Post-Pandemic Struggles Lead to Potential Sale of Cosmetics Giant
- Natura and Co considering selling The Body Shop
- Six consecutive quarters of losses
- Acquired by Natura from L’Oreal in 2017 for £857m
- Valued at £405m now
- JP Morgan analysts predict sale as most likely outcome
- Natura sold Aesop brand to L’Oréal for £2bn in April
Brazilian cosmetics company Natura and Co is considering selling its subsidiary, The Body Shop, following six consecutive quarters of losses. Natura acquired the brand from L’Oreal in 2017 for £857m but now values it at £405m. JP Morgan analysts predict a sale as the most likely outcome. This comes after Natura sold its Aesop brand to L’Oréal for £2bn in April. The company aims to return to profitability through discipline and deleveraging.
Factuality Level: 8
Factuality Justification: The article provides relevant information about the potential sale of The Body Shop by Natura and Co due to its poor performance, mentions the acquisition history, and includes expert analysis from JP Morgan. However, it lacks personal opinions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about the potential sale of The Body Shop by Natura and Co due to its poor performance and explores possible outcomes. It also mentions the company’s previous actions to return to profitability. However, it lacks in-depth analysis or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: The potential sale of The Body Shop may impact the stock prices of Natura and Co, L’Oréal, and other companies in the cosmetics industry.
Financial Rating Justification: This article discusses a significant event involving two major players in the cosmetics industry – Natura and Co and L’Oreal – considering selling one of its businesses (The Body Shop) due to poor performance. This can potentially impact their stock prices and the overall market for cosmetic companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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