Brazilian cosmetics giant Natura & Co. is considering plans to file for an initial public offering (IPO) in the U.S. market or possibly spin off its Aesop business to fund its expansion efforts.
“The IPO has been assessed over the last months as an alternative to fund the accelerated growth of Aesop, and Natura & Co’s management has been taking the necessary steps to pursue such an alternative,” said CEO Michael O’Keeffe, who is expected to continue to lead the company if it goes public.
The announcement comes just weeks after the company denied rumors that it would spin off Aesop or sell the Body Shop following disappointing quarterly results.
In its last quarterly results, the company reported wider-than-expected losses with a tight labor market and inflation shaving off its profit margins, Reuters reported.
Natura noted that it is time to hold its various business units accountable for their performance after years of making several major acquisitions.
In addition to the company’s struggles with navigating macroeconomic challenges, it has reportedly been a year of change for its executive ranks. In June 2022, the company went through a corporate shake-up when Roberto Marques, the company’s executive chairman and chief executive, decided to step down from his position, leaving board member Fabio Barbosa in charge.
