NATURA - THE BODY SHOP
Sizing up the value chains, seeing where things can be sleeker, bigger, and more efficient.
Natura's stocks (NTCO3) have plummeted by a whopping 74% over the past two years (since July 2021), sparking loads of talk about the company's moves involving mergers, acquisitions, and the like, all of which have been officially disclosed.
A company shedding three-quarters of its value in just two years? That's a company feeling the heat from investors who aren't thrilled with the strategies and choices made by the Board of Directors and top brass.
Just recently, Natura floated the idea that they might just "sell off" their chain of The Body Shop stores. This whole "letting go of stuff" strategy is part of a bigger plan to fine-tune their business setup, all in the name of boosting their overall value.
And if this sale actually happens, it won't be their first go at the whole merger and acquisition gig this year. Back in April, Natura parted ways with its shares in the Australian company Aesop, handing them over to L’Oreal for a cool $2.5 billion.
As per the market grapevine, Natura's big shots have given the green light to their management team to "explore fancy options for The Body Shop, like maybe selling the whole thing."
Remember when Natura picked up The Body Shop back in 2017, forking out a billion euros to L'Oreal? Yeah, it happened. It was a major move in their global expansion strategy.
Ever since, Natura's been running this three-brand show: Natura, The Body Shop, and Aesop, all doing their own thing, yet somehow coexisting under one roof.
Rumor has it that these acquisitions might have thrown a wrench in Natura's financial mojo. What's possibly to blame? Stuff like:
1. Not quite hitting the teamwork sweet spot among the three brands and their production hubs. 2. Piling on more suits in the office than maybe they should have. 3. Dropping the ball on their production game. 4. Having too many products from these three brands scrapping it out, cannibalizing each other's market share and value. 5. Trying to dance in the retail space without quite nailing the steps, and it's costing them a pretty penny.
Terus, in its wisdom, rolls up its sleeves and digs deep into its clients' operations before they even think about shaking hands and making deals. They're all about sizing up the value chains, seeing where things can be sleeker, bigger, and more efficient. They've had their moments when they said "nah" to mergers because they could see it was just going to be a wrestling match in the same old ring.
Thinking of evaluating an M&A or divestment? Talk to Terus in Brazil right now: contato@terusconsultoria.com.br / +55 011 2503-6747 / Corporate WhatsApp +55 011 91567-0560.
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