsidiary The Body Shop in Russia, the main expenses being indemnities to employees and fines for termination of store lease agreement. h) Refers to the requirement of ICMS tax substitution, for different Federal States of Brazil (details in note 22). During 2020, provision reversals were made due to the change in the loss estimate for some Federal States. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
Summary of Basic Earnings Per Share | 2022 2021 (Loss) net income attributable to the Company’s controlling shareholders (2,859,629 ) 1,047,960 Weighted average of the number of issued common shares 1,381,594,182 1,377,932,809 Weighted average treasury shares (9,613,311 ) (788,866 ) Weighted average of the number of outstanding common shares 1,371,980,871 1,377,143,943 Basic (loss) earnings per share – R$ (2.0843 ) 0.7610 |
Summary of Diluted Earnings Per Share | The diluted earnings per share for net income for the year ended December 31, 2021 are presented below: 2021 Gain attributable to the Company’s controlling shareholders 1,047,960 Weighted average of the number of issued common shares 1,377,143,943 Weighted average number of treasury shares 19,531,951 Weighted average of the number of ordinary shares for diluted earnings calculation 1,396,675,894 Diluted earnings per share – R$ 0.7503 |
Summary of basic and diluted loss per share for net loss of discontinued operations | The basic and diluted loss per share for net loss of discontinued operations for the year ended December 31, 2022 and 2021 2022 2021 Loss attributable to the Company’s controlling shareholders (380,416 ) (98,550 ) Weighted average of the number of issued common shares 1,381,594,182 1,377,932,809 Adjustment for stock options and restricted shares (9,613,311 ) (788,866 ) Weighted average of the number of ordinary shares 1,371,980,871 1,377,143,943 Basic loss per share - R$ (0.2773 ) (0.0716 ) |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TRANSACTIONS WITH RELATED PARTIES | |
Summary of Total Compensation of the Company's Key Management Personnel | T he total compensation of the Company's key Management personnel is as follows: 2022 2021 2020 Compensation Compensation Compensation Fixed Variable Total Fixed Variable Total Fixed Variable Total Board of Directors 13,252 146,603 159,855 15,043 72,187 87,230 16,123 65,011 81,134 Executive Board 34,403 50,423 84,826 51,576 71,162 122,738 49,187 80,218 129,405 47,655 197,026 244,681 66,619 143,349 209,968 65,310 145,229 210,539 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS | |
Summary of Contractual Commitments | Total minimum supply payments, measured at nominal value, according to the contract, are: 2022 2021 Less than one 614,075 929,288 One five 659,626 460,081 Above 5 49,331 10,738 Total 1,323,032 1,400,107 |
INSURANCE (Tables)
INSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INSURANCE | |
Summary of Types of Insurance Coverage | The Company adopted an insurance policy that mainly considers risk concentration and its materiality, considering the nature of their activities and the guidance of their insurance advisors. As of December 31, 2022 and 2021 Item Type of coverage Amount insured 2022 2021 Industrial complex and administrative sites Any damages to buildings, facilities, inventories, and machinery and equipment 4,924,868 6,008,031 Vehicles Fire, theft and collision for the vehicles insured by the Company 221,523 261,953 Loss of profits No loss of profits due to material damages to facilities buildings and production machinery and equipment 2,056,000 1,962,509 Transport Damages to products in transit 97,308 103,857 Civil liability Protection against error or complaints in the exercise of professional activity that affect third parties 1,991,888 2,445,664 Environmental liability Protection against environmental accidents that may result in environmental lawsuits 30,000 30,000 |
ADDITIONAL INFORMATION RELATI_2
ADDITIONAL INFORMATION RELATING TO THE STATEMENTS OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Additional Information On Transactions Related To Cash Flow Statement | The following table presents additional information on transactions related to the cash flow statement: 2022 2021 2020 Non-cash items Hedge accounting, net of tax effects (520,444 ) (137,211 ) 116,348 Dividends declared and not yet paid - 180,772 - Dividends receivable declared and not yet received - - - Stock and restricted share option plans - 138,122 102,508 Net effect of acquisition of property, plant and equipment and intangible assets not yet paid 28,472 81,257 172,104 Application of judicial deposits in the settlement of legal proceedings 121,025 13,645 - Consideration for acquisition of subsidiary - - 13,366,114 |
MANAGEMENT STATEMENT AND BASI_2
MANAGEMENT STATEMENT AND BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS (Detail Textuals) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
MANAGEMENT STATEMENT AND BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS | |||
Reclassification of provision for uncertain tax positions | R$ 92659 | ||
Reclassification of provision for uncertain tax positions provision for Tax, Civil and Labor risks | 680,399 | ||
Reclassification of Income tax credits arising from the “Taxation on a Universal Basis” taxation regime (“TBU”) | 61,712 | ||
Reclassification of non-current income tax and social contribution | 84,729 | ||
Reclassification of predecessor adjustment | 303,059 | ||
Reclassification of balances referring to the effects of the conversion of balance sheets of subsidiaries in hyperinflationary economies | 202,677 | ||
Increase in total non-current assets | 61,713 | ||
Increase in total non-current liabilities | 92,659 | ||
Reclassification of selling, marketing and logistics expenses to cost of sales | R$ 86363 | R$ 70006 | |
Comprehensive income due to reclassification | 202,677 | ||
Adjustments for current tax expense | R$ 923475 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Information About Company Principal Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Avon Products, Inc | ||
Disclosure of Significant Accounting Polices [Line Items] | ||
Direct ownership | 100% | 100% |
Natura Cosméticos S.A. [Member] | ||
Disclosure of Significant Accounting Polices [Line Items] | ||
Direct ownership | 100% | 100% |
Natura &Co International S.à r.l. | ||
Disclosure of Significant Accounting Polices [Line Items] | ||
Direct ownership | 100% | 100% |
Aesop Holdings Ltd. | ||
Disclosure of Significant Accounting Polices [Line Items] | ||
Direct ownership | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) R$ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 | Dec. 31, 2020 BRL (R$) | Dec. 31, 2022 ARS ($) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 TRY (₺) | Dec. 31, 2021 ARS ($) | Dec. 31, 2021 TRY (₺) | |
Disclosure of Significant Accounting Polices [Line Items] | ||||||||
Closing foreign exchange rate | 0.02955 | 0.2786 | 0.05437 | 0.4286 | ||||
Number of sales channel | 1 | |||||||
Number of subsidiaries directly or indirectly controlled that have significant interests held by non-controlling shareholders | 0 | 0 | ||||||
Investment holding period | 90 days | |||||||
Period covered by budgets and forecast calculations | 10 years | |||||||
Impairment loss of non-financial assets, excluding goodwill | R$ 0 | |||||||
Period of lease term of short-term leases | 12 months | |||||||
Maximum period of assets held for sale to be disposed | 1 year | |||||||
Applicable tax rate | (5.10%) | (1148.40%) | ||||||
Tax loss carryforward on taxable income | % | 30% | |||||||
Gain (loss) recognized in the income statement regarding the purchase, sale, issue or cancellation of the Company’s own equity instruments | R$ 0 | |||||||
Maximum period of loyalty program points | 5 months | |||||||
Number of periodic cycles of loyalty program points | 6 | |||||||
Number of performance obligations of supply contracts | 2 | |||||||
Amount of provision reversed | R$ 297216 | |||||||
Tax incentives recognized from tax exclusions | R$ 135297 | |||||||
Period of right to avoid liquidation of a liability | 12 months | |||||||
Period to understand the risk that the liabilities will be advanced | 12 months | |||||||
IFRS 16 [Member] | ||||||||
Disclosure of Significant Accounting Polices [Line Items] | ||||||||
Positive impact arising from the relief of “Covid-19-Related Rent Concessions” | R$ 19740 | R$ 80037 | ||||||
Corporate Income Tax IRPJ [Member] | ||||||||
Disclosure of Significant Accounting Polices [Line Items] | ||||||||
Applicable tax rate | 15% | |||||||
Additional applicable tax rate | 10% | |||||||
Income Taxable | R$ 240 | |||||||
Social Contribution CSLL [Member] | ||||||||
Disclosure of Significant Accounting Polices [Line Items] | ||||||||
Applicable tax rate | 9% | |||||||
Argentina [Member] | ||||||||
Disclosure of Significant Accounting Polices [Line Items] | ||||||||
Rates of inflation | 94.80% | 50.60% | ||||||
TURKEY | ||||||||
Disclosure of Significant Accounting Polices [Line Items] | ||||||||
Rates of inflation | 64.30% |
CRITICAL ACCOUNTING ESTIMATES_2
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS - Additional Information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Accounting Judgements and Estimates [Line Items] | ||
Tax losses carried forward | R$ 12735337 | R$ 12324912 |
Term for budgeted cash flow | 3 years | |
Discretionary period | 10 years |
FINANCIAL RISK MANAGEMENT - Sum
FINANCIAL RISK MANAGEMENT - Summary of Derivative Instruments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Total | R$ 796877 | |
Fair value [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Financial derivatives | (785,733) | R$ 516386 |
Operational derivatives | (11,144) | 251 |
Total | R$ 796877 | R$ 516637 |
FINANCIAL RISK MANAGEMENT - S_2
FINANCIAL RISK MANAGEMENT - Summary of Derivative Positions (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of fair value measurement of liabilities [line items] | |||
Derivative financial assets | R$ 796877 | ||
Total net derivative financial instruments | (785,733) | R$ 516386 | |
Total net derivative financial instruments | (659,609) | 154,420 | |
Short Position CDI Floating Rate Swap Contract One [Member] | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Derivative financial liabilities | [1] | (6,874,285) | (6,348,442) |
Gain (Loss) on Derivative Financial Liabilities | [1] | (697,678) | (823,887) |
Post-fixed CDI Rate | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Derivative financial liabilities | (521) | (137) | |
Gain (Loss) on Derivative Financial Liabilities | (521) | (137) | |
Short position at interbank rate | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Derivative financial liabilities | (19,432) | (17,016) | |
Gain (Loss) on Derivative Financial Liabilities | 3,723 | 94 | |
Long Position US Dollar Swap Contract One [Member] | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Derivative financial assets | [1] | 6,108,505 | 6,881,981 |
Gain (Loss) on Derivative Financial Assets | [1] | R$ 34867 | R$ 978350 |
[1] Swap transactions consist of swapping the exchange rate variation for a correction related to a percentage of the fluctuation of the Certificate of bank deposits (post-fixed CDI), in the case of Brazil. |
FINANCIAL RISK MANAGEMENT - Sch
FINANCIAL RISK MANAGEMENT - Schedule of changes in net financial derivatives (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
FINANCIAL RISK MANAGEMENT | |||
Balance at beginning of period | R$ 516637 | R$ 1846777 | |
Losses (Gain) from swap and forward derivative contracts for the year (unrealized) | (992,813) | 441,554 | |
Receipt of funds due to settlement of derivative transactions - operational activity | (1,570,584) | ||
Payment of funds due to settlements of derivative instruments - financing activity | 9,040 | ||
Losses in cash flow hedge operations (other comprehensive income) | (790,479) | (210,150) | R$ 178006 |
Payment of funds due to settlement of derivative transactions – operational activity | 594,225 | ||
Receipt of funds due to settlements of derivative instruments - financing activity | (118,707) | ||
Other movements | (5,740) | ||
Balance at end of period | R$ 796877 | R$ 516637 | R$ 1846777 |
FINANCIAL RISK MANAGEMENT - S_3
FINANCIAL RISK MANAGEMENT - Schedule of operating forward derivative instruments (Detail) - Fair value [member] - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Net position in GBP and USD [Member] | ||
Disclosure Of Derivatives Are Measured At Fair Value With Gains And Losses Recognized In The Group Of Costs Of Products Sold [Line Items] | ||
Derivative instruments | R$ 4510 | R$ 404 |
Forward contracts [member] | ||
Disclosure Of Derivatives Are Measured At Fair Value With Gains And Losses Recognized In The Group Of Costs Of Products Sold [Line Items] | ||
Derivative instruments | 655 | |
Derivative instruments | (6,634) | |
Derivatives [member] | ||
Disclosure Of Derivatives Are Measured At Fair Value With Gains And Losses Recognized In The Group Of Costs Of Products Sold [Line Items] | ||
Derivative instruments | R$ 251 | |
Derivative instruments | R$ 11144 |
FINANCIAL RISK MANAGEMENT - S_4
FINANCIAL RISK MANAGEMENT - Summary of Net Asset Exposure (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
FINANCIAL RISK MANAGEMENT | ||
Borrowings and financing in foreign currency in Brazil | R$ 5252376 | R$ 5897015 |
Trade accounts receivable in foreign currency in Brazil | 521,427 | 307,433 |
Trade accounts payable in foreign currencies in Brazil | (15,214) | (37,390) |
Fair value of financial derivatives | 6,101,350 | 6,882,499 |
Net asset exposure | R$ 1355187 | R$ 1255527 |
FINANCIAL RISK MANAGEMENT - Dis
FINANCIAL RISK MANAGEMENT - Disclosure Of Net Foreign Exchange Exposure (Detail) | 12 Months Ended | ||||||
Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 ARS ($) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 TRY (₺) | Dec. 31, 2021 ARS ($) | Dec. 31, 2021 BRL (R$) | Dec. 31, 2021 TRY (₺) | |
Disclosure of financial assets [line items] | |||||||
Closing foreign exchange rate | 0.02955 | 0.2786 | 0.05437 | 0.4286 | |||
Fair value of “financial” derivatives | R$ 6101350000 | R$ 6882499000 | |||||
Trade accounts receivable in foreign currency in Brazil | 521,427,000 | 307,433,000 | |||||
Borrowings and financing in foreign currency in Brazil | (5,252,376,000) | (5,897,015,000) | |||||
Trade accounts payable in foreign currencies in Brazil | (15,214,000) | R$ 37390000 | |||||
Scenario - Real (5.2177 Parity - R$ vs US$) | USD | |||||||
Disclosure of financial assets [line items] | |||||||
Fair value of “financial” derivatives | 6,101,350,000 | ||||||
Trade accounts receivable in foreign currency in Brazil | 521,427,000 | ||||||
Borrowings and financing in foreign currency in Brazil | (5,252,376,000) | ||||||
Trade accounts payable in foreign currencies in Brazil | R$ 15214000 | ||||||
Impact on net income and shareholders’ equity | R$ 1355187000 | ||||||
Scenario - Real (5.2177 Parity - R$ vs US$) | Brazilian real per US dollar | |||||||
Disclosure of financial assets [line items] | |||||||
Closing foreign exchange rate | 5.2177 | ||||||
Scenario - Probable (5.3798 Parity - R$ vs US$) | USD | |||||||
Disclosure of financial assets [line items] | |||||||
Fair value of “financial” derivatives | R$ 6290873000 | ||||||
Trade accounts receivable in foreign currency in Brazil | 537,624,000 | ||||||
Borrowings and financing in foreign currency in Brazil | (5,415,528,000) | ||||||
Trade accounts payable in foreign currencies in Brazil | R$ 15686000 | ||||||
Impact on net income and shareholders’ equity | 42,096,000 | ||||||
Scenario - Probable (5.3798 Parity - R$ vs US$) | Brazilian real per US dollar | |||||||
Disclosure of financial assets [line items] | |||||||
Closing foreign exchange rate | 5.3798 | ||||||
Scenario I - Depreciation 25% (4.0348 Parity - R$ vs US$) | USD | |||||||
Disclosure of financial assets [line items] | |||||||
Fair value of “financial” derivatives | R$ 4718155000 | ||||||
Trade accounts receivable in foreign currency in Brazil | 403,218,000 | ||||||
Borrowings and financing in foreign currency in Brazil | (4,061,646,000) | ||||||
Trade accounts payable in foreign currencies in Brazil | R$ 11765000 | ||||||
Impact on net income and shareholders’ equity | R$ 307225000 | ||||||
Scenario I - Depreciation 25% (4.0348 Parity - R$ vs US$) | Brazilian real per US dollar | |||||||
Disclosure of financial assets [line items] | |||||||
Closing foreign exchange rate | 4.0348 | ||||||
Foreign exchange rate, percentage of decrease | 25% | ||||||
Scenario II - Depreciation 50% (2.6899 Parity - R$ vs US$) | USD | |||||||
Disclosure of financial assets [line items] | |||||||
Fair value of “financial” derivatives | R$ 3145436000 | ||||||
Trade accounts receivable in foreign currency in Brazil | 268,812,000 | ||||||
Borrowings and financing in foreign currency in Brazil | (2,707,764,000) | ||||||
Trade accounts payable in foreign currencies in Brazil | R$ 7843000 | ||||||
Impact on net income and shareholders’ equity | R$ 656546000 | ||||||
Scenario II - Depreciation 50% (2.6899 Parity - R$ vs US$) | Brazilian real per US dollar | |||||||
Disclosure of financial assets [line items] | |||||||
Closing foreign exchange rate | 2.6899 | ||||||
Foreign exchange rate, percentage of decrease | 50% |
FINANCIAL RISK MANAGEMENT - D_2
FINANCIAL RISK MANAGEMENT - Disclosure of Detailed Information About Cash Flow Hedged Items (Detail) - BRL (R$) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of financial assets [line items] | ||
Fair value | R$ 761148000 | R$ 533410000 |
Accumulated contract gain (loss) | (757,483,000) | 64,016,000 |
Gain (loss) in the period | R$ 790479000 | R$ 210150000 |
Currency Swap Contract One [Member] | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | Currency |
Notional currency | BRL | BRL |
Fair value | R$ 766302000 | R$ 533539000 |
Accumulated contract gain (loss) | (765,286,000) | 64,145,000 |
Gain (loss) in the period | R$ 798363000 | R$ 215944000 |
Forward contracts (Aesop) | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Fair value | R$ 1350 | |
Accumulated contract gain (loss) | (1,350,000) | |
Gain (loss) in the period | R$ 1350 | |
Forward contracts (The Body Shop) | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Fair value | R$ 4757000 | |
Accumulated contract gain (loss) | 4,757,000 | |
Gain (loss) in the period | R$ 4757000 | |
Forward contract (Natura Indústria) | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | Currency |
Notional currency | BRL | BRL |
Fair value | R$ 1673000 | R$ 129000 |
Accumulated contract gain (loss) | 1,673,000 | (129,000) |
Gain (loss) in the period | R$ 1665000 | R$ 621000 |
Forward contracts (Natura Holding) | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Fair value | ||
Accumulated contract gain (loss) | ||
Gain (loss) in the period | R$ 89000 | |
Forward contracts (Avon) | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Fair value | R$ 74000 | |
Accumulated contract gain (loss) | 2,723,000 | |
Gain (loss) in the period | R$ 2723000 | |
Forward contracts (The Body Shop and Avon) | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Fair value | ||
Accumulated contract gain (loss) | ||
Gain (loss) in the period | R$ 5173000 |
FINANCIAL RISK MANAGEMENT - D_3
FINANCIAL RISK MANAGEMENT - Disclosure of Detailed Information About Cash Flow Hedged Reserve Booked Under Other Comprehensive Income (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
FINANCIAL RISK MANAGEMENT | |||
Cash flow hedge beginning of balance | R$ 21866 | R$ 159077 | |
Change in the fair value of hedge instrument recognized in OCI | (790,479) | (210,150) | R$ 178006 |
Tax effects on fair value of hedge instrument | 270,035 | 72,939 | (61,658) |
Cash flow hedge end of balance | R$ 498578 | R$ 21866 | R$ 159077 |
FINANCIAL RISK MANAGEMENT - D_4
FINANCIAL RISK MANAGEMENT - Disclosure of Detailed Information About Interest Rate Risks of Transactions (Detail) - Company R$ in Thousands | 12 Months Ended |
Dec. 31, 2022 BRL (R$) | |
Disclosure Of Detailed Information About Interest Rate Risks Of Transactions [Line Items] | |
Total borrowing, financing, and debentures - in local currency | R$ 8419320 |
Operations in foreign currency with derivatives related to CDI | (5,172,966) |
Short-term investments | 3,091,344 |
Net exposure | R$ 10500942 |
FINANCIAL RISK MANAGEMENT - S_5
FINANCIAL RISK MANAGEMENT - Summary of Net Exposure to Interest Rate Risk by Scenario (Detail) - Interest rate risk [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2022 BRL (R$) | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Risk | Rate increase |
Probable scenario [Member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Net liability | R$ 1944 |
Scenario Two [Member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Net liability | (168,307) |
Scenario Three [Member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Net liability | R$ 334670 |
FINANCIAL RISK MANAGEMENT - S_6
FINANCIAL RISK MANAGEMENT - Summary of Working Capital Calculation (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
FINANCIAL RISK MANAGEMENT | ||
Total current assets | R$ 16121527 | R$ 17388165 |
Total current liabilities | (13,337,868) | (13,601,218) |
Total net working capital | R$ 2783659 | R$ 3786947 |
FINANCIAL RISK MANAGEMENT - D_5
FINANCIAL RISK MANAGEMENT - Disclosure of Maturity Analysis for Non-Derivative Financial Liabilities (Detail) R$ in Thousands | Dec. 31, 2022 BRL (R$) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | R$ 13592286 |
Derivatives | 796,877 |
Lease liability | 3,270,737 |
Trade accounts payables, related parties and reverse factoring operations | 6,375,930 |
Dividends payable | 260 |
Total expected cash flow [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | 17,091,611 |
Derivatives | 796,877 |
Lease liability | 3,946,378 |
Trade accounts payables, related parties and reverse factoring operations | 6,375,930 |
Dividends payable | 260 |
Interest to be accrued [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Derivatives | |
Borrowings, financing and debentures, interest to be accrued | (3,499,325) |
Lease, interest to be accrued | (675,641) |
Trade accounts payables, related parties and reverse factoring operations | |
Dividends payable | |
Less than one year [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | 722,146 |
Derivatives | 640,257 |
Lease liability | 1,070,253 |
Trade accounts payables, related parties and reverse factoring operations | 6,375,930 |
Dividends payable | 260 |
One to five years [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | 3,228,866 |
Derivatives | 1,504,007 |
Lease liability | 2,019,723 |
Trade accounts payables, related parties and reverse factoring operations | |
Dividends payable | |
Over five years [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | 13,140,599 |
Derivatives | (1,347,387) |
Lease liability | 856,402 |
Trade accounts payables, related parties and reverse factoring operations | |
Dividends payable |
FINANCIAL RISK MANAGEMENT - D_6
FINANCIAL RISK MANAGEMENT - Disclosure Of Carrying Amounts And Fair Values Of The Company's Financial Instruments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |||||
Cash and banks | R$ 2904808 | R$ 3349398 | |||
Certificate of bank deposits | 46,864 | 7,639 | |||
Repurchase operations | [1] | 1,244,041 | 650,220 | ||
Total Cash and cash equivalent | 4,195,713 | 4,007,257 | R$ 5821672 | R$ 4513582 | |
Government securities | [2] | 31,415 | 435,898 | ||
Restricted cash | 1,481 | 44 | |||
Financial treasury bills | [3] | 539,450 | 646,586 | ||
DBV fund | 35,235 | 36,921 | |||
Total short-term investments | 1,835,674 | 2,015,661 | |||
Trade receivables | 3,502,399 | 3,476,359 | |||
Receivables from service providers | [4] | 110,214 | 162,268 | ||
Total receivables | 4,332,271 | 4,571,085 | |||
Financial and operating derivatives | 773,251 | 893,970 | |||
Total borrowing, financing and debentures | (13,592,286) | (12,716,832) | |||
Financial and operating derivatives | (1,613,968) | (458,492) | |||
Lease | (3,270,737) | (3,547,862) | R$ 3858455 | ||
Trade accounts payables, related-parties' and reverse factoring operations | (6,375,930) | (6,770,579) | |||
Dividends payable | (260) | ||||
Financial liabilities at amortised cost, category [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowing in local currency | (8,419,320) | (6,914,117) | |||
Foreign currency borrowings | (5,172,966) | (5,802,715) | |||
Lease | (3,270,737) | (3,547,862) | |||
Trade accounts payables, related-parties' and reverse factoring operations | (6,375,930) | (6,770,579) | |||
Insurance payable | (69,364) | (127,413) | |||
Dividends payable | (260) | (180,772) | |||
Financial liabilities at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Financial and operating derivatives | (1,805,242) | (458,492) | |||
Financial assets at amortised cost, class [member] | Level 1 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Receivables from service providers | 110,214 | 162,268 | |||
Financial assets at amortised cost, class [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Cash and banks | 2,904,808 | 3,349,398 | |||
Trade receivables | 3,502,399 | 3,476,359 | |||
Judicial deposits | 457,550 | 585,284 | |||
Sublease receivables | 262,108 | 347,174 | |||
Financial assets at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Certificate of bank deposits | 46,864 | 7,639 | |||
Repurchase operations | 1,244,041 | 650,220 | |||
Government securities | 31,415 | 435,898 | |||
Restricted cash | 1,481 | 44 | |||
Financial treasury bills | 539,450 | 646,586 | |||
Loan investment funds | 1,228,093 | 896,212 | |||
Financial and operating derivatives | 1,008,365 | 975,129 | |||
Financial assets at fair value through profit or loss, category [member] | Level 3 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
DBV fund | 35,235 | 36,921 | |||
Fair value [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Total Cash and cash equivalent | 4,195,713 | 4,007,257 | |||
Total short-term investments | 1,835,674 | 2,015,661 | |||
Total receivables | 4,332,271 | 4,571,085 | |||
Total borrowing, financing and debentures | (13,592,286) | (7,855,737) | |||
Fair value [member] | Financial liabilities at amortised cost, category [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowing in local currency | (8,419,320) | (2,100,465) | |||
Foreign currency borrowings | (5,172,966) | (5,755,272) | |||
Lease | (3,270,737) | (3,547,862) | |||
Trade accounts payables, related-parties' and reverse factoring operations | (6,375,930) | (6,770,579) | |||
Insurance payable | (69,364) | (127,413) | |||
Dividends payable | (260) | (180,772) | |||
Fair value [member] | Financial liabilities at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Financial and operating derivatives | (1,805,242) | (458,492) | |||
Fair value [member] | Financial assets at amortised cost, class [member] | Level 1 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Receivables from service providers | 110,214 | 162,268 | |||
Fair value [member] | Financial assets at amortised cost, class [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Cash and banks | 2,904,808 | 3,349,398 | |||
Trade receivables | 3,502,399 | 3,476,359 | |||
Judicial deposits | 457,550 | 585,284 | |||
Sublease receivables | 262,108 | 347,174 | |||
Fair value [member] | Financial assets at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Certificate of bank deposits | 46,864 | 7,639 | |||
Repurchase operations | 1,244,041 | 650,220 | |||
Government securities | 31,415 | 435,898 | |||
Restricted cash | 1,481 | 44 | |||
Financial treasury bills | 539,450 | 646,586 | |||
Loan investment funds | 1,228,093 | 896,212 | |||
Financial and operating derivatives | 1,008,365 | 975,129 | |||
Fair value [member] | Financial assets at fair value through profit or loss, category [member] | Level 3 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
DBV fund | R$ 35235 | R$ 36921 | |||
[1]Repurchase operations are securities issued by banks with a commitment by the bank to repurchase the securities, and by the client to resell the security, at a defined interest rate and within a predetermined term, which are backed by public or private securities (depending on the financial institution) and are registered within the Central Agency for Custody and Financial Settlement of Securities (“CETIP”), being short-term investments and with high liquidity. As of December 31, 2022, repurchase operations are remunerated at an average rate of 100.0 100.0 100.02 102.0 109.69 120.0 Refers to receivables mainly arising from damage that occurred with carriers and insurance companies. |
FINANCIAL RISK MANAGEMENT - Add
FINANCIAL RISK MANAGEMENT - Additional Information (Detail) | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2022 ARS ($) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 TRY (₺) | Dec. 31, 2021 ARS ($) | Dec. 31, 2021 TRY (₺) | May 04, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |||||||
Average period of commitments for foreign currency of receivables and payables | 6 months | ||||||
Closing foreign exchange rate | 0.02955 | 0.2786 | 0.05437 | 0.4286 | |||
Percentage of borrowings linked to CDI rate | 99.40% | ||||||
Borrowings interest rate | 13.65% | ||||||
Scenario I - Depreciation 25% (4.0348 Parity - R$ vs US$) | Brazilian real per US dollar | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Period of future currency rates are considered in sensitivity analysis | 90 days | ||||||
Closing foreign exchange rate | 4.0348 | ||||||
Foreign exchange rate, percentage of decrease | 25% | ||||||
Scenario II - Depreciation 50% (2.6899 Parity - R$ vs US$) | Brazilian real per US dollar | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Closing foreign exchange rate | 2.6899 | ||||||
Foreign exchange rate, percentage of decrease | 50% | ||||||
Scenario Two [Member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Percentage of reasonably possible increase in unobservable input, liabilities | 25% | ||||||
Borrowings interest rate | 17.11% | ||||||
Scenario Three [Member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Percentage of reasonably possible increase in unobservable input, liabilities | 50% | ||||||
Borrowings interest rate | 20.54% | ||||||
Probable scenario [Member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Period of future interest rates are considered in sensitivity analysis | 90 days | ||||||
Probable scenario [Member] | Brazilian real per US dollar | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Closing foreign exchange rate | 5.3798 | ||||||
Natura Cosmticos SA [Member] | ESG debt securities (“Notes ESG”) [Member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings interest rate | 4.125% |
FINANCIAL RISK MANAGEMENT - A_2
FINANCIAL RISK MANAGEMENT - Additional Information (Details - Textuals 1) R$ / shares in Units, $ in Thousands, £ in Millions | 12 Months Ended | |||||||||||
Oct. 31, 2022 BRL (R$) shares R$ / shares | Jul. 30, 2022 BRL (R$) R$ / shares | Jul. 25, 2022 BRL (R$) Debenture | May 04, 2021 BRL (R$) | Sep. 28, 2017 shares | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 USD ($) | Dec. 23, 2022 BRL (R$) | Dec. 31, 2021 BRL (R$) | May 04, 2021 USD ($) | Apr. 23, 2021 GBP (£) | Apr. 23, 2021 BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Borrowings interest rate | 13.65% | 13.65% | ||||||||||
Hedge ratio | 1:1 | |||||||||||
Percentage of reasonably possible increase (decrease) in unobservable input, investment assets | 1% | |||||||||||
Percentage of Discount Applied in Unobservable Input Investment Assets | 12.40% | |||||||||||
Increase (decrease) in the fair value of the investment due to 1% increase (decrease) in the applied discount (16.7%) | R$ 402000 | R$ 438000 | ||||||||||
Debentures, Series 11 [Member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Notional Amount | R$ 826030000 | |||||||||||
Number Of Debentures Issued | Debenture | 826,030 | |||||||||||
Operations The Body Shop [Member] | Working capital loan [member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | R$ 0 | £ 100 | R$ 742000000 | |||||||||
Natura Cosmticos SA [Member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Number Of Debentures Issued | shares | 260,000 | |||||||||||
Natura Cosmticos SA [Member] | ESG debt securities (“Notes ESG”) [Member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Borrowings interest rate | 4.125% | 4.125% | ||||||||||
Borrowings, maturity | May 3, 2028 | |||||||||||
Notional Amount | R$ 5600000000 | $ 1,000,000 | ||||||||||
Minimum target percentage of reduction in greenhouse gas emissions | 13% | |||||||||||
Minimum target percentage of usage of recycled plastic in packaging | 25% | |||||||||||
Period before target date for lack of report issued by an external verifier attesting to fulfilment of environment goals | 30 days | |||||||||||
Description of estimated interest rate increase for non-compliance for fulfilment of environment goals | 65-basis point | |||||||||||
Natura Cosmticos SA [Member] | Business Notes [Member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Notional Amount | $ | $ 500,000 | |||||||||||
Natura Cosmticos SA [Member] | Debentures, Series 11 [Member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Notional Amount | R$ 826030 | |||||||||||
Number Of Debentures Issued | 826,030 | |||||||||||
Par value per debenture | R$ / shares | R$ 1 | |||||||||||
Natura Cosmticos SA [Member] | Debentures, Series 12 [Member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Notional Amount | R$ 1050000 | |||||||||||
Number Of Debentures Issued | shares | 1,050,000 | |||||||||||
Par value per debenture | R$ / shares | R$ 1 | |||||||||||
Natura and Co Luxembourg Holdings Sarl [member] | Revolving credit facility [Member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ | $ 625,000 | |||||||||||
Natura Cosmeticos [member] | Debt securities [member] | ||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||
Borrowings interest rate | 6.125% | 6.125% | ||||||||||
Line of credit facility, maximum borrowing capacity | R$ 2809000 | $ 600,000 |
CASH AND CASH EQUIVALENTS - Sum
CASH AND CASH EQUIVALENTS - Summary of Detailed Information About Cash And Cash Equivalents (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of cash and cash equivalents | |||||
Cash and banks | R$ 2904808 | R$ 3349398 | |||
Certificate of bank deposits | 46,864 | 7,639 | |||
Repurchase operations | [1] | 1,244,041 | 650,220 | ||
Total Cash and cash equivalent | R$ 4195713 | R$ 4007257 | R$ 5821672 | R$ 4513582 | |
[1]Repurchase operations are securities issued by banks with a commitment by the bank to repurchase the securities, and by the client to resell the security, at a defined interest rate and within a predetermined term, which are backed by public or private securities (depending on the financial institution) and are registered within the Central Agency for Custody and Financial Settlement of Securities (“CETIP”), being short-term investments and with high liquidity. As of December 31, 2022, repurchase operations are remunerated at an average rate of 100.0 100.0 |
CASH AND CASH EQUIVALENTS - S_2
CASH AND CASH EQUIVALENTS - Summary of Detailed Information About Cash And Cash Equivalents (Parenthetical) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
CASH AND CASH EQUIVALENTS | ||
Average repurchase operations remuneration rate | 100% | 100% |
SHORT-TERM INVESTMENTS - Summar
SHORT-TERM INVESTMENTS - Summary of Short-Term Investments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of short-term investments | |||
Exclusive investment fund | [1] | ||
Mutual investment funds | [2] | 1,228,093 | 896,212 |
Treasury bills | [3] | 539,450 | 646,586 |
Government securities (LFT) | [4] | 31,415 | 435,898 |
DBV fund | 35,235 | 36,921 | |
Restricted cash | 1,481 | 44 | |
Total short-term investments | 1,835,674 | 2,015,661 | |
Current | 1,800,439 | 1,978,740 | |
Non-current | R$ 35235 | R$ 36921 | |
[1] The Company concentrate most of its investments in an Exclusive Investment Fund, which holds interest in shares of the Essential Investment Fund. The balance as of December 31, 2022, related to the “Crer para Ver” line within the exclusive investment fund is R$ 91,340 96,070 109.69 120.0 100.02 102.0 |
SHORT-TERM INVESTMENTS - Summ_2
SHORT-TERM INVESTMENTS - Summary of Short-Term Investments (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of short-term investments | ||
Short-term investments | R$ 1800439 | R$ 1978740 |
Proportion of ownership interest in investments accounted for using equity method | 100% | |
Crer Para Ver [Member] | ||
Disclosure of short-term investments | ||
Short-term investments | R$ 91340 | R$ 96070 |
Treasury Bills [Member] | ||
Disclosure of short-term investments | ||
Average rate of remuneration for shor-term investments | 109.69% | 120% |
Government securities (LFT) [Member] | ||
Disclosure of short-term investments | ||
Average rate of remuneration for shor-term investments | 100.02% | 102% |
SHORT-TERM INVESTMENTS - Summ_3
SHORT-TERM INVESTMENTS - Summary of Detailed Information About Investment Portfolio (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Short Term Investments [Abstract] | |||
Certificate of bank deposits (CDB) | R$ 2012 | ||
Repurchase operations (cash and cash equivalents) | 937,645 | 569,349 | |
Treasury bills | [1] | 539,450 | 646,586 |
Government securities (LFT) | 46,071 | 428,865 | |
Exclusive Investment Fund Portfolio | R$ 1525178 | R$ 1644800 | |
[1]As of December 31, 2022, investments in treasury bills are remunerated at an average rate of 109.69 120.0 |
TRADE RECEIVABLES - Summary of
TRADE RECEIVABLES - Summary of Detailed Information About Trade Receivables (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade receivables | R$ 3933550 | R$ 3930340 |
(-) Allowance for expected credit losses | (431,151) | (453,981) |
Trade Receivables, Net | R$ 3502399 | R$ 3476359 |
TRADE RECEIVABLES - Summary o_2
TRADE RECEIVABLES - Summary of Trade Receivables by Exposure to Doubtful Accounts (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | |||
Trade receivables | R$ 3933550 | R$ 3930340 | |
Allowance for expected credit losses | (431,151) | (453,981) | |
Trade Receivables [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 3,933,550 | 3,930,340 | |
Allowance for expected credit losses | (431,151) | (453,981) | R$ 432108 |
Current [member] | Trade Receivables [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 2,814,843 | 2,488,412 | |
Allowance for expected credit losses | (94,148) | (80,087) | |
Up to 30 days [member] | Trade Receivables [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 621,711 | 937,227 | |
Allowance for expected credit losses | (59,764) | (68,782) | |
31 to 60 days [member] | Trade Receivables [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 142,507 | 140,757 | |
Allowance for expected credit losses | (53,609) | (56,784) | |
61 to 90 days [member] | Trade Receivables [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 106,124 | 97,713 | |
Allowance for expected credit losses | (48,851) | (49,731) | |
91 to 180 days [member] | Trade Receivables [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 248,365 | 266,231 | |
Allowance for expected credit losses | R$ 174779 | R$ 198597 |
TRADE RECEIVABLES - Summary o_3
TRADE RECEIVABLES - Summary of Allowance For Credit Losses (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of financial assets [line items] | |||
Beginning Balance | R$ 453981 | ||
Ending balance | (431,151) | R$ 453981 | |
Trade Receivables [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | (453,981) | (432,108) | |
Additions, net of reversals | (605,995) | (837,822) | |
Write-offs | [1] | 592,857 | 817,446 |
Translation adjustment | 35,968 | (1,497) | |
Ending balance | R$ 431151 | R$ 453981 | |
[1] Refers to accounts overdue for more than 180 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
INVENTORIES | |||
Finished products | R$ 3634068 | R$ 4619237 | |
Raw materials and packaging | 1,159,507 | 1,166,681 | |
Auxiliary materials | 146,409 | 195,364 | |
Products in progress | 68,849 | 38,189 | |
(-) Provision for inventory losses | (491,959) | (615,945) | R$ 602314 |
Current Inventories | R$ 4516874 | R$ 5403526 |
INVENTORIES - Summary of Change
INVENTORIES - Summary of Changes In The Provision For Inventory Losses (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
INVENTORIES | |||
Beginning balance | R$ 615945 | R$ 602314 | |
Additions, net of reversals | [1] | (305,705) | (407,207) |
Write-offs | [2] | 366,198 | 396,233 |
Translation adjustment | 63,493 | (2,657) | |
Ending balance | R$ 491959 | R$ 615945 | |
[1] This refers to the recognition of net allowance for losses due to discontinuation, expiration and quality, to cover expected losses on the realization of inventories, pursuant to the policy of the Company. It consists of write-offs of products for which there already had an allowance for losses, where the Company has no expectation of sales/realization. |
RECOVERABLE TAXES - Summary of
RECOVERABLE TAXES - Summary of Current Tax Assets (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
RECOVERABLE TAXES | |||
ICMS on purchase of goods | [1] | R$ 704018 | R$ 732853 |
Taxes on purchase of goods – foreign subsidiaries | 245,955 | 313,214 | |
ICMS on purchases of property, plant and equipment and purchase of goods | 14,365 | 12,138 | |
PIS and COFINS on purchase of property, plant and equipment and purchase of goods | [2] | 950,307 | 984,737 |
Withholding PIS, COFINS and CSLL | 1,671 | 1,673 | |
Tax on Manufactured Goods - IPI | [3] | 152,686 | 114,179 |
Other | 199,276 | 220,455 | |
Total | 2,268,278 | 2,379,249 | |
Current | 911,410 | 1,029,625 | |
Non-current | R$ 1356868 | R$ 1349624 | |
[1] Tax credits related to the tax on the circulation of goods, interstate and inter-municipal transport and communication services (ICMS) were generated mainly by purchases, whose tax rate is higher than the average of sales. The Company expects to realize these credits during the ordinary course of business through offsetting with sales operations in the domestic market. The accumulated tax credits of PIS and COFINS basically arise from credits on purchases of raw materials used in the production and from purchase of property, plant and equipment, as well as credits arising out of the exclusion of ICMS from the calculation basis of the PIS/COFINS. The realization of these credits normally occurs through offsetting with sales operations in the domestic market. The balance will be used to offset IPI (Taxes over industrialized products) payable in future operations of the Company. |
INCOME TAX AND SOCIAL CONTRIB_3
INCOME TAX AND SOCIAL CONTRIBUTION - Summary of Breakdown of Deferred Income Tax And Social Contribution Assets (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
INCOME TAX AND SOCIAL CONTRIBUTION | ||||||
Tax loss carryforwards | R$ 2465805 | R$ 2543720 | ||||
Receivables | 192,260 | 224,231 | ||||
Inventory | 219,367 | 244,854 | ||||
Fixed and Intangible Assets | 160,716 | 308,406 | ||||
Lease liabilities | 444,444 | 441,860 | ||||
Accruals, reserves and provision for tax, civil and labor risks | [1] | 649,768 | 695,989 | |||
Employee benefits | 373,817 | 317,835 | ||||
Non-functional currency positions, including derivatives and hedge accounting transactions (d) | 307,732 | [2] | ||||
Foreign Tax Credit Carryforwards (b) | [3] | 363,493 | 146,441 | |||
Other temporary differences | 124,689 | 423,839 | ||||
Total Deferred Tax Assets | 5,302,091 | 5,347,175 | ||||
Non-functional currency positions, including derivatives and hedge accounting transactions | (137,410) | [2] | ||||
Fixed and intangible assets | (339,627) | (312,914) | ||||
Employee benefits | (132,609) | (215,235) | ||||
Right to use assets | (359,072) | (423,095) | ||||
Fair value of identifiable net assets in business combination | [4] | (1,561,946) | (1,714,045) | |||
Other temporary differences | (323,736) | (438,002) | ||||
Total Deferred Tax Liabilities | (2,716,990) | (3,240,701) | ||||
Total of Deferred income tax and social contribution, net | 2,585,101 | 2,106,474 | ||||
Deferred income taxes and social contribution assets, net | 3,519,515 | [5] | 3,100,515 | [5] | R$ 1339725 | |
Deferred income taxes and social contribution liabilities, net | R$ 934414 | [5] | R$ 994041 | [5] | R$ 1288045 | |
[1] Includes (i) expenses under the accrual basis, reflecting authentic expenses incurred in the year, (ii) deferred revenue, (iii) accrued and unpaid compensation and (iv) other reserves not currently deductible for tax. Due to underlying changes in non-functional currencies relative to the Brazilian Real, the balance at 2022 2021 . Primarily relates to Foreign Tax Credit Carryforwards in Brazil that had historically been reported as Prepaid Income Taxes rather than Deferred Tax Assets. The balance includes deferred income tax liability on the fair value of net identifiable assets in the acquisition of the subsidiaries Avon, The Body Shop and Aesop. Balance as presented in the balance sheet including the jurisdictional netting effects of deferred tax assets and liabilities of the same nature, originating in the same taxpayer and taxing authority. 2021 |
INCOME TAX AND SOCIAL CONTRIB_4
INCOME TAX AND SOCIAL CONTRIBUTION - Summary of changes In Deferred Asset And Liability Income Tax And Social Contribution (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Begining balance, asset | R$ 3100515 | [1] | R$ 1339725 | |
Beginning balance, liability | (994,041) | [1] | (1,288,045) | |
Ending balance, asset | [1] | 3,519,515 | 3,100,515 | |
Ending balance, liability | [1] | (934,414) | (994,041) | |
Effect on statement of profit or loss [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Increase decrease in deferred tax asset | 599,136 | 1,874,722 | ||
Increase decrease in deferred tax liability | (1,071) | 243,180 | ||
Transfer between income tax and deferred social contribution – assets and liabilities [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Increase decrease in deferred tax asset | 16,437 | |||
Increase decrease in deferred tax liability | (16,437) | |||
Reserve for grant of options and restricted shares [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Increase decrease in deferred tax asset | 28,750 | (106,979) | ||
Increase decrease in deferred tax liability | (1,617) | |||
Translation adjustment [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Increase decrease in deferred tax asset | (478,921) | (96,329) | ||
Increase decrease in deferred tax liability | 62,315 | 67,261 | ||
Tax effects on (losses) earnings from cash flow hedge operations [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Increase decrease in deferred tax asset | 270,035 | 72,939 | ||
Increase decrease in deferred tax liability | ||||
[1] Balance as presented in the balance sheet including the jurisdictional netting effects of deferred tax assets and liabilities of the same nature, originating in the same taxpayer and taxing authority. 2021 |
INCOME TAX AND SOCIAL CONTRIB_5
INCOME TAX AND SOCIAL CONTRIBUTION - Summary of tax losses carryforwards for which no deferred tax asset recognised (Detail) R$ in Thousands | Dec. 31, 2022 BRL (R$) | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net Operating Loss (a) | R$ 9629484 | [1] |
Credits (b) | 627,489 | [2] |
Other future deductible Items | 2,193,465 | |
Total | 12,450,438 | |
Net Operating Loss, expected expirations during 2023 | 0 | |
Credits, expected expirations during 2022 | 0 | |
Indefinite Expiration Period [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net Operating Loss (a) | 8,901,326 | [1] |
Credits (b) | [2] | |
Other future deductible Items | 2,193,465 | |
Total | 11,094,791 | |
Definite Expiration Period | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net Operating Loss (a) | 728,158 | [1] |
Credits (b) | 627,489 | [2] |
Other future deductible Items | ||
Total | R$ 1355647 | |
[1] During 2023 2024 2027 During 2023 2024 2027 |
INCOME TAX AND SOCIAL CONTRIB_6
INCOME TAX AND SOCIAL CONTRIBUTION - Summary of Reconciliation of Income Tax And Social Contribution (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
INCOME TAX AND SOCIAL CONTRIBUTION | ||||
Income (loss) before income tax and social contribution | R$ 2358642 | R$ 91253 | ||
Income tax and social contribution at the rate | 801,938 | (31,026) | ||
Brazil Investment subsidies | 207,608 | 469,863 | ||
Share of profit of equity investees | ||||
Effect from differences of tax rates of entities abroad | (117,757) | (51,614) | ||
Taxation of profits of foreign subsidiaries | [1] | 38,862 | (77,072) | |
Unrecognized Deferred income tax | [2] | (789,129) | 909,596 | |
Non-Deductible donation and contribution | (36,213) | (8,381) | ||
United Kingdom Tax Law rate change | [3] | (180,174) | ||
Withholding and Sub-national taxes | (73,677) | (75,499) | ||
Goodwill impairment | (70,730) | |||
Other permanent differences | (80,470) | 92,293 | ||
Income tax and social contribution revenue (expenses) | (119,568) | 1,047,986 | R$ 274744 | |
Income tax and social contribution - current | (717,633) | (1,069,916) | ||
Income tax and social contribution - deferred | R$ 598065 | R$ 2117902 | ||
Income tax and social contribution, applicable tax rate | 34% | |||
[1] Certain earnings of foreign subsidiaries may be subjected to income taxation net of applicable credits, if any, by their parent holding companies in addition to the local taxing jurisdictions in which they conduct operations. Within the Natura Group, these types of taxation regimes exist in various jurisdictions including but not limited to Brazil, Australia, United Kingdom, United States. During 2021 The benefits recorded in 2021 2022 During 2021 2021 19 25% 2021 |
INCOME TAX AND SOCIAL CONTRIB_7
INCOME TAX AND SOCIAL CONTRIBUTION - Additional Information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Applicable tax rate | (5.10%) | (1148.40%) | |||
Deferred income tax asset on tax losses | R$ 12450438 | ||||
Pre-tax losses | 380,416 | R$ 98550 | R$ 143112 | ||
Tax loss carryforwards | 2,465,805 | 2,543,720 | |||
Net deferred tax asset | 3,519,515 | [1] | 3,100,515 | [1] | R$ 1339725 |
Net deferred tax liability | 2,716,990 | R$ 3240701 | |||
Bottom of range [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Applicable tax rate | 19% | ||||
Top of range [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Applicable tax rate | 25% | ||||
Natura and Co Luxembourg Holdings Sarl [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Net deferred tax asset | R$ 823000 | ||||
Avon Mexico [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Tax loss carryforwards | 186,000 | 392,000 | |||
Avon Brasil [member] | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Tax loss carryforwards | 159,000 | 322,000 | |||
Acceleration of future income | 125,000 | ||||
Net deferred tax asset | R$ 197000 | ||||
Net deferred tax liability | 13,000 | ||||
Impact of provisions release | R$ 405000 | ||||
[1] Balance as presented in the balance sheet including the jurisdictional netting effects of deferred tax assets and liabilities of the same nature, originating in the same taxpayer and taxing authority. 2021 |
JUDICIAL DEPOSITS - Summary of
JUDICIAL DEPOSITS - Summary of Detailed Information About Judicial Deposits (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||||
Judicial deposits | R$ 457550 | R$ 585284 | R$ 566190 | |
Unaccrued tax proceedings [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | [1] | 274,273 | 273,295 | |
Accrued tax proceedings [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | [2] | 150,929 | 266,828 | |
Unaccrued civil proceedings [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 5,783 | 8,212 | ||
Accrued civil proceedings [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 1,470 | 2,821 | ||
Unaccrued labor proceedings [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 11,014 | 11,970 | ||
Accrued labor proceedings [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | R$ 14081 | R$ 22158 | ||
[1] The tax proceedings related to these judicial deposits refer mainly to the ICMS-ST, disclosed in note 22.2, contingent liabilities - possible risk of loss. The tax proceedings related to these judicial deposits refer, substantially, to the sum of the amounts highlighted in Note 21 , and the amounts provisioned according to Note 22 . |
JUDICIAL DEPOSITS - Summary o_2
JUDICIAL DEPOSITS - Summary of Detailed Information About Changes In Judicial Deposits (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
JUDICIAL DEPOSITS | ||
Deposits - Beggining balance | R$ 585284 | R$ 566190 |
New deposits | 27,479 | 39,071 |
Redemptions in favor of the Company | (67,533) | (21,533) |
Monetary adjustment | 35,508 | 15,246 |
Application in the liquidation of proceedings | (121,025) | (13,645) |
Transfers | 25 | |
Translation adjustment | (2,188) | (45) |
Deposits - Ending balance | R$ 457550 | R$ 585284 |
CURRENT ASSETS HELD FOR SALE (D
CURRENT ASSETS HELD FOR SALE (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
CURRENT ASSETS HELD FOR SALE | |||
Balance at the beginning of the year | R$ 52921 | R$ 181279 | |
Transfer from property, plant and equipment | [1] | 9,028 | |
Transfer from assets and liabilities | [2] | (25,779) | |
Transfer to property, plant and equipment | |||
Transfer to assets and liabilities | |||
Transfers from property, plant and equipment, other assets and liabilities | 13,235 | ||
Impairment | (12,510) | ||
Sale | [3] | (55,034) | (97,905) |
Translation adjustment | 1,439 | (13,702) | |
Balance as of the end of the year | R$ 51 | R$ 52921 | |
[1] During the third quarter of 2021 In the first quarter of 2021 2020 During the third and fourth quarters of 2021 14,600 2022 |
CURRENT ASSETS HELD FOR SALE -
CURRENT ASSETS HELD FOR SALE - Additional Information (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021 BRL (R$) | |
Disclosure of analysis of single amount of discontinued operations [line items] | |
Sale of the operations | R$ 14600 |
OTHER CURRENT AND NONCURRENT _3
OTHER CURRENT AND NONCURRENT ASSETS (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER CURRENT AND NONCURRENT ASSETS | |||
Marketing and advertising advances | R$ 43509 | R$ 80078 | |
Supplier advances | 290,205 | 350,830 | |
Employee advances | 20,267 | 17,402 | |
Rent advances and guarantee deposit | [1] | 160,437 | 172,465 |
Advance insurance expenses | 124,293 | 160,911 | |
Overfunded pension plan | [2] | 694,527 | 1,043,799 |
Customs broker advances - Import taxes | 38,398 | 60,739 | |
Sublease receivables | [3] | 262,108 | 347,174 |
Carbon credits | 14,297 | 11,479 | |
Receivables from service providers | [4] | 110,214 | 162,268 |
Other | 257,566 | 268,066 | |
Total | 2,015,821 | 2,675,211 | |
Current | 763,384 | 912,160 | |
Non-current | R$ 1252437 | R$ 1763051 | |
[1] Mainly related to: (i) advances for lease agreements that were not included in the initial measurement of lease liabilities / right-of-use of the subsidiary The Body Shop, in accordance with the exemptions of IFRS 16 06 2 Pension plan arising from the acquisition of Avon. The change in balance refers to reviewing the mortality tables and the impact on the exchange rate variation due to the valorization of the real. Refers to the sublease receivable from the New York office owned by the subsidiary Avon. Refers to receivables mainly arising from damage that occurred with carriers and insurance companies. |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary Of Detailed Information About Property, Plant And Equipment (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 5377408 | R$ 5235057 |
Additions | 41,068 | 201,941 |
Write-offs | (33,671) | (65,421) |
(Impairment) reversal of impairment | (9,485) | 1,977 |
Transfers | (138,973) | (144,809) |
Translation adjustment | (270,197) | 148,663 |
Property, Plant And Equipment, Ending | 4,966,150 | 5,377,408 |
Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | 8,232,087 | 7,546,059 |
Additions | 711,125 | 947,535 |
Write-offs | (235,675) | (366,304) |
(Impairment) reversal of impairment | (9,485) | 2,268 |
Transfers | 499,999 | (136,879) |
Translation adjustment | (565,105) | 239,408 |
Property, Plant And Equipment, Ending | 8,632,946 | 8,232,087 |
Gross carrying amount [member] | Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | 38,902 | 79,228 |
Additions | 8 | 4,951 |
Write-offs | (6,559) | (59,053) |
(Impairment) reversal of impairment | ||
Transfers | 49,285 | 6,702 |
Translation adjustment | (7,274) | 7,074 |
Property, Plant And Equipment, Ending | R$ 74362 | R$ 38902 |
Gross carrying amount [member] | Vehicles [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 2 years | 2 years |
Gross carrying amount [member] | Vehicles [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 5 years | 5 years |
Gross carrying amount [member] | Tooling [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 3 years | 3 years |
Property, Plant And Equipment, Beginning | R$ 191840 | R$ 187852 |
Additions | 2,097 | |
Write-offs | (2,310) | |
(Impairment) reversal of impairment | ||
Transfers | 14,976 | 2,042 |
Translation adjustment | (329) | (151) |
Property, Plant And Equipment, Ending | 204,177 | 191,840 |
Gross carrying amount [member] | Tools and accessories [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | 110,998 | 85,678 |
Additions | 17,261 | 19,526 |
Write-offs | (8,177) | (538) |
(Impairment) reversal of impairment | ||
Transfers | (43,369) | 5,233 |
Translation adjustment | 98,739 | 1,099 |
Property, Plant And Equipment, Ending | R$ 175452 | R$ 110998 |
Gross carrying amount [member] | Tools and accessories [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 3 years | 3 years |
Gross carrying amount [member] | Tools and accessories [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 20 years | 20 years |
Gross carrying amount [member] | Facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 303452 | R$ 293471 |
Additions | 181 | 700 |
Write-offs | (564) | (14,486) |
(Impairment) reversal of impairment | ||
Transfers | 13,147 | 21,231 |
Translation adjustment | (8,768) | 2,536 |
Property, Plant And Equipment, Ending | R$ 307448 | R$ 303452 |
Gross carrying amount [member] | Facilities [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 3 years | 3 years |
Gross carrying amount [member] | Facilities [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 60 years | 60 years |
Gross carrying amount [member] | Machinery and accessories [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 1959943 | R$ 1819693 |
Additions | 23,188 | 37,229 |
Write-offs | (63,473) | (98,228) |
(Impairment) reversal of impairment | ||
Transfers | 520,561 | 85,451 |
Translation adjustment | (168,083) | 115,798 |
Property, Plant And Equipment, Ending | R$ 2272136 | R$ 1959943 |
Gross carrying amount [member] | Machinery and accessories [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 3 years | 3 years |
Gross carrying amount [member] | Machinery and accessories [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 15 years | 15 years |
Gross carrying amount [member] | Leasehold improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 1128504 | R$ 963957 |
Additions | 68,980 | 104,795 |
Write-offs | (54,148) | (51,588) |
(Impairment) reversal of impairment | (1,665) | (2,074) |
Transfers | 106,151 | 93,589 |
Translation adjustment | (119,736) | 19,825 |
Property, Plant And Equipment, Ending | R$ 1128086 | R$ 1128504 |
Gross carrying amount [member] | Leasehold improvements [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 2 years | 2 years |
Gross carrying amount [member] | Leasehold improvements [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 20 years | 20 years |
Gross carrying amount [member] | Buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 1982245 | R$ 1899134 |
Additions | 7,174 | 6,233 |
Write-offs | (19,104) | (13,322) |
(Impairment) reversal of impairment | 394 | |
Transfers | 120,512 | (6,944) |
Translation adjustment | (173,888) | 96,750 |
Property, Plant And Equipment, Ending | R$ 1916939 | R$ 1982245 |
Gross carrying amount [member] | Buildings [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 14 years | 14 years |
Gross carrying amount [member] | Buildings [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 60 years | 60 years |
Gross carrying amount [member] | Furniture and fixtures [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 660126 | R$ 566547 |
Additions | 71,960 | 107,077 |
Write-offs | (41,095) | (40,259) |
(Impairment) reversal of impairment | (7,629) | 3,948 |
Transfers | 53,632 | 19,304 |
Translation adjustment | (62,932) | 3,509 |
Property, Plant And Equipment, Ending | R$ 674062 | R$ 660126 |
Gross carrying amount [member] | Furniture and fixtures [Member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 2 years | 2 years |
Gross carrying amount [member] | Furniture and fixtures [Member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 25 years | 25 years |
Gross carrying amount [member] | Land [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 628373 | R$ 661613 |
Additions | 295 | |
Write-offs | (1,203) | |
(Impairment) reversal of impairment | ||
Transfers | 10,043 | (2,372) |
Translation adjustment | 7,241 | (29,960) |
Property, Plant And Equipment, Ending | 645,657 | 628,373 |
Gross carrying amount [member] | IT equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | 634,580 | 543,772 |
Additions | 26,602 | 58,192 |
Write-offs | (34,279) | (57,574) |
(Impairment) reversal of impairment | (191) | |
Transfers | 84,452 | 68,645 |
Translation adjustment | (83,394) | 21,545 |
Property, Plant And Equipment, Ending | R$ 627770 | R$ 634580 |
Gross carrying amount [member] | IT equipment [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 3 years | 3 years |
Gross carrying amount [member] | IT equipment [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life range (in years) | 15 years | 15 years |
Gross carrying amount [member] | Other assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | R$ 31636 | R$ 36687 |
Additions | ||
Write-offs | (4,227) | (3,628) |
(Impairment) reversal of impairment | ||
Transfers | ||
Translation adjustment | (1,179) | (1,423) |
Property, Plant And Equipment, Ending | 26,230 | 31,636 |
Gross carrying amount [member] | Projects in progress [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | 561,488 | 408,427 |
Additions | 495,771 | 606,440 |
Write-offs | (1,739) | (26,425) |
(Impairment) reversal of impairment | ||
Transfers | (429,391) | (429,760) |
Translation adjustment | (45,502) | 2,806 |
Property, Plant And Equipment, Ending | 580,627 | 561,488 |
Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (2,854,679) | (2,311,002) |
Additions in depreciation | (670,057) | (745,594) |
Write-offs | 202,004 | 300,883 |
(Impairment) reversal of impairment | (291) | |
Transfers | (638,972) | (7,930) |
Translation adjustment | 294,908 | (90,745) |
Property, Plant And Equipment, Ending | (3,666,796) | (2,854,679) |
Accumulated depreciation, amortisation and impairment [member] | Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (9,457) | (33,042) |
Additions in depreciation | (6,057) | (19,229) |
Write-offs | 5,508 | 47,501 |
(Impairment) reversal of impairment | ||
Transfers | (40,920) | (5,738) |
Translation adjustment | 12,856 | 1,051 |
Property, Plant And Equipment, Ending | (38,070) | (9,457) |
Accumulated depreciation, amortisation and impairment [member] | Tooling [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (174,164) | (166,536) |
Additions in depreciation | (7,841) | (7,705) |
Write-offs | 2,310 | |
(Impairment) reversal of impairment | ||
Transfers | ||
Translation adjustment | 210 | 77 |
Property, Plant And Equipment, Ending | (179,485) | (174,164) |
Accumulated depreciation, amortisation and impairment [member] | Tools and accessories [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (65,740) | (39,159) |
Additions in depreciation | (16,385) | (32,867) |
Write-offs | 1,823 | 750 |
(Impairment) reversal of impairment | ||
Transfers | 46,967 | 3,145 |
Translation adjustment | (102,105) | 2,391 |
Property, Plant And Equipment, Ending | (135,440) | (65,740) |
Accumulated depreciation, amortisation and impairment [member] | Facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (183,420) | (176,726) |
Additions in depreciation | (17,051) | (16,453) |
Write-offs | 192 | 13,072 |
(Impairment) reversal of impairment | ||
Transfers | (8,804) | (2,705) |
Translation adjustment | 7,776 | (608) |
Property, Plant And Equipment, Ending | (201,307) | (183,420) |
Accumulated depreciation, amortisation and impairment [member] | Machinery and accessories [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (728,408) | (578,762) |
Additions in depreciation | (172,480) | (198,805) |
Write-offs | 56,142 | 91,864 |
(Impairment) reversal of impairment | ||
Transfers | (397,740) | 8,463 |
Translation adjustment | 124,147 | (51,168) |
Property, Plant And Equipment, Ending | (1,118,339) | (728,408) |
Accumulated depreciation, amortisation and impairment [member] | Leasehold improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (602,622) | (480,554) |
Additions in depreciation | (133,533) | (153,822) |
Write-offs | 50,379 | 48,057 |
(Impairment) reversal of impairment | ||
Transfers | (12,257) | (5,561) |
Translation adjustment | 71,602 | (10,742) |
Property, Plant And Equipment, Ending | (626,431) | (602,622) |
Accumulated depreciation, amortisation and impairment [member] | Buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (298,327) | (179,730) |
Additions in depreciation | (103,822) | (89,292) |
Write-offs | 14,111 | 13,835 |
(Impairment) reversal of impairment | ||
Transfers | (136,601) | 2,801 |
Translation adjustment | 69,237 | (45,941) |
Property, Plant And Equipment, Ending | (455,402) | (298,327) |
Accumulated depreciation, amortisation and impairment [member] | Furniture and fixtures [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (369,610) | (318,615) |
Additions in depreciation | (90,731) | (95,673) |
Write-offs | 31,606 | 31,464 |
(Impairment) reversal of impairment | (291) | |
Transfers | (18,576) | (353) |
Translation adjustment | 38,479 | 13,858 |
Property, Plant And Equipment, Ending | (408,832) | (369,610) |
Accumulated depreciation, amortisation and impairment [member] | IT equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (392,095) | (311,856) |
Additions in depreciation | (119,870) | (115,735) |
Write-offs | 36,065 | 52,971 |
(Impairment) reversal of impairment | ||
Transfers | (71,041) | (7,982) |
Translation adjustment | 71,273 | (9,493) |
Property, Plant And Equipment, Ending | (475,668) | (392,095) |
Accumulated depreciation, amortisation and impairment [member] | Other assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, Plant And Equipment, Beginning | (30,836) | (26,022) |
Additions in depreciation | (2,287) | (16,013) |
Write-offs | 3,868 | 1,369 |
(Impairment) reversal of impairment | ||
Transfers | ||
Translation adjustment | 1,433 | 9,830 |
Property, Plant And Equipment, Ending | R$ 27822 | R$ 30836 |
INTANGIBLE ASSETS - Disclosure
INTANGIBLE ASSETS - Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | R$ 26857583 | R$ 26917128 | |
Additions | (630,708) | (597,485) | |
Write-offs | (200) | (1,995) | |
(Impairment) reversal of impairment | (308,464) | (304) | |
Transfers | 124,864 | 133,063 | |
Translation adjustment | (2,782,105) | 407,176 | |
Intangible assets and goodwill, Ending | 23,260,970 | 26,857,583 | |
Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | 29,751,942 | 28,794,170 | |
Additions | 363,223 | ||
Additions | 450,435 | ||
Write-offs | (47,167) | (120,196) | |
(Impairment) reversal of impairment | (308,464) | (304) | |
Transfers | 304,557 | 127,636 | |
Translation adjustment | (3,104,152) | 500,201 | |
Intangible assets and goodwill, Ending | 26,959,939 | 29,751,942 | |
Gross carrying amount [member] | Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | 2,492,616 | 2,059,149 | |
Additions | 155,044 | 88,101 | |
Write-offs | (43,333) | (114,805) | |
(Impairment) reversal of impairment | (21,381) | ||
Transfers | 640,903 | 280,959 | |
Translation adjustment | (274,036) | 179,212 | |
Intangible assets and goodwill, Ending | R$ 2949813 | R$ 2492616 | |
Gross carrying amount [member] | Software [member] | Bottom of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 2 years 6 months | 2 years 6 months | |
Gross carrying amount [member] | Software [member] | Top of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 10 years | 10 years | |
Gross carrying amount [member] | Trademarks and patents Finite [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | R$ 889834 | R$ 894578 | |
Additions | |||
Write-offs | |||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | (76,630) | (4,744) | |
Intangible assets and goodwill, Ending | R$ 813204 | R$ 889834 | |
Gross carrying amount [member] | Trademarks and patents Finite [member] | Bottom of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 20 years | 20 years | |
Gross carrying amount [member] | Trademarks and patents Finite [member] | Top of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 25 years | 25 years | |
Gross carrying amount [member] | Trademarks and patents Indefinite [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | R$ 5888623 | R$ 5747057 | |
Additions | |||
Write-offs | (43) | ||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | (1,070,550) | 141,566 | |
Intangible assets and goodwill, Ending | 4,818,030 | 5,888,623 | |
Gross carrying amount [member] | Goodwill Avon [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | [1] | 13,381,191 | 13,299,850 |
Additions | [1] | ||
Write-offs | [1] | ||
(Impairment) reversal of impairment | [1] | (282,921) | |
Transfers | [1] | ||
Translation adjustment | [1] | (790,405) | 81,341 |
Intangible assets and goodwill, Ending | [1] | 12,307,865 | 13,381,191 |
Gross carrying amount [member] | Goodwill Emeis Brazil Pty Ltd [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | [2] | 143,180 | 142,090 |
Additions | [2] | ||
Write-offs | [2] | ||
(Impairment) reversal of impairment | [2] | ||
Transfers | [2] | ||
Translation adjustment | [2] | (18,865) | 1,090 |
Intangible assets and goodwill, Ending | [2] | 124,315 | 143,180 |
Gross carrying amount [member] | Goodwill The Body Shop International Limited [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | [3] | 2,063,672 | 1,946,741 |
Additions | [3] | ||
Write-offs | [3] | ||
(Impairment) reversal of impairment | [3] | (2,599) | |
Transfers | [3] | ||
Translation adjustment | [3] | (415,546) | 116,931 |
Intangible assets and goodwill, Ending | [3] | 1,645,527 | 2,063,672 |
Gross carrying amount [member] | Goodwill acquisition of The Body Shop stores [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | 1,456 | 1,456 | |
Additions | |||
Write-offs | |||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | |||
Intangible assets and goodwill, Ending | R$ 1456 | R$ 1456 | |
Gross carrying amount [member] | Relationship with retail clients [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 10 years | 10 years | |
Intangible assets and goodwill, Beginning | R$ 2880 | R$ 2785 | |
Additions | |||
Write-offs | |||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | (297) | 95 | |
Intangible assets and goodwill, Ending | 2,583 | 2,880 | |
Gross carrying amount [member] | Key Money Indefinite [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | [4] | 24,985 | 26,769 |
Additions | [4] | 268 | |
Write-offs | [4] | (152) | (3,619) |
(Impairment) reversal of impairment | [4] | (623) | 1,984 |
Transfers | [4] | ||
Translation adjustment | [4] | (2,165) | (149) |
Intangible assets and goodwill, Ending | [4] | 22,313 | 24,985 |
Gross carrying amount [member] | Key Money Finite [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | [5] | 14,363 | 10,860 |
Additions | [5] | 2,500 | |
Write-offs | [5] | (3,618) | |
(Impairment) reversal of impairment | [5] | (940) | (2,288) |
Transfers | [5] | (5,555) | |
Translation adjustment | [5] | (1,977) | 8,846 |
Intangible assets and goodwill, Ending | [5] | R$ 7828 | R$ 14363 |
Gross carrying amount [member] | Key Money Finite [member] | Bottom of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | [5] | 3 years | 3 years |
Gross carrying amount [member] | Key Money Finite [member] | Top of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | [5] | 18 years | 18 years |
Gross carrying amount [member] | Relationship with franchisees and sub franchisees [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | [6] | R$ 2990558 | R$ 2959519 |
Additions | [6] | ||
Write-offs | [6] | (446) | |
(Impairment) reversal of impairment | [6] | ||
Transfers | [6] | ||
Translation adjustment | [6] | (313,995) | 31,485 |
Intangible assets and goodwill, Ending | [6] | R$ 2676563 | R$ 2990558 |
Gross carrying amount [member] | Relationship with franchisees and sub franchisees [member] | Bottom of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | [6] | 7 years | 7 years |
Gross carrying amount [member] | Relationship with franchisees and sub franchisees [member] | Top of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | [6] | 15 years | 15 years |
Gross carrying amount [member] | Technology developed (by acquired subsidiary) [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 5 years | 5 years | |
Intangible assets and goodwill, Beginning | R$ 1580808 | R$ 1595041 | |
Additions | |||
Write-offs | |||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | (123,769) | (14,233) | |
Intangible assets and goodwill, Ending | 1,457,039 | 1,580,808 | |
Gross carrying amount [member] | Other intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | 277,776 | 108,275 | |
Additions | 207,911 | 359,834 | |
Write-offs | (21) | (1,326) | |
(Impairment) reversal of impairment | |||
Transfers | (336,346) | (147,768) | |
Translation adjustment | (15,917) | (41,239) | |
Intangible assets and goodwill, Ending | R$ 133403 | R$ 277776 | |
Gross carrying amount [member] | Other intangible assets [member] | Bottom of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 2 years | 2 years | |
Gross carrying amount [member] | Other intangible assets [member] | Top of range [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful life | 10 years | 10 years | |
Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | R$ 2894359 | R$ 1877042 | |
Amortization additions | (993,931) | (1,047,920) | |
Write-offs | 46,967 | 118,201 | |
(Impairment) reversal of impairment | |||
Transfers | (179,693) | 5,427 | |
Translation adjustment | 322,047 | (93,025) | |
Intangible assets and goodwill, Ending | (3,698,969) | (2,894,359) | |
Accumulated depreciation, amortisation and impairment [member] | Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | (1,369,767) | (1,022,498) | |
Amortization additions | (417,253) | (373,753) | |
Write-offs | 42,462 | 116,429 | |
(Impairment) reversal of impairment | |||
Transfers | (179,645) | 3,760 | |
Translation adjustment | 204,034 | (93,705) | |
Intangible assets and goodwill, Ending | (1,720,169) | (1,369,767) | |
Accumulated depreciation, amortisation and impairment [member] | Trademarks and patents Finite [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | (143,186) | (100,042) | |
Amortization additions | (36,791) | (45,782) | |
Write-offs | |||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | 10,357 | 2,638 | |
Intangible assets and goodwill, Ending | (169,620) | (143,186) | |
Accumulated depreciation, amortisation and impairment [member] | Relationship with retail clients [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | (3,218) | (2,839) | |
Amortization additions | (42) | (286) | |
Write-offs | |||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | 292 | (93) | |
Intangible assets and goodwill, Ending | (2,968) | (3,218) | |
Accumulated depreciation, amortisation and impairment [member] | Key Money Finite [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | (16,517) | (8,871) | |
Amortization additions | (185) | ||
Write-offs | 4,505 | ||
(Impairment) reversal of impairment | |||
Transfers | 1,667 | ||
Translation adjustment | 1,909 | (9,128) | |
Intangible assets and goodwill, Ending | (10,103) | (16,517) | |
Accumulated depreciation, amortisation and impairment [member] | Relationship with franchisees and sub franchisees [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | (729,049) | (419,061) | |
Amortization additions | (264,320) | (306,451) | |
Write-offs | 446 | ||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | 74,375 | (3,983) | |
Intangible assets and goodwill, Ending | (918,994) | (729,049) | |
Accumulated depreciation, amortisation and impairment [member] | Technology developed (by acquired subsidiary) [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | (632,326) | (319,009) | |
Amortization additions | (272,297) | (320,183) | |
Write-offs | |||
(Impairment) reversal of impairment | |||
Transfers | |||
Translation adjustment | 30,398 | 6,866 | |
Intangible assets and goodwill, Ending | (874,225) | (632,326) | |
Accumulated depreciation, amortisation and impairment [member] | Other intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill, Beginning | (296) | (4,722) | |
Amortization additions | (3,228) | (1,280) | |
Write-offs | 1,326 | ||
(Impairment) reversal of impairment | |||
Transfers | (48) | ||
Translation adjustment | 682 | 4,380 | |
Intangible assets and goodwill, Ending | R$ 2890 | R$ 296 | |
[1] Goodwill related to the acquisition of subsidiary Avon. It does not have defined useful life and it is subject to annual impairment tests. Goodwill related to the acquisition of subsidiary Emeis Holdings Pty Ltd. acquisition. It does not have defined useful life and it is subject to annual impairment tests. Goodwill related to the acquisition of subsidiary The Body Shop, classified as future economic benefits from synergies. It does not have defined useful life and it is subject to annual impairment tests. In addition, on June 30, 2021, the subsidiary The Body Shop International Limited acquired the entity Aeon Forest Co. Ltd, for R$ 133,275 2,632,000 Key money with indefinite useful life refers to payments made to former tenants, to get the right to rent the property under lease and can be subsequently negotiated with future tenants in the case of termination of the lease agreement. Key money with defined useful life refers to payments made to ex-tenants or lessors, to obtain the right to rent the property under the terms of the lease and which cannot be negotiated or recovered later. The balance refers to identifiable intangible assets from relationship with the subsidiary The Body Shop franchisees and sub-franchisees (relationship where the franchisee owns all rights to operate within a territory) and sub-franchisees (relationship where a franchisee operate a single store within a market), with estimated useful life of 15 years. |
INTANGIBLE ASSETS - Disclosur_2
INTANGIBLE ASSETS - Disclosure Of Information For Cash-generating Units (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of information for cash-generating units [line items] | ||||
Total | R$ 23260970 | R$ 26857583 | R$ 26917128 | |
Trademarks And Patents [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Trademarks and patents | 4,818,030 | 5,888,623 | ||
Goodwill [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 14,077,707 | 15,588,043 | ||
Intangible Assets And Goodwill With Indefinite Useful Life [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Total | 18,895,737 | 21,476,666 | ||
Natura and Co Latam [member] | Trademarks And Patents [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Trademarks and patents | ||||
Natura and Co Latam [member] | Goodwill [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 9,765,077 | 10,041,156 | ||
Natura and Co Latam [member] | Intangible Assets And Goodwill With Indefinite Useful Life [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Total | 9,765,077 | 10,041,156 | ||
Avon International [member] | Trademarks And Patents [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Trademarks and patents | 2,396,290 | 2,824,961 | ||
Avon International [member] | Goodwill [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 2,542,788 | 3,340,035 | ||
Avon International [member] | Intangible Assets And Goodwill With Indefinite Useful Life [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Total | 4,939,078 | 6,164,996 | ||
TBS International [member] | Trademarks And Patents [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Trademarks and patents | 2,421,740 | 3,063,662 | ||
TBS International [member] | Goodwill [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 1,645,527 | 2,063,672 | ||
TBS International [member] | Intangible Assets And Goodwill With Indefinite Useful Life [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Total | 4,067,267 | 5,127,334 | ||
Aesop [member] | Trademarks And Patents [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Trademarks and patents | [1] | |||
Aesop [member] | Goodwill [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 124,315 | 143,180 | |
Aesop [member] | Intangible Assets And Goodwill With Indefinite Useful Life [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Total | [1] | R$ 124315 | R$ 143180 | |
[1]The trademarks and patents recognized as part of the acquisition of Aesop were assessed as having a determined useful life and, therefore, are not presented in the table above. |
INTANGIBLE ASSETS - Disclosur_3
INTANGIBLE ASSETS - Disclosure Of Detailed Information About Assumptions Used To Calculate The Fair Value Less Cost To Sell (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Aesop [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Impairment estimate (value in use) | Discounted cash flow based on financial budgets approved by Board of Directors for period of three years and complemented for a discretionary period of ten years estimated by Management, with a terminal value projected for the end of the period. The ten-year period was considered for better aligning and smoothing the effects projected between the discretionary period and the effects calculated in perpetuity. | ||
Operating margin | Operating margins are based on average amounts obtained in the 2 years prior to the beginning of the budgeted period and projections for the next ten years. These margins are increased over the budget period to improve the expected efficiency. | ||
Estimated costs | Costs based on historical data and market trends, optimization of retail and direct sales operations (renewal of the geographical presence of stores, revitalization of the franchise network) and physical expansion with growth in market share. | ||
Revenue Growth rates | Growth rates are initially based on published industry research and adjusted by the expected performance for each CGUs group (which, considering the level of goodwill monitoring by the Company, reflects the operating segments), given the initiatives in place for each segment as well as the respective macroeconomic environment that apply to each segment and are included in the budgets approved by governance leadership bodies (including the Board of Directors). | ||
Perpetuity growth rate | [1] | 5.21% | |
Discount rate | 13.19% | ||
The Body Shop [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Impairment estimate (value in use) | Discounted cash flow based on financial budgets approved by Board of Directors for period of three years and complemented for a discretionary period of ten years estimated by Management, with a terminal value projected for the end of the period. The ten-year period was considered for better aligning and smoothing the effects projected between the discretionary period and the effects calculated in perpetuity. | ||
Operating margin | Operating margins are based on average amounts obtained in the 2 years prior to the beginning of the budgeted period and projections for the next ten years. These margins are increased over the budget period to improve the expected efficiency. | ||
Estimated costs | Costs based on historical data and market trends, optimization of retail and direct sales operations (renewal of the geographical presence of stores, revitalization of the franchise network) and physical expansion with growth in market share. | ||
Revenue Growth rates | Growth rates are initially based on published industry research and adjusted by the expected performance for each CGUs group (which, considering the level of goodwill monitoring by the Company, reflects the operating segments), given the initiatives in place for each segment as well as the respective macroeconomic environment that apply to each segment and are included in the budgets approved by governance leadership bodies (including the Board of Directors). | ||
Perpetuity growth rate | [1] | 3.46% | |
Discount rate | 12.70% | ||
Avon International [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Impairment estimate (value in use) | Discounted cash flow based on financial budgets approved by Board of Directors for period of three years and complemented for a discretionary period of ten years estimated by Management, with a terminal value projected for the end of the period. The ten-year period was considered for better aligning and smoothing the effects projected between the discretionary period and the effects calculated in perpetuity. | ||
Operating margin | Operating margins are based on average amounts obtained in the 2 years prior to the beginning of the budgeted period and projections for the next ten years. These margins are increased over the budget period to improve the expected efficiency. | ||
Estimated costs | Costs based on historical data and market trends, optimization of retail and direct sales operations (renewal of the geographical presence of stores, revitalization of the franchise network) and physical expansion with growth in market share. | ||
Revenue Growth rates | Growth rates are initially based on published industry research and adjusted by the expected performance for each CGUs group (which, considering the level of goodwill monitoring by the Company, reflects the operating segments), given the initiatives in place for each segment as well as the respective macroeconomic environment that apply to each segment and are included in the budgets approved by governance leadership bodies (including the Board of Directors). | ||
Perpetuity growth rate | [1] | 4.60% | |
Discount rate | 13.84% | 11.18% | |
Natura and Co Latam [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Impairment estimate (value in use) | Discounted cash flow based on financial budgets approved by Board of Directors for period of three years and complemented for a discretionary period of ten years estimated by Management, with a terminal value projected for the end of the period. The ten-year period was considered for better aligning and smoothing the effects projected between the discretionary period and the effects calculated in perpetuity. | ||
Operating margin | Operating margins are based on average amounts obtained in the 2 years prior to the beginning of the budgeted period and projections for the next ten years. These margins are increased over the budget period to improve the expected efficiency. | ||
Estimated costs | Costs based on historical data and market trends, optimization of retail and direct sales operations (renewal of the geographical presence of stores, revitalization of the franchise network) and physical expansion with growth in market share. | ||
Revenue Growth rates | Growth rates are initially based on published industry research and adjusted by the expected performance for each CGUs group (which, considering the level of goodwill monitoring by the Company, reflects the operating segments), given the initiatives in place for each segment as well as the respective macroeconomic environment that apply to each segment and are included in the budgets approved by governance leadership bodies (including the Board of Directors). | ||
Perpetuity growth rate | [1] | 7.39% | |
Discount rate | 18.05% | ||
[1]The rates are based on published market analyzes and projections regarding the reporting segment in which they operate and adjusted to reflect the assumptions considered by Management in the approved projections and to reflect the inflation differential of other currencies, when applicable. Such rates are also calculated in a currency consistent with those used for the projects and the discount rates. |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional information (Detail) ¥ in Thousands, R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 | Jun. 30, 2021 JPY (¥) | Jun. 30, 2021 BRL (R$) | |
Avon International [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment of goodwill | R$ 282900 | |||
Recoverable amount of cash-generating unit | R$ 8348200 | |||
Discount rate | 13.84% | 11.18% | ||
The Body Shop [member] | Aeon Forest Co., Ltd [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Purchase price of entity | ¥ 2,632,000 | R$ 133275 |
RIGHT OF USE AND LEASE LIABIL_3
RIGHT OF USE AND LEASE LIABILITIES - Schedule of Quantitative Information About Right-of-Use Assets (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | R$ 3095969 | R$ 3402047 | ||
Additions | 149,115 | (150,912) | ||
Write-offs | (56,387) | (270,338) | ||
Impairment | (30,785) | (4,690) | [1] | |
Transfers | [2] | 874 | 4,182 | |
Exchange rate variation | (216,899) | 115,680 | ||
Right of use, Ending | 2,941,887 | 3,095,969 | ||
Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | 5,195,160 | 5,199,039 | ||
Additions | 1,076,981 | 847,098 | ||
Write-offs | (601,242) | (980,236) | ||
Impairment | (30,785) | (4,690) | [1] | |
Transfers | [2] | 917 | 7,251 | |
Exchange rate variation | (470,557) | 126,698 | ||
Right of use, Ending | 5,170,474 | 5,195,160 | ||
Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | (2,099,191) | (1,796,992) | ||
Depreciation Additions | (927,866) | (998,009) | ||
Write-offs | 544,855 | 709,897 | ||
Impairment | [1] | |||
Transfers | [2] | (43) | (3,069) | |
Exchange rate variation | 253,658 | (11,018) | ||
Right of use, Ending | R$ 2228587 | R$ 2099191 | ||
Vehicles [member] | Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 3 years | 3 years | |
Right of use, Beginning | R$ 168062 | R$ 157867 | ||
Additions | 38,241 | 32,288 | ||
Write-offs | (25,734) | (23,519) | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | (15,908) | 1,426 | ||
Right of use, Ending | 164,661 | 168,062 | ||
Vehicles [member] | Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | (91,509) | (63,422) | ||
Depreciation Additions | (46,287) | (50,181) | ||
Write-offs | 24,354 | 20,808 | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | 7,985 | 1,286 | ||
Right of use, Ending | (105,457) | (91,509) | ||
Machinery and equipment [member] | Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | 33,629 | 53,048 | ||
Additions | 13,455 | 4,278 | ||
Write-offs | (11,166) | (24,140) | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | (4,702) | 443 | ||
Right of use, Ending | R$ 31216 | R$ 33629 | ||
Machinery and equipment [member] | Cost Value [member] | Bottom of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 3 years | 3 years | |
Machinery and equipment [member] | Cost Value [member] | Top of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 10 years | 10 years | |
Machinery and equipment [member] | Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | R$ 17133 | R$ 21045 | ||
Depreciation Additions | (9,986) | (10,772) | ||
Write-offs | 11,166 | 15,067 | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | 2,166 | (383) | ||
Right of use, Ending | (13,787) | (17,133) | ||
Buildings [member] | Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | 1,543,018 | 1,616,833 | ||
Additions | 296,161 | 300,181 | ||
Write-offs | (185,967) | (436,405) | ||
Impairment | (4,690) | [1] | ||
Transfers | [2] | (35,484) | 3,363 | |
Exchange rate variation | (47,640) | 63,736 | ||
Right of use, Ending | R$ 1570088 | R$ 1543018 | ||
Buildings [member] | Cost Value [member] | Bottom of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 3 years | 3 years | |
Buildings [member] | Cost Value [member] | Top of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 10 years | 10 years | |
Buildings [member] | Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | R$ 507045 | R$ 399765 | ||
Depreciation Additions | (249,796) | (268,902) | ||
Write-offs | 137,349 | 182,535 | ||
Impairment | [1] | |||
Transfers | [2] | 31,917 | (3,069) | |
Exchange rate variation | 30,920 | (17,844) | ||
Right of use, Ending | R$ 556655 | R$ 507045 | ||
IT equipment [member] | Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 10 years | 10 years | |
Right of use, Beginning | R$ 31803 | R$ 30000 | ||
Additions | 2,618 | 4,224 | ||
Write-offs | (4,151) | (3,904) | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | (1,218) | 1,483 | ||
Right of use, Ending | 29,052 | 31,803 | ||
IT equipment [member] | Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | (24,410) | (19,161) | ||
Depreciation Additions | (6,608) | (8,364) | ||
Write-offs | 4,345 | 3,904 | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | 2,716 | (789) | ||
Right of use, Ending | (23,957) | (24,410) | ||
Retail stores [member] | Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | 3,417,595 | 3,338,104 | ||
Additions | 712,979 | 505,871 | ||
Write-offs | (373,830) | (489,808) | ||
Impairment | (30,785) | [1] | ||
Transfers | [2] | 36,401 | 3,888 | |
Exchange rate variation | (400,928) | 59,540 | ||
Right of use, Ending | R$ 3361432 | R$ 3417595 | ||
Retail stores [member] | Cost Value [member] | Bottom of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 3 years | 3 years | |
Retail stores [member] | Cost Value [member] | Top of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 10 years | 10 years | |
Retail stores [member] | Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | R$ 1458512 | R$ 1291346 | ||
Depreciation Additions | (611,862) | (659,109) | ||
Write-offs | 367,247 | 485,123 | ||
Impairment | [1] | |||
Transfers | [2] | (31,960) | ||
Exchange rate variation | 209,779 | 6,820 | ||
Right of use, Ending | (1,525,308) | (1,458,512) | ||
Software [member] | Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | ||||
Additions | 13,527 | |||
Write-offs | ||||
Impairment | [2] | |||
Transfers | [2] | |||
Exchange rate variation | ||||
Right of use, Ending | R$ 13527 | |||
Software [member] | Cost Value [member] | Bottom of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | 3 years | |||
Software [member] | Cost Value [member] | Top of range [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | 4 years | |||
Software [member] | Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | ||||
Depreciation Additions | R$ 3121 | |||
Write-offs | ||||
Impairment | [2] | |||
Transfers | [2] | |||
Exchange rate variation | ||||
Right of use, Ending | R$ 3121 | |||
Tools and accessories [member] | Cost Value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Useful life range (in years) | [3] | 3 years | 3 years | |
Right of use, Beginning | R$ 1053 | R$ 3187 | ||
Additions | 256 | |||
Write-offs | (394) | (2,460) | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | (161) | 70 | ||
Right of use, Ending | 498 | 1,053 | ||
Tools and accessories [member] | Depreciation value [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Right of use, Beginning | (582) | (2,253) | ||
Depreciation Additions | (206) | (681) | ||
Write-offs | 394 | 2,460 | ||
Impairment | [1] | |||
Transfers | [2] | |||
Exchange rate variation | 92 | (108) | ||
Right of use, Ending | R$ 302 | R$ 582 | ||
[1] On December 31, 2021, an impairment of R$ 4,690 was recorded referring to the impairment loss of some stores of the and The Body Shop. Refers to key money related to store rentals. This amount is transferred from “right of use” to "intangible assets” when a new commercial agreement with the lessor is not yet signed. The useful lives applied refer to the term of the contracts in which the Company is sure that it will use the assets underlying the lease contracts according to the contractual terms. |
RIGHT OF USE AND LEASE LIABIL_4
RIGHT OF USE AND LEASE LIABILITIES - Schedule of Quantitative Information About Right-of-Use Assets (Detail) (Parenthetical) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Impairment | R$ 30785 | R$ 4690 | [1] |
[1] On December 31, 2021, an impairment of R$ 4,690 was recorded referring to the impairment loss of some stores of the and The Body Shop. |
RIGHT OF USE AND LEASE LIABIL_5
RIGHT OF USE AND LEASE LIABILITIES - Schedule of Detailed information about cash outflow related to leases (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Amounts recognized in the statement of income and losses | ||||
Interest expense on lease liabilities | R$ 200246 | R$ 210669 | R$ 229544 | |
Amortization of right of use | 927,866 | 998,009 | ||
Appropriation in the result of variable lease installments not included in the measurement of lease liabilities | 68,483 | 70,075 | ||
Sublease revenue | (24,762) | (30,026) | ||
Short-term lease expenses and low-value assets | 69,773 | 83,468 | ||
Benefits granted by lessor related to Covid-19 | (19,740) | (80,037) | ||
Other lease-related expenses | 69,284 | 58,609 | ||
Adjustment to recoverable value of right-of-use assets - impairment | 30,785 | 4,690 | [1] | |
Total | 1,321,935 | 1,315,457 | ||
Amounts recognized in the financing activities in the cash flow statement | ||||
Lease payments (principal) | 953,048 | 1,077,611 | R$ 843338 | |
Amounts recognized in the operating activities in the cash flow statement: | ||||
Lease payments (interest) | 199,769 | 219,574 | ||
Variable lease payments, not included in the measurement of lease liabilities | 65,157 | 70,787 | ||
Short-term and low-value assets lease payments | 54,727 | 74,188 | ||
Other lease-related payments | 102,354 | 95,824 | ||
Total | R$ 1375055 | R$ 1537984 | ||
[1] On December 31, 2021, an impairment of R$ 4,690 was recorded referring to the impairment loss of some stores of the and The Body Shop. |
RIGHT OF USE AND LEASE LIABIL_6
RIGHT OF USE AND LEASE LIABILITIES - Schedule of Lease Obligation (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
RIGHT OF USE AND LEASE LIABILITIES | |||
Current | R$ 878448 | R$ 1005523 | |
Non-current | 2,392,289 | 2,542,339 | |
Total | R$ 3270737 | R$ 3547862 | R$ 3858455 |
RIGHT OF USE AND LEASE LIABIL_7
RIGHT OF USE AND LEASE LIABILITIES - Schedule of Changes In The Balance of Lease Obligations (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
RIGHT OF USE AND LEASE LIABILITIES | ||||
Beginning balance | R$ 3547862 | R$ 3858455 | ||
New agreements and modifications | 1,065,794 | 737,899 | ||
Lease payments – principal | (953,048) | (1,077,611) | R$ 843338 | |
Lease payments – interest | (199,769) | (219,574) | ||
Appropriation of financial charges | 200,246 | 210,669 | 229,544 | |
Write-offs | [1] | (19,763) | (105,790) | |
Translation adjustment | (370,585) | 143,814 | ||
Ending balance | R$ 3270737 | R$ 3547862 | R$ 3858455 | |
[1] Mainly related to termination of agreements related to lease of stores. |
RIGHT OF USE AND LEASE LIABIL_8
RIGHT OF USE AND LEASE LIABILITIES - Schedule of rates applied, according to the lease terms (Detail) R$ in Thousands | Dec. 31, 2022 BRL (R$) | |
1 year [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 915584 | |
Lease terms, Estimated inflation rate | 5% | [1] |
2 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 720126 | |
Lease terms, Estimated inflation rate | 4% | [1] |
3 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 605439 | |
Lease terms, Estimated inflation rate | 4% | [1] |
4 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 627943 | |
Lease terms, Estimated inflation rate | 4% | [1] |
5 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 420752 | |
Lease terms, Estimated inflation rate | 4% | [1] |
Over five years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 128800 | |
Lease terms, Estimated inflation rate | 4% | [1] |
Average discount rate 5.5% to 16.3% [member] | Bottom of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 5.50% | |
Average discount rate 5.5% to 16.3% [member] | Top of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 16.30% | |
Average discount rate 5.5% to 16.3% [member] | 1 year [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 29697 | |
Average discount rate 5.5% to 16.3% [member] | 2 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 13,790 | |
Average discount rate 5.5% to 16.3% [member] | 3 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | ||
Average discount rate 5.5% to 16.3% [member] | 4 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | ||
Average discount rate 5.5% to 16.3% [member] | 5 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | ||
Average discount rate 5.5% to 16.3% [member] | Over five years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | ||
Average discount rate 5.4% to 18.7% [member] | Bottom of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 5.40% | |
Average discount rate 5.4% to 18.7% [member] | Top of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 18.70% | |
Average discount rate 5.4% to 18.7% [member] | 1 year [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 862139 | |
Average discount rate 5.4% to 18.7% [member] | 2 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 680,217 | |
Average discount rate 5.4% to 18.7% [member] | 3 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 578,275 | |
Average discount rate 5.4% to 18.7% [member] | 4 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 600,647 | |
Average discount rate 5.4% to 18.7% [member] | 5 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 391,059 | |
Average discount rate 5.4% to 18.7% [member] | Over five years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 51096 | |
Average discount rate 7.3% to 20.5% [member] | Bottom of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 7.30% | |
Average discount rate 7.3% to 20.5% [member] | Top of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 20.50% | |
Average discount rate 7.3% to 20.5% [member] | 1 year [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 14803 | |
Average discount rate 7.3% to 20.5% [member] | 2 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 16,777 | |
Average discount rate 7.3% to 20.5% [member] | 3 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 17,962 | |
Average discount rate 7.3% to 20.5% [member] | 4 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 19,895 | |
Average discount rate 7.3% to 20.5% [member] | 5 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 22,042 | |
Average discount rate 7.3% to 20.5% [member] | Over five years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 28994 | |
Average discount rate 7.7% to 21.9% [member] | Bottom of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 7.70% | |
Average discount rate 7.7% to 21.9% [member] | Top of range [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Lease terms, average discount rate | 21.90% | |
Average discount rate 7.7% to 21.9% [member] | 1 year [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 8945 | |
Average discount rate 7.7% to 21.9% [member] | 2 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 9,342 | |
Average discount rate 7.7% to 21.9% [member] | 3 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 9,202 | |
Average discount rate 7.7% to 21.9% [member] | 4 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 7,401 | |
Average discount rate 7.7% to 21.9% [member] | 5 years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | 7,651 | |
Average discount rate 7.7% to 21.9% [member] | Over five years [member] | ||
Disclosure of Right of Use Assets and Lease Liabilities [Line Items] | ||
Estimated future lease payment flows indexed to inflation | R$ 48710 | |
[1]Rates obtained through future prices of DI coupons versus National Consumer Price Index (IPCA) observed in B 3 |
BORROWING, FINANCING AND DEBE_3
BORROWING, FINANCING AND DEBENTURES - Schedule Of Detailed Information About Borrowings (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | [1] | |
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | R$ 13592286 | R$ 12716832 | R$ 13822913 | ||
Current | 331,151 | 945,069 | |||
Non-current | 13,261,135 | 11,771,763 | |||
Debentures Current | 77,601 | 350,145 | |||
Debentures Non-current | 1,835,603 | 1,572,587 | |||
BRL | Financing Agency for Studies and Projects FINEP [Member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 16,979 | 44,193 | |||
BRL | Debentures [Member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 1,913,204 | 1,922,732 | |||
BRL | Business notes [member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 519,044 | ||||
BRL | Operations Avon [Member] | Working capital loan [member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 113,664 | 164,491 | |||
BRL | Natura &Co Luxemburgo operation | Working capital loan [member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 1,304,425 | ||||
British Pounds | Operations The Body Shop [Member] | Working capital loan [member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 526,743 | ||||
USD | Notes - Avon [Member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | [2] | 1,421,272 | 4,255,958 | ||
USD | Notes - Lux [Member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 3,130,732 | ||||
USD | Notes [member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 5,172,966 | 5,523,287 | |||
USD | Resolution No. 4131/62 [member] | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 279,428 | ||||
Local Currency | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | 8,419,320 | 6,914,117 | |||
Foreign Currency | |||||
BORROWING, FINANCING AND DEBENTURES | |||||
Borrowings | R$ 5172966 | R$ 5802715 | |||
[1] New borrowing and financing raised within the year ended December 31, 2021 basically refer to the offer carried out by the subsidiary Natura Cosméticos of the notes linked to the sustainability goals in the amount of USD 1 billion, approximately R$5.6 billion (see note 19.1.iii) and the new credit facility in the amount of one Balance recognized at fair value at the time of the business combination with subsidiary Avon and subsequently measured at amortized cost. |
BORROWING, FINANCING AND DEBE_4
BORROWING, FINANCING AND DEBENTURES - Schedule Of Detailed Information About Borrowings Charges (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Debentures [member] | BRL | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, original currency | Brazilian Real |
Borrowings, maturity | July 2027 to September 2032 |
Description of borrowing charges | CDI + 1.65%; CDI + 0.8%; IPCA + 6.8% and IPCA + 6.9% with bi-annual payments |
Description of effective interest rate for borrowings | CDI+1.65%, CDI+0.8%, CDI+1.34% and CDI+1.60% |
Description of guarantees provided for borrowings | Guarantee of Natura &Co Holding S.A. |
Business notes [member] | BRL | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, original currency | Brazilian Real |
Borrowings, maturity | September 2025 |
Description of borrowing charges | CDI interest + 1.55% with bi-annual payments |
Description of effective interest rate for borrowings | CDI +1.55% |
Description of guarantees provided for borrowings | Guarantee of Natura &Co Holding S.A. |
Working capital loan [member] | British Pounds | Operations The Body Shop [Member] | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, original currency | Pounds |
Borrowings, maturity | April 2024 |
Description of effective interest rate for borrowings | Sonia + interest 2.9% p.a. |
Description of guarantees provided for borrowings | “Corporate” guarantee from the Company until December 2021 and “Aval” guarantee from parent company Natura &Co Holding S.A. from January 2022. |
Working capital loan [member] | USD | Natura &Co Luxemburgo operation | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, original currency | US Dollar |
Borrowings, maturity | November 2025 |
Description of borrowing charges | SOFR + 2.47% p.a. with bi-annual payments |
Description of effective interest rate for borrowings | SOFR + 2.47% p.a. |
Description of guarantees provided for borrowings | Guarantee Natura &Co Holding and Natura Cosméticos |
Notes - Avon [Member] | USD | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, original currency | US Dollar |
Borrowings, maturity | March 2023 and March 2043 |
Description of borrowing charges | Interest of 6.45% of p.a. and 8.45% of p.a. with bi-annual payments |
Description of effective interest rate for borrowings | Interest of 6.45% of p.a. and 8.45% of p.a. |
Description of guarantees provided for borrowings | None |
Notes - Lux [Member] | USD | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, original currency | US Dollar |
Borrowings, maturity | April 2029 |
Description of borrowing charges | Interest of 6.00% p.a. with bi-annual payments |
Description of effective interest rate for borrowings | Interest of 6.125% p.a. |
Description of guarantees provided for borrowings | Guarantee Natura &Co Holding and Natura Cosméticos |
Notes [member] | USD | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, original currency | US Dollar |
Borrowings, maturity | May 2028 |
Description of borrowing charges | Interest of 4.125% (with real cost equivalent to the CDI + 3.33% p.a. Considering the derivate contracted to hedge the variation of the associated cash flows) with bi-annual payments |
Description of effective interest rate for borrowings | CDI + 3.33% |
Description of guarantees provided for borrowings | Guarantee from Natura &Co Holding S.A. |
BORROWING, FINANCING AND DEBE_5
BORROWING, FINANCING AND DEBENTURES - Schedule of detailed information about borrowings (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
BORROWING, FINANCING AND DEBENTURES | |
Annual percentage interest rate | 13.65% |
Debentures maturity on July 21, 2027 [member] | BRL | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, Interest rate basis | CDI |
Borrowings, adjustment to interest rate basis | 1.65% |
Borrowings, effective interest rate basis | CDI |
Borrowings, adjustment to effective interest rate basis | 1.65% |
Debentures maturity on September 14, 2027 [member] | BRL | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, Interest rate basis | CDI |
Borrowings, adjustment to interest rate basis | 0.80% |
Borrowings, effective interest rate basis | CDI |
Borrowings, adjustment to effective interest rate basis | 0.80% |
Debentures maturity on September 14, 2029 [member] | BRL | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, Interest rate basis | IPCA |
Borrowings, adjustment to interest rate basis | 6.80% |
Borrowings, effective interest rate basis | CDI |
Borrowings, adjustment to effective interest rate basis | 1.34% |
Debentures maturity on September 14, 2032 [member] | BRL | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, Interest rate basis | IPCA |
Borrowings, adjustment to interest rate basis | 6.90% |
Borrowings, effective interest rate basis | CDI |
Borrowings, adjustment to effective interest rate basis | 1.60% |
Business notes [member] | BRL | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, Interest rate basis | CDI |
Borrowings, adjustment to interest rate basis | 1.55% |
Borrowings, effective interest rate basis | CDI |
Borrowings, adjustment to effective interest rate basis | 1.55% |
Working capital loan [member] | British Pounds | Operations The Body Shop [Member] | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, Interest rate basis | Sonia |
Borrowings, adjustment to interest rate basis | 2.90% |
Borrowings, effective interest rate basis | Sonia |
Borrowings, adjustment to effective interest rate basis | 2.90% |
Working capital loan [member] | USD | Natura &Co Luxemburgo operation | |
BORROWING, FINANCING AND DEBENTURES | |
Borrowings, Interest rate basis | SOFR |
Borrowings, adjustment to interest rate basis | 2.47% |
Borrowings, effective interest rate basis | SOFR |
Borrowings, adjustment to effective interest rate basis | 2.47% |
Notes - Avon [Member] | Notes maturing March 2023 [member] | USD | |
BORROWING, FINANCING AND DEBENTURES | |
Annual percentage interest rate | 6.45% |
Borrowings effective interest rate | 6.45% |
Notes - Avon [Member] | Notes maturing March 2043 [member] | USD | |
BORROWING, FINANCING AND DEBENTURES | |
Annual percentage interest rate | 8.45% |
Borrowings effective interest rate | 8.45% |
Notes - Lux [Member] | Natura &Co Luxemburgo operation | |
BORROWING, FINANCING AND DEBENTURES | |
Annual percentage interest rate | 6% |
Notes - Lux [Member] | USD | |
BORROWING, FINANCING AND DEBENTURES | |
Annual percentage interest rate | 6% |
Borrowings effective interest rate | 6.125% |
Notes [member] | USD | |
BORROWING, FINANCING AND DEBENTURES | |
Annual percentage interest rate | 4.125% |
Borrowings, Interest rate basis | CDI |
Borrowings, adjustment to interest rate basis | 3.33% |
Borrowings, effective interest rate basis | CDI |
Borrowings, adjustment to effective interest rate basis | 3.33% |
BORROWING, FINANCING AND DEBE_6
BORROWING, FINANCING AND DEBENTURES - Schedule Of Changes In Balances Of Borrowings (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
BORROWING, FINANCING AND DEBENTURES | ||||||
Balance at beginning | R$ 12716832 | R$ 13822913 | [1] | |||
New borrowing and financing | 8,557,507 | [2] | 6,425,565 | [1],[3] | R$ 1354765 | |
Repayment | (6,826,628) | [4] | (7,989,607) | [3] | (8,483,892) | |
Appropriation of financial charges, net of costs of new borrowing and financing | 762,703 | 661,429 | ||||
Financial charges payment | (808,976) | (783,935) | ||||
Exchange rate variation | (394,389) | 252,190 | ||||
Translation effects (OCI) | (414,763) | 328,277 | ||||
Balance at ending | R$ 13592286 | R$ 12716832 | R$ 13822913 | [1] | ||
[1] New borrowing and financing raised within the year ended December 31, 2021 basically refer to the offer carried out by the subsidiary Natura Cosméticos of the notes linked to the sustainability goals in the amount of USD 1 billion, approximately R$5.6 billion (see note 19.1.iii) and the new credit facility in the amount of one New borrowing and financing during the year ended December 31, 2022 refer basically to: (i) utilization of a revolving credit facility in the principal amount of up to US$ 625 million by the subsidiary Natura &Co Luxemburgo; (ii) issue of debt securities by the subsidiary Natura &Co Luxembourg maturing on April 19, 2029 in the principal amount of US$600 million (approximately R$2,809 million), subject to interest of 6.00% per year, which are guaranteed by Natura &Co Holding and by the subsidiary Natura Cosméticos, (iii) issue of the 11 2025 12 2025 2032 2025 The repayment made during the year ended December 31, 2021 mainly refer to the early redemption of the subsidiary Natura Cosméticos's Notes in the amount of USD 750 million (corresponding to roughly R$4.0 billion, carried out in May 2021 (see note 19 .1 2 7 2 9 Natura redeemed the total principal amount due under their respective promissory notes, equivalent to R$500 million of the Company and R$250 million of the subsidiary Natura ; The amortizations made in the year ended December 31, 2022 refer mainly to the: (i) early redemption of debt securities of the subsidiary Avon ("Notes"), (ii) the early redemption of the 9 10 4131 62 |
BORROWING, FINANCING AND DEBE_7
BORROWING, FINANCING AND DEBENTURES - Schedule Of Changes In Balances Of Borrowings (Parenthetical) (Detail) $ in Thousands, £ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 15, 2021 BRL (R$) | Sep. 30, 2021 BRL (R$) | May 31, 2021 BRL (R$) | May 31, 2021 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 BRL (R$) | Dec. 31, 2020 BRL (R$) | Dec. 31, 2022 USD ($) | Oct. 31, 2022 BRL (R$) | Sep. 19, 2022 BRL (R$) | Jul. 30, 2022 BRL (R$) | Jul. 25, 2022 BRL (R$) | May 04, 2021 BRL (R$) | May 04, 2021 USD ($) | Apr. 23, 2021 GBP (£) | Apr. 23, 2021 BRL (R$) | |||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Repayment | R$ 6826628000 | [1] | R$ 7989607000 | [2] | R$ 8483892000 | ||||||||||||||
Annual percentage interest rate | 13.65% | 13.65% | |||||||||||||||||
New borrowing and financing | R$ 8557507000 | [3] | 6,425,565,000 | [2],[4] | R$ 1354765000 | ||||||||||||||
ESG debt securities (“Notes ESG”) [Member] | Natura Cosmticos SA [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | R$ 5600000000 | $ 1,000,000 | |||||||||||||||||
Annual percentage interest rate | 4.125% | 4.125% | |||||||||||||||||
Line of Credit facility | Natura &Co Luxemburgo operation | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | 250,000 | ||||||||||||||||||
Line of Credit facility | Operations The Body Shop [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | £ 100 | R$ 742000000 | |||||||||||||||||
Repayment | £ | £ 70 | ||||||||||||||||||
Business notes [member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Repayment | R$ 500000000 | ||||||||||||||||||
Business notes [member] | Natura Cosmticos SA [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | $ | $ 500,000 | ||||||||||||||||||
Repayment | R$ 250000000 | R$ 4000000000 | $ 750,000 | ||||||||||||||||
Unsecured Debentures Due September 28, 2021 [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Settlement of debentures | R$ 1827000000 | R$ 1827000000 | |||||||||||||||||
Unsecured Debentures Due September 21, 2022 [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Settlement of debentures | R$ 308000 | ||||||||||||||||||
Revolving credit facility [Member] | Natura &Co Luxemburgo operation | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ | 625,000 | ||||||||||||||||||
Notes - Lux [Member] | Natura &Co Luxemburgo operation | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | R$ 2809000 | $ 600,000 | |||||||||||||||||
Annual percentage interest rate | 6% | 6% | |||||||||||||||||
Debentures, Series 11 [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | R$ 826030000 | ||||||||||||||||||
Debentures, Series 11 [Member] | Natura Cosmticos SA [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | R$ 826030 | ||||||||||||||||||
New borrowing and financing | R$ 826000000 | ||||||||||||||||||
Debentures, Series 12 [Member] | Natura Cosmticos SA [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | R$ 1050000 | ||||||||||||||||||
New borrowing and financing | 1,050,000,000 | ||||||||||||||||||
Commercial notes [Member] | Natura Cosmticos SA [Member] | |||||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | |||||||||||||||||||
Principal amount of borrowings obtained | R$ 500000000 | ||||||||||||||||||
New borrowing and financing | R$ 500000000 | ||||||||||||||||||
[1] The amortizations made in the year ended December 31, 2022 refer mainly to the: (i) early redemption of debt securities of the subsidiary Avon ("Notes"), (ii) the early redemption of the 9 10 4131 62 The repayment made during the year ended December 31, 2021 mainly refer to the early redemption of the subsidiary Natura Cosméticos's Notes in the amount of USD 750 million (corresponding to roughly R$4.0 billion, carried out in May 2021 (see note 19 .1 2 7 2 9 Natura redeemed the total principal amount due under their respective promissory notes, equivalent to R$500 million of the Company and R$250 million of the subsidiary Natura ; New borrowing and financing during the year ended December 31, 2022 refer basically to: (i) utilization of a revolving credit facility in the principal amount of up to US$ 625 million by the subsidiary Natura &Co Luxemburgo; (ii) issue of debt securities by the subsidiary Natura &Co Luxembourg maturing on April 19, 2029 in the principal amount of US$600 million (approximately R$2,809 million), subject to interest of 6.00% per year, which are guaranteed by Natura &Co Holding and by the subsidiary Natura Cosméticos, (iii) issue of the 11 2025 12 2025 2032 2025 New borrowing and financing raised within the year ended December 31, 2021 basically refer to the offer carried out by the subsidiary Natura Cosméticos of the notes linked to the sustainability goals in the amount of USD 1 billion, approximately R$5.6 billion (see note 19.1.iii) and the new credit facility in the amount of one |
BORROWING, FINANCING AND DEBE_8
BORROWING, FINANCING AND DEBENTURES - Schedule of maturity analysis for non-current borrowings (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
BORROWING, FINANCING AND DEBENTURES | ||
Borrowings, financing and debentures | R$ 13261135 | R$ 11771763 |
2023 [member] | ||
BORROWING, FINANCING AND DEBENTURES | ||
Borrowings, financing and debentures | 2,812,260 | |
2024 [member] | ||
BORROWING, FINANCING AND DEBENTURES | ||
Borrowings, financing and debentures | 2,249,609 | |
2025 [member] | ||
BORROWING, FINANCING AND DEBENTURES | ||
Borrowings, financing and debentures | 1,763,902 | 6,709,894 |
2026 onwards [member] | ||
BORROWING, FINANCING AND DEBENTURES | ||
Borrowings, financing and debentures | R$ 11497233 |
BORROWING, FINANCING AND DEBE_9
BORROWING, FINANCING AND DEBENTURES - Schedule of main features of the debentures (Detail) - Debentures, Series 12 [Member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2022 BRL (R$) Debenture | |
1st series [member] | |
BORROWING, FINANCING AND DEBENTURES | |
Contractual fee | <span>100</span>% DI + 0.8% |
Maturity | 09/14/2027 |
Notional amount | R$ | R$ 255889 |
Number Of Debentures Issued | Debenture | 255,889 |
Borrowings, Interest rate basis | <span>100</span>% DI |
Borrowings, adjustment to interest rate basis | 0.80% |
2nd series [member] | |
BORROWING, FINANCING AND DEBENTURES | |
Contractual fee | IPCA +6.8% |
Maturity | 09/14/2029 |
Notional amount | R$ | R$ 487214 |
Number Of Debentures Issued | Debenture | 487,214 |
Borrowings, Interest rate basis | IPCA |
Borrowings, adjustment to interest rate basis | 6.80% |
3rd series [member] | |
BORROWING, FINANCING AND DEBENTURES | |
Contractual fee | IPCA + 6.9% |
Maturity | 09/14/2032 |
Notional amount | R$ | R$ 306897 |
Number Of Debentures Issued | Debenture | 306,897 |
Borrowings, Interest rate basis | IPCA |
Borrowings, adjustment to interest rate basis | 6.90% |
BORROWING, FINANCING AND DEB_10
BORROWING, FINANCING AND DEBENTURES - Schedule Of detailed information about Notes - Avon (Details) R$ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 USD ($) | |
BORROWING, FINANCING AND DEBENTURES | ||
Annual percentage interest rate | 13.65% | 13.65% |
Notes 8.45% Due March 15, 2043 [Member] | Unsecured Debt [Member] | ||
BORROWING, FINANCING AND DEBENTURES | ||
Main | R$ 1127467 | $ 216,085 |
Annual percentage interest rate | 8.45% | 8.45% |
Maturity | March 15, 2043 |
BORROWING, FINANCING AND DEB_11
BORROWING, FINANCING AND DEBENTURES - Additional Information (Detail) $ in Thousands, £ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 06, 2022 BRL (R$) | Jul. 30, 2022 BRL (R$) | Jul. 25, 2022 BRL (R$) Debenture | May 04, 2021 BRL (R$) | Apr. 23, 2021 GBP (£) | Jul. 22, 2019 BRL (R$) Debenture | Sep. 21, 2018 BRL (R$) Debenture | Sep. 28, 2017 BRL (R$) shares Debenture | Sep. 30, 2021 BRL (R$) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 BRL (R$) | Dec. 31, 2022 USD ($) | Dec. 23, 2022 BRL (R$) | Sep. 19, 2022 BRL (R$) | May 04, 2021 USD ($) | Apr. 23, 2021 BRL (R$) | |
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Measurement period of earnings before interest, taxes, depreciation, and amortization in financial covenants | 12 months | |||||||||||||||
Annual percentage interest rate | 13.65% | 13.65% | ||||||||||||||
Natura Cosmticos SA [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | shares | 260,000 | |||||||||||||||
Unsecured Debentures [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Debt Issuance Cost | R$ 31955000 | R$ 6370000 | ||||||||||||||
Interest Costs | 7,704,000 | 3,096,000 | ||||||||||||||
Unsecured Debentures [Member] | Natura Cosmticos SA [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Notional Amount | R$ 1576450000 | R$ 1000000000 | R$ 2600000000 | |||||||||||||
Number Of Debentures Issued | Debenture | 157,645 | 100,000 | ||||||||||||||
Nominal Unit Value | R$ 10000 | |||||||||||||||
Debentures, Series 11 [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Notional Amount | R$ 826030000 | |||||||||||||||
Number Of Debentures Issued | Debenture | 826,030 | |||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 1.65% | |||||||||||||||
Borrowings Interest Rate Basis | 100% of the accrued variation of the daily average rates for Interfinancial Deposits (DI) | |||||||||||||||
Nominal Unit Value | R$ 1000000 | |||||||||||||||
Debentures, Series 11 [Member] | Natura Cosmticos SA [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Notional Amount | R$ 826030 | |||||||||||||||
Number Of Debentures Issued | 826,030 | |||||||||||||||
Unsecured Debentures Due on September 25, 2020 [Member] | Tranche One [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | 664,090,000 | |||||||||||||||
Unsecured Debentures Due on September 25, 2020 [Member] | Natura Cosmticos SA [Member] | Tranche One [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 77,273 | |||||||||||||||
Borrowings Maturity | September 25, 2020 | |||||||||||||||
Borrowings Interest Rate Basis | CDI rate + 1.4% p.a. | |||||||||||||||
Unsecured Debentures Due on September 25, 2021 [Member] | Tranche One [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | 382,960,000 | |||||||||||||||
Unsecured Debentures Due on September 25, 2021 [Member] | Natura Cosmticos SA [Member] | Tranche Two [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 182,727 | |||||||||||||||
Borrowings Maturity | September 25, 2021 | |||||||||||||||
Borrowings Interest Rate Basis | CDI rate + 1.75% p.a. | |||||||||||||||
Unsecured Debentures Due September 21, 2020 [Member] | Natura Cosmticos SA [Member] | Tranche One [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 38,904 | |||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 109.50% | |||||||||||||||
Borrowings Maturity | September 21, 2020 | |||||||||||||||
Unsecured Debentures Due September 21, 2021 [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | R$ 308000000 | |||||||||||||||
Unsecured Debentures Due September 21, 2021 [Member] | Natura Cosmticos SA [Member] | Tranche Two [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 30,831 | |||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 110.50% | |||||||||||||||
Borrowings Maturity | September 21, 2021 | |||||||||||||||
Unsecured Debentures Due September 21, 2022 [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | 308,000 | |||||||||||||||
Unsecured Debentures Due September 21, 2022 [Member] | Tranche Three [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | 162,800,000 | |||||||||||||||
Unsecured Debentures Due September 21, 2022 [Member] | Natura Cosmticos SA [Member] | Tranche Three [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 30,265 | |||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 112% | |||||||||||||||
Borrowings Maturity | September 21, 2022 | |||||||||||||||
Unsecured Debentures Due August Fourteen Two Thousand Nineteen [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | 400,000,000 | |||||||||||||||
Unsecured Debentures Due March Sixteen Two Thousand Twenty Member [Member] | Tranche Three [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | 92,820,000 | |||||||||||||||
Unsecured Debentures Due September 28, 2021 [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | R$ 1827000000 | 1,827,000,000 | ||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Tranche One [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | 145,830,000 | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Tranche Two [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Borrowings Maturity | August 26, 2024 | |||||||||||||||
Repayments Of Debentures | 19,210,000 | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Tranche Three [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 1.15% | |||||||||||||||
Borrowings Maturity | August 26, 2024 | |||||||||||||||
Borrowings Interest Rate Basis | 100% of the cumulative variation of the Brazilian Interbank Deposits (“DI”) average daily rates plus 1.15% for other series | |||||||||||||||
Repayments Of Debentures | 295,280,000 | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Tranche Four [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 1.15% | |||||||||||||||
Borrowings Maturity | August 26, 2024 | |||||||||||||||
Borrowings Interest Rate Basis | 100% of the cumulative variation of the Brazilian Interbank Deposits (“DI”) average daily rates plus 1.15% for other series | |||||||||||||||
Repayments Of Debentures | R$ 202910000 | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Natura Cosmticos SA [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Repayments Of Debentures | R$ 913220000 | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Natura Cosmticos SA [Member] | Tranche One [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 40,000 | |||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 1% | |||||||||||||||
Borrowings Maturity | August 26, 2024 | |||||||||||||||
Borrowings Interest Rate Basis | 100% of the cumulative variation of the Brazilian Interbank Deposits (“DI”) average daily rates plus 1% | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Natura Cosmticos SA [Member] | Tranche Two [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 9,570 | |||||||||||||||
Borrowings Adjustment To Interest Rate Basis | 1.15% | |||||||||||||||
Borrowings Interest Rate Basis | 100% of the cumulative variation of the Brazilian Interbank Deposits (“DI”) average daily rates plus 1.15% for other series | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Natura Cosmticos SA [Member] | Tranche Three [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 68,623 | |||||||||||||||
Unsecured Debentures Due August 26, 2024 [Member] | Natura Cosmticos SA [Member] | Tranche Four [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Number Of Debentures Issued | Debenture | 39,452 | |||||||||||||||
Business notes [member] | Natura Cosmticos SA [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Notional Amount | $ | $ 500,000 | |||||||||||||||
Working capital loan [member] | Operations The Body Shop [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | £ 100 | R$ 0 | R$ 742000000 | |||||||||||||
Borrowings Interest Rate Basis | Sonia rate + 2.9% per annum | |||||||||||||||
ESG debt securities (“Notes ESG”) [Member] | Natura Cosmticos SA [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Notional Amount | R$ 5600000000 | $ 1,000,000 | ||||||||||||||
Borrowings Maturity | May 3, 2028 | |||||||||||||||
Notes Issuance Costs | 14,889,000 | 9,777,000 | ||||||||||||||
Deferred Notes Issuance Costs | R$ 79410000 | R$ 94293000 | ||||||||||||||
Annual percentage interest rate | 4.125% | 4.125% | ||||||||||||||
Target Percentage Of Reduction In Greenhouse Gas Emission | 13% | |||||||||||||||
Target Percentage Of Recycledplastic Use In Packaging | 25% | |||||||||||||||
Commercial notes [Member] | Natura Cosmticos SA [Member] | ||||||||||||||||
BORROWING, FINANCING AND DEBENTURES | ||||||||||||||||
Notional Amount | R$ 500000000 | |||||||||||||||
Debt Issuance Cost | R$ 1266000 | |||||||||||||||
Interest Costs | R$ 126000 |
TRADE ACCOUNTS PAYABLE AND RE_3
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS. | |||
Trade and other payables | R$ 5522030 | R$ 6352651 | |
Reverse factoring operations | [1] | 853,900 | 417,928 |
Trade payables | 6,375,930 | 6,770,579 | |
Domestic trade accounts payable [Member] | |||
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS. | |||
Trade and other payables | 4,644,534 | 5,248,462 | |
Foreign trade accounts payable [Member] | |||
TRADE ACCOUNTS PAYABLE AND REVERSE FACTORING OPERATIONS. | |||
Trade and other payables | [2] | R$ 877496 | R$ 1104189 |
[1] The Company has contracts signed with first-line financial institutions, mainly Banco Itaú S.A. to directly structure a reverse factoring operation with the Company’s main suppliers. Further details on these operations are included in note 3.15 Refers to imports mainly denominated in US dollars, Euros and British pounds. |
TAX LIABILITIES - Schedule of d
TAX LIABILITIES - Schedule of detailed information about tax liabilities (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Dislosure Of Tax Liabilities [Line Items] | |||
ICMS (ordinary) | [1] | R$ 180708 | R$ 150396 |
ICMS-ST provision | [2] | 60,945 | 58,188 |
Taxes on invoicing abroad | 346,407 | 340,648 | |
Withholding tax | 138,293 | 148,081 | |
Other taxes payable - foreign subsidiaries | 147,056 | 138,461 | |
Income tax | 18,170 | 7,062 | |
PIS and COFINS payable | 140 | 144 | |
INSS and service tax (ISS) payable | 31,895 | 29,359 | |
Other | 21,869 | 8,888 | |
Total | 945,483 | 881,227 | |
Current | 828,125 | 766,430 | |
Noncurrent | R$ 117358 | R$ 114797 | |
[1] Refers to ICMS on the Company's sales of goods in Brazil. The Company has discussions about the illegality of changes in state laws to charge ICMS-ST. Part of the amount recorded as tax payable but not yet paid is being discussed in court by the Company, and in some cases, the amounts are deposited in court, as mentioned in Note 12 |
PROVISION FOR TAX, CIVIL AND _3
PROVISION FOR TAX, CIVIL AND LABOR RISKS - Schedule of detailed information about other provisions (Detail) - BRL (R$) | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Tax, civil and labor provision and contingent liabilities | ||||||
Balance at the beginning of the year | R$ 1318441000 | R$ 1485942000 | ||||
Additions | [1] | R$ 595502000 | 296,801,000 | |||
Reversals | [2] | (307,267,000) | (352,978,000) | |||
Payments | (261,731,000) | (132,784,000) | ||||
Monetary adjustment | 79,280,000 | 25,731,000 | ||||
Translation adjustment | (85,849,000) | (1,703,000) | ||||
Transfers | (1,103,000) | (2,567,000) | ||||
Balance as of the end of the year | 1,337,273,000 | 1,318,442,000 | ||||
Current | 463,655,000 | 230,097,000 | ||||
Non-current | 873,618,000 | 1,088,345,000 | ||||
Contingent liabilities (business combination) | ||||||
Tax, civil and labor provision and contingent liabilities | ||||||
Additions | [3] | |||||
Reversals | [2],[3] | (196,925,000) | (195,092,000) | |||
Payments | [3] | |||||
Monetary adjustment | [3] | 21,555,000 | 10,450,000 | |||
Translation adjustment | [3] | (15,787,000) | (15,466,000) | |||
Transfers | [3] | |||||
Balance as of the end of the year | [3] | 406,428,000 | 597,585,000 | 797,693,000 | ||
Tax | ||||||
Tax, civil and labor provision and contingent liabilities | ||||||
Additions | [1] | 78,410,000 | 24,090 | |||
Reversals | [2] | (45,902,000) | (44,726) | [1] | ||
Payments | (31,354,000) | (4,965) | [1] | |||
Monetary adjustment | 36,155,000 | 4,698 | [1] | |||
Translation adjustment | (31,884,000) | (909,000) | [1] | |||
Transfers | (67,000) | (14,030) | [1] | |||
Balance as of the end of the year | 187,052,000 | 181,694,000 | [1] | 217,536,000 | [1] | |
Tax | Contingent liabilities (business combination) | ||||||
Tax, civil and labor provision and contingent liabilities | ||||||
Balance as of the end of the year | 380,259,000 | |||||
Civil | ||||||
Tax, civil and labor provision and contingent liabilities | ||||||
Additions | [1] | 425,398,000 | 181,856,000 | |||
Reversals | [2] | (12,791,000) | (35,433,000) | |||
Payments | (162,953,000) | (88,266,000) | ||||
Monetary adjustment | 16,477,000 | 2,723,000 | ||||
Translation adjustment | (13,110,000) | 12,471,000 | ||||
Transfers | (1,036,000) | (12,965,000) | ||||
Balance as of the end of the year | 557,675,000 | 305,690,000 | 219,374,000 | |||
Civil | Contingent liabilities (business combination) | ||||||
Tax, civil and labor provision and contingent liabilities | ||||||
Balance as of the end of the year | 9,053,000 | |||||
Labour | ||||||
Tax, civil and labor provision and contingent liabilities | ||||||
Additions | [1] | 91,694,000 | 90,855,000 | |||
Reversals | [2] | (51,649,000) | (77,727,000) | |||
Payments | (67,424,000) | (39,553,000) | ||||
Monetary adjustment | 5,093,000 | 7,860,000 | ||||
Translation adjustment | (25,068,000) | 2,201,000 | ||||
Transfers | (1,503,000) | |||||
Balance as of the end of the year | 186,118,000 | R$ 233472000 | R$ 251339000 | |||
Labour | Contingent liabilities (business combination) | ||||||
Tax, civil and labor provision and contingent liabilities | ||||||
Balance as of the end of the year | R$ 17116000 | |||||
[1] During the year ended December 31, 2022, certain balances included in provisions for tax risks on December 31, 2021 were reclassified for better alignment between the Group's subsidiaries, as disclosed in note No. 2 Reversals of contingent liabilities (business combination) refer mainly to the adhesion to state tax amnesty programs, and change in estimates for civil and labor lawsuits, which took place in the first and third quarter of 2022 The business combination amounts as of December 31, 2022 are segregated between tax (R$ 380,259 9,053 17,116 |
PROVISION FOR TAX, CIVIL AND _4
PROVISION FOR TAX, CIVIL AND LABOR RISKS - Schedule of contingencies assessed as possible risk of loss (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Tax, civil and labor provision and contingent liabilities | ||
Contingencies assessed as possible risk of loss | R$ 8806935 | R$ 10193858 |
Tax [member] | ||
Tax, civil and labor provision and contingent liabilities | ||
Contingencies assessed as possible risk of loss | 8,480,614 | 9,884,541 |
Civil [member] | ||
Tax, civil and labor provision and contingent liabilities | ||
Contingencies assessed as possible risk of loss | 161,859 | 128,479 |
Labor [member] | ||
Tax, civil and labor provision and contingent liabilities | ||
Contingencies assessed as possible risk of loss | R$ 164462 | R$ 180838 |
PROVISION FOR TAX, CIVIL AND _5
PROVISION FOR TAX, CIVIL AND LABOR RISKS - Contingent liabilities additional information (Detail 2) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 BRL (R$) | Dec. 31, 2020 BRL (R$) | Dec. 31, 2020 USD ($) | ||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | R$ 8806935000 | R$ 10193858000 | ||||||
Tax incentives recognized from tax exclusions | 135,297,000 | |||||||
Provisions | 1,337,273,000 | 1,318,442,000 | ||||||
Additional impact on the provision | [1] | 595,502,000 | 296,801,000 | |||||
Reversals of provisions | [2] | 307,267,000 | 352,978,000 | |||||
Revenue with royalties | [3] | 119,438,000 | ||||||
Tax Contingency [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 8,480,614,000 | 9,884,541,000 | ||||||
Civil, commercial and other lawsuits [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 161,859,000 | 128,479,000 | ||||||
Labor [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 164,462,000 | 180,838,000 | ||||||
IPI tax debts, due to the alleged non-observance of the minimum tax base [member] | Tax Contingency [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 2,472,645,000 | 2,009,562,000 | ||||||
Related to Decree nº 8.393/2015 [member] | Tax Contingency [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 2,218,971,000 | 1,907,246,000 | ||||||
Related to Collection of ICMS and ICMS-ST [member] | Tax Contingency [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 1,374,933,000 | 1,560,023,000 | ||||||
Related to IRPJ and CSLL tax debts [member] | Tax Contingency [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 1,509,890,000 | 1,419,237,000 | ||||||
Related to collection of ICMS-ST by Finance Department of the São Paulo Federal State [member] | Tax Contingency [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 633,370,000 | 539,561,000 | ||||||
IPI tax debts for disagreeing with the tax classification [member] | Tax Contingency [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 719,920,000 | 662,991,000 | ||||||
Contingent liabilities (business combination) | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Provisions | [4] | 406,428,000 | 597,585,000 | 797,693,000 | ||||
Additional impact on the provision | [4] | |||||||
Reversals of provisions | [2],[4] | 196,925,000 | 195,092,000 | |||||
Avon Products Inc [Member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Settlement amount | $ | $ 29.3 | |||||||
Revenue with royalties | 119,438,000 | |||||||
Cash compensation received | R$ 136200000 | |||||||
Avon Products Inc [Member] | Civil, commercial and other lawsuits [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Number of pending individual cases | 227 | |||||||
Number of new proceedings filed | 128 | 128 | ||||||
Number of cases dismissed, settled or otherwise resolved | 52 | 52 | ||||||
Labour | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Provisions | R$ 186118000 | 233,472,000 | 251,339,000 | |||||
Additional impact on the provision | [1] | 91,694,000 | 90,855,000 | |||||
Reversals of provisions | [2] | 51,649,000 | 77,727,000 | |||||
Labour | Contingent liabilities (business combination) | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Provisions | 17,116,000 | |||||||
Civil | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Provisions | 557,675,000 | 305,690,000 | 219,374,000 | |||||
Additional impact on the provision | [1] | 425,398,000 | 181,856,000 | |||||
Reversals of provisions | [2] | 12,791,000 | 35,433,000 | |||||
Civil | Contingent liabilities (business combination) | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Provisions | 9,053,000 | |||||||
Civil | Avon Products Inc [Member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Compensatory damages | $ | $ 36 | |||||||
Punitive damages | $ | $ 10.3 | |||||||
Tax | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Contingencies assessed as possible risk of loss | 123,266,000 | |||||||
Provisions | 187,052,000 | 181,694,000 | [1] | R$ 217536000 | [1] | |||
Additional impact on the provision | [1] | 78,410,000 | 24,090 | |||||
Reversals of provisions | [2] | 45,902,000 | R$ 44726 | [1] | ||||
Other contingent liabilities associated with tax amnesty, net amount | 20,492,000 | |||||||
Tax | Contingent liabilities (business combination) | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Provisions | 380,259,000 | |||||||
Tax | Avon Products Inc [Member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Reversals of provisions | 86,979,000 | |||||||
Settlement of historically recognized revenues | R$ 16762000 | |||||||
[1] During the year ended December 31, 2022, certain balances included in provisions for tax risks on December 31, 2021 were reclassified for better alignment between the Group's subsidiaries, as disclosed in note No. 2 Reversals of contingent liabilities (business combination) refer mainly to the adhesion to state tax amnesty programs, and change in estimates for civil and labor lawsuits, which took place in the first and third quarter of 2022 Refers to royalties received by the subsidiary Avon from its representative in Japan, after a judicial dispute as mentioned in note 22 The business combination amounts as of December 31, 2022 are segregated between tax (R$ 380,259 9,053 17,116 |
OTHER LIABILITIES - Schedule of
OTHER LIABILITIES - Schedule of detailed information about other liabilities (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER LIABILITIES | |||
Pension and post-employment health care plans | [1] | R$ 463948 | R$ 673458 |
Deferred revenue from performance obligations with customers | [2] | 313,204 | 393,046 |
Provisions for incentives to consultants | 217,349 | 286,791 | |
Provisions for operating expenses (marketing / technology, etc.) | [3] | 604,064 | 601,841 |
Provision for store renovation | 116,137 | 105,165 | |
Crer Para Ver | [4] | 87,420 | 90,655 |
Provision for restructuring | [5] | 175,809 | 103,760 |
Insurance payables | 69,364 | 127,413 | |
Other Liabilities | [6] | 203,331 | 276,437 |
Total | 2,250,626 | 2,658,566 | |
Current | 1,499,060 | 1,716,110 | |
Non-current | R$ 751566 | R$ 942456 | |
[1] As of December 31, 2022, there is R$282,295 (R$445,804 as of December 31, 2021) referring to pension plans, and R$28,456 referring to post-employment plans (R$34,774 as of December 31, 2021) of subsidiary Avon International, and R$129,697 (R$124,649 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura Cosméticos and R$51,956 (R$68,230 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura &Co International. Refers to the deferral of revenue from performance obligations related to loyalty programs based on points, sale of gift cards not yet converted into products and programs and events to honor direct sales consultants, of which R$ 190,790 Refers to the Company's operating provisions arising mainly from expenses with the provision of technology, marketing and advertising services. C of the social program to the development of the quality of education. Provision for costs directly related to the integration plan and changes in the organizational structure of the subsidiary Avon and Group corporate structure review. Refers to miscellaneous provisions such as indemnities and non-current contractual obligations. |
OTHER LIABILITIES - Schedule _2
OTHER LIABILITIES - Schedule of change in actuarial liabilities (Detail) - Avon [member] - Pension Plan [member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of defined benefit plans [line items] | |||
Balance at the beginning of the year | R$ 445804 | R$ 609961 | |
Cost of services - current | 19,707 | 24,660 | |
Interest cost - recognized in the statement of profit or loss | 15,568 | 10,934 | |
Administrative costs | 2,698 | 2,698 | |
Company contributions | (4,299) | (49,516) | |
Benefits paid | (22,262) | (6,413) | |
Actuarial loss in OCI | [1] | (254,913) | (99,991) |
Reclassifications | 24,956 | 18,045 | |
Other | 88,474 | (72,252) | |
Translation adjustment | 18,518 | 7,678 | |
Balance as of the end of the year | R$ 334251 | R$ 445804 | |
[1] The actuarial loss recorded throughout 2022 is directly related to the update of the mortality tables, as they were impacted by the effects of the Covid-19 pandemic. |
OTHER LIABILITIES - Schedule _3
OTHER LIABILITIES - Schedule of significant actuarial assumptions for the determination of the actuarial liability (Details) - Avon [member] - Pension Plan [member] | Dec. 31, 2022 | Dec. 31, 2021 |
Bottom of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 1.30% | 0.65% |
Rate of compensation increase | 2.55% | 1.80% |
Top of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 12% | 9.20% |
Rate of compensation increase | 7.40% | 6.60% |
OTHER LIABILITIES - Schedule _4
OTHER LIABILITIES - Schedule of fair values of each major class of plan assets (Details) - Avon [member] - Pension Plan [member] - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of defined benefit plans [line items] | ||
Cash and cash equivalent | R$ 7330 | R$ 191958 |
Equity instruments of other entities | 520,799 | 1,066,370 |
Government bonds | 1,013,584 | 1,482,650 |
Corporate bonds | 1,317,122 | 1,802,394 |
Real estate | 10,957 | 12,834 |
Other | (121,574) | 12,276 |
Total | R$ 2748218 | R$ 4568482 |
OTHER LIABILITIES - Schedule _5
OTHER LIABILITIES - Schedule of detailed information about actuarial liabilities computation (Detail) - Natura Cosmticos SA [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | ||
Discount rate | 10.43% | 9.01% |
Initial growth rate of medical cost | 4.25% | 4.25% |
Inflation rate | 4% | 3.40% |
Final growth rate of medical cost | 8.42% | 7.79% |
Growth rate of medical costs by aging - contributions | 0% | 0% |
Schedule of disabled mortality | Mercer Disability | Mercer Disability |
Schedule of mortality | AT-2000 | AT-2000 |
Schedule of turnover | Proportional calculation at the time of service | Proportional calculation at the time of service |
Bottom of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Growth rate of medical costs due to aging - costs | 1.25% | 1.25% |
Top of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Growth rate of medical costs due to aging - costs | 4.75% | 4.75% |
Bradesco Plan [Member] | Bottom of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of adherence to the plan in retirement | 58% | 60% |
Unimed Plan [Member] | Top of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of adherence to the plan in retirement | 85% | 85% |
OTHER LIABILITIES - Schedule _6
OTHER LIABILITIES - Schedule of detailed information about sensitivity analysis for actuarial assumptions (Detail) - Natura Cosmticos SA [Member] R$ in Thousands | Dec. 31, 2022 BRL (R$) |
Discount rate [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increased Actuarial Assumption Percentage | 10.43% |
Percentage of reasonably possible increase in actuarial assumption | 1% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | R$ 114832 |
Decreased Actuarial Assumption Percentage | 10.43% |
Percentage of reasonably possible decrease in actuarial assumption | 1% |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | R$ 157168 |
Rate of compensation | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increased Actuarial Assumption Percentage | 8.42% |
Percentage of reasonably possible increase in actuarial assumption | 1% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | R$ 164604 |
Decreased Actuarial Assumption Percentage | 8.42% |
Percentage of reasonably possible decrease in actuarial assumption | 1% |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | R$ 120307 |
OTHER LIABILITIES - Schedule _7
OTHER LIABILITIES - Schedule of detailed information about movements of actuarial liabilities (Detail) - Natura Cosmticos SA [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | ||
Balance at the beginning of the year | R$ 124649 | R$ 134194 |
Cost of the current service of subsidiary Natura Cosméticos | 812 | 939 |
Cost of interest | 11,078 | 9,326 |
Expenses paid | (3,398) | (2,679) |
Actuarial gains in OCI | (3,444) | (17,131) |
Balance as of the end of the year | R$ 129697 | R$ 124649 |
OTHER LIABILITIES - Additional
OTHER LIABILITIES - Additional Information (Detail) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 BRL (R$) Employees | Dec. 31, 2021 BRL (R$) Employees | ||
Disclosure Of Other Liabilities [Line Items] | |||
Pension and post-employment health care plans | [1] | R$ 463948 | R$ 673458 |
Deferred revenue from performance obligations with customers | [2] | 313,204 | 393,046 |
Pension Plan [member] | Avon International [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Pension and post-employment health care plans | 282,295,000 | 445,804,000 | |
Post-retirement benefits [member] | Avon International [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Pension and post-employment health care plans | 28,456,000 | 34,774,000 | |
Avon [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Deferred revenue from performance obligations with customers | 190,790 | 235,308 | |
Natura Cosmticos SA [Member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Deferred revenue from performance obligations with customers | R$ 93761 | R$ 121341 | |
Weighted average of life expectancy after retirement | 21 years 10 months 24 days | 20 years | |
Number of active employees | Employees | 866 | 993 | |
Number of retired and dependent employees. | Employees | 406 | 473 | |
Actuarial assumption of initial level of growth in medical cost. | 4.25% | ||
Actuarial gains (loss) | R$ 3444 | ||
Natura Cosmticos SA [Member] | Bottom of range [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Actuarial assumption of discount rates | 9.01% | ||
Natura Cosmticos SA [Member] | Top of range [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Actuarial assumption of discount rates | 10.43% | ||
Natura Cosmticos SA [Member] | Post-retirement benefits [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Pension and post-employment health care plans | R$ 129697 | R$ 124649 | |
Natura &Co International S.à r.l. | |||
Disclosure Of Other Liabilities [Line Items] | |||
Deferred revenue from performance obligations with customers | 28,653 | 36,397 | |
Natura &Co International S.à r.l. | Post-retirement benefits [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Pension and post-employment health care plans | R$ 51956 | R$ 68230 | |
[1] As of December 31, 2022, there is R$282,295 (R$445,804 as of December 31, 2021) referring to pension plans, and R$28,456 referring to post-employment plans (R$34,774 as of December 31, 2021) of subsidiary Avon International, and R$129,697 (R$124,649 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura Cosméticos and R$51,956 (R$68,230 as of December 31, 2021) referring to post-employment healthcare plans of the subsidiary Natura &Co International. Refers to the deferral of revenue from performance obligations related to loyalty programs based on points, sale of gift cards not yet converted into products and programs and events to honor direct sales consultants, of which R$ 190,790 |
SHAREHOLDER'S EQUITY - Schedule
SHAREHOLDER'S EQUITY - Schedule of changes in treasury shares (Detail) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Balance at beginning of period | R$ 151342 | |
Balance at end of period | R$ 262360 | R$ 151342 |
Bottom of range [member] | ||
Disclosure of classes of share capital [line items] | ||
Average price per share, outstanding at beginning of period | R$ 25.74 | |
Average price per share, outstanding at end of period | 21.11 | R$ 25.74 |
Top of range [member] | ||
Disclosure of classes of share capital [line items] | ||
Average price per share, outstanding at beginning of period | 50.93 | |
Average price per share, outstanding at end of period | R$ 24.07 | R$ 50.93 |
Treasury shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Balance at beginning of period | R$ 151342 | R$ 11667 |
Initial share capital (in shares) | 4,899,540 | 316,701 |
Average price per share, outstanding at beginning of period | R$ 30.89 | R$ 38.04 |
Used | R$ 9282 | R$ 34438 |
Used (in shares) | (377,585) | (754,719) |
Average price per share, issued | R$ 24.58 | R$ 45.63 |
Share repurchase | R$ 120300 | R$ 174113 |
Acquisition (in shares) | 5,391,900 | 5,337,558 |
Average price per share, purchased | R$ 22.31 | R$ 32.62 |
Balance at end of period | R$ 262360 | R$ 151342 |
Total shares capital subscribed and paid-up (in shares) | 9,913,855 | 4,899,540 |
Average price per share, outstanding at end of period | R$ 26.46 | R$ 30.89 |
SHAREHOLDER'S EQUITY - Addition
SHAREHOLDER'S EQUITY - Additional Information (Detail) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | |||
Issued capital | R$ 12484424 | R$ 12481683 | |
Dividend Rate | 30% | ||
Nominal common shares | 1,383,206,405 | 1,379,584,737 | |
Dividends declared and not yet distributed | R$ 180772 | ||
Dividends declared and not yet distributed, per share | R$ 0.1315 | ||
Portion of minimum mandatory dividends | R$ 133616 | ||
Increase (decrease) in equity | 650,196 | ||
Hyperinflationary economy adjustment effect | R$ 66788 | ||
Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Constitution of profit retention reserve | R$ 10540885 | 10,478,804 | |
Movement of stock option plans and restricted shares | 247,048 | R$ 76865 | |
Other comprehensive income [member] | |||
Disclosure of classes of share capital [line items] | |||
Reclassification of hyperinflationary economy adjustment effect | R$ 193261 |
INFORMATION ON SEGMENTS (Detail
INFORMATION ON SEGMENTS (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
INFORMATION ON SEGMENTS | |||||
Net revenue | R$ 36349623 | R$ 40164687 | R$ 36921980 | ||
Performance assessed by the company | 2,134,073 | 3,909,753 | 3,508,453 | ||
Depreciation and amortization | (2,591,854) | (2,791,523) | (2,718,856) | ||
Discontinued operations | (380,416) | (98,550) | (143,112) | ||
Finance income | 5,380,798 | 4,006,563 | 4,738,391 | ||
Finance expense | (7,281,659) | (5,033,540) | (5,773,810) | ||
Income tax | (119,568) | 1,047,986 | (274,744) | ||
Net income (loss) | (2,858,626) | 1,040,689 | (663,678) | ||
Natura &Co LATAM | |||||
INFORMATION ON SEGMENTS | |||||
Net revenue | 22,027,612 | 22,413,401 | 20,542,345 | ||
Performance assessed by the company | 1,912,609 | 2,595,653 | 2,369,517 | ||
Depreciation and amortization | (912,472) | (871,973) | (874,584) | ||
Discontinued operations | |||||
Finance income | 3,360,427 | 3,181,237 | 3,402,578 | ||
Finance expense | (4,772,694) | (3,881,418) | (3,891,641) | ||
Income tax | 98,712 | 165,137 | (428,191) | ||
Net income (loss) | (313,418) | 1,188,636 | 577,679 | ||
Avon International [member] | |||||
INFORMATION ON SEGMENTS | |||||
Net revenue | 7,196,044 | [1] | 9,329,325 | 9,097,375 | |
Performance assessed by the company | (74,733) | [1] | 272,655 | 315,477 | |
Depreciation and amortization | (683,845) | [1] | (830,931) | (814,678) | |
Discontinued operations | (380,416) | [1] | (98,550) | [1] | (143,112) |
Finance income | 765,176 | [1] | 421,123 | 979,267 | |
Finance expense | (1,431,754) | [1] | (894,318) | (1,442,216) | |
Income tax | (200,474) | [1] | 210,705 | (108,053) | |
Net income (loss) | (2,006,046) | [1] | (919,316) | [1] | (1,213,315) |
The Body Shop | |||||
INFORMATION ON SEGMENTS | |||||
Net revenue | 4,407,246 | [1] | 5,821,776 | 5,332,922 | |
Performance assessed by the company | 363,577 | [1] | 1,023,095 | 935,255 | |
Depreciation and amortization | (692,089) | [1] | (795,127) | (761,224) | |
Discontinued operations | [1] | [1] | |||
Finance income | 162,790 | [1] | 63,939 | 82,736 | |
Finance expense | (244,467) | [1] | (137,834) | (157,705) | |
Income tax | 39,254 | [1] | (158,973) | (66,626) | |
Net income (loss) | (370,935) | [1] | (4,900) | [1] | 32,436 |
Aesop [Member] | |||||
INFORMATION ON SEGMENTS | |||||
Net revenue | 2,718,721 | [1] | 2,600,185 | 1,949,338 | |
Performance assessed by the company | 536,657 | [1] | 622,944 | 606,543 | |
Depreciation and amortization | (303,408) | [1] | (293,492) | (268,092) | |
Discontinued operations | [1] | [1] | |||
Finance income | 89,298 | [1] | 30,380 | 23,152 | |
Finance expense | (123,405) | [1] | (75,372) | (72,056) | |
Income tax | (66,465) | [1] | (90,277) | (55,219) | |
Net income (loss) | 132,677 | [1] | 194,183 | [1] | 234,328 |
Corporate expenses [Member] | |||||
INFORMATION ON SEGMENTS | |||||
Net revenue | |||||
Performance assessed by the company | (604,037) | 604,594 | (718,339) | ||
Depreciation and amortization | (40) | (278) | |||
Discontinued operations | [1] | [1] | |||
Finance income | 1,003,107 | 309,884 | 250,658 | ||
Finance expense | (709,339) | (44,598) | (210,192) | ||
Income tax | 9,405 | 921,394 | 383,345 | ||
Net income (loss) | R$ 300904 | R$ 582086 | R$ 294806 | ||
[1]The operations of these segments located in Latin American countries (Latam) are presented in the Natura &Co Latam segment |
INFORMATION ON SEGMENTS - Summa
INFORMATION ON SEGMENTS - Summary of operating segments of assets and liabilities (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | |||
Non-current assets | R$ 38563863 | R$ 43060325 | |
Total assets | 54,685,390 | 60,448,490 | |
Current liabilities | 13,337,868 | 13,601,218 | |
Non-current liabilities | 18,996,338 | 18,280,547 | |
Natura &Co Latam [Member] | |||
Disclosure of operating segments [line items] | |||
Non-current assets | 18,256,204 | 18,060,879 | |
Total assets | 29,762,132 | 29,580,551 | |
Current liabilities | 8,363,130 | 7,369,891 | |
Non-current liabilities | 10,164,706 | 8,887,502 | |
Avon International [member] | |||
Disclosure of operating segments [line items] | |||
Non-current assets | [1] | 11,197,014 | 14,286,498 |
Total assets | [1] | 14,259,571 | 17,512,750 |
Current liabilities | [1] | 1,894,856 | 2,783,907 |
Non-current liabilities | [1] | 1,838,328 | 5,100,109 |
The Body Shop [Member] | |||
Disclosure of operating segments [line items] | |||
Non-current assets | [1] | 6,565,913 | 8,166,363 |
Total assets | [1] | 7,928,270 | 10,813,064 |
Current liabilities | [1] | 1,292,903 | 1,690,622 |
Non-current liabilities | [1] | 1,669,625 | 2,485,200 |
Aesop [Member] | |||
Disclosure of operating segments [line items] | |||
Non-current assets | [1] | 1,621,126 | 1,520,514 |
Total assets | [1] | 2,735,417 | 2,542,125 |
Current liabilities | [1] | 731,018 | 610,451 |
Non-current liabilities | [1] | 776,512 | 648,695 |
Corporate expenses [Member] | |||
Disclosure of operating segments [line items] | |||
Non-current assets | 923,606 | 1,026,071 | |
Total assets | |||
Current liabilities | 1,055,961 | 1,146,347 | |
Non-current liabilities | R$ 4547167 | R$ 1159041 | |
[1]The operations of these segments located in Latin American countries (Latam) are presented in the Natura &Co Latam segment |
INFORMATION ON SEGMENTS - Sum_2
INFORMATION ON SEGMENTS - Summary of revenue and assets by geographical area wise (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Net revenue | R$ 36349623 | R$ 40164687 | R$ 36921980 |
Non-current assets | 38,563,863 | 43,060,325 | |
Asia [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 3,443,454 | 3,719,131 | 2,929,063 |
Non-current assets | 1,284,783 | 1,216,942 | |
North America [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 5,708,847 | 6,227,104 | 5,120,953 |
Non-current assets | 6,261,545 | 6,459,026 | |
Mexico [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 3,570,990 | 3,879,033 | 3,205,609 |
Non-current assets | 3,631,768 | 3,640,644 | |
Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 2,137,858 | 2,348,070 | 1,915,344 |
Non-current assets | 2,629,777 | 2,818,382 | |
South America [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 17,513,597 | 17,436,131 | 16,484,363 |
Non-current assets | 14,508,816 | 14,312,260 | |
Brazil [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 11,280,690 | 10,481,869 | 11,113,810 |
Non-current assets | 12,656,298 | 12,015,037 | |
Argentina [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 3,003,214 | 2,973,638 | 1,999,461 |
Non-current assets | 694,172 | 1,036,205 | |
Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 3,229,693 | 3,980,624 | 3,371,092 |
Non-current assets | 1,158,346 | 1,261,018 | |
Europe [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 8,739,179 | 11,771,600 | 11,580,586 |
Non-current assets | 15,271,251 | 19,276,178 | |
United Kingdom [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 2,836,316 | 4,187,200 | 4,117,699 |
Non-current assets | 10,894,799 | 12,162,597 | |
Other [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 5,902,863 | 7,584,400 | 7,462,887 |
Non-current assets | 4,376,452 | 7,113,581 | |
Oceania [Member] | |||
Disclosure of geographical areas [line items] | |||
Net revenue | 944,546 | 1,010,721 | R$ 807015 |
Non-current assets | R$ 1237468 | R$ 1795919 |
INFORMATION ON SEGMENTS - Addit
INFORMATION ON SEGMENTS - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Customer | |
Major Customer [Member] | Foreign countries [member] | |
Disclosure of operating segments [line items] | |
Number of major customers | 0 |
Benchmark for major customer | 10% |
Natura &Co LATAM | |
Disclosure of operating segments [line items] | |
Percentage of entity's revenue | 60.60% |
Avon International [member] | |
Disclosure of operating segments [line items] | |
Percentage of entity's revenue | 19.80% |
The Body Shop | |
Disclosure of operating segments [line items] | |
Percentage of entity's revenue | 12.10% |
Aesop [member] | |
Disclosure of operating segments [line items] | |
Percentage of entity's revenue | 7.50% |
REVENUE - Summary of revenue by
REVENUE - Summary of revenue by Sales Channels Wise (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Gross revenue | R$ 47108702 | R$ 51642876 | R$ 47697618 |
Returns and cancellations | (636,642) | (644,693) | (617,140) |
Commercial discounts and rebates | (1,123,746) | (1,238,667) | (1,062,204) |
Taxes on sales | (8,998,691) | (9,594,829) | (9,096,294) |
Subtotal | (10,759,079) | (11,478,189) | (10,775,638) |
Total net revenue | 36,349,623 | 40,164,687 | 36,921,980 |
Direct Selling [member] | |||
Revenue: | |||
Gross revenue | 34,665,365 | 38,529,367 | 37,607,816 |
Retail [member] | |||
Revenue: | |||
Gross revenue | 6,049,381 | 6,231,776 | 3,959,008 |
Online [member] | |||
Revenue: | |||
Gross revenue | 3,129,568 | 3,412,849 | 3,061,239 |
Other sales [member] | |||
Revenue: | |||
Gross revenue | R$ 3264388 | R$ 3468884 | R$ 3069555 |
OPERATING EXPENSES AND COST O_3
OPERATING EXPENSES AND COST OF SALES - Summary of operating expenses and cost of sales classified by function and nature (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Classified by function | |||||
Cost of sales | R$ 13155019 | R$ 14097888 | R$ 13299720 | ||
Selling, marketing and logistics expenses | 15,554,569 | 16,912,862 | 15,632,782 | ||
Administrative, R&D, IT, and project expenses | 6,711,533 | 6,958,866 | 5,955,996 | ||
Total | 35,421,121 | 37,969,616 | 34,888,498 | ||
Classified by nature | |||||
Employee benefits expense (note 28) | 7,660,126 | 8,002,608 | 7,334,696 | ||
Restructuring expenses | [1] | 50,903 | |||
Depreciation and amortization | 2,591,854 | 2,791,523 | 2,718,856 | ||
Impairment | (308,464) | (304) | |||
Total | 35,421,121 | 37,969,616 | 34,888,498 | ||
Cost of sales [member] | |||||
Classified by nature | |||||
Raw material/packaging material/resale | [2] | 11,956,059 | 12,851,587 | 11,964,959 | |
Employee benefits expense (note 28) | 575,158 | 568,936 | 638,525 | ||
Depreciation and amortization | 175,156 | 254,476 | 215,355 | ||
Other | 448,646 | 422,889 | 480,881 | [2] | |
Reclassification related transfer between other expense by nature and raw material/packaging material/resale | 649,418 | ||||
Selling, marketing and logistics expenses [member] | |||||
Classified by nature | |||||
Logistics costs | 2,300,256 | 2,654,546 | 2,479,156 | ||
Employee benefits expense (note 28) | 4,182,428 | 4,547,391 | 4,198,147 | ||
Marketing, sales force and other selling expenses | 7,735,735 | 8,302,485 | 7,498,360 | ||
Depreciation and amortization | 1,295,880 | 1,405,423 | 1,301,657 | ||
Impairment | 40,270 | 3,017 | 155,462 | ||
Administrative, R&D, IT and project expenses [member] | |||||
Classified by nature | |||||
Innovation expenses | 273,430 | 223,472 | 270,256 | ||
Employee benefits expense (note 28) | 2,902,540 | 2,886,281 | 2,498,024 | ||
Restructuring expenses | 125,804 | ||||
Other administrative expenses | 2,288,941 | 2,717,489 | 1,985,872 | ||
Depreciation and amortization | R$ 1120818 | R$ 1131624 | R$ 1201844 | ||
[1] Refers to the expenses incurred to close the operations of the subsidiary The Body Shop in Russia, the main expenses being indemnities to employees and fines for termination of store lease agreement. |
EMPLOYEE BENEFITS - Summary of
EMPLOYEE BENEFITS - Summary of Employee Benefit Expense (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EMPLOYEE BENEFITS | |||
Payroll, profit sharing and bonuses | R$ 5746324 | R$ 5911837 | R$ 5407990 |
Pension Plan | 233,029 | 243,511 | 186,373 |
Share-based payments and charges on restricted shares | 123,931 | 228,131 | 231,962 |
Health care, food and other benefits | 704,449 | 712,983 | 684,992 |
Charges, taxes and social contributions | 642,850 | 701,521 | 635,248 |
INSS | 209,543 | 204,625 | 188,131 |
Total | R$ 7660126 | R$ 8002608 | R$ 7334696 |
EMPLOYEE BENEFITS - Summary o_2
EMPLOYEE BENEFITS - Summary of Number and Weighted Average Number of Shares (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2022 shares R$ / shares | |
Stock option plan and Strategy Acceleration Plan [Member] | |
Disclosure of Employee Benefits [Line Items] | |
Weighted average strike price per option, Balance | R$ / shares | R$ 21.05 |
Weighted average strike price per option, Granted | R$ / shares | 16.45 |
Weighted average strike price per option, Change from stock options to restricted shares | R$ / shares | 48.98 |
Weighted average strike price per option, Expired / Cancelled | R$ / shares | 27.22 |
Average exercise price per option, Exercised | R$ / shares | 11.98 |
Weighted average strike price per option, Balance | R$ / shares | R$ 18.92 |
Options, Balance | 20,137 |
Options, Granted | 1,710 |
Options, Change from stock options to restricted shares | (1,100) |
Options, Expired / Cancelled | (861) |
Options, Exercised | (226) |
Options, Balance | 19,660 |
Restricted Stocks [Member] | |
Disclosure of Employee Benefits [Line Items] | |
Shares, Balance | 5,494 |
Shares, Granted | 2,359 |
Shares, Change from stock options to restricted shares | 1,100 |
Shares, Expired/Canceled | (442) |
Shares, Exercised | (2,453) |
Shares, Balance | 6,058 |
Performance Shares [Member] | |
Disclosure of Employee Benefits [Line Items] | |
Shares, Balance | 8,045 |
Shares, Granted | 6,485 |
Shares, Change from stock options to restricted shares | |
Shares, Expired/Canceled | (1,902) |
Shares, Exercised | (573) |
Shares, Balance | 12,055 |
EMPLOYEE BENEFITS - Summary o_3
EMPLOYEE BENEFITS - Summary of Terms and Conditions of Share-based Payment Arrangement (Detail) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 shares R$ / shares | Dec. 31, 2021 shares | ||
Stock Options [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Existing options | shares | 19,660 | 20,137 | |
Exercisable options | shares | 9,792 | ||
Stock Options [Member] | March 16, 2015 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 16, 2015 | ||
Conditions for acquisition of right as of the grant date | 2 to 4 years of service | ||
Strike price | R$ 13.47 | ||
Existing options | shares | 104 | ||
Maximum remaining contractual life (years) | 2 months 12 days | ||
Exercisable options | shares | 104 | ||
Stock Options [Member] | July 28, 2015 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | July 28, 2015 (Acceleration strategy) | ||
Conditions for acquisition of right as of the grant date | 4 to 5 years of service | ||
Strike price | R$ 12.77 | ||
Existing options | shares | 495 | ||
Maximum remaining contractual life (years) | 7 months 6 days | ||
Exercisable options | shares | 495 | ||
Stock Options [Member] | March 15, 2016 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 15, 2016 | ||
Conditions for acquisition of right as of the grant date | 2 to 4 years of service | ||
Strike price | R$ 12.71 | ||
Existing options | shares | 93 | ||
Maximum remaining contractual life (years) | 1 year 2 months 12 days | ||
Exercisable options | shares | 93 | ||
Stock Options [Member] | July 11, 2016 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | July 11, 2016 (Acceleration strategy) | ||
Conditions for acquisition of right as of the grant date | 4 to 5 years of service | ||
Strike price | R$ 11.28 | ||
Existing options | shares | 1,540 | ||
Maximum remaining contractual life (years) | 1 year 6 months | ||
Exercisable options | shares | 1,540 | ||
Stock Options [Member] | March 10, 2017 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 10, 2017 | ||
Conditions for acquisition of right as of the grant date | 2 to 4 years of service | ||
Strike price | R$ 12.46 | ||
Existing options | shares | 376 | ||
Maximum remaining contractual life (years) | 2 years 2 months 12 days | ||
Exercisable options | shares | 376 | ||
Stock Options [Member] | March 10, 2017 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 10, 2017 (Acceleration Strategy) | ||
Conditions for acquisition of right as of the grant date | 4 to 5 years of service | ||
Strike price | R$ 12.46 | ||
Existing options | shares | 1,890 | ||
Maximum remaining contractual life (years) | 2 years 2 months 12 days | ||
Exercisable options | shares | 1,890 | ||
Stock Options [Member] | March 12, 2018 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 12, 2018 | ||
Conditions for acquisition of right as of the grant date | 2 to 4 years of service | ||
Strike price | R$ 16.83 | ||
Existing options | shares | 1,537 | ||
Maximum remaining contractual life (years) | 3 years 2 months 12 days | ||
Exercisable options | shares | 1,537 | ||
Stock Options [Member] | March 12, 2018 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 12, 2018 (Acceleration strategy) | ||
Conditions for acquisition of right as of the grant date | 3 to 5 years of service | ||
Existing options | shares | 3,800 | ||
Maximum remaining contractual life (years) | 3 years 2 months 12 days | ||
Exercisable options | shares | 2,850 | ||
Stock Options [Member] | April 12, 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | April 12, 2019 | ||
Conditions for acquisition of right as of the grant date | 2 to 4 years of service | ||
Strike price | R$ 23.41 | ||
Existing options | shares | 1,415 | ||
Maximum remaining contractual life (years) | 4 years 2 months 12 days | ||
Exercisable options | shares | 907 | ||
Stock Options [Member] | April 12, 2019 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | April 12, 2019 (Acceleration strategy) | ||
Conditions for acquisition of right as of the grant date | 4 to 5 years of service | ||
Strike price | R$ 23.41 | ||
Existing options | shares | 1,900 | ||
Maximum remaining contractual life (years) | 4 years 2 months 12 days | ||
Exercisable options | shares | |||
Stock Options [Member] | December 17, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | December 17, 2021 | ||
Conditions for acquisition of right as of the grant date | 3 to 4 years of service | ||
Strike price | R$ 27.28 | ||
Existing options | shares | 4,800 | ||
Maximum remaining contractual life (years) | 9 years | ||
Exercisable options | shares | |||
Stock Options [Member] | September 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | September 14, 2022 | ||
Conditions for acquisition of right as of the grant date | 3 to 4 years of service | ||
Strike price | R$ 16.45 | ||
Existing options | shares | 1,710 | ||
Maximum remaining contractual life (years) | 9 years 8 months 12 days | ||
Exercisable options | shares | |||
Stock Options [Member] | Bottom of range [member] | March 16, 2015 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 4.85 | ||
Stock Options [Member] | Bottom of range [member] | July 28, 2015 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.2 | ||
Stock Options [Member] | Bottom of range [member] | March 15, 2016 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 7.16 | ||
Stock Options [Member] | Bottom of range [member] | July 11, 2016 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.84 | ||
Stock Options [Member] | Bottom of range [member] | March 10, 2017 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.65 | ||
Stock Options [Member] | Bottom of range [member] | March 10, 2017 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.87 | ||
Stock Options [Member] | Bottom of range [member] | March 12, 2018 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 7.96 | ||
Stock Options [Member] | Bottom of range [member] | March 12, 2018 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Strike price | 12.04 | ||
Fair value at grant date | 8.21 | ||
Stock Options [Member] | Bottom of range [member] | April 12, 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 11.71 | ||
Stock Options [Member] | Bottom of range [member] | April 12, 2019 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 11.51 | ||
Stock Options [Member] | Bottom of range [member] | December 17, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 13.85 | ||
Stock Options [Member] | Bottom of range [member] | September 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 8.39 | ||
Stock Options [Member] | Top of range [member] | March 16, 2015 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 5.29 | ||
Stock Options [Member] | Top of range [member] | July 28, 2015 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.23 | ||
Stock Options [Member] | Top of range [member] | March 15, 2016 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 7.43 | ||
Stock Options [Member] | Top of range [member] | July 11, 2016 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.89 | ||
Stock Options [Member] | Top of range [member] | March 10, 2017 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.68 | ||
Stock Options [Member] | Top of range [member] | March 10, 2017 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 6.89 | ||
Stock Options [Member] | Top of range [member] | March 12, 2018 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 8.21 | ||
Stock Options [Member] | Top of range [member] | March 12, 2018 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Strike price | 16.83 | ||
Fair value at grant date | 9.67 | ||
Stock Options [Member] | Top of range [member] | April 12, 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 11.82 | ||
Stock Options [Member] | Top of range [member] | April 12, 2019 (Strategy acceleration) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 11.71 | ||
Stock Options [Member] | Top of range [member] | December 17, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 18.16 | ||
Stock Options [Member] | Top of range [member] | September 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 10.32 | ||
Restricted Stocks [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Existing shares | shares | 6,058 | 5,494 | |
Restricted Stocks [Member] | April 12, 2019 – Plan I | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | April 12, 2019 – Plan I | ||
Conditions for acquisition of right as of the grant date | 2 to 4 years of service | ||
Existing shares | shares | 269 | ||
Maximum remaining contractual life (years) | 2 months 12 days | ||
Restricted Stocks [Member] | March 27, 2020 - Co-Investment Plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 27, 2020 – Co-Investment Plan | ||
Conditions for acquisition of right as of the grant date | 1 to 3 years of service | ||
Existing shares | shares | 621 | ||
Fair value at grant date | R$ 29 | ||
Maximum remaining contractual life (years) | 3 months 18 days | ||
Restricted Stocks [Member] | March 31, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 31, 2021 | ||
Conditions for acquisition of right as of the grant date | 1 to 3 years of service | ||
Existing shares | shares | 1,936 | ||
Fair value at grant date | R$ 48.13 | ||
Maximum remaining contractual life (years) | 1 year 3 months 18 days | ||
Restricted Stocks [Member] | April 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | April 14, 2022 | ||
Conditions for acquisition of right as of the grant date | 1 to 3 years of service | ||
Existing shares | shares | 2,132 | ||
Maximum remaining contractual life (years) | 2 years 3 months 18 days | ||
Restricted Stocks [Member] | March 31, 2021 (as modified in September 2022) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | [1] | March 31, 2021 (as modified in September 2022) | |
Conditions for acquisition of right as of the grant date | 4 to 5 years of service | ||
Existing shares | shares | 1,100 | ||
Maximum remaining contractual life (years) | 3 years 3 months 18 days | ||
Restricted Stocks [Member] | Bottom of range [member] | April 12, 2019 – Plan I | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 21.62 | ||
Restricted Stocks [Member] | Bottom of range [member] | April 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 24.91 | ||
Restricted Stocks [Member] | Bottom of range [member] | March 31, 2021 (as modified in September 2022) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 7.41 | ||
Restricted Stocks [Member] | Top of range [member] | April 12, 2019 – Plan I | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 22.53 | ||
Restricted Stocks [Member] | Top of range [member] | April 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | 24.99 | ||
Restricted Stocks [Member] | Top of range [member] | March 31, 2021 (as modified in September 2022) | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 24.77 | ||
Performance Shares [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Existing shares | shares | 12,055 | 8,045 | |
Performance Shares [Member] | September 30, 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | September 30, 2020 | ||
Conditions for acquisition of right as of the grant date | Achievement of performance conditions, 2.5 years of service plus an additional holding period of 1 year for certain awards. | ||
Existing shares | shares | 3,725 | ||
Performance Shares [Member] | March 31, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | March 31, 2021 | ||
Conditions for acquisition of right as of the grant date | Achievement of performance conditions, 3 years of service plus an additional holding period of 1 year for certain awards. | ||
Existing shares | shares | 2,735 | ||
Performance Shares [Member] | April 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | April 14, 2022 | ||
Conditions for acquisition of right as of the grant date | Achievement of performance conditions, 3 years of service plus an additional holding period of 1 year for certain awards. | ||
Existing shares | shares | 5,595 | ||
Performance Shares [Member] | Bottom of range [member] | September 30, 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 48.56 | ||
Maximum remaining contractual life (years) | 3 months 18 days | ||
Performance Shares [Member] | Bottom of range [member] | March 31, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 46.57 | ||
Maximum remaining contractual life (years) | 1 year 3 months 18 days | ||
Performance Shares [Member] | Bottom of range [member] | April 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 18.66 | ||
Maximum remaining contractual life (years) | 2 years 3 months 18 days | ||
Performance Shares [Member] | Top of range [member] | September 30, 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 73.46 | ||
Maximum remaining contractual life (years) | 1 year 3 months 18 days | ||
Performance Shares [Member] | Top of range [member] | March 31, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 50.98 | ||
Maximum remaining contractual life (years) | 2 years 3 months 18 days | ||
Performance Shares [Member] | Top of range [member] | April 14, 2022 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value at grant date | R$ 24.99 | ||
Maximum remaining contractual life (years) | 3 years 3 months 18 days | ||
[1]The original grant of March 31, 2021 was stock options, but became a restricted share award as a result of the September 2022 amendment. |
EMPLOYEE BENEFITS - Summary o_4
EMPLOYEE BENEFITS - Summary of Measurement Inputs for Fair Value of Shares (Detail) - 12 months ended Dec. 31, 2022 | yr $ / shares | yr R$ / shares |
B3 shares | ||
Disclosure Of Measurement Inputs For Fair Value Of Shares [line items] | ||
Share price (also used as strike price on Finnerty) | R$ / shares | R$ 25 | |
Strike price | R$ / shares | R$ 0.01 | |
Expected dividend yield | 0% | 0% |
B3 shares | Bottom of range [member] | ||
Disclosure Of Measurement Inputs For Fair Value Of Shares [line items] | ||
Expected volatility | 42.09% | 42.09% |
Expected term | 1 | 1 |
Risk-free interest rate | 12.30% | 12.30% |
B3 shares | Top of range [member] | ||
Disclosure Of Measurement Inputs For Fair Value Of Shares [line items] | ||
Expected volatility | 50.39% | 50.39% |
Expected term | 3 | 3 |
Risk-free interest rate | 13.27% | 13.27% |
ADRs | ||
Disclosure Of Measurement Inputs For Fair Value Of Shares [line items] | ||
Share price (also used as strike price on Finnerty) | $ / shares | $ 10.6 | |
Strike price | $ / shares | $ 0.00424 | |
Expected dividend yield | 0% | 0% |
ADRs | Bottom of range [member] | ||
Disclosure Of Measurement Inputs For Fair Value Of Shares [line items] | ||
Expected volatility | 49.07% | 49.07% |
Expected term | 1 | 1 |
Risk-free interest rate | 1.69% | 1.69% |
ADRs | Top of range [member] | ||
Disclosure Of Measurement Inputs For Fair Value Of Shares [line items] | ||
Expected volatility | 57.72% | 57.72% |
Expected term | 3 | 3 |
Risk-free interest rate | 2.73% | 2.73% |
EMPLOYEE BENEFITS - Additional
EMPLOYEE BENEFITS - Additional Information (Detail) R$ / shares in Units, R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 BRL (R$) Installment R$ / shares | Dec. 31, 2021 BRL (R$) R$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share based compensation expense | R$ 123938 | R$ 228133 |
Share Price | R$ / shares | R$ 11.61 | R$ 25.43 |
Parent company | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share based compensation expense | R$ 8249 | R$ 74734 |
Matching Awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Stock split, conversion ratio | 1 | |
Number of instalments | Installment | 3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Period | 3 years |
EMPLOYEE BENEFITS - Avon Produc
EMPLOYEE BENEFITS - Avon Products Inc. plans - Additional Information (Detail) - Avon Products, Inc - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Threshold period of contribution to meet indefinite beneficiary criteria in medical plan | 10 years | |
Period of benefit for each year of fixed contribution in medical plan | 1 year | |
Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Period of contribution to meet definite beneficiary criteria in medical plan | 10 years | |
UNITED KINGDOM | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Matching contributions made by entity | R$ 33915 | R$ 45155 |
Personal Savings Account Plan (PSA) | UNITED STATES | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Matching contributions made by entity | R$ 4174 | R$ 5188 |
Maximum Percentage of Eligible Compensation by Eligible Participants | 25% | |
Personal Savings Account Plan (PSA) | UNITED STATES | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of eligible compensation for each dollar contributed for fifty cents | 4% | |
Personal Savings Account Plan (PSA) | UNITED STATES | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of eligible compensation for each dollar contributed for dollar | 3% | |
Percentage of eligible compensation for each dollar contributed for fifty cents | 6% | |
Retirement Savings Account ("RSA") | UNITED STATES | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Period | 3 years | |
Retirement Savings Account ("RSA") | UNITED STATES | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of eligible compensation for each dollar contributed for fifty cents | 3% | |
Retirement Savings Account ("RSA") | UNITED STATES | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of eligible compensation for each dollar contributed for fifty cents | 6% | |
Performance Restricted Stock Units (PRSU) | UNITED KINGDOM | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of eligible compensation for employer contributions | 5% | |
Performance Restricted Stock Units (PRSU) | UNITED KINGDOM | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of eligible compensation for employer contributions | 10% |
FINANCE INCOME (EXPENSES)_ - Su
FINANCE INCOME (EXPENSES) - Summary of Detailed Information About Financial Income Expense (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
FINANCIAL INCOME: | |||
Interest on short-term investments | R$ 537289 | R$ 264764 | R$ 167967 |
Gains on monetary and exchange rate variations | 2,643,894 | 1,785,259 | 1,752,503 |
Gains on swap and forward transactions | 1,977,465 | 1,814,450 | 2,532,487 |
Gains on swap and forward derivatives mark to market | 33,569 | 20,929 | 12,314 |
Inflation adjustment reversal on provision for tax risks and tax liabilities | 42,378 | ||
Hyperinflationary economy adjustment | 139,503 | 82,202 | 39,292 |
Debt structuring revenue for acquisition of Avon | 95,145 | ||
Other finance income | 49,078 | 38,959 | 96,305 |
Total finance income | 5,380,798 | 4,006,563 | 4,738,391 |
FINANCIAL EXPENSES: | |||
Interest on financing | (744,607) | (634,201) | (709,323) |
Interest on leases | (200,246) | (210,669) | (229,544) |
Losses from monetary and exchange rate variations | (2,551,486) | (2,075,306) | (2,671,372) |
Losses on swap and forward transactions | (2,942,045) | (1,533,611) | (1,579,695) |
Losses on swap and forward derivatives mark to market | (61,802) | (26,214) | (13,691) |
Monetary adjustment of provision for tax, civil and labor risks and tax liabilities | (79,280) | (25,731) | (47,928) |
Appropriation of funding costs (debentures and notes) | (18,096) | (27,228) | (11,082) |
Interest on pension plan | (2,468) | (11,339) | (10,323) |
Hyperinflationary economy adjustment | (327,115) | (108,730) | (20,625) |
Debt structuring expenses for Avon acquisition | (110,741) | ||
Other finance expenses | (354,514) | (380,511) | (369,486) |
Total finance expenses | (7,281,659) | (5,033,540) | (5,773,810) |
Net finance income (expenses), net | R$ 1900861 | R$ 1026977 | R$ 1035419 |
FINANCE INCOME (EXPENSES)_ - _2
FINANCE INCOME (EXPENSES) - Summary of net of financial expense based on the nature of the related transactions (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
FINANCE INCOME (EXPENSES) | |||
Finance expenses (debt interest) | R$ 744607 | R$ 634201 | R$ 709323 |
Financial short-term investments and others income | 537,289 | 264,764 | 167,967 |
Exchange variations on financial activities, net | 394,389 | (252,190) | (950,369) |
Gains (losses) with derivatives on exchange rate variations on financial activities, net | (383,178) | 257,964 | 940,308 |
Gains (losses) on derivatives on interest payments and other financial activities, net | (609,635) | 17,590 | 28,971 |
Monetary adjustment of provision for tax, civil and labor risks and tax liabilities | (79,280) | (25,731) | (5,550) |
Leases expenses | (200,246) | (210,669) | (229,544) |
Hyperinflationary economy adjustment | (187,612) | (26,528) | 18,667 |
Other finance expenses | (326,000) | (380,119) | (310,182) |
Other gains (losses) from exchange rate variation on operating activities | (301,981) | (37,857) | 13,636 |
Net finance income (expenses), net | R$ 1900861 | R$ 1026977 | R$ 1035419 |
OTHER OPERATING EXPENSES, NET_2
OTHER OPERATING EXPENSES, NET (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Others operating income, net | ||||||
Result on write-off of property, plant and equipment | R$ 11855 | |||||
ICMS-ST | [1] | 18,653 | ||||
Tax credits | 71,720 | [2] | 215,085 | [2] | 105,234 | |
Tax benefit from amnesty program | [3] | 102,469 | 82,140 | |||
Revenue from the sale of the customer portfolio | 11,874 | 16,113 | ||||
Revenue with royalties | [4] | 119,438 | ||||
Other operating income | 2,318 | 30,214 | 10,757 | |||
Total Other operating income | 307,819 | 343,552 | 146,499 | |||
Other operating expenses, net | ||||||
Result on write-off of property, plant and equipment | (3,610) | |||||
Crer para Ver | [5] | (54,062) | (47,523) | (54,500) | ||
Expenses related Avon acquisition | (303,916) | |||||
Impairment | [6] | (340,385) | ||||
Transformation and integration plan | [7] | (482,346) | (511,048) | (256,700) | ||
Restructuring expenses | [8] | (50,903) | ||||
Other operating expenses | (160,411) | (20,390) | (47,573) | |||
Total other operating expenses | (1,088,107) | (582,571) | (662,689) | |||
Other operating expenses, net | R$ 780288 | R$ 239019 | R$ 516190 | |||
[1] Refers to the requirement of ICMS tax substitution, for different Federal States of Brazil (details in note 22). During 2020, provision reversals were made due to the change in the loss estimate for some Federal States. Refers to tax credits from PIS and COFINS. During 2021 Refers to tax benefits in Brazil arising from the adhesion to state tax amnesty programs by the subsidiaries Natura Cosméticos S.A. and Avon Cosméticos Ltda . Refers to royalties received by the subsidiary Avon from its representative in Japan, after a judicial dispute as mentioned in note 22 Refers to appropriation of operating profit obtained on the sales of the non-cosmetic product line called "Crer Para " to , specifically earmarked for social projects aimed at developing the quality of education. From the total amount, R$ 282,921 refers to the impairment of goodwill generated on Avon’s acquisition (please see note 17 balance refers to impairment of other projects and stores. Expenses related to the implementation of the integration plan between Natura and Avon brands, which is mainly supported by the operations and logistics , structure reorganization, credit and collection review and commercial model optimizations. Refers to the expenses incurred to close the operations of the subsidiary The Body Shop in Russia, the main expenses being indemnities to employees and fines for termination of store lease agreement. |
OTHER OPERATING EXPENSES, NET -
OTHER OPERATING EXPENSES, NET - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER OPERATING EXPENSES, NET | ||
Exclusion of ICMS from PIS/COFINS base | R$ 104650 | |
Tax credits from investment grant | 96,767 | |
Other tax credits | R$ 2277 | |
Goodwill Avon [member] | ||
OTHER OPERATING EXPENSES, NET | ||
Impairment of goodwill | R$ 282921 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Basic Earnings Per Share (Detail) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS PER SHARE | |||
(Loss) net income attributable to the Company’s controlling shareholders | R$ 2859629 | R$ 1047960 | R$ 650196 |
Weighted average of the number of issued common shares | 1,381,594,182 | 1,377,932,809 | |
Weighted average treasury shares | (9,613,311) | (788,866) | |
Weighted average of the number of outstanding common shares | 1,371,980,871 | 1,377,143,943 | |
Basic (loss) earnings per share – R$ | R$ 2.0843 | R$ 0.761 |
EARNINGS PER SHARE - Summary _2
EARNINGS PER SHARE - Summary of Diluted Earnings Per Share (Detail) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS PER SHARE | |||
Gain attributable to the Company’s controlling shareholders | R$ 2859629 | R$ 1047960 | R$ 650196 |
Weighted average of the number of issued common shares | 1,371,980,871 | 1,377,143,943 | |
Weighted average number of treasury shares | 19,531,951 | ||
Weighted average of the number of outstanding common shares | 1,396,675,894 | ||
Diluted earnings per share - R$ | R$ 0.7503 |
EARNINGS PER SHARE - Summary _3
EARNINGS PER SHARE - Summary of basic and diluted loss per share for net loss of discontinued operations (Detail) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS PER SHARE | |||
Loss attributable to the Company’s controlling shareholders | R$ 380416 | R$ 98550 | R$ 143112 |
Weighted average of the number of issued common shares | 1,381,594,182 | 1,377,932,809 | |
Adjustment for stock options and restricted shares | (9,613,311) | (788,866) | |
Weighted average of the number of ordinary shares | 1,371,980,871 | 1,377,143,943 | |
Basic loss per share - R$ | R$ 0.2773 | R$ 0.0716 |
TRANSACTIONS WITH RELATED PAR_3
TRANSACTIONS WITH RELATED PARTIES - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Instituto Natura [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Donations associated with sale | R$ 55000 | R$ 35000 |
Right-of-use assets [member] | Buildings [member] | Bresco IX [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Purchases of property and other assets related party transaction | 46,608 | |
Lease paid | 6,201 | |
Right-of-use assets [member] | Buildings [member] | Bresco Logística Fundo de Investimento Imobiliário [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Purchases of property and other assets related party transaction | 4,996 | 5,840 |
Lease paid | 2,152 | 1,488 |
Fundo de Investimento Essencial [Member] | Instituto Natura [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Investments | 6,805 | 3,835 |
Indústria e Comércio de Cosméticos Natura Ltda [member] | Right-of-use assets [member] | Buildings [member] | Bres Itupeva Empreendimentos Imobiliários Ltda. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Purchases of property and other assets related party transaction | 63,665 | 60,998 |
Lease paid | R$ 15680 | R$ 14094 |
TRANSACTIONS WITH RELATED PAR_4
TRANSACTIONS WITH RELATED PARTIES - Summary of Total Compensation of the Company's Key Management Personnel (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Fixed | R$ 47655 | R$ 66619 | R$ 65310 |
Variable | 197,026 | 143,349 | 145,229 |
Total | 244,681 | 209,968 | 210,539 |
Board of Directors [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Fixed | 13,252 | 15,043 | 16,123 |
Variable | 146,603 | 72,187 | 65,011 |
Total | 159,855 | 87,230 | 81,134 |
Executive Board [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Fixed | 34,403 | 51,576 | 49,187 |
Variable | 50,423 | 71,162 | 80,218 |
Total | R$ 84826 | R$ 122738 | R$ 129405 |
COMMITMENTS - Summary of Contra
COMMITMENTS - Summary of Contractual Commitments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Contractual commitments disclosure [line items] | ||
Total | R$ 1323032 | R$ 1400107 |
Less than one year [member] | ||
Contractual commitments disclosure [line items] | ||
Total | 614,075 | 929,288 |
One to five years [member] | ||
Contractual commitments disclosure [line items] | ||
Total | 659,626 | 460,081 |
Over five years [member] | ||
Contractual commitments disclosure [line items] | ||
Total | R$ 49331 | R$ 10738 |
INSURANCE - Summary of Types of
INSURANCE - Summary of Types of Insurance Coverage (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Industrial complex and administrative sites [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | Any damages to buildings, facilities, inventories, and machinery and equipment | |
Amount insured | R$ 4924868 | R$ 6008031 |
Vehicles [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | Fire, theft and collision for the vehicles insured by the Company | |
Amount insured | R$ 221523 | 261,953 |
Loss of profits [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | No loss of profits due to material damages to facilities buildings and production machinery and equipment | |
Amount insured | R$ 2056000 | 1,962,509 |
Transport [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | Damages to products in transit | |
Amount insured | R$ 97308 | 103,857 |
Civil liability [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | Protection against error or complaints in the exercise of professional activity that affect third parties | |
Amount insured | R$ 1991888 | 2,445,664 |
Environmental liability [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | Protection against environmental accidents that may result in environmental lawsuits | |
Amount insured | R$ 30000 | R$ 30000 |
ADDITIONAL INFORMATION RELATI_3
ADDITIONAL INFORMATION RELATING TO THE STATEMENTS OF CASH FLOWS - Summary of additional information on transactions related to the cash flow statement (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-cash items | |||
Hedge accounting, net of tax effects | R$ 520444 | R$ 137211 | R$ 116348 |
Dividends declared and not yet paid | 180,772 | ||
Dividends receivable declared and not yet received | |||
Stock and restricted share option plans | 138,122 | 102,508 | |
Net effect of acquisition of property, plant and equipment and intangible assets not yet paid | 28,472 | 81,257 | 172,104 |
Application of judicial deposits in the settlement of legal proceedings | 121,025 | 13,645 | |
Consideration for acquisition of subsidiary | R$ 13366114 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) $ in Billions | Apr. 03, 2023 USD ($) |
Disposal of major subsidiary [member] | Natura Cosmticos SA [Member] | L’Oréal Group [Member] | Natura Brazil Pty Ltd. [Member] | |
Subsequent Event | |
Disposal date fair value of total consideration received | $ 2,525 |