Cover page
Cover page | 6 Months Ended |
Jun. 30, 2020 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2020 |
Entity Registrant Name | Natura &Co Holding S.A. |
Entity Central Index Key | 0001776967 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2020 |
Entity File Number | 001-39169 |
Consolidated Balance Sheet
Consolidated Balance Sheet - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT | ||
Cash and cash equivalents | R$ 4820116 | R$ 4513582 |
Short-term investments | 2,570,204 | 1,025,845 |
Trade receivables | 2,644,601 | 1,685,764 |
Inventories | 4,481,347 | 1,430,550 |
Recoverable taxes | 1,045,201 | 395,640 |
Income tax and social contribution | 328,974 | 113,478 |
Derivative financial instruments | 179,302 | 0 |
Assets available for sale | 195,557 | 0 |
Other current assets | 799,222 | 265,198 |
Current assets | 17,064,524 | 9,430,057 |
NON-CURRENT | ||
Recoverable taxes | 893,406 | 409,214 |
Income tax and social contribution | 333,983 | 334,671 |
Deferred income tax and social contribution | 975,892 | 374,448 |
Judicial deposits | 600,340 | 337,255 |
Derivative financial instruments | 2,019,871 | 737,378 |
Short-term investments | 11,326 | 7,402 |
Other non-current assets | 1,601,593 | 83,836 |
Property, plant and equipment | 5,350,765 | 1,773,889 |
Intangible assets | 28,431,249 | 5,076,501 |
Right of use | 3,809,973 | 2,619,861 |
Total non-current assets | 44,028,398 | 11,754,455 |
TOTAL ASSETS | 61,092,922 | 21,184,512 |
CURRENT LIABILITIES | ||
Borrowings, financing and debentures | 2,631,068 | 3,354,355 |
Lease | 1,081,059 | 542,088 |
Trade payables and reverse factoring | 5,709,969 | 1,829,756 |
Payroll, profit sharing and social charges | 1,111,576 | 560,376 |
Tax liabilities | 614,839 | 320,890 |
Income tax and social contribution | 189,748 | 388,238 |
Dividends and interest on equity payable | 0 | 95,873 |
Derivative financial instruments | 75,247 | 11,806 |
Provision for tax, civil and labor risks | 127,825 | 18,650 |
Other current liabilities | 1,322,558 | 396,391 |
Current liabilities | 12,863,889 | 7,518,423 |
NON-CURRENT LIABILITIES | ||
Borrowings, financing and debentures | 18,035,031 | 7,432,019 |
Lease | 3,026,116 | 1,975,477 |
Payroll, profit sharing and social charges | 20,904 | 0 |
Tax liabilities | 108,808 | 122,569 |
Deferred income tax and social contribution | 1,413,471 | 450,561 |
Provision for tax, civil and labor risks | 1,185,943 | 201,416 |
Other non-current liabilities | 1,165,297 | 121,702 |
Non-current liabilities | 24,955,570 | 10,303,744 |
Total liabilities | 37,819,459 | 17,822,167 |
SHAREHOLDERS' EQUITY | ||
Capital stock | 6,917,037 | 1,485,436 |
Treasury shares | (13,955) | 0 |
Capital reserves | 10,945,096 | 1,210,924 |
Legal profit reserve | 2,364 | (149,020) |
Retained losses | (1,209,296) | 0 |
Other comprehensive income | 6,604,359 | 815,005 |
Shareholders' equity attributed to the Company's controlling shareholders | 23,245,605 | 3,362,345 |
Non-controlling interest in shareholders' shareholders' equity of subsidiaries | 27,858 | 0 |
Total shareholders' equity | 23,273,463 | 3,362,345 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | R$ 61092922 | R$ 21184512 |
Consolidated Statement of Incom
Consolidated Statement of Income - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Profit (loss) [abstract] | ||||
Net revenue | R$ 6987180 | R$ 3403709 | R$ 14505174 | R$ 6318859 |
Cost of sales | (2,375,507) | (964,555) | (5,254,229) | (1,773,727) |
GROSS PROFIT | 4,611,673 | 2,439,154 | 9,250,945 | 4,545,132 |
OPERATING (EXPENSES) INCOME | ||||
Selling, Marketing and Logistics expenses | (3,171,808) | (1,552,309) | (6,448,997) | (2,875,375) |
Administrative, research and development, technology and other project expenses | (1,337,544) | (567,221) | (2,603,635) | (1,104,252) |
Impairment loss on trade receivables | (228,964) | (42,609) | (452,946) | (118,037) |
Other operating income (expenses), net | 74,676 | 8,087 | (277,874) | 22,332 |
OPERATING (LOSS) PROFIT BEFORE FINANCIAL RESULT | (51,967) | 285,102 | (532,507) | 469,800 |
Financial income | 665,538 | 414,057 | 2,225,722 | 792,159 |
Financial expenses | (934,079) | (618,459) | (2,721,858) | (1,161,816) |
NET INCOME (LOSS) BEFORE INCOME TAX AND SOCIAL CONTRIBUTION | (320,508) | 80,700 | (1,028,643) | 100,143 |
Income tax and social contribution | (44,853) | (24,777) | (139,656) | (30,746) |
NET OF DISCONTINUED OPERATIONS | (26,722) | 0 | (48,723) | 0 |
NET (LOSS) INCOME FOR THE PERIOD | (392,083) | 55,923 | (1,217,022) | 69,397 |
ATTRIBUTABLE TO | ||||
The Company´s shareholders | (388,499) | 55,923 | (1,209,296) | 69,397 |
Non-controlling shareholders | (3,584) | 0 | (7,726) | 0 |
NET (LOSS) INCOME FOR THE PERIOD | R$ 392083 | R$ 55923 | R$ 1217022 | R$ 69397 |
(LOSS) EARNINGS PER SHARE IN THE PERIOD -R$ | ||||
Basic | R$ 0.3211 | R$ 0.0649 | R$ 1.0190 | R$ 0.0804 |
Diluted | R$ 0.3211 | R$ 0.0645 | R$ 1.0190 | R$ 0.0800 |
Consolidated Statement of Other
Consolidated Statement of Other Comprehensive Income - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of comprehensive income [abstract] | ||||
NET INCOME (LOSS) FOR THE PERIOD | R$ 392083 | R$ 55923 | R$ 1217022 | R$ 69397 |
Other comprehensive income to be reclassified into income of the period in subsequent periods: | ||||
Earnings (loss) in the conversion of interim financial statements of controlled companies abroad | 1,299,477 | (208,714) | 5,648,515 | (147,351) |
Effect of translation of subsidiary in hyperinflationary economy | 104 | (584) | (4,247) | 393 |
Gain (loss) from cash flow hedge operations | (19,728) | 70,475 | 228,956 | 159,698 |
Tax effects on gain (loss) from cash flow hedge operations | 7,960 | (22,773) | (75,842) | (53,701) |
Total other comprehensive income for the period | 895,730 | (105,673) | 4,580,360 | 28,436 |
ATTRIBUTABLE TO | ||||
The Company´s shareholders | 891,285 | (105,673) | 4,580,057 | 28,436 |
Noncontrolling shareholders | 4,445 | 0 | 303 | 0 |
Total other comprehensive income for the period | R$ 895730 | R$ 105673 | R$ 4580360 | R$ 28436 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - BRL (R$) R$ in Thousands | Total | Capital stock | 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 | Legal [member] | Tax incentive [member] | Retained earnings [member] | Retained (losses) earnings | Other comprehensive income | Shareholders' equity attributed to controlling shareholders | Non-Controlling Shareholders |
Beginning balance at Dec. 31, 2018 | R$ 2574102 | R$ 427073 | R$ 19408 | R$ 72216 | R$ 0 | R$ 257114 | R$ 92066 | R$ 18650 | R$ 82072 | R$ 1336293 | R$ 0 | R$ 492158 | R$ 2574102 | R$ 0 |
Net income for the year | 69,397 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 69,397 | 0 | 69,397 | 0 |
Exchange rate effect on the conversion from hyperinflationary economy | 393 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 393 | 393 | 0 |
Other comprehensive income | (41,354) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (41,354) | (41,354) | 0 |
Total other comprehensive income for the period | 28,436 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 69,397 | (40,961) | 28,436 | 0 |
Capital increase | 24,242 | 24,242 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24,242 | 0 | ||
Changes in stock option plans and restricted shares: | ||||||||||||||
Provision for stock option plans and restricted shares | 40,285 | 0 | 0 | 0 | 0 | 40,285 | 0 | 0 | 0 | 0 | 0 | 0 | 40,285 | 0 |
Exercise of stock option plans and restricted shares | (2,142) | 0 | 12,717 | 2,998 | 0 | (17,857) | 0 | 0 | 0 | 0 | 0 | 0 | (2,142) | 0 |
Adjustment effect of hyperinflationary economy | 34,216 | 0 | 0 | 0 | 0 | 34,145 | 0 | 0 | 0 | 71 | 0 | 0 | 34,216 | 0 |
Ending balance at Jun. 30, 2019 | 2,699,139 | 451,315 | (6,691) | 75,214 | 0 | 313,687 | (92,066) | 18,650 | 82,072 | 1,336,364 | 69,397 | 451,197 | 2,699,139 | 0 |
Beginning balance at Dec. 31, 2019 | 3,362,345 | 1,485,436 | 0 | 1,096,398 | 206,592 | 0 | 0 | 0 | (149,020) | 0 | 0 | 815,006 | 3,362,346 | 0 |
Net income for the year | (1,217,022) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,209,296) | 0 | 0 | (1,209,296) | (7,726) |
Exchange rate effect on the conversion from hyperinflationary economy | (4,247) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4,247) | (4,247) | 0 |
Other comprehensive income | 5,801,629 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,793,600 | 5,793,600 | 8,029 |
Total other comprehensive income for the period | 4,580,360 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,209,296) | 0 | 5,789,353 | 4,580,057 | 303 |
Transfer of reserve on April 30, 2020 | 0 | 0 | 0 | 0 | (147,592) | 0 | 147,592 | 0 | 0 | 0 | 0 | |||
Subscription of shares through the Board of Directors' Meeting held on 3 January 2020 | 13,302,449 | 3,397,746 | 0 | 9,877,148 | 0 | 0 | 0 | 0 | 0 | 13,274,894 | 27,555 | |||
Subscription of shares through the Board of Directors' Meeting held on 30 June 2020 | 1,995,107 | 1,995,107 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,995,107 | 0 | |||
Share repurchase | (54,936) | 0 | (54,936) | 0 | 0 | 0 | 0 | 0 | 0 | (54,936) | 0 | |||
Changes in stock option plans and restricted shares: | ||||||||||||||
Provision for stock option plans and restricted shares | 33,944 | 0 | 0 | 0 | 0 | 33,944 | 0 | 0 | 0 | 0 | 0 | 0 | 33,944 | 0 |
Exercise of stock option plans and restricted shares | 23,722 | 38,748 | 40,981 | 0 | 0 | (56,007) | 0 | 0 | 0 | 0 | 0 | 0 | 23,722 | 0 |
Adjustment effect of hyperinflationary economy | 30,471 | 0 | 0 | 0 | 0 | 26,679 | 0 | 0 | 3,792 | 0 | 0 | 0 | 30,471 | 0 |
Ending balance at Jun. 30, 2020 | R$ 23273463 | R$ 6917037 | R$ 13955 | R$ 10973546 | R$ 59000 | R$ 4616 | R$ 0 | R$ 0 | R$ 2364 | R$ 1209296 | R$ 0 | R$ 6604359 | R$ 23245605 | R$ 27858 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income (loss) for the period | R$ 1217022 | R$ 69397 |
Adjustments to reconciliate net income for the period with net cash generated by operating activities: | ||
Depreciation and amortization | 1,329,717 | 536,700 |
Interest on investments and securities | (50,546) | (37,445) |
Provision (reversal of provision) arising from swap and forward derivative contracts | (1,254,269) | 116,485 |
Provision (reversal of provision) for tax, civil and labor risks | 97,703 | 10,450 |
Inflation adjustment on escrow deposits | (6,216) | (7,447) |
Inflation adjustment of contingencies | 8,629 | 5,125 |
Income tax and social contribution | 139,656 | 30,746 |
Result from sale and write-off of property, plan and equipment and intangible assets | 8,342 | 12,970 |
Interest and exchange variation on finance leases | 121,425 | 64,137 |
Interest and exchange rate variation on borrowings and financing | 1,658,428 | 166,350 |
Restatement and exchange rate variation on other assets and liabilities | 690,246 | 1,505 |
Provision (reversal of provision) for losses from property, plant and equipment and intangible assets | 16,144 | (11,084) |
Provision (reversal of provision) for stock option plans and restricted shares | (24,930) | 26,903 |
Effective losses and provision for losses with trade receivables, net of reversals | 397,409 | 118,037 |
Provision (reversal of provision) for inventory losses, net | 190,763 | 72,980 |
Provision (reversal of provision) for post-employment health care plan and carbon credit | (6,008) | 3,971 |
Effect from hyperinflationary economy | 26,468 | 29,423 |
Other provision (reversals) | (114,286) | (129,469) |
Adjustments to reconcile profit (loss) | 2,011,653 | 1,079,734 |
DECREASE (INCREASE) IN ASSETS | ||
Trade receivables | 217,048 | 22,826 |
Inventories | (445,220) | (352,862) |
Recoverable taxes | (205,187) | 5,993 |
Other assets | 466,271 | (71,429) |
INCREASE (DECREASE) IN LIABILITIES | ||
Domestic and foreign trade payables | (2,126,571) | (64,499) |
Payroll, profit sharing and social charges, net | 385,026 | (24,366) |
Tax liabilities | (75,973) | (74,947) |
Other liabilities | (594,700) | 139,536 |
Income tax and social contribution paid | (411,768) | (224,691) |
Accruals (payments) of judicial deposits | 27,016 | 3,564 |
Tax, civil and labor lawsuits paid | (84,585) | (12,911) |
Settlement of derivative financial instruments | 4,040 | (33,308) |
Payment of interest on leases | (133,695) | (64,137) |
Payment of interest on borrowings, financing and debentures | (531,679) | (257,284) |
NET CASH GENERATED BY (USED IN) OPERATING ACTIVITIES | (1,498,324) | 71,219 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Acquisition Avon, net cash obtained | 2,636,108 | 0 |
Acquisition of property, plant and equipment and intangible assets | (308,576) | (217,440) |
Proceeds from sale of property, plant and equipment and intangible assets | 53,982 | 8,454 |
Investment in securities | (5,972,283) | (3,547,736) |
Redemption of securities | 4,548,629 | 4,038,578 |
Redemption of interest on investments and securities | 29,886 | 38,717 |
NET CASH GENERATED BY INVESTING ACTIVITIES | 987,746 | 320,573 |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Payments of lease - principal | (380,902) | (284,803) |
Payments of loans, financing and debentures – principal | (2,485,231) | (594,912) |
New loans, financing and debentures | 1,341,538 | 294,842 |
Use of treasury shares to setle exercised stock option | (13,955) | (2,142) |
Payment of dividends and interest on capital for the previous year | (133,937) | (152,979) |
Receipts (payments) to settle derivative operations | 82,194 | 1,874 |
Acquired company's liability incurred by acquiror | (370,791) | 0 |
Capital payment | 0 | 24,242 |
Capital increase | 2,033,855 | 0 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 72,771 | (713,878) |
Effect of exchange variation on cash and cash equivalents | 744,341 | (10,287) |
Net (decrease) increase in cash and cash equivalents | 306,534 | (332,373) |
Cash and cash equivalents at the beginning of the year | 4,513,582 | 1,215,048 |
Cash and cash equivalents at the end of the year | R$ 4820116 | R$ 882675 |
General Information
General Information | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
General Information | 1. GENERAL INFORMATION N atura &C o H olding S.A. (“Natura &Co Holding ” ) , formerly Natura Holding S.A., was incorporated on January 21, 2019 under the laws of Brazil , and as part of a corporate restructuring, together with its subsidiaries, the “Company”. The Company is engaged in the cosmetics, fragrances and personal hygiene business , through the development , manufacturing, distribution and sales of related products. The Company's main brand s are: the Brazilian brand Natura , the American brand Avon , the English brand The Body Shop and the Australian brand Aesop . In addition to using the retail market, e-commerce, B 2 are engaged in the direct sales channel, through consultants that act as sales representatives of the Natura , The Body Shop and Avon brands. Natura &Co is a publicly- listed corporation, headquartered in São Paulo, registered in the special trading segment called “Novo Mercado” in the B 3 Balcão (B 3 , under the ticker “NTCO 3 Under the corporate restructuring, Natura &C o Holding was created to become the holding company of Natura Cosm étic os S.A. (“Natura”) and to effect the acquisition of Avon Products, Inc. (“Avon”) ( see Note 4 ) . In September 2019 the registration statement on Form F- 4 filed by Natura &C o Holding with the United States Securities and Exchange Commission was declared effective . I n January 2020 , the acquisition transaction was completed and Natura &Co Holding became the controlling shareholder of Avon . On January 6, 2020, Natura &Co Holding started to trade its shares on the New York Stock Exchange (“NYSE”), under the ticker “NTCO”. |
Summary of Significant Accounti
Summary of Significant Accounting Polices | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Significant Accounting Polices | 2 PRACTICES 2.1 Basis of preparation The unaudited interim condensed consolidated financial statements of the Company, for the three and six months ended June 30 20 20 and 201 9 , have been prepared in accordance with IAS 34 Interim Financial Reporting , issued by the International Accounting Standard Board—IASB . The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company’s annual consolidated financial statements as of December 31 2019 The accounting p olicies applied in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended on December 31, 2019 During the first quarter of 2020 in order to be comparable to the information as of and for the six months ended June 30, 2020. a) Presentation basis for the Company’s consolidated accounting statements before the corporate restructuring presented in the Company’s annual financial statement in Note 1 As disclosed in the Company’s annual consolidated financial statements for the fiscal year ended December 31, 2019 prior to the corporate restructuring , Natura &Co Holding had limited or no assets, operations or activities, liabilities and no material contingent liabilities or commitments . The c orporate r estructuring was accounted for using the predecessor method of accounting, under which, the historical operations of Natura are deemed to be those of Natura &Co Holding . 2.2 Hyperinflationary economy Information related to Argentina, which is considered a hyperinflationary economy is presented in Note 3 3 . 1 ) in Company's audited consolidated financial statement for the year ended December 31, 2019 . For the six s ended June 3 0 , 20 20 , the application of IAS 29 loss in financial result s of R$ 5,556 (R$ 5,864 at June 30 , 201 9 ); and (ii) a net loss of R$ 22,221 (R$ 29,888 at June 30 , 201 9 ) , which include t he translation of the statement of income at the exchange rate at the balance date, instead of average monthly exchange rate of the year, resulted in a positive impact on other comprehensive income for the fiscal year ended June 30 , 20 20 of R$ 4,247 (R$ 393 on June, 2019 ). The capital reserve and profit reserve also increased R$ 256,679 151,384 2.3 Consolidation a) Company’s subsidiaries Information related to the Company’s subsidiaries ar e presented in Note 3 2 a ) of the Company's audited consolidated financial statement s for the year ended December 31, 2019 , except as disclosed below: Below is the list of Company’s subsidiaries as of June 30 , 20 20 : Ownership % June 30, 2020 December 31, 2019 Direct Interest: Avon Products, Inc.. 100.00 - Natura Cosméticos S.A. 100.00 100.00 Natura &Co International S.à r.l . (1) 100.00 - ( 1 Natura &Co International S.à.r.l . , was incorporated in 2020 under the laws of Luxembourg with the purpose of acquiring, managing and selling interests in domestic and foreign companies, other than raising and borrowing funds to other consolidated entities of the Company. 2.4 Segment information Segment i nformation is based on the information included in the internal report s provided to the chief operating decision maker of the Company . The main decision-making body of the Company, which is responsible for defining the allocation of resources and for the performance assessment of the operating segments, is the Natura &Co Holding S.A.’s Board of Directors, which is assisted by the Group’s Operational Committee (“GOC”). The GOC, which includes the CEOs of Natura &C o Holding , Natura, Avon, The Body Shop International Limited (“The Body Shop”) and Emeis Holding Pty Ltd (“ Aesop ”) , in addition to representatives of key business areas (Finance, Human Resources, Business Strategy and Development, Legal, Innovation and Sustainability, Operations and Corporate Governance), is responsible for, among other things, monitoring the implementation of short and long-term strategies and making recommendations to the Board of Directors regarding the management of the Group, from the perspective of results, allocation of resources among business units, cash flow and talent management. 2.5 New standards, interpretations and amendments adopted by the Company The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company annual consolidated financial statements for the year ended 31 December 2019, except for the adoption of new standards effective as of 1 January 2020. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in 2020 unaudited interim condensed consolidated financial statements of the Company. Amendments to IFRS 3 The amendment to IFRS 3 all of the inputs and processes needed to create outputs. These amendments had no impact on the consolidated financial statements of the Company but may impact future periods should the Company enter into any business combinations. Amendments to IFRS 7 9 39 The amendments to IFRS 9 39 a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument. These amendments had no impact on the consolidated financial statements of the Company as it does not have any interest rate hedge relationships. Amendments to IAS 1 8 The amendments provide a new definition of material that states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on the consolidated financial statements of, nor is there expected to be any future impact to the Company . Conceptual Framework for Financial Reporting issued on 29 March 2018 The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards. The revised Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. These amendments had no impact on the consolidated financial statements of the Company . Amendment s to IFRS 16 : Covid- 19 In May 2020, the IASB issued Covid- 19 16 16 19 The objective of the amendment is to provide lessees that have been granted covid- 19 The amendments do not apply to lessors. These amendments had impact on the consolidated financial statements of the Company, see note 17 |
Critical Accounting Estimates A
Critical Accounting Estimates And Assumptions | 6 Months Ended |
Jun. 30, 2020 | |
Critical Accounting Estimates And Assumptions [Abstract] | |
Critical Accounting Estimates And Assumptions | 3 The preparation of the unaudited interim condensed consolidated financial statements requires Management to make judgements, certain assumptions and estimates based on experience and other factors considered relevant, which affect the value of assets and liabilities and may present results that differ from actual results. The effects resulting from accounting estimate revisions are recognized when the revision takes place. There were no significant changes in the estimates and assumptions employed upon preparing the unaudited interim condensed consolidated financial statements for the six end ed June 30, 2020 estimation methods used, in relation to the ones disclose in N ote 3 consolidated financial statements for the year end ed on December 31, 2019 , except for the fair value estimates related to the fair value of assets and liabilities in the accounting of the business combination of Avon ( See N ote 4 and assessment of the potential impacts of Covid- 19 See N ote 5 3 ) . |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of detailed information about business combination [abstract] | |
Business Combinations | BUSINESS COMBINATIONS Acquisition of Avon On J anuary 3 2020 3, 2020 As a result, Natura &Co acquired control of Avon and the acquisition was accounted for under the acquisition method. Transaction costs incurred by Natura through the completion of the transaction on January 3, 2020 , amount ed to approximately R$ 112 , which were expensed as incurred. The following table summarizes the preliminary fair value calculation of the co nsideration transferred on January 3, 2020 In millions of R$, except for the number of shares Number of Avon common shares outstanding as of January 3, 2020 536,383,776 Multiplied by the exchange ratio of 0.600 321,830,266 Multiplied by the market price of Natura &Co shares on January 3, 2020 41.00 Consideration in the issuance of shares 13,195 Consideration transferred adjustment (a) 171 Fair value of the consideration transferred 13,366 (a) Related to the effects of replacements and settlements of share-based payment plans, of which the amount of R$ 80 thousand refers to the share-based payment plans of Avon, in which it was substituted by Natura &Co, and R$ 91 thousand refers to the stock option plans liquidated as a result of the conclusion of the transaction. These are pre-combination installments that were regarded as a transferred compensation. Natura &Co has yet to conclude the process of allocation of the transferred compensation among identified assets and liabilities acquired for their fair value. The table below shows the preliminary allocation prepared by the Company and the goodwill resulting from the non-allocated part. Differences between the preliminary estimates and the final recognition of the acquisition may occur and they may be relevant. Accounting standard IFRS 3 Business combination allows the Company to finalize this process of allocation of the transferred compensation among identified assets and liabilities up to 12 The table below shows the preliminary allocation prepared by the Company and the resulting goodwill. In millions of R$ Total estimated consideration to be transferred: 13,366 (-) Fair value of acquired assets: Cash and cash equivalent 2,636 Accounts receivable ( 1 1,135 Inventories 1,942 Other current assets 1,056 Assets available for sale 187 Property, plant and equipment 2,886 Income tax and deferred social contribution 667 Assets of right of use 565 Other non-current assets 475 Judicial deposits 284 Recoverable taxes 518 Employee benefit plan 553 Intangible ( 2 5,710 (+) Fair value of liabilities assumed: Current liabilities 6,267 Provision for contingencies ( 3 ) 724 Long-term debt 7,078 Leasing 588 Deferred taxes ( 4 ) 728 Other liabilities 809 (-) Net assets 2,420 Non-controlling interest 28 Estimated preliminary g oodwill ( 5 ) 10,974 ( 1 On the acquisition date, the fair value of the accounts receivable approximate their carrying value , net of a provision for expected losses in the amount of R$ 270.2 ( 2 The fair value of intangible assets includes intangible assets acquired and registered by Avon prior to the fair value allocation, in the sum of R$ 291 Nature Estimated fair value (in millions of Reais) Estimated useful life Trade name “Avon” Represents the fair value of the trade name “Avon” 1,893 Indefinite Power brands Represents the fair value of “Power brands” 518 20 Developed technologies Represents the fair value of all technology required to develop Avon products, including product formulas, labeling data, manufacturing processes, regulatory approvals, packages of products and designs. 1,132 7 Sales representatives Represents the fair value of Avon’s relationship with its sales representatives 1,876 14 Total 5,419 ( 3 The provision for contingencies amount shown in the table above corresponds to the historical amount recorded by Avon, since the Company is still in the process of estimating their fair value as well as identifying additional contingencies that may be required to be recorded in accordance with the provisions of paragraph 23 3 ( 4 Consists of net operating loss deferred tax assets of approximately R$ 311 1,309 ( 5 Goodwill represents the stronger market position and geographic regions that will result in a more diversified and balanced global portfolio, as well as future expected profitability and operational synergies such as supply, manufacturing, distribution and efficiency of the administrative structure and revenue growth. This goodwill arising from the transaction is not expected to result in a tax benefit or to be deductible for tax purposes. Since the acquisition date through June 3 0 2020 , Avon contributed with R$ 7,510.7 1,041 included in the unaudited interim condensed consolidates financial statement. From January 1, 2020 through the date the acquisition was completed, i.e. January 3, 2020, there w ere no material transaction o r revenue s in Avon, therefore, the consolidated net profit and net revenue for the six 30, 2020 , includes the results of operations of Avon since January 1, 2020 . |
Financial Risk Management
Financial Risk Management | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Financial risk management | 5 FINANCIAL RISK MANAGEMENT 5.1 General considerations and policies Below are presented the carrying amounts and fair values of the Company’s financial instruments as of June 3 0 , 20 20 and December 31, 20 19 : Consolidated Carrying amount Fair Value Note Classification by category Fair value hierarchy June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Financial assets Cash and cash equivalentes 6 Cash and banks Amortized cost 2,872,297 3,110,220 2,872,297 3,110,220 Certificate of bank deposits Amortized cost 766,703 211,261 766,703 211,261 Repurchase operations Fair value through profit or loss Level 2 1,181,116 1,192,101 1,181,116 1,192,101 4,820,116 4,513,582 4,820,116 4,513,582 Short term investments 7 Government bonds Fair value through profit or loss Level 2 1,486,999 221,900 1,486,999 221,900 Restricted cash Fair value through profit or loss Level 2 58,764 - 58,764 - Financial letter Fair value through profit or loss Level 2 377,033 374,690 377,033 374,690 Loan investment fund Fair value through profit or loss Level 2 376,538 407,928 376,538 407,928 Dynamo Beauty Ventures Ltd Fund Fair value through profit or loss Level 2 11,326 7,402 11,326 7,402 Certificate of bank deposits Fair value through profit or loss Level 2 270,870 21,327 270,870 21,327 2,581,530 1,033,247 2,581,530 1,033,247 Trade receivables 8 Amortized cost 2,644,601 1,685,764 2,644,601 1,685,764 Court deposit 12 Amortized cost 600,340 337,255 600,340 337,255 “Financial” and “Operating” derivatives Fair value – Hedge instruments Level 2 2,163,255 737,378 2,163,255 737,378 “Financial” and “Operating” derivatives Fair value through results Level 2 35,918 - 35,918 - 2,199,173 737,378 2,199,173 737,378 Financial liabilities Borrowings, financing and debentures 19 Borrowings in domestic currency Amortized cost ( 16,097,706 ( 7,412,443 ( 15,981,649 ( 7,445,672 Borrowings in foreign currency Amortized cost ( 4,568,393 ( 3,373,931 ( 4,420,002 ( 3,541,541 ( 20,666,099 ( 10,786,374 ( 20,401,651 ( 10,987,213 “Financial” and “Operating” derivatives Fair value – Hedge instruments Level 2 - ( 10,158 - ( 10,158 “Financial” and “Operating” derivatives Fair value through results Level 2 ( 75,247 ( 1,648 ( 75,247 ( 1,648 ( 75,247 ( 11,806 ( 75,247 ( 11,806 Lease 18 Amortized Cost ( 4,107,175 ( 2,517,565 ( 4,107,175 ( 2,517,565 Trade payables and reverse factoring operations 20 Amortized cost ( 5,709,969 ( 1,829,756 ( 5,709,969 ( 1,829,756 5.2 Financial risk factors Information related to the Financial risk factors are presented in Note 5.2 in Company's consolidated financial statement for the year ended December 31, 2019. a) Market risk To hedge the current balance sheet positions of the Company against market risks, the following derivative instruments are used, as of June 3 0 , 20 20 and December 31, 201 9 : Fair value (Level 2 Description June 30, 2020 December 31, 2019 Financial derivatives 2,121,287 725,060 Operational derivatives 2,639 512 Total 2,123,926 725,572 b) Foreign exchange risk As of June 30, 2020 and December 31, 2019 denominated Non-Deliverable Forwards - NDF. As of June 30, 2020 consolidated outstanding balances of borrowings, financing and debentures include accounts denominated in foreign currency which expose the Company to foreign exchange risks, representing, in the aggregate, R$ 4,568,393 3,381,960 on December 31, 2019 i) Derivatives to hedge foreign Exchange rate risk The Company classifies derivatives into “financial” and “operational”. “Financial” derivatives include swaps or forwards contracted to hedge against the foreign exchange risk associated with foreign-currency-denominated borrowings, financing and intercompany loans, “operational” derivatives include derivatives contracted to hedge against the foreign exchange risk on the business’s operating cash flows. As of June 3 0 , 20 20 , the balances of financial derivatives were : Financial derivatives Principal (Notional) amount Book value Fair value Gain (loss) Description June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Swap contracts: Asset position: Short position in dollar 2,661,494 2,664,001 4,603,592 3,416,707 5,102,622 3,729,691 499,030 312,984 Liability position: CDI floating rate: Long position in CDI 2,661,494 2,664,001 2,729,070 2,754,595 2,942,841 3,002,623 213,770 248,028 NDFs Forward Agreements: Liability portion: CDI floating rate: Long position at interbank rate 5,442,792 200,896 1,882 ( 1,848 ( 38,494 ( 2,008 ( 40,376 ( 160 Total net derivative financial instruments: 5,442,792 200,896 1,876,404 660,264 2,121,287 725,060 244,884 64,796 For derivatives maintained by the Company and the subsidiaries as of December 31, 2019 30, 2020 contract are directly entered into with the financial institutions and not through stock markets, there are no margin calls deposited as guarantee. Operational derivative On June 3 0 , 20 20 , the Company holds forward derivative instruments in order to hedge against exchange rate risk on import and export operations : Description Principal (notional) amount Fair value June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Net position - GBP and USD 1,093,241 5,898 - Forward contracts 119,851 1,302,869 ( 3,259 ) 512 Total derivative instruments, net 1,213,092 1,302,869 2,639 512 Sensitivity analysis For the sensitivity analysis of the risk of foreign exchange rate exposure, the Company's Management understands it is necessary to consider in addition to the assets and liabilities, with exposure to the fluctuation of exchange rates recorded in the balance sheet, the value of the fair value of the financial instruments contracted by the Company for the protection of certain exposures as of June 3 0 , 20 20 and December 31, 201 9 , as shown in the following table : June 30, 2020 December 31, 2019 Loans and financing registered in Brazil in foreign currency (a) ( 4,587,578 ( 3,381,959 Receivables registered in Brazil in foreign currency 11,727 10,007 Accounts payable registered in Brazil in foreign currencies ( 11,686 ( 10,543 Value of the financial derivatives 5,102,622 3,729,691 Net asset exposure 515,085 347,196 ( a ) Excluding transaction costs . This analysis considers only financial assets and liabilities registered in Brazil in foreign currency, since exposure to exchange variation in other countries is close to zero The tables below show the loss that would have been recognized in the subsequent period, assuming that the current net foreign exchange exposure remains static, based on the following scenarios : Description Risk Probable scenario Scenario II Scenario III Net exposure Dollar decrease ( 2,481 101,032 170,041 The probable scenario considers future US dollar rates for 90 3 it is R$ 5.45 1.00 25 4.09 1.00 50 2.72 1.00 . In assessing possible changes in exchange rates, Management uses the probable scenario, which is being presented for compliance with IFRS 7 Financial Instruments: Disclosures. The Group does not use derivative financial instruments for speculative purposes. Derivative instruments designated for hedge accounting The positions of derivative financial instruments designated as outstanding cash flow hedge on June 3 0 , 20 20 as set out below: Cash flow hedge instrument Others comprehensive income Hedged item Notional currency Notional value Accrual value Fair value (a) Accumulated contract gain (loss) Gain in the 6 Currency Swap – US$/R$ Currency BRL 2,659,360 1,872,141 2,157,449 285,308 223,672 Forward contract Currency BRL 883,167 4,339 5,613 5,613 ( 198 Forward contract Currency BRL 39,713 - 193 193 5,482 Total 3,582,240 1,876,480 2,163,255 291,114 228,956 (a) The method used by the Company to determine fair value consists in calculating the future value based on the contracted conditions and determines present value based on market accrual extracted from B 3 . The changes in cash flow hedge reserve recognized under other comprehensive income are shown below: Cash flow hedge balance as of December 31, 2018 ( 27,706 Change in the fair value of hedge instrument recognized in other comprehensive income 159,698 Tax effects on the fair value of hedge instrument ( 53,701 Cash flow hedge balance as of June 30, 2019 78,291 Cash flow hedge balance as of December 31, 2019 42,729 Change in the fair value of hedge instrument recognized in other comprehensive income 228,956 Tax effects on the fair value of hedge instrument ( 75,842 Cash flow hedge balance as of June 30, 2020 195,843 c) Interest rate risk Sensitivity analysis On June 3 0 , 20 20 , there are loans and financing denominated in foreign currency and issued at fixed rates under contract "swap", changing the interest over the liability to CDI fluctuation. The Company is, therefore, exposed to CDI fluctuation. The following table presents the exposure to interest rate risks of transactions pegged to CDI, including derivative transactions (loans and financing were considered at their full amounts, since 98.42 of them are linked to CDI rate) : Total borrowings and financing - in local currency (note 18 ( 16,097,706 Operations in foreign currency with derivatives pegged to CDI ( 4,568,393 Short-term investments (notes 6 7 4,459,259 Net exposure ( 16,206,840 The tables below set out projected incremental loss that w ould be recognized in income statement , assuming that the current net liability exposure will remain unaltered and the following scenarios: Description Risk Probable scenario Scenario II Scenario III Net liability Rate increase 4,574 ( 29,406 ( 63,386 The probable scenario considers future interest rates obtained at B 3 25 2.6 % per year) and 50 3.1 % per year), respectively, over the CDI rate of 2.1 % per year (probably scenario) . d) Credit risk Credit risk management is included in the in the ‘Provision for doubtful accounts’ under “Trade receivables”, as explained in N ote 8 The Company believes that the credit risk of transactions with financial institutions is low, as such transactions are conducted with prime banks. e) Liquidity risk Management monitors the Group’s consolidated liquidity level considering the expected cash flows against unused credit facilities, as shown in the following table: June 30, 2020 December 31, 2019 Total current assets 17,064,524 9,430,057 Total current liabilities ( 12,863,889 ( 7,518,423 Total net working capital 4,200,635 1,911,634 At June 3 0 , 20 20 , the carrying amounts of financial liabilities, measured at amortized cost considering interest payments at a floating rate and the value of debt securities reflecting the forward market interest rates on the reporting date may be changed as floating interest rates change. Their respective original maturities are shown below: Less than one One five Over five Total expected cash flow Interest to be accrued Carrying amount Borrowings, financing and debentures 2,554,860 19,329,476 - 21,884,336 ( 1,218,237 20,666,099 Lease 1,272,171 2,883,814 1,014,375 5,170,360 ( 1,063,185 4,107,175 Payables to related parties, trade payables and reverse factoring operations 5,709,969 - - 5,709,969 - 5,709,969 The Company is in compliance with the all contract’s covenant s. The Company also has the following credit line: Up to seventy British pounds (£ 70 was used by the indirect subsidiary during the first quarter of 2020 Up to one fifty reais (R$ 150,000 January 2020 As of June 3 0 , 2 020 , the Company had not drawn down on these available credit lines. 5.3 Impacts of Covid- 19 Despite the level of uncertainty, the Company is closely monitoring the evolution of the pandemic caused by COVID- 19 implemented on several workstreams , with the participation of key management , with the function of monitoring, analyzing and deciding on actions to minimize impacts, ensure the continuity of operations and promote the safety and health of all the people involved. Till now, the virus has spread, and the consequent restrictive measures were imposed by governments, such as closing non-essential trade and restricting the movement of people across borders . T he Company has implemented some measures in all its operations, in line with the government authorities’ measures: Incentive to remote work performance (Home office) and adoption of criteria to limit industrial and logistical operations; Adoption of new safety measures for operational workers, such as the use of masks and procedures to distance people between processes; Closure of stores, where required by the government authorities; Re-planning of sales cycles, prioritizing personal care items; Speeding up the digita lization of sales channels; Wide dissemination of the digital magazine; Change in the minimum order criteria, start kit and increased deadline for payment of consultants; and Daily monitoring of suppliers to ensure supply. In addition to these measures, there is a Crisis Committee focused on finance, which monitors the company's financial health, with a focus on cash, covenants and results, proposing actions to minimize the inevitable reduction in sales. Among these actions, are : Reduction of discretionary expenses (consultancies, events, etc.); Holding new hires and salary increases; Reduction in marketing expenses; Reductions in travel expenses; Investment reduction (Capex); and Negotiation with suppliers to increase payment terms. Adherence to stimulus plans announced by the governments of some of the countries in which the company operates. During the period ended on June 30, 2020 Closing of stores : T he Company has own stores and franchised stores distributed across its different brands and geographies that were impacted by lockdowns throughout the second quarter of 2020 At The Body Shop, lockdown restrictions led to the closure of 87 progressing to 16 with the restrictions flexibility . The Company and its subsidiaries w ere able to offset approximately 90 19 2020 90 all of the Covid- 19 2020 60 Production: In the beginning of the second quarter of 2020 30 Cash and liquidity: The Company took steps to address liquidity concerns. R$ 2 Company ’s controlling shareholders, selected investors and non-controlling shareholders. Also, R$ 750 raised , with maturity in May 2020, to increase liquidity with no impact on net-debt. Strict cost discipline was adopted, including over capex and discretionary spending. The Company ended the second quarter of 2020 4,820 It is worth mentioning that the actions and decisions above, and also those present throughout this document, are in constant review, according to the evolution of the global scenario. 5.4 Cyber incident In June 2020, Avon became aware that it was exposed to a cyber incident in its Information Technology environment which interrupted some systems and partially affected operations. We engaged leading external cyber security and IT general controls specialists, launched a comprehensive containment and remediation effort and started a forensic investigation. As of the date of this report, Avon has re-established all of its core business processes and resumed operations in all of its markets, including all of its distribution centers. Avon continues to investigate and evaluate the extent of the cyber incident, while working diligently to mitigate its impacts and re-evaluate our IT general controls. The cyber incident had a significant impact on Avon's revenue performance for the second quarter of 2020 the majority of the impact approximately US$ 87 in sales (approximately R$ 450 2020 2020 |
Cash And Cash Equivalent
Cash And Cash Equivalent | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Cash and cash equivalent | 6 CASH AND CASH EQUIVALENT Cash and Cash Equivalent is as follows: June 30, 2020 December 31, 2019 Cash and banks 2,872,297 3,110,220 Certificate of Bank Deposits (a) 766,703 211,261 Repurchase agreements (b) 1,181,116 1,192,101 4,820,116 4,513,582 (a) As of June 30, 2020 102.7 (b) Repurchase operations are securities issued by banks with a commitment by the bank to repurchase them, and by the client to resell them, at defined rates and within a predetermined term, backed by public or private securities, depending on bank availabilities and registered with the CETIP. On June 30, 2020 103.8 of CDI ( 106.9 % of the CDI on December 31, 2019 |
Short-Term Investments
Short-Term Investments | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Short-Term Investments | 7. SHORT-TERM INVESTMENTS Short-term investments is as follows: June 30, 2020 December 31, 2019 Loan investment funds 376,538 407,928 Certificate of Bank Deposits (a) 270,870 21,327 Treasury bills 377,033 374,690 Government bonds (LFT) 1,486,999 221,900 Dynamo Beauty Ventures Ltd. Fund 11,326 7,402 Restricted cash 58,764 - 2,581,530 1,033,247 Current 2,570,204 1,025,845 Non-current 11,326 7,402 (a) As of June 30, 2020, the CDBs classified as short-term investments are remunerated at an average rate of 103.8 106.9 f December 31, 2019 Crer para Ver” line within the exclusive fund is R$ 35,423 38,018 December 31, 2019 Breakdown of the exclusive fund portfolio on June 3 0 , 20 20 and December 31, 201 9 is as follows: June 30, 2020 December 31, 2019 Certificates of deposit 270,870 21,327 Repurchase agreements 1,181,116 1,192,101 Treasury bills 377,033 374,690 Government bonds (LFT) 1,486,999 221,900 3,316,018 1,810,018 |
Trade Receivables
Trade Receivables | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Trade Receivables | 8 Trade receivables is as follows: June 30, 2020 December 31, 2019 Trade receivables 2,889,573 1,793,759 Provision for doubtful accounts ( 244,972 ( 107,995 2,644,601 1,685,764 Maximum exposure to credit risk at the reporting date is the carrying amount of each aging range, net of the provision for doubtful accounts, as shown in the aging list below: June 30, 2020 December 31, 2019 Current 1,632,884 1,501,958 Past due: Up to 30 874,649 142,069 31 60 138,467 36,466 61 90 40,178 27,789 91 180 203,395 85,477 Provision for doubtful accounts ( 244,972 ( 107,995 2,644,601 1,685,764 The changes in the provision for doubtful accounts is as follows: Balance at December 31, 2018 ( 129,242 Additions ( 118,037 Write-offs (a) 138,116 Exchange variation 471 Balance at June 30, 2019 ( 108,692 Balance at December 31, 2019 ( 107,995 Additions ( 447,669 Write-offs (a) 371,004 Exchange variation ( 60,312 Balance at June 30, 2020 ( 244,972 (a) Refers to accounts overdue for more than 180 are written off when the Company has no expectation of recovering the trade receivable and sales of customer portfolio . The following table shows trade receivables by exposure to doubtful accounts on June 3 0 , 20 20 : June 30, 2020 December 31, 2019 Trade receivables Provision for doubtful accounts Trade receivables Provision for doubtful accounts Current 1,632,884 ( 46,358 1,501,958 ( 38,060 Past due: Up to 30 874,649 ( 9,229 142,069 ( 14,311 31 60 138,467 ( 23,549 36,466 ( 6,663 61 90 40,178 ( 10,185 27,789 ( 6,333 91 180 203,395 ( 155,651 85,477 ( 42,628 2,889,573 ( 244,972 1,793,759 ( 107,995 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of Inventories [Abstract] | |
Inventories | 9 Inventories is as follows: June 30, 2020 December 31, 2019 Finished products 3,515,022 1,253,145 Raw materials and packaging 1,030,020 253,063 Promotional material 211,372 82,228 Work in progress 34,690 27,346 Provision for losses ( 309,757 ( 185,232 4,481,347 1,430,550 The changes in the provision for inventory losses is as follows: Balance at December 31, 2018 ( 178,268 Additions, net ( 72,980 Write-offs 60,743 Exchange Variation 2,139 Balance at June 30, 2019 ( 188,366 Balance at December 31, 2019 ( 185,232 Additions, net ( 190,763 Write-offs 166,520 Exchange Variation ( 100,282 Balance at June 30, 2020 ( 309,757 |
Recoverable Taxes
Recoverable Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Recoverable Taxes | 10 Recoverable taxes is as follows: Consolidated 06 2020 12 2019 ICMS on purchase of inputs (a) 671,227 434,832 Taxes on purchase of inputs - subsidiaries abroad 214,702 39,475 ICMS on purchase of property, plant and equipment 10,024 10,628 PIS and COFINS on purchase of property, plant and equipment (b) 179 3,826 PIS and COFINS on purchase of inputs 802,466 280,087 PIS, COFINS and CSLL - withheld at source 3,779 2,378 IPI (Tax on Manufactured Products) 83,828 30,190 Others 152,402 3,438 1,938,607 804,854 Current 1,045,201 395,640 Non-Current 893,406 409,214 a) Accumulated Brazilian tax on the circulation of goods, interstate and intercity transportations and communication services (“ICMS”) tax credits. b) Brazilian tax for the Integration Program Tax on Revenue (“PIS”) and Social Security Funding Tax on Revenue (COFINS). |
Income Tax And Social Contribut
Income Tax And Social Contribution | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Income Tax And Social Contribution | 11 T he effective tax rate calculated by the Company for the period ended June 30, 2020 was negative 13.0 1,077.4 139.7 34 statutory income tax rate will not be reduced from 19 17 31.1 The effective rate calculated by the Company in the period ended June 30, 2019 was 30.7 100.1 30.7 34 The changes in deferred income tax asset s and liabilit ies social contribution for the six ended June 3 0 , 20 20 and 2019 were as follows : Asset Liability Balance at December 31, 2018 398,400 ( 431,534 Effect on profit or loss 44,859 3,298 Reserve for grant of options and restricted shares 13,380 - Effect on other comprehensive income ( 53,701 - Exchange variation on other comprehensive income 4,615 13,649 Balance at June 30, 2019 407,553 ( 414,587 Balance at December 31, 2019 374,448 ( 450,561 Effect on profit or loss ( 22,022 ( 28,630 Acquisition of subsidiary 667,034 ( 713,199 Reserve for grant of options and restricted shares 2,865 - Effect on other comprehensive income ( 75,842 - Exchange variation on other comprehensive income 29,409 ( 221,081 Balance at June 30, 2020 975,892 ( 1,413,471 |
Judicial Deposits
Judicial Deposits | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Judicial Deposits | 12 Judicial Deposits are restricted assets of the Company related to amounts deposited and held by the courts until the litigation to which they are related is resolved. The judicial deposits of the Company as of June 30 , 20 20 and December 31, 2019 are as follows: June 30, 2020 December 31, 2019 Unaccrued tax lawsuits (a) 296,529 203,403 Accrued tax lawsuits (b) (note 20 21 249,576 116,415 Unaccrued civil lawsuits 6,570 2,541 Accrued civil lawsuits (note 21 2,505 426 Unaccrued labor lawsuits 14,330 8,683 Accrued labor lawsuits (note 21 30,830 5,787 Total judicial deposits 600,340 337,255 (a) The proceedings related to these judicial deposits are mainly re lated to ICMS - ST, highlighted on note 20 ( b ) - contingent liability - possible risk of loss. (b) The lawsuits related to these judicial deposits are mainly related to the sum of amounts disclosed in note 2 1 , item (b) and the amount accrued as explained in the note 20 . Changes in the balances of escrow deposits are as follows : Balance at December 31, 2018 333,577 New deposits 1,367 Redemptions ( 1,362 Interests 7,447 Write-offs for expenses ( 3,569 Balance at June 30, 2019 337,460 Balance at December 31, 2019 337,255 Acquisition of subsidiary 283,885 New deposits 7,911 Redemptions ( 21,186 Interests 6,216 Payments ( 10,070 Write-offs for expenses ( 3,671 Balance at June 30, 2020 600,340 In addition to judicial deposits, the Company entered into guarantee contracts with insurance companies to cover the potential losses of certain lawsuits. Details of these guarantees contracts are included in note 3 2 . |
Assets held for sale
Assets held for sale | 6 Months Ended |
Jun. 30, 2020 | |
Assets Held for Sale Disclosure [Abstract] | |
Assets held for sale | 13 . ASSETS HELD FOR SALE Assets classified as held for sale were acquired in connection with the acquisition Avon (Note 4 30, 2020 Acquisition by Avon on January 3, 2020 186,518 Transfer to property, plant and equipment (a) ( 39,186 Transfer from property, plant and equipment (b) 16,210 Sale ( 22,287 Exchange variation 54,302 Balance on June 30, 2020 195,557 a) During the first quarter of 2020 Avon decided not to proceed with the sale two propert ies. As a result, Avon reclassified such properties from held for sale to property, plant and equipment during the first quarter of 2020 . At the time of reclassification, the Company recorded a true up on depreciation resulting in an immaterial impact . b) Includes a property that was classified as held for sale during the period. On June 30, 2020, assets held for sale include two with a carrying amount of R$ 195,557 |
Other Current And Non-Current A
Other Current And Non-Current Assets | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Other Current And Non-Current Assets | OTHER CURRENT AND NON-CURRENT ASSETS June 30, 2020 December 31, 2019 Marketing and advertising advances 99,545 28,669 Supplier advances 224,335 102,225 Employee advances 79,882 13,983 Rent advances and guarantee deposits (a) 133,448 96,202 Prepaid insurance expenses 170,277 29,647 Overfunded pension plan (b) 711,526 - Customs broker advances - Import taxes 38,592 34,932 Subleasing receivables (c) 395,605 - Carbon credits 3,799 3,508 Other 543,806 39,868 2,400,815 349,034 Current 799,222 265,198 Non-current 1,601,593 83,836 (a) Mainly related to: (i) advances of rental agreements that were not included in the initial measurement of lease liabilities / right-of-use of the subsidiary The Body Shop International Limited, in accordance with the exemptions on IFRS 16 (b) Pension plan arising from the Avon’s acquisition on January 3, 2020 4 (c) Relates to the sublease receivables of a property owned by Avon in New York . |
Property, Plant And Equipment
Property, Plant And Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Property, Plant And Equipment | PROPERTY, PLANT AND EQUIPMENT Useful life range (in years) December 31, 2019 Acquisition of subsidiary Additions Write-offs Reversal of impairment (impairment loss) Transfers Exchange variation June 30, 2020 Cost: Vehicles 2 5 45,578 25,789 128 ( 4,519 - 2,171 12,042 81,189 Templates 3 192,556 - 8 ( 19,713 - 4,690 8,065 185,606 Tools and accessories 3 20 11,974 52,410 4,362 ( 158 - ( 876 12,721 80,433 Facilities 3 60 309,772 1,431 23 ( 3,428 - 3,298 10,922 322,018 Machinery and accessories 3 15 866,451 746,734 7,352 ( 925 - 45,638 171,314 1,836,564 Leasehold improvements 2 20 615,103 58,548 11,653 ( 1,177 ( 8,650 5,618 177,970 859,065 Buildings 14 60 386,957 1,168,837 3,484 1,590 324 20,246 293,891 1,875,329 Furniture and fixture 2 25 397,727 32,566 10,622 ( 1,012 ( 8,883 7,545 95,387 533,952 Land - 35,157 568,470 - 73 - 4,060 191,749 799,509 IT equipment 3 15 297,228 112,369 4,691 ( 494 - 12,550 85,224 511,568 Other assets - - 40,090 - - - - 14,086 54,176 Projects in progress - 156,011 78,965 104,602 ( 526 - ( 89,486 11,155 260,721 Total cost 3,314,514 2,886,209 146,925 ( 30,289 ( 17,209 15,454 1,084,526 7,400,130 Depreciation: Vehicles ( 16,924 - ( 12,932 2,174 - ( 2,093 ( 3,524 ( 33,299 Templates ( 175,938 - ( 4,824 19,684 - - ( 172 ( 161,250 Tools and accessories ( 3,255 - ( 20,769 - - 10 ( 2,451 ( 26,465 Facilities ( 167,362 - ( 11,582 282 - 900 ( 3,269 ( 181,031 Machinery and accessories ( 416,736 - ( 95,836 157 - ( 1,072 ( 16,382 ( 529,869 Leasehold improvements ( 267,371 - ( 60,425 450 - 25 ( 68,175 ( 395,496 Buildings ( 101,785 - ( 51,515 - - - ( 4,847 ( 158,147 Furniture and fixture ( 193,973 - ( 44,342 612 - ( 26 ( 43,546 ( 281,275 IT equipment ( 197,281 - ( 47,588 37 - - ( 30,091 ( 274,923 Other assets - - - ( 6,841 - - - ( 769 ( 7,610 Total accrued depreciation ( 1,540,625 - ( 356,654 23,396 - ( 2,256 ( 173,226 ( 2,049,365 Net total 1,773,889 2,886,209 ( 209,729 ( 6,893 ( 17,209 13,198 911,300 5,350,765 |
Intangibles
Intangibles | 6 Months Ended |
Jun. 30, 2020 | |
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Intangibles | INTANGIBLES Useful life range (years) December 31, 2019 Acquisition of subsidiary Additions Write-offs Reversal of impairment Transfers Exchange variation June 30, 2020 Cost: Software 2.5 10 1,313,090 291,239 65,382 ( 1,492 - 112,649 153,649 1,934,517 Trademarks and patents (Defined useful life) 24 25 116,805 517,592 - - - - 220,524 854,921 Trademarks and patents (Indefinite useful life) - 2,171,585 1,893,224 - - - - 1,255,816 5,320,625 Goodwill Avon (Note 4 - - 10,973,474 - - - - 3,855,691 14,829,165 Goodwill Emeis Brazil Pty Ltd. - 100,237 - - - - - 33,364 133,601 Goodwill The Body Shop International Limited - 1,434,369 - 8,039 - - - 388,384 1,830,792 Goodwill acquisition of The Body Shop stores - 1,456 - - 1,456 Relationship with retail clients 10 1,987 - - - - - 656 2,643 Key money (indefinite useful life) 17,801 - - - - 6,996 2,697 27,494 Key money (Defined useful life) 3 18 12,447 - - - 1,065 ( 3,414 ( 1,043 9,055 Relationship with franchisees and sub franchisees 15 602,958 1,876,169 - - - - 822,215 3,301,342 Developed technology (by acquired subsidiary) - - 1,131,573 - - - - 397,595 1,529,168 Other intangible assets 2 10 110,288 - 41,452 - - ( 100,153 18,071 69,658 Total cost 5,883,023 16,683,271 114,873 ( 1,492 1,065 16,078 7,147,619 29,844,437 Amortization value: Software ( 649,347 - ( 179,508 43 - ( 3,634 ( 39,399 ( 871,845 Trademarks and patents ( 44,108 - ( 18,303 - - - ( 12,810 ( 75,221 Key money ( 2,197 - ( 242 - - ( 4,634 1,213 ( 5,860 Relationship with retail clients ( 1,939 - ( 114 - - - ( 531 ( 2,584 Relationship with franchisees and sub franchisees ( 95,772 - ( 147,980 - - - ( 41,555 ( 285,307 Developed technology (by acquired subsidiary) - - ( 137,361 - - - ( 15,419 ( 152,780 Other intangible assets ( 13,159 - ( 1,042 - - - ( 5,390 ( 19,591 Total accumulated amortization ( 806,522 - ( 484,550 43 - ( 8,268 ( 113,891 ( 1,413,188 Net total 5,076,501 16,683,271 ( 369,677 ( 1,449 1,065 7,810 7,033,728 28,431,249 |
Right of Use And Lease
Right of Use And Lease | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Right of Use And Lease | 17 a) Right of use Useful life in Years (i) December 31, 2019 Acquisition of subsidiary Additions Write-offs Transfers (a) Exchange variation June 30, 2020 Cost Value: Vehicles 3 40,018 42,467 46,577 ( 219 - 11,435 140,278 Machinery and equipment 3 10 15,578 14,034 610 - - 8,958 39,180 Facilities 3 10 784,900 489,739 90,560 ( 4,380 - 211,050 1,571,869 IT equipment 10 283 18,429 1,447 - - 5,751 25,910 Retail stores 3 10 2,350,377 - 180,059 ( 8,309 ( 3,582 767,063 3,285,608 Tools and accessories 3 2,803 - - - - 761 3,564 Total cost 3,193,959 564,669 319,253 ( 12,908 ( 3,582 1,005,018 5,066,409 - - - - - - Depreciation value: Vehicles ( 8,109 - ( 25,316 150 - ( 2,236 ( 35,511 Machinery and equipment ( 4,317 - ( 7,142 - - ( 2,036 ( 13,495 Facilities ( 97,190 - ( 144,715 2,852 - ( 27,349 ( 266,402 IT equipment ( 214 - ( 10,320 - - ( 1,100 ( 11,634 Retail stores ( 463,332 - ( 300,558 4,016 4,634 ( 172,458 ( 927,698 Tools and accessories ( 936 ( 462 - - ( 298 ( 1,696 Total accrued depreciation ( 574,098 - ( 488,513 7,018 4,634 ( 205,477 ( 1,256,436 Net total 2,619,861 564,669 ( 169,260 ( 5,890 1,052 799,541 3,809,973 (a) Those are initial costs (key money) related to store rentals . T his amount is transferred from right of use to intangible assets when a new commercial agreement with the lessor is not yet signed. June 30, 2020 December 31, 2019 Values recognized in the income statement Financial expense on lease 119,398 64,137 Amortization of right of use 488,513 271,591 Appropriation in the result of variable lease installments not included in the measurement of rental liabilities 15,013 14,023 Sublease revenue ( 16,033 ( 1,331 Short-term rental expenses and low-value assets 38,274 78,774 Concessions granted by lessors related to Covid- 19 ( 12,685 - Expenses related to leases 17,497 9,933 Total 649,977 437,127 Values recognized in the financing cash flow statement Payment of leasing (principal) 426,154 273,681 Values recognized in the operating cash flow statement Payment of leasing (interest) 88,443 75,259 Variable lease payments not included in the measurement of rental liabilities 4,448 8,100 Sort-term lease payments and low-value assets 30,699 978 Lease-related payments 20,174 15,985 Total 569,918 374,003 b) Lease obligation June 30, 2020 December 31, 2019 Current 1,081,059 542,088 Non-current 3,026,116 1,975,477 Total 4,107,175 2,517,565 The following table shows the changes in the balance of lease obligations : Balance at December 31, 2019 2,517,565 New agreements 324,878 Acquisition of subsidiary 777,200 Payment of leasing (principal) ( 380,902 Payment of leasing (interest) ( 133,695 Recognition of financial charges 119,398 Write-offs (i) ( 3,863 Translation effects (other comprehensive income) 886,594 Balance at June 30, 2020 4,107,175 (i) Mainly related to termination contracts related to lease of stores . Maturities of the balance of non-current lease liabilities are shown below: June 30, 2020 December 31, 2019 2021 441,760 374,746 2022 428,033 361,688 2023 422,877 358,274 2024 1,733,446 880,769 3,026,116 1,975,477 |
Borrowings, Financing And Deben
Borrowings, Financing And Debentures | 6 Months Ended |
Jun. 30, 2020 | |
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Borrowings, Financing And Debentures | 18. BORROWINGS, FINANCING AND DEBENTURES June 30, 2020 December 31, 2019 Local Currency Financing Agency for Studies and Projects (FINEP) 87,617 101,988 Debentures (a) 4,171,432 4,251,231 BNDES 17,451 35,390 BNDES – FINAME 46 183 Promissory Notes 1,322,889 2,883,382 Working capital – Operation Mexico 24,219 31,802 Working capital – Operation Peru 23,271 - Working capital – Operation Aesop 98,559 100,438 Working capital – Operation The Body Shop 477,770 - Working capital – Operation Avon 154,198 - Notes - Avon ( 1 9,720,254 - Total in local currency 16,097,706 7,404,414 Foreign Currency BNDES 4,721 8,029 Export Credit note (NCE) 110,148 81,210 Notes 4,179,182 3,090,490 Resolution nº 4131 62 274,342 202,231 Total in foreign currency 4,568,393 3,381,960 Overall total 20,666,099 10,786,374 Current 2,631,068 3,354,355 Non-current 18,035,031 7,432,019 (a) Debentures Current 164,555 246,017 Non-current 4,006,877 4,005,214 ( 1 Balances recorded for their estimated fair value resulting from business combination with Avon (Note 4 Changes in the balances of borrowings, financings and debentures are presented below: Balance at December 31, 2019 10,786,374 Acquisition of subsidiary 7,250,735 New borrowings and financing 1,341,538 Amortizations ( 2,485,231 Financial charges accrued 557,122 Payment of financial charges ( 535,568 Exchange variation (unrealized) 1,101,306 Exchange variation (realized) 3,889 Translation effects (other comprehensive income) 2,645,934 Balance at June 30, 2020 20,666,099 a) Refers mainly reclassified leasing balances; and balances reclassified from government grants considering BNDES loans Maturities of non-current June 30, 2020 December 31, 2019 2021 2,253,221 - 2022 5,450,177 2,279,759 2023 6,644,547 527,596 2024 3,687,086 4,624,664 18,035,031 7,432,019 A description of the main bank loans and financing agreements as of June 30, 2020 is as follows: a) Description on bank loans and financing i) Promissory notes On January 14, 2020, there was a partial optional early redemption of the Commercial Notes, related to the first series, in the amount of R$ 1,830 On April 29, 2020, there was the 2 500 4 250 476 On June 29, 2020, there was the total optional early redemption of the 1 370 1 140 The appropriation of costs related to the issuance of promissory notes during the period ended of June 30, 2020 was R$ 19,461 11,135 7,866 20,962 ii) Working capital – The Body Shop As presented in the note of financial liquidity risk management ( 5.2 seventy 70 2020 Libor + 2 iii) Working capital – Operation Peru On June 5, 2020, the Company’s subsidiary raised, for reinforcement of working capital and liquidity, an amount of $ 15 22 4.24 iv) Notes - Avon Avon has issued the following notes: Notes – Avon Principal (USD) Principal (R$) Annual interest rate Maturity No guarantee 461,883 2,529,271 5.00 March 15, 2023 No guarantee 243,847 1,335,306 6.95 March 15, 2043 With guarantee 500,000 2,738,000 7.88 August 15, 2022 With guarantee 400,000 2,190,400 6.50 August 15, 2022 To the Notes issued by Avon, add the effects of allocation of fair values from the business combination (Note 4 ), which amounted to R$ 779,497 as of June 30, 2020. b) Restriction clauses of agreements The contractual restriction clauses establish financial indexes arising from the quotient of the net treasury debt division by the EBITDA of the last 12 |
Trade Payables And Reverse Fact
Trade Payables And Reverse Factoring Operations | 6 Months Ended |
Jun. 30, 2020 | |
Trade Payables And Reverse Factoring Operations [Abstract] | |
Trade Payables And Reverse Factoring Operations | 19 REVERSE FACTORING OPERATIONS June 30, 2020 December 31, 2019 Domestic trade payables 4,593,288 1,581,759 Foreign trade payables 861,849 105,073 5,455,137 1,686,832 Reverse factoring operations 254,832 142,924 5,709,969 1,829,756 |
Tax Liabilities
Tax Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
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Tax Liabilities | 20 TAX LIABILITIES June 30, 2020 December 31, 2019 Ordinary ICMS 120,393 120,300 ICMS ST provision (a) 61,926 72,423 Taxes on invoicing – subsidiaries abroad 296,430 145,992 Social Security Tax (INSS) - suspension of the enforceability - 50,147 Withholding tax (IRRF) 110,084 48,593 Other taxes payable - foreign subsidiaries 2,987 1,180 PIS and COFINS payable 101 1,207 INSS and service tax (ISS) payable 54,371 3,218 Others 77,355 399 723,647 443,459 Judicial Deposits (note 12 ( 54,909 ( 62,356 Current 614,839 320,890 Noncurrent 108,808 122,569 (a) The Company has been discussing the illegality of changes in the state legislation for the payment of ICMS - ST. Part of the unpaid amount has been discussed in court by the Company and, in certain cases, the amounts have been deposited with the courts, as mentioned in Note 12 |
Provision For Tax, Civil And La
Provision For Tax, Civil And Labor Risks | 6 Months Ended |
Jun. 30, 2020 | |
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Provision For Tax, Civil And Labor Risks | 21. P The Company is party to tax, labor and civil lawsuits. Management believes, based on the opinion of its legal counsel, that the provision for tax, civil and labor risks are sufficient to cover potential losses. This provision is broken down as follows: June 30, 2020 December 31, 2019 Tax 876,036 127,842 Civil 180,491 30,653 Labor 257,241 61,571 Total 1,313,768 220,066 Judicial deposits (note 12 ( 228,002 ( 60,272 Current 127,825 18,650 Noncurrent 1,185,943 201,416 a) Contingencies with probable losses The changes in the provision for tax, civil and labor risks and contingent liabilities is presented below: Tax Civil Labor Provision Deposits Provision Deposits Provision Deposits Balance at beginning of year 127,842 ( 54,059 30,653 ( 426 61,571 ( 5,787 Acquisition of subsidiary ( 1 657,647 ( 155,219 51,263 ( 4,898 164,091 ( 27,329 Additions 78,727 ( 198 99,774 ( 2,648 21,388 ( 5,362 Reversals ( 29,946 10,208 ( 24,371 1,022 1,105 2,546 Payments ( 52,412 - ( 10,703 3,549 ( 21,470 5,244 Inflation adjustment 2,274 ( 2,516 2,802 ( 10 3,553 ( 92 Translation effects (other comprehensive income) 92,145 2,533 31,103 344 26,166 263 Other movements ( 241 4,584 ( 30 562 837 ( 313 Balance on June 30, 2020 876,036 ( 194,667 180,491 ( 2,505 257,241 ( 30,830 (1) Balances recorded for their estimated fair value resulting from business combination with Avon (Note 4 b) Contingent liabilities - possible losses The Company is party to tax, civil and labor proceedings for which no provision has been set up because they involve possible risk of loss as assessed by management and its legal advisors. As of June 30, 2020 , t he total amounts under discussion for which a negative outcome is considered possible, due to the nature of the claims, is as follows : June 30, 2020 December 31, 2019 Tax 8,715,657 3,503,392 Civil 144,151 61,532 Labor 208,062 77,295 Total contingent liabilities 9,067,870 3,642,219 Judicial deposits (note 12 ( 242,817 ( 136,258 The main tax cases are the following: i) Infraction notices in which the Brazilian Federal Revenue Office collects IPI tax debts, for the supposed lack of compliance with the minimum calculation basis, set forth in the legislation, upon the sales transactions directed to interdependent wholesale establishments. Currently, judgment of the proceedings is awaited at the administrative level. On June 30, 2020 1,951,431 ii) Court decisions which discuss the equivalence to industrial set forth in Decree No. 8,393 2015 30 2020 1,533,078 389,017 on December 31, 2019 iii) Administrative and court proceedings discussing the illegality of changes in the state legislation for the payment of ICMS and ICMS - ST. On June 30, 2020 1,458,918 406,002 on December 31, 2019 iv) Infraction notices where the Brazilian Federal Revenue Office collects IRPJ and CSLL tax debts, in order to question the tax deductibility of goodwill amortization in the context of a corporate reorganization among related parties. Currently, there is a discussion in the Judiciary Branch regarding the lawfulness of administrative decisions which rejected the motion to clarify, submitted to question the dismissed special appeals. On June 30, 2020 1,390,597 1,379,189 on December 31, 2019 v) Infraction Notice in which the State of São Paulo Treasury Office enforces the ICMS-ST collection, fully paid by the destination of the goods, the distributing establishment. Judgment of the proceedings is awaited at the administrative level. On June 30, 2020 526,933 521,903 on December 31, 2019 vi) Infraction notices in which the Brazilian Federal Revenue Service collects IPI tax debts due to disagreement with the tax classification adopted for some products. Judgment of the proceedings is awaited at the administrative level. On June 30, 2020 296,898 218,204 on December 31, 2019 c) The main civil cases are the following: i) Avon has been named defendant numerous personal injury lawsuits filed in U.S. 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 from a variety of different industries, including manufacturers of cosmetics and manufacturers of other products that, unlike the Company’s products, were designed to contain asbestos. On June 30, 2020, there were 139 six 11 20 We believe that the claims asserted against us in these cases are without merit. We are defending against these claims to date, the Company has not proceeded to trial in any case filed against it and there have been no findings of liability enforceable against the Company. However, nationwide trial results in similar cases filed against other manufacturers of cosmetic talc products have ranged from outright dismissals to very large jury awards of both compensatory and punitive damages. Given the inherent uncertainties of litigation, we cannot predict the outcome of all individual cases pending against the Company, and we are only able to make a reasonable estimate for a small number of individual cases that have advanced to the later stages of legal proceedings. For the remaining cases, we provide an estimate of exposure on an aggregated and ongoing basis, which takes into account the historical outcomes of all cases we have resolved to date. Any accruals currently recorded on the Company’s balance sheet with respect to these cases are not material. Other than these accruals, we are at this time unable to estimate our reasonably possible or probable losses. However, 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. ii) On February 14, 2019, a purported shareholder’s class action complaint (Bevinal v. Avon Products, Inc., et al., No. 19 1420 The complaint asserts violations of Sections 10 20 1934 14.5 79 3 16 ) and the remainder of the settlement shall be paid by the Company’s insurers. Some documents related to the settlement still have not been completed and the settlement is subject to court approval. If the settlement is not approved by the court, that is, it is rescinded before it is finalized, the Company will not be able to predict the result of this case. In addition, in this case, it is reasonably possible that the Company will incur in a loss related to this matter, which the Company cannot reasonably estimate. d) Contingent assets The Company claim ed the refund of the PIS and COFINS installments collected with the inclusion of ICMS in its calculation bases from March 2004 to March 2007. The claimed amounts adjusted for inflation amounted to R$ 132,653 (R$ 26,933 on December 31, 201 9 ) , which have not bee n recorded . |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
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Other Liabilities | 22. OTHER LIABILITIES June 30, 2020 December 31, 2019 Post-employment healthcare plan (a) 777,228 98,792 Carbon credit 6,386 4,519 Exclusivity contract 4,200 5,400 Crer para Ver (b) 52,427 51,543 Deferred revenue from performance obligations with customers 349,470 76,250 Provisions for sundry expenses 275,147 156,895 Provisions for rentals 40,363 26,568 Provisions for apportionment of benefits and partnerships payable 5,426 7,860 Long-term incentives 286,595 3,022 Provision for restructuring 101,212 3,401 Provision for store renovation 85,469 15,997 Discontinued operations (c) 94,840 - Professional fees 95,782 - Other provisions 313,310 67,846 Total 2,487,855 518,093 Current 1,322,558 396,391 Noncurrent 1,165,297 121,702 a) As of June 30, 2020 674,514 J anuary 3 2020 102,714 98,792 on December 31, 2019 b) Social program contribution for developing the quality of education; c) On December 17, 2015 March 1, 2016 30, 20 20 , and amount of R$ 48,723 was recorded in administrative expenses pertaining to this provision. |
Shareholder's Equity
Shareholder's Equity | 6 Months Ended |
Jun. 30, 2020 | |
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Shareholder's Equity | SHAREHOLDER’S EQUITY a) Issued Capital As of June 30 , 20 20 , the Company's share capital is R$ 6,917,037 , com prised of 1,251,239,759 outstanding nominal common shares, with no nominal value. The changes in Issued capital is as follows : Date Description Number of shares Value in R$ December 31, 2019 Initial share capital 865,659,942 1,485,436,464 January 03, 2020 Capital increase 321,830,266 3,397,745,864 March 15, 2020 Issue of new stock for stock option plans and restricted stock 780,808 21,936,005 May 05, 2020 June 30, 2020 Issue of new stock for stock option plans and restricted stock 621,653 16,811,439 June 01, 2020 June 30, 2020 Capital increase 62,347,090 1,995,106,880 June 30, 2020 Total shares capital subscribed and paid-up 1,251,239,759 6,917,036,652 On January 3, 2020, 321,830,266 price of R$ 32.24 3,397,746 32.00 1,995,107 After the movements described, on June 30, 2020, the Company's share capital increased to R$ 6,917,037 1,251,392,669 no At the Extraordinary General Meeting held on September 17, 2019, the capital increase of Natura Cosméticos S . A . by R$ 1,242,165 468,973 1,711,138 p rofit r eserve account, pursuant to Article 169 432,571,228 four thirty-two five seventy-one two eight registered common shares, with no par value, distributed to the Company's shareholders, as a bonus, in the ratio of 1 one 1 one already held by them. Thus, the number of shares increased from 432,571,228 865,142,456 common shares, nominative and with no nominal value . As a result , the change in the ratio of common shares of Natura Cosméticos changed the comparative information on earnings per share and share-based payments (note 30.2 in this Company's interim financial information. b) Treasury shares On June 30, 20 20 19 , item “Treasury shares” is as follows : Number of shares R$ (in thousands) Average price per share - R$ Balance on December 31, 2019 - - - Used ( 740,697 ( 40,981 55.33 Acquisition 1,114,460 54,936 49.29 Balance on June 30, 2020 373,763 13,955 37.34 The minimum and maximum treasury share balance on June 30, 2020 29.75 49.71 c) Capital reserve As a result of the acquisition of Avon , Natura &Co issued shares for the total subscription price of R$ 13,274,894 (See Note 4 . Of this total, the amount of R$ 3,397,746 maining of R$ 9,877,148 This share merger was approved at a meeting of the Board of Directors on January 3, 2020 The capital reserve also decreased due to the allocation of the special reserve to the profit reserve (R$ 147,592 26,679 29 Financial Reporting in Hyperinflationary Economies and decrease of R$ 22,063 The capital reserve amounts to R$ 11,037,162 June 30, 2020 1,302,990 31, 2019 d) Profit reserve On June 30, 2020 151,384 due to: (i) the effects of IAS 29 Financial Reporting in Hyperinflationary Economies applied to the balances up to June 30, 2020 147,592 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Segment Information | 24 The Company’s operating segments is based on our Corporate Governance structure, which disaggregate and organize the business for purposes of decision-making and management analysis. Since January 3, 2020, as a result of acquiring Avon ( Note 4 ), the Company’s management has the following Corporate Governance structure: Operation Natura &Co Latam – all operations of Natura, Avon, Aesop and TBS located in Brazil and Latin America; Avon International – all Avon operations, except those located in Brazil and Latin America; TBS International – all The Body Shop operations, except those located in Brazil and Latin America; and Aesop International – all Aesop operations, except those located in Brazil and Latin America. In addition to the analysis per segment, the Company’s Management also assesses its revenues at several levels, mainly through sales channels: direct sales, operations in the retail market, e-commerce, B 2 Net revenue by segment are is as follows in the six 30, 2020 Natura &Co Latam; 56 Avon International; 26 TBS International; 13 Aesop International: 5 The accounting practices applied for each segment are the same described in explanatory note 3 31, 2019 Performance of the Company´s segments were assessed based on net operating revenue and net income for the year, excluding the effects from financial income and expenses, income and social contribution taxes, depreciation and amortization. The tables below summarize financial information for the segments and the geographic distribution of commercial operations of the Company as of June 30, 2020, December 31, 2019 30, 2019 In addition, as described above, because of the Avon acquisition in 2020 segment information disclosed in the 2019 consolidated financial statements are being retroactively recast for comparative purposes. a) Operating segments June 30, 2020 Reconciliation to profit (loss) for the year Net revenue Performance assessed by the Company Depreciation and amortization Financial income Financial expenses Income tax Net income (loss) Natura & Co Latam 8,138,082 680,802 ( 458,872 1,749,654 ( 1,932,291 ( 207,473 ( 168,179 Avon International 3,771,535 40,361 ( 390,836 356,290 ( 676,915 ( 12,223 ( 683,323 TBS International 1,872,436 278,581 ( 356,197 43,491 ( 75,346 ( 57,290 ( 166,761 Aesop International 723,121 180,574 ( 123,813 10,403 ( 28,729 ( 10,018 28,416 Corporate expenses - ( 431,830 - 65,884 ( 8,577 147,348 ( 227,175 14,505,174 748,488 ( 1,329,718 2,225,722 ( 2,721,858 ( 139,656 ( 1,217,022 June 30, 2019 Reconciliation to profit (loss) for the year Net revenue Performance assessed by the Company Depreciation and amortization Financial income Financial expenses Income tax Net income (loss) Natura &Co Latam 4,048,390 728,909 ( 167,260 769,227 ( 1,102,304 ( 79,148 149,425 TBS International 1,717,823 286,527 ( 286,141 18,140 ( 46,057 12,983 ( 14,548 Aesop International 552,646 118,183 ( 83,299 4,792 ( 13,455 ( 7,802 18,419 Corporate expenses - ( 127,120 - - - 43,221 ( 83,899 6,318,859 1,006,499 ( 536,700 792,159 ( 1,161,816 ( 30,746 69,397 June 30, 2020 December 31, 2019 Non-current assets Total assets Current liabilities Non-current liabilities Non-current assets Total assets Current liabilities Non-current liabilities Natura & CoLatam 9,204,837 17,876,818 5,937,239 10,281,619 4,574,087 9,328,858 3,116,454 8,235,679 Avon International 25,758,269 29,338,889 3,415,813 12,056,797 - - - - TBS International 7,726,417 9,828,551 1,989,604 1,885,255 6,146,960 7,369,250 1,065,447 1,477,148 Aesop International 1,338,875 1,954,858 418,223 730,817 1,033,408 1,435,830 255,616 590,917 Corporate - 2,093,806 1,103,010 1,082 - 3,050,574 3,080,906 - 44,028,398 61,092,922 12,863,889 24,955,570 11,754,455 21,184,512 7,518,423 10,303,744 b) Net revenue and Non-current assets by geographic region June 30, 2020 December 30, 2019 Net Revenue Natura &Co Latam Avon International TBS International Aesop International Natura &Co Latam TBS International Aesop International Asia - 653,102 101,024 356,245 - 137,196 225,245 North America 1,650,053 - 269,200 113,706 345,507 305,852 88,129 Mexico 1,328,100 - - - 343,888 - - Other 321,953 - 269,200 113,706 1,619 305,852 88,129 South America 6,485,785 - - - 3,700,224 - - Brazil 4,533,315 - - - 2,776,153 - - Argentina 690,221 - - - 355,098 - - Other 1,262,249 - - - 568,973 - - EMEA 2,244 3,118,433 1,351,971 154,393 2,659 1,157,888 100,838 United Kingdom - 371,923 1,083,032 82,005 - 881,543 48,801 Other 2,244 2,746,510 268,939 72,388 2,659 276,345 52,037 Oceania - - 150,241 98,777 - 116,887 138,434 8,138,082 3,771,535 1,872,436 723,121 4,048,390 1,717,823 552,646 June 30, 2020 December 30, 2019 Non-current assets Natura &Co Latam Avon International TBS International Aesop International Natura &Co Latam TBS International Aesop International Asia - 245,854 170,999 298,185 - 140,760 227,670 North America 699,318 - 626,188 365,465 185,646 523,351 272,676 Mexico 602,043 - - - 183,250 - - Other 97,275 - 626,188 365,465 2,396 523,351 272,676 South America 8,495,351 - - - 4,378,676 - - Brazil 6,985,784 - - - 4,197,259 - - Argentina 355,420 - - - 63,050 - - Other 1,154,147 - - - 118,367 - - EMEA 10,168 25,512,415 6,452,367 234,424 9,765 5,105,903 190,442 United Kingdom - 23,781,822 5,780,380 97,827 - 4,602,066 76,073 Other 10,168 1,730,593 671,987 136,597 9,765 503,837 114,369 Oceania - - 476,863 440,801 - 376,946 342,620 9,204,837 25,758,269 7,726,417 1,338,875 4,574,087 6,146,960 1,033,408 No individual or aggregate customer (economic group) represents more than 10 c) Reconciliation for the recast segments Because of the new segment information as a result of the Avon acquisition in 2020 Presented in the financial statement for the year ended December 31, 2019 December 31, 2019 Non-current assets Total assets Current liabilities Non-current liabilities Natura Brasil (a) 4,181,261 7,618,551 2,207,944 8,119,890 Natura LATAM (a) 349,698 1,592,912 774,521 105,423 Natura others (a) 12,161 18,126 8,591 1,558 Aesop (b) 1,035,432 1,442,214 274,539 592,531 The Body Shop (c) 6,175,903 7,462,135 1,171,922 1,484,342 Corporate - 3,050,574 3,080,906 - Consolidated 11,754,455 21,184,512 7,518,423 10,303,744 (a) Amounts included in the new segment information Natura &Co Latam (b) Amounts related to the Aesop’s operations located in Brazil and Latins America, representing non-current asset (R$ 2,024 6,384 18,923 1,614 (c) Amount related to The Body Shop’s operations located in Brazil and Latins America, representing non-current asset (R$ 28,943 92,885 106,475 7,193 Presented in the financial statement for the period ended June 30, 2019 June 30, 2019 Net revenue Performance assessed by the Company Depreciation and amortization Financial income Financial expenses Income tax Net income (loss) Natura Brasil (a) 2,750,169 588,399 ( 130,112 749,538 ( 1,071,733 ( 54,149 81,943 Natura LATAM (a) 1,253,535 162,932 ( 28,027 19,689 ( 27,504 ( 24,900 102,190 Natura outros (a) 4,292 ( 15,780 ( 1,093 - ( 121 - ( 16,994 Aesop (b) 554,090 117,590 ( 83,761 4,792 ( 13,520 ( 7,802 17,299 The Body Shop (c) 1,756,773 280,479 ( 293,707 18,140 ( 48,938 12,884 ( 31,142 Corporate - ( 127,120 - - - 43,221 ( 83,899 Consolidated 6,318,859 1,006,500 536,700 792,159 1,161,816 30,746 69,397 (a) Amounts included in the new segment information Natura &Co Latam. (b) Amounts related to the Aesop’s operations located in Brazil and Latins America, representing net revenue (R$ 1,444 593 462 65 1,120 (c) 38,950 6,048 7,566 2,881 99 16,594 |
Net Revenue
Net Revenue | 6 Months Ended |
Jun. 30, 2020 | |
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Net Revenue | 25. NET REVENUE Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Gross revenue: Domestic market 3,304,281 2,233,256 6,317,607 3,927,472 Foreign market 5,692,919 2,384,838 12,274,126 4,616,740 Other sales 117,881 11,849 242,336 26,306 9,115,081 4,629,943 18,834,069 8,570,518 Returns and cancellations ( 148,477 ( 5,876 ( 270,994 ( 31,947 Commercial discounts and rebates ( 171,310 ( 257,481 ( 409,895 ( 507,871 Taxes on sales ( 1,808,114 ( 962,877 ( 3,648,006 ( 1,711,841 Net revenue 6,987,180 3,403,709 14,505,174 6,318,859 Substantially, Natura's revenue refers to direct sales and TBS and AESOP retail sales. |
Operating Expenses and Cost of
Operating Expenses and Cost of Sales | 6 Months Ended |
Jun. 30, 2020 | |
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Operating Expenses and Cost of Sales | 26 Three months ended June 30 Six months ended June 30 Breakdown by function 2020 2019 2020 2019 Cost of sales 2,375,507 964,555 5,254,229 1,773,727 Selling, marketing and logistics expenses 3,149,807 1,552,309 6,448,997 2,875,375 Administrative, R&D, IT and Project expenses 1,337,544 567,221 2,603,635 1,104,252 Total 6,862,858 3,084,085 14,306,861 5,753,354 Breakdown by nature Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Cost of sales 2,375,507 964,555 5,254,229 1,773,727 Raw material/packaging material/resale 1,744,178 813,313 4,365,991 1,485,379 Personnel expenses (Note 27 174,213 74,565 285,508 145,572 Depreciation and amortization 60,779 14,196 98,639 28,028 Others 396,337 62,481 504,091 114,748 Selling, marketing and logistics expenses 3,149,807 1,552,309 6,448,997 2,875,375 Logistics costs 496,669 172,384 1,063,015 344,782 Personnel expenses (Note 27 897,081 417,059 1,839,299 805,518 Marketing, sales force and other selling expenses 1,401,336 783,994 2,884,442 1,367,657 Depreciation and amortization 354,721 178,872 662,241 357,418 Administrative, R&D, IT and project expenses 1,337,544 567,221 2,603,635 1,104,252 Investments in innovation ( 51,233 16,397 115,977 33,277 Personnel expenses (Note 27 573,770 307,175 1,031,894 585,142 Other administrative expenses 526,608 164,329 886,926 334,579 Depreciation and amortization 288,399 79,320 568,838 151,254 Total 6,862,858 3,084,085 14,306,861 5,753,354 |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2020 | |
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Employee Benefits | EMPLOYEE BENEFITS Information related to the employee benefits were presented in Company's audited consolidated financial statement for the year ended December 31, 2019, Note 2 6 . Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Payroll, profit sharing and bonuses 1,170,123 593,120 2,312,050 1,146,868 Pension Plan 45,468 22,831 89,581 43,605 Share-based payments (note 31.1 41,500 16,029 76,387 26,903 Charges on restricted shares (note 31.1 54,170 10,036 11,475 15,670 Health medical care, food, transportation and other benefits 144,805 63,131 291,956 120,311 Charges, taxes and social contributions 147,456 51,552 284,248 98,699 INSS 41,542 42,100 91,004 84,176 Total 1,645,064 798,799 3,156,701 1,536,232 27.1 Share-based Payment Options granted in 20 20 On March 27, 2020 2020 The “Co-Investment Plan” consists in the grant of common shares of the Company to a group of employees that may invest part of their profit participation (up to 50 3 The “Long-Term Incentive Plan” consists of granting common shares of the Company to a group of employees and, unless otherwise determined by the Company’s Board of Directors, participants’ rights regarding the Performance Shares shall only be fully acquired, to the extent that: (i) the participant remains an employee of the Company and its subsidiaries until the 3 50 3 50 4 The variations in the number of outstanding stock options and their related weighted-average prices, as well as variations in the number of restricted stock are as follows: Stock Option Plan and Strategy Acceleration Plan Average exercise price per option - R$ Options (thousands) Balance on December 31, 2019 16.51 17,568 Related to Avon subsidiary – Business Combination (Note 4 0.01 1,994 Expired 21.35 ( 72 Exercised 26.35 ( 727 Balance on June 30, 2020 16.29 18,763 Restricted shares (thousands) Performance shares (thousands) Balance on December 31, 2019 3,092 688 Granted 862 - Expired ( 22 - Exercised ( 1,046 ( 40 Balance on June 30, 2020 2,886 648 Of the 18,763 options existing as of June 3 0 , 20 20 ( 17,568 options on December 31, 201 9 ) 2,312 options ( 604 options as on December 31, 201 9 ) were exercised . The expense related to the fair value of the options and restricted shares, including the charges related to restricted shares, recognized in the six , according to the period elapsed for the acquisition of the right to exercise of options and restricted shares, was R$ 81,350 in the consolidated financial statements . Options for buying outstanding shares and restricted shares at the period ended June 30, 2020 have the following due dates prices: As of June 30, 2020 -Stock option plan Grant date Right acquisition conditions Exercise price - R$ Fair value 1 Existing options Remaining contractual life (years) Vested options (thousands) March 18, 2013 4 37.60 6.05 386 0.2 386 March 17, 2014 4 25.16 4.27 102 1.7 102 March 16, 2015 From 2 4 13.60 4.85 5.29 210 2.7 210 July 28, 2015 (Strategy acceleration) From 4 5 12.90 6.20 6.23 1,296 3.1 196 March 15, 2016 From 2 4 12.84 7.16 7.43 286 3.8 284 July 11, 2016 (Strategy acceleration) From 4 5 11.41 6.84 6.89 2,640 4.1 - March 10, 2017 From 2 4 12.59 6.65 6.68 696 4.8 372 March 10, 2017 (Strategy acceleration) From 4 5 12.59 6.87 6.89 2,210 4.8 - March 12, 2018 From 2 4 16.96 7.96 8.21 1,998 5.8 642 March 12, 2018 (Strategy acceleration) From 3 5 12.16 16.96 8.21 9.67 3,800 5.8 - April 12, 2019 From 3 4 23.54 11.71 11.82 1,636 6.8 - April 12, 2019 (Strategy acceleration) From 4 5 23.54 11.51 11.71 1,900 6.8 - December 31, 2020 to May 9, 2017 1 0.01 19.80 65 - 65 March 14, 2018 to December 17, 2018 From 1 3 0.01 19.70 334 1.2 55 March 13, 2019 to December 16, 2019 From 1 3 0.01 19.58 1,204 0.4 2.2 - 18,763 2,312 As of June 30 , 20 20 - restricted shares Grant date Right acquisition conditions Existing stock Fair value (R$) Remaining contractual life (years) March 10, 2017 From 2 4 206 11.69 12.51 0.7 March 12, 2018 – Plan I From 2 4 470 15.18 15.9 0.7 March 12, 2018 – Plan II From 0.4 2.4 90 15.76 16.49 0.1 March 12, 2018 – Plan III From 1 3 74 15.54 16.27 0.8 March 12, 2018 – Extraordinary Plan I From 1 3 4 15.54 16.28 0.7 August 13, 2018 – Extraordinary Plan VI From 1.6 3.6 50 12.24 13.13 0.7 1.7 April 12, 2019 – Plan I From 2 4 814 21.62 22.53 0.7 2.8 April 12, 2019 – Plan II From 1 3 312 22.14 22.85 0.7 1.7 March 27, 2020 - Co-Investment Plan From 1 3 866 29.00 3 2,886 As of June 30 , 20 20 – Performance shares Grant date Right acquisition conditions Existing stock (thousands) Fair value (R$) Remaining contractual life (years) Vested stock (thousands) May 21, 2019 From 3 4 648 23.10 45.70 3.0 4.0 - 648 - As of June 30 , 20 20 , the market price was R$ 39.90 already considering the stock split (R$ 38.67 on December 31, 201 9 ) per share. |
Financial Income (Expenses)
Financial Income (Expenses) | 6 Months Ended |
Jun. 30, 2020 | |
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Financial Income (Expenses) | 28 FINANC E INCOME (EXPENSES) Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 FINANCE INCOME: Interest on short-term investments 38,888 14,484 74,306 37,445 Gains on monetary and exchange rate variations (a) 157,780 221,307 394,807 410,393 Gains on swap and forward transactions (c) 559,770 167,748 1,634,968 318,873 Gains on fair value adjustment of swap and forward derivatives ( 136,420 656 3,020 1,003 Reversal of the monetary update of provision for tax risks and tax obligations - - 42,378 - Debt structuring revenues for acquisition of Avon 26,106 - 52,434 - Other financial income 19,414 9,862 23,809 24,445 665,538 414,057 2,225,722 792,159 FINANCE EXPENSE: Interest on financing ( 286,577 ( 129,072 ( 539,671 ( 257,764 Interest on leases ( 65,035 ( 33,163 ( 119,398 ( 64,137 Losses on monetary and exchange rate variations (b) ( 330,883 ( 159,641 ( 1,529,458 ( 311,015 Losses on swap and forward transactions (d) ( 283,417 ( 243,564 ( 431,567 ( 455,352 Loss on fair value adjustment of swap and forward derivatives 79,237 ( 309 ( 5,170 ( 786 Inflation adjustment of provision for tax, civil and labor risks and tax liabilities ( 2,664 ( 3,845 ( 6,410 ( 8,080 Appropriation of funding costs (debentures and notes) ( 2,822 ( 3,204 ( 5,653 ( 6,452 Pension plan interest ( 8,204 - ( 15,512 - Adjustment for hyperinflationary economy (Argentina) ( 10,368 ( 3,225 ( 5,556 ( 5,864 Debt structuring expenses for acquisition of Avon - ( 29,360 ( 29,360 Other financial expenses ( 23,346 ( 13,076 ( 63,463 ( 23,006 ( 934,079 ( 618,459 ( 2,721,858 ( 1,161,816 Finance income (expenses) ( 268,541 ( 204,402 ( 496,136 ( 369,657 The objective of the breakdowns below is to explain more clearly the foreign exchange hedging transactions contracted by the Company and the related balancing items in the income statement shown in the previous table: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 (a) Gains on monetary and exchange rate variations 157,780 221,307 394,807 410,393 Gains on exchange rate variation on loans, financing and debentures ( 14,391 160,466 ( 393 313,365 Exchange rate variation on imports ( 13,581 2,506 15,746 6,541 Exchange rate variation on export receivables 16,804 585 46,580 7,322 Exchange rate variation on accounts payable to subsidiaries abroad 109,119 57,750 183,468 83,165 Exchange variations of Demand Deposits in foreign currency 59,829 - 149,406 (b) Losses on monetary and exchange rate variations ( 330,883 ( 159,641 ( 1,529,458 ( 311,015 Losses on exchange rate variation on loans, financing and debentures ( 151,795 ( 120,445 ( 1,089,680 ( 228,287 Exchange rate variation on imports ( 24,740 ( 3,964 ( 43,774 ( 9,791 Exchange rate variation on export receivables ( 5,857 ( 2,935 ( 7,901 ( 8,483 Exchange rate variation on accounts payable to subsidiaries abroad ( 30,551 ( 32,224 ( 192,414 ( 64,220 Exchange rate variation on financing ( 117,940 ( 73 ( 195,689 ( 234 (c) Gains on swap and forward transactions 559,770 167,748 1,634,968 318,873 Revenue from swap exchange coupons 64,923 45,518 112,090 86,811 Gains from exchange variations on swap instruments 494,847 122,230 1,522,878 232,062 (d) Losses on swap and forward transactions ( 283,417 ( 243,564 ( 431,567 ( 455,352 Losses on exchange rate variation on swap instruments ( 5,982 ( 160,474 ( 5,982 ( 314,136 Financial costs of swap instruments ( 277,435 ( 83,090 ( 425,585 ( 141,216 |
Other Operating Income (Expense
Other Operating Income (Expenses), Net | 6 Months Ended |
Jun. 30, 2020 | |
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Other Operating Income (Expenses), Net | 29 OTHER OPERATING INCOME (EXPENSES), NET Information related to the other operating income (expenses), net were presented in Company's audited consolidated financial statement for the year ended December 31, 2019, Note 2 8 . Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Others operating income, net Result on write-off of property, plant and equipment 7,129 ( 582 8,620 142 ICMS-ST 7,051 3,626 14,345 39,722 Sale of customer portfolio - 10,125 - 10,125 Tax contingencies 100,192 94,978 101,473 96,062 Other operating income 7,221 ( 3,492 7,764 - Total Other operating income 121,593 104,655 132,202 146,051 Others expenses operating income, net Crer para Ver (a) ( 11,360 ( 8,140 ( 19,720 ( 16,771 Expenses with the sale of customer portfolio ( 2,967 - ( 2,967 - Initial costs of acquisition of Avon (b) ( 6,947 ( 67,497 ( 304,057 ( 67,497 Transformation Plan ( 54,486 ( 19,543 ( 79,558 ( 26,374 Tax contingencies ( 3,774 ( 3,926 ( 3,774 ( 3,926 Other operating expenses 32,617 2,538 - ( 9,151 Total other operating expenses ( 46,917 ( 96,568 ( 410,076 ( 123,719 Other operating income (expenses), net 74,676 8,087 ( 277,874 22,332 a) Allocation of operating profit from sales of “ Crer para Ver” line of non-cosmetic products to Natura Institute, specifically directed to social projects for developing the quality of education . b) Related to expenses associated with the Avon acquisition process, which include: financial structuring expenses (R$ 115,696 17,281 18,030 152,909 |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
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Related-Party Transactions | RELATED-PARTY TRANSACTIONS In the period end ing on June 30, 2020 147,486 The Natura Institute holds shares in the investment fund Fundo de Investimento Essencial , and on June 30 , 20 20 the balance was R$ 3,395 (R$ 3,766 on December 31, 201 9 ) . On June 5, 2012, an agreement was entered into, still present, between Indústria e Comércio de Cosméticos Natura Ltda. and Bres Itupeva Empreendimentos Imobiliários Ltda., (“ Bres Itupeva ”), for the construction and lease of processing, distribution, storage (HUB), in the city of Itupeva / SP a distribution center (HUB), in the city of Itupeva /SP. In 2019 Bres Itupeva granted its credits to BRC Securitizadora S/A, to which Natura makes monthly payments. Mr. Antônio Luiz da Cunha Seabra , Mr. Guilherme Peirão Leal and Mr. Pedro Luiz Barreiros Passos , members of the group of controlling shareholders of Natura Cosméticos S.A., indirectly hold controlling interests in Bres Itupeva . The amount involved in the registered transaction is recorded under “Right of Use” of "Buildings" in the amount of R$ 41,809 (R$ 44,244 under “Builds” of Property, Plant and Equipment on December 31, 201 9 ). In the period ending June 30, 2020 692 0.5 Crer Para Ver line, in the amount of R$ 21,000 12,500 on June 30, 2019 3 0 . 1 . Key management personnel compensation The total compensation of the Company’s Management is as follows: Three months ended June 30 2020 2019 Compensation Compensation Fixed Variable Total Fixed Variable Total (a) (b) (a) (b) Board of Directors 2,246 14,764 17,010 5,180 9,866 15,046 Officers 9,157 31,132 40,289 10,791 12,568 23,359 11,403 45,896 57,299 15,971 22,434 38,405 Six months ended June 30 2020 2019 Compensation Compensation Fixed Variable Total Fixed Variable Total (a) (b) (a) (b) Board of Directors 7,591 20,619 28,210 10,230 15,782 26,012 Officers 22,661 39,574 62,235 19,963 30,153 50,116 30,252 60,193 90,445 30,193 45,935 76,128 a) The item “Officers” includes the amount of R$ 510 referred to the amortization of the Confidentiality and Non-Compete Agreement during the period ended June 3 0 , 20 20 (R$ 29 in in the six ). b) Refers to profit sharing, on an accrual basis, net of reversals, regarding the Restricted Stock Plan and Strategy Acceleration Program, including charges, as applicable, to be determined in the year. The amounts include additions to and/or reversals of provisions made in the previous year, due to final assessment of the targets established for board members and officers, statutory and non-statutory, in relation to profit sharing. 3 0 . 2 . Share-based payments Breakdown of the Company officers and executives’ compensation: Grant of options June 30, 2020 June 30, 2019 Stock option balance (number) 1 (a) Average fair value of stock options 1 – R$ Average exercise price 1 - R$ (b) Stock option balance (number) 1 (a) Average fair value of stock options 1 – R$ Average exercise price 1 - R$ (b) Officers 13,723,236 8.39 16.29 14,203,364 8.24 16.43 Restricted shares June 30, 2020 June 30, 2019 Stock option balance (number) 2 (a) Average fair value 2 - R$ Stock option balance (number) 2 (a) Average fair value 2 - R$ (b) Officers 1,564,143 25.15 1,069,642 19.05 ¹ The number of stock options granted, expired and exercised and their respective fair values are shown already considering the stock split approved at the Extraordinary Shareholders Meeting held on September 17, 2019. ² The number of restricted stock and performance shares granted, expired and exercised is shown already considering the stock split approved at the Extraordinary Shareholders’ Meeting held on September 17, 2019 a) Refers to the balance of the options and restricted shares ripe ("vested") and mature ("unvested"), not carried out, at the balance sheet dates. b) Refers to the weighted-average exercise price of the option at the time of the stock option plans, adjusted for interest based on the Extended Consumer Price Index (IPCA) through the end of the reporting period. The new Stock Option Plan implemented in 2015 |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2020 | |
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Commitments | 31. 3 1 . 1 Contracts related to supply of inputs The subsidiary Indústria e Comércio de Cosméticos: Agreements that started in 2018 2020 265 363 Agreements that started in 2019 2022 155 305 Agreements that started in 2020 2022 204 238 The amounts are carried based on electric power consumption estimates in accordance with the contract period, whose prices are based on volumes, also estimated, resulting from the subsidiary’s continuous operations. Total minimum supply payments, measured at nominal value, according to the contract, are: June 30, 2020 December 31, 2019 Less than one 10,206 17,918 Between one and five 2,552,017 13,160 Total 2,562,223 31,078 |
Insurance
Insurance | 6 Months Ended |
Jun. 30, 2020 | |
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Insurance | INSURANCE The Group has an insurance policy that considers principally risk concentration and materiality, taking into consideration the nature of its activities and the opinion of its insurance advisors. As of June 3 0 , 20 20 , insurance coverage is as follows: Amount insured Item Type of coverage June 30, 2020 December 31, 2019 Industrial complex and administrative sites Any damages to buildings, facilities, inventories, and machinery and equipment 5,511,760 2,322,801 Vehicles Fire, theft and collision for 818 936 2018 259,004 212,027 Loss of profits No loss of profits due to material damages to facilities buildings and production machinery and equipment 1,582,000 1,582,000 Transport Damages to products in transit 97,086 32,309 Civil liability Protection against error or complaints in the exercise of professional activity that affect third parties 1,392,756 532,510 Environmental liability Protection against environmental accidents that may result in environmental lawsuits 30,000 30,000 |
Additional Statements of Cash F
Additional Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2020 | |
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Additional Statements of Cash Flows | ADDITIONAL STATEMENTS OF CASH FLOWS The following table presents additional information on transactions related to the cash flow statement: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Non-cash items Hedge accounting, net of tax effects ( 11,768 47,701 153,114 105,997 Net effect of acquisition of property, plant and equipment and intangible assets not yet paid 1,700 ( 12,163 46,778 31,638 Consideration per acquisition of the subsidiary - - 13,366 - |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
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Subsequent Events | SUBSEQUENT EVENTS Entity acquisition On June 30, 2020 The Body Shop International Limited signed an agreement to purchase the entity Aeon Forest Co., Ltd for the amount of R$ 133,275 2,623,000 Resource remittance to subsidiary On J uly 2 2020 S.à r.l . the amount of R$ 252,334 $ 47,000 2.3 |
Approval Of Financial Statement
Approval Of Financial Statements | 6 Months Ended |
Jun. 30, 2020 | |
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Approval Of Financial Statements | 35. APPROVAL OF FINANCIAL STATEMENTS The Company’s unaudited interim condensed consolidated financial statements were approved by the Board of Directors and authorized for issue at the meeting held on September 30 , 2020 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Polices (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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Basis of preparation | 2.1 Basis of preparation The unaudited interim condensed consolidated financial statements of the Company, for the three and six months ended June 30 20 20 and 201 9 , have been prepared in accordance with IAS 34 Interim Financial Reporting , issued by the International Accounting Standard Board—IASB . The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company’s annual consolidated financial statements as of December 31 2019 The accounting p olicies applied in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended on December 31, 2019 During the first quarter of 2020 in order to be comparable to the information as of and for the six months ended June 30, 2020. a) Presentation basis for the Company’s consolidated accounting statements before the corporate restructuring presented in the Company’s annual financial statement in Note 1 As disclosed in the Company’s annual consolidated financial statements for the fiscal year ended December 31, 2019 prior to the corporate restructuring , Natura &Co Holding had limited or no assets, operations or activities, liabilities and no material contingent liabilities or commitments . The c orporate r estructuring was accounted for using the predecessor method of accounting, under which, the historical operations of Natura are deemed to be those of Natura &Co Holding . |
Hyperinflationary economy | 2.2 Hyperinflationary economy Information related to Argentina, which is considered a hyperinflationary economy is presented in Note 3 3 . 1 ) in Company's audited consolidated financial statement for the year ended December 31, 2019 . For the six s ended June 3 0 , 20 20 , the application of IAS 29 loss in financial result s of R$ 5,556 (R$ 5,864 at June 30 , 201 9 ); and (ii) a net loss of R$ 22,221 (R$ 29,888 at June 30 , 201 9 ) , which include t he translation of the statement of income at the exchange rate at the balance date, instead of average monthly exchange rate of the year, resulted in a positive impact on other comprehensive income for the fiscal year ended June 30 , 20 20 of R$ 4,247 (R$ 393 on June, 2019 ). The capital reserve and profit reserve also increased R$ 256,679 151,384 |
Consolidation | 2.3 Consolidation a) Company’s subsidiaries Information related to the Company’s subsidiaries ar e presented in Note 3 2 a ) of the Company's audited consolidated financial statement s for the year ended December 31, 2019 , except as disclosed below: Below is the list of Company’s subsidiaries as of June 30 , 20 20 : Ownership % June 30, 2020 December 31, 2019 Direct Interest: Avon Products, Inc.. 100.00 - Natura Cosméticos S.A. 100.00 100.00 Natura &Co International S.à r.l . (1) 100.00 - ( 1 Natura &Co International S.à.r.l . , was incorporated in 2020 under the laws of Luxembourg with the purpose of acquiring, managing and selling interests in domestic and foreign companies, other than raising and borrowing funds to other consolidated entities of the Company. |
Segment information | 2.4 Segment information Segment i nformation is based on the information included in the internal report s provided to the chief operating decision maker of the Company . The main decision-making body of the Company, which is responsible for defining the allocation of resources and for the performance assessment of the operating segments, is the Natura &Co Holding S.A.’s Board of Directors, which is assisted by the Group’s Operational Committee (“GOC”). The GOC, which includes the CEOs of Natura &C o Holding , Natura, Avon, The Body Shop International Limited (“The Body Shop”) and Emeis Holding Pty Ltd (“ Aesop ”) , in addition to representatives of key business areas (Finance, Human Resources, Business Strategy and Development, Legal, Innovation and Sustainability, Operations and Corporate Governance), is responsible for, among other things, monitoring the implementation of short and long-term strategies and making recommendations to the Board of Directors regarding the management of the Group, from the perspective of results, allocation of resources among business units, cash flow and talent management. |
New standards, interpretations and amendments adopted by the Company | 2.5 New standards, interpretations and amendments adopted by the Company The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company annual consolidated financial statements for the year ended 31 December 2019, except for the adoption of new standards effective as of 1 January 2020. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in 2020 unaudited interim condensed consolidated financial statements of the Company. Amendments to IFRS 3 The amendment to IFRS 3 all of the inputs and processes needed to create outputs. These amendments had no impact on the consolidated financial statements of the Company but may impact future periods should the Company enter into any business combinations. Amendments to IFRS 7 9 39 The amendments to IFRS 9 39 a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument. These amendments had no impact on the consolidated financial statements of the Company as it does not have any interest rate hedge relationships. Amendments to IAS 1 8 The amendments provide a new definition of material that states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on the consolidated financial statements of, nor is there expected to be any future impact to the Company . Conceptual Framework for Financial Reporting issued on 29 March 2018 The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards. The revised Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. These amendments had no impact on the consolidated financial statements of the Company . Amendment s to IFRS 16 : Covid- 19 In May 2020, the IASB issued Covid- 19 16 16 19 The objective of the amendment is to provide lessees that have been granted covid- 19 The amendments do not apply to lessors. These amendments had impact on the consolidated financial statements of the Company, see note 17 |
Summary of Significant Accoun_3
Summary of Significant Accounting Polices (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Information About Company Principal Subsidiaries | Below is the list of Company’s subsidiaries as of June 30 , 20 20 : Ownership % June 30, 2020 December 31, 2019 Direct Interest: Avon Products, Inc.. 100.00 - Natura Cosméticos S.A. 100.00 100.00 Natura &Co International S.à r.l . (1) 100.00 - ( 1 Natura &Co International S.à.r.l . , was incorporated in 2020 under the laws of Luxembourg with the purpose of acquiring, managing and selling interests in domestic and foreign companies, other than raising and borrowing funds to other consolidated entities of the Company. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of detailed information about business combination [abstract] | |
Schedule of preliminary fair value calculation of consideration transferred | The following table summarizes the preliminary fair value calculation of the co nsideration transferred on January 3, 2020 In millions of R$, except for the number of shares Number of Avon common shares outstanding as of January 3, 2020 536,383,776 Multiplied by the exchange ratio of 0.600 321,830,266 Multiplied by the market price of Natura &Co shares on January 3, 2020 41.00 Consideration in the issuance of shares 13,195 Consideration transferred adjustment (a) 171 Fair value of the consideration transferred 13,366 (a) Related to the effects of replacements and settlements of share-based payment plans, of which the amount of R$ 80 thousand refers to the share-based payment plans of Avon, in which it was substituted by Natura &Co, and R$ 91 thousand refers to the stock option plans liquidated as a result of the conclusion of the transaction. These are pre-combination installments that were regarded as a transferred compensation. |
Schedule of preliminary allocation prepared by Company and resulting goodwill | The table below shows the preliminary allocation prepared by the Company and the resulting goodwill. In millions of R$ Total estimated consideration to be transferred: 13,366 (-) Fair value of acquired assets: Cash and cash equivalent 2,636 Accounts receivable ( 1 1,135 Inventories 1,942 Other current assets 1,056 Assets available for sale 187 Property, plant and equipment 2,886 Income tax and deferred social contribution 667 Assets of right of use 565 Other non-current assets 475 Judicial deposits 284 Recoverable taxes 518 Employee benefit plan 553 Intangible ( 2 5,710 (+) Fair value of liabilities assumed: Current liabilities 6,267 Provision for contingencies ( 3 ) 724 Long-term debt 7,078 Leasing 588 Deferred taxes ( 4 ) 728 Other liabilities 809 (-) Net assets 2,420 Non-controlling interest 28 Estimated preliminary g oodwill ( 5 ) 10,974 ( 1 On the acquisition date, the fair value of the accounts receivable approximate their carrying value , net of a provision for expected losses in the amount of R$ 270.2 ( 2 The fair value of intangible assets includes intangible assets acquired and registered by Avon prior to the fair value allocation, in the sum of R$ 291 ( 3 The provision for contingencies amount shown in the table above corresponds to the historical amount recorded by Avon, since the Company is still in the process of estimating their fair value as well as identifying additional contingencies that may be required to be recorded in accordance with the provisions of paragraph 23 3 ( 4 Consists of net operating loss deferred tax assets of approximately R$ 311 1,309 ( 5 Goodwill represents the stronger market position and geographic regions that will result in a more diversified and balanced global portfolio, as well as future expected profitability and operational synergies such as supply, manufacturing, distribution and efficiency of the administrative structure and revenue growth. This goodwill arising from the transaction is not expected to result in a tax benefit or to be deductible for tax purposes. |
Schedule of fair value of intangible assets | Nature Estimated fair value (in millions of Reais) Estimated useful life Trade name “Avon” Represents the fair value of the trade name “Avon” 1,893 Indefinite Power brands Represents the fair value of “Power brands” 518 20 Developed technologies Represents the fair value of all technology required to develop Avon products, including product formulas, labeling data, manufacturing processes, regulatory approvals, packages of products and designs. 1,132 7 Sales representatives Represents the fair value of Avon’s relationship with its sales representatives 1,876 14 Total 5,419 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments | Below are presented the carrying amounts and fair values of the Company’s financial instruments as of June 3 0 , 20 20 and December 31, 20 19 : Consolidated Carrying amount Fair Value Note Classification by category Fair value hierarchy June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Financial assets Cash and cash equivalentes 6 Cash and banks Amortized cost 2,872,297 3,110,220 2,872,297 3,110,220 Certificate of bank deposits Amortized cost 766,703 211,261 766,703 211,261 Repurchase operations Fair value through profit or loss Level 2 1,181,116 1,192,101 1,181,116 1,192,101 4,820,116 4,513,582 4,820,116 4,513,582 Short term investments 7 Government bonds Fair value through profit or loss Level 2 1,486,999 221,900 1,486,999 221,900 Restricted cash Fair value through profit or loss Level 2 58,764 - 58,764 - Financial letter Fair value through profit or loss Level 2 377,033 374,690 377,033 374,690 Loan investment fund Fair value through profit or loss Level 2 376,538 407,928 376,538 407,928 Dynamo Beauty Ventures Ltd Fund Fair value through profit or loss Level 2 11,326 7,402 11,326 7,402 Certificate of bank deposits Fair value through profit or loss Level 2 270,870 21,327 270,870 21,327 2,581,530 1,033,247 2,581,530 1,033,247 Trade receivables 8 Amortized cost 2,644,601 1,685,764 2,644,601 1,685,764 Court deposit 12 Amortized cost 600,340 337,255 600,340 337,255 “Financial” and “Operating” derivatives Fair value – Hedge instruments Level 2 2,163,255 737,378 2,163,255 737,378 “Financial” and “Operating” derivatives Fair value through results Level 2 35,918 - 35,918 - 2,199,173 737,378 2,199,173 737,378 Financial liabilities Borrowings, financing and debentures 19 Borrowings in domestic currency Amortized cost ( 16,097,706 ( 7,412,443 ( 15,981,649 ( 7,445,672 Borrowings in foreign currency Amortized cost ( 4,568,393 ( 3,373,931 ( 4,420,002 ( 3,541,541 ( 20,666,099 ( 10,786,374 ( 20,401,651 ( 10,987,213 “Financial” and “Operating” derivatives Fair value – Hedge instruments Level 2 - ( 10,158 - ( 10,158 “Financial” and “Operating” derivatives Fair value through results Level 2 ( 75,247 ( 1,648 ( 75,247 ( 1,648 ( 75,247 ( 11,806 ( 75,247 ( 11,806 Lease 18 Amortized Cost ( 4,107,175 ( 2,517,565 ( 4,107,175 ( 2,517,565 Trade payables and reverse factoring operations 20 Amortized cost ( 5,709,969 ( 1,829,756 ( 5,709,969 ( 1,829,756 |
Summary of Derivative Instruments | To hedge the current balance sheet positions of the Company against market risks, the following derivative instruments are used, as of June 3 0 , 20 20 and December 31, 201 9 : Fair value (Level 2 Description June 30, 2020 December 31, 2019 Financial derivatives 2,121,287 725,060 Operational derivatives 2,639 512 Total 2,123,926 725,572 |
Summary of Derivative Positions | Principal (Notional) amount Book value Fair value Gain (loss) Description June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Swap contracts: Asset position: Short position in dollar 2,661,494 2,664,001 4,603,592 3,416,707 5,102,622 3,729,691 499,030 312,984 Liability position: CDI floating rate: Long position in CDI 2,661,494 2,664,001 2,729,070 2,754,595 2,942,841 3,002,623 213,770 248,028 NDFs Forward Agreements: Liability portion: CDI floating rate: Long position at interbank rate 5,442,792 200,896 1,882 ( 1,848 ( 38,494 ( 2,008 ( 40,376 ( 160 Total net derivative financial instruments: 5,442,792 200,896 1,876,404 660,264 2,121,287 725,060 244,884 64,796 |
Disclosure Of Derivatives Are Measured At Fair Value With Gains And Losses Recognized In The Group Of Costs Of Products Sold | On June 3 0 , 20 20 , the Company holds forward derivative instruments in order to hedge against exchange rate risk on import and export operations : Description Principal (notional) amount Fair value June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Net position - GBP and USD 1,093,241 5,898 - Forward contracts 119,851 1,302,869 ( 3,259 ) 512 Total derivative instruments, net 1,213,092 1,302,869 2,639 512 |
Disclosure Of Net Asset Exposure | For the sensitivity analysis of the risk of foreign exchange rate exposure, the Company's Management understands it is necessary to consider in addition to the assets and liabilities, with exposure to the fluctuation of exchange rates recorded in the balance sheet, the value of the fair value of the financial instruments contracted by the Company for the protection of certain exposures as of June 3 0 , 20 20 and December 31, 201 9 , as shown in the following table : June 30, 2020 December 31, 2019 Loans and financing registered in Brazil in foreign currency (a) ( 4,587,578 ( 3,381,959 Receivables registered in Brazil in foreign currency 11,727 10,007 Accounts payable registered in Brazil in foreign currencies ( 11,686 ( 10,543 Value of the financial derivatives 5,102,622 3,729,691 Net asset exposure 515,085 347,196 ( a ) Excluding transaction costs . |
Disclosure Of Net Foreign Exchange Exposure | The tables below show the loss that would have been recognized in the subsequent period, assuming that the current net foreign exchange exposure remains static, based on the following scenarios : Description Risk Probable scenario Scenario II Scenario III Net exposure Dollar decrease ( 2,481 101,032 170,041 |
Disclosure of Detailed Information About Cash Flow Hedged Items | The positions of derivative financial instruments designated as outstanding cash flow hedge on June 3 0 , 20 20 as set out below: Cash flow hedge instrument Others comprehensive income Hedged item Notional currency Notional value Accrual value Fair value (a) Accumulated contract gain (loss) Gain in the 6 Currency Swap – US$/R$ Currency BRL 2,659,360 1,872,141 2,157,449 285,308 223,672 Forward contract Currency BRL 883,167 4,339 5,613 5,613 ( 198 Forward contract Currency BRL 39,713 - 193 193 5,482 Total 3,582,240 1,876,480 2,163,255 291,114 228,956 (a) The method used by the Company to determine fair value consists in calculating the future value based on the contracted conditions and determines present value based on market accrual extracted from B 3 . |
Disclosure of Detailed Information About Cash Flow Hedged Reserve Booked Under Other Comprehensive Income | The changes in cash flow hedge reserve recognized under other comprehensive income are shown below: Cash flow hedge balance as of December 31, 2018 ( 27,706 Change in the fair value of hedge instrument recognized in other comprehensive income 159,698 Tax effects on the fair value of hedge instrument ( 53,701 Cash flow hedge balance as of June 30, 2019 78,291 Cash flow hedge balance as of December 31, 2019 42,729 Change in the fair value of hedge instrument recognized in other comprehensive income 228,956 Tax effects on the fair value of hedge instrument ( 75,842 Cash flow hedge balance as of June 30, 2020 195,843 |
Disclosure of Detailed Information About Interest Rate Risks of Transactions | The following table presents the exposure to interest rate risks of transactions pegged to CDI, including derivative transactions (loans and financing were considered at their full amounts, since 98.42 of them are linked to CDI rate) : Total borrowings and financing - in local currency (note 18 ( 16,097,706 Operations in foreign currency with derivatives pegged to CDI ( 4,568,393 Short-term investments (notes 6 7 4,459,259 Net exposure ( 16,206,840 |
Summary of Net Exposure to Interest Rate Risk by Scenario | The tables below set out projected incremental loss that w ould be recognized in income statement , assuming that the current net liability exposure will remain unaltered and the following scenarios: Description Risk Probable scenario Scenario II Scenario III Net liability Rate increase 4,574 ( 29,406 ( 63,386 |
Summary of Working Capital Calculation | Management monitors the Group’s consolidated liquidity level considering the expected cash flows against unused credit facilities, as shown in the following table: June 30, 2020 December 31, 2019 Total current assets 17,064,524 9,430,057 Total current liabilities ( 12,863,889 ( 7,518,423 Total net working capital 4,200,635 1,911,634 |
Disclosure of Maturity Analysis for Non-Derivative Financial Liabilities | At June 3 0 , 20 20 , the carrying amounts of financial liabilities, measured at amortized cost considering interest payments at a floating rate and the value of debt securities reflecting the forward market interest rates on the reporting date may be changed as floating interest rates change. Their respective original maturities are shown below: Less than one One five Over five Total expected cash flow Interest to be accrued Carrying amount Borrowings, financing and debentures 2,554,860 19,329,476 - 21,884,336 ( 1,218,237 20,666,099 Lease 1,272,171 2,883,814 1,014,375 5,170,360 ( 1,063,185 4,107,175 Payables to related parties, trade payables and reverse factoring operations 5,709,969 - - 5,709,969 - 5,709,969 |
Cash And Cash Equivalent (Table
Cash And Cash Equivalent (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Schedule of Detailed Information About Cash And Cash Equivalents | Cash and Cash Equivalent is as follows: June 30, 2020 December 31, 2019 Cash and banks 2,872,297 3,110,220 Certificate of Bank Deposits (a) 766,703 211,261 Repurchase agreements (b) 1,181,116 1,192,101 4,820,116 4,513,582 (a) As of June 30, 2020 102.7 (b) Repurchase operations are securities issued by banks with a commitment by the bank to repurchase them, and by the client to resell them, at defined rates and within a predetermined term, backed by public or private securities, depending on bank availabilities and registered with the CETIP. On June 30, 2020 103.8 of CDI ( 106.9 % of the CDI on December 31, 2019 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Schedule of Short-Term Investments | Short-term investments is as follows: June 30, 2020 December 31, 2019 Loan investment funds 376,538 407,928 Certificate of Bank Deposits (a) 270,870 21,327 Treasury bills 377,033 374,690 Government bonds (LFT) 1,486,999 221,900 Dynamo Beauty Ventures Ltd. Fund 11,326 7,402 Restricted cash 58,764 - 2,581,530 1,033,247 Current 2,570,204 1,025,845 Non-current 11,326 7,402 (a) As of June 30, 2020, the CDBs classified as short-term investments are remunerated at an average rate of 103.8 106.9 f December 31, 2019 Crer para Ver” line within the exclusive fund is R$ 35,423 38,018 December 31, 2019 |
Schedule of Detailed Information About Investment Portfolio | Breakdown of the exclusive fund portfolio on June 3 0 , 20 20 and December 31, 201 9 is as follows: June 30, 2020 December 31, 2019 Certificates of deposit 270,870 21,327 Repurchase agreements 1,181,116 1,192,101 Treasury bills 377,033 374,690 Government bonds (LFT) 1,486,999 221,900 3,316,018 1,810,018 |
Trade Receivables (Tables)
Trade Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Statement [Line Items] | |
Schedule of Detailed Information About Trade Receivables | Trade receivables is as follows: June 30, 2020 December 31, 2019 Trade receivables 2,889,573 1,793,759 Provision for doubtful accounts ( 244,972 ( 107,995 2,644,601 1,685,764 |
Schedule of Carrying Amount of Each Aging Range | Maximum exposure to credit risk at the reporting date is the carrying amount of each aging range, net of the provision for doubtful accounts, as shown in the aging list below: June 30, 2020 December 31, 2019 Current 1,632,884 1,501,958 Past due: Up to 30 874,649 142,069 31 60 138,467 36,466 61 90 40,178 27,789 91 180 203,395 85,477 Provision for doubtful accounts ( 244,972 ( 107,995 2,644,601 1,685,764 |
Schedule of Allowance For Credit Losses | The changes in the provision for doubtful accounts is as follows: Balance at December 31, 2018 ( 129,242 Additions ( 118,037 Write-offs (a) 138,116 Exchange variation 471 Balance at June 30, 2019 ( 108,692 Balance at December 31, 2019 ( 107,995 Additions ( 447,669 Write-offs (a) 371,004 Exchange variation ( 60,312 Balance at June 30, 2020 ( 244,972 (a) Refers to accounts overdue for more than 180 are written off when the Company has no expectation of recovering the trade receivable and sales of customer portfolio . |
Schedule of Trade Receivables by Exposure to Doubtful Accounts | The following table shows trade receivables by exposure to doubtful accounts on June 3 0 , 20 20 : June 30, 2020 December 31, 2019 Trade receivables Provision for doubtful accounts Trade receivables Provision for doubtful accounts Current 1,632,884 ( 46,358 1,501,958 ( 38,060 Past due: Up to 30 874,649 ( 9,229 142,069 ( 14,311 31 60 138,467 ( 23,549 36,466 ( 6,663 61 90 40,178 ( 10,185 27,789 ( 6,333 91 180 203,395 ( 155,651 85,477 ( 42,628 2,889,573 ( 244,972 1,793,759 ( 107,995 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of Inventories [Abstract] | |
Schedule of Inventories | Inventories is as follows: June 30, 2020 December 31, 2019 Finished products 3,515,022 1,253,145 Raw materials and packaging 1,030,020 253,063 Promotional material 211,372 82,228 Work in progress 34,690 27,346 Provision for losses ( 309,757 ( 185,232 4,481,347 1,430,550 |
Schedule of Changes In The Provision For Inventory Losses | The changes in the provision for inventory losses is as follows: Balance at December 31, 2018 ( 178,268 Additions, net ( 72,980 Write-offs 60,743 Exchange Variation 2,139 Balance at June 30, 2019 ( 188,366 Balance at December 31, 2019 ( 185,232 Additions, net ( 190,763 Write-offs 166,520 Exchange Variation ( 100,282 Balance at June 30, 2020 ( 309,757 |
Recoverable Taxes (Tables)
Recoverable Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Schedule of Current Tax Assets | Recoverable taxes is as follows: Consolidated 06 2020 12 2019 ICMS on purchase of inputs (a) 671,227 434,832 Taxes on purchase of inputs - subsidiaries abroad 214,702 39,475 ICMS on purchase of property, plant and equipment 10,024 10,628 PIS and COFINS on purchase of property, plant and equipment (b) 179 3,826 PIS and COFINS on purchase of inputs 802,466 280,087 PIS, COFINS and CSLL - withheld at source 3,779 2,378 IPI (Tax on Manufactured Products) 83,828 30,190 Others 152,402 3,438 1,938,607 804,854 Current 1,045,201 395,640 Non-Current 893,406 409,214 a) Accumulated Brazilian tax on the circulation of goods, interstate and intercity transportations and communication services (“ICMS”) tax credits. b) Brazilian tax for the Integration Program Tax on Revenue (“PIS”) and Social Security Funding Tax on Revenue (COFINS). |
Income Tax And Social Contrib_2
Income Tax And Social Contribution (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deferred tax assets and liabilities [abstract] | |
Summary of changes in deferred income tax assets and liabilities social contribution | The changes in deferred income tax asset s and liabilit ies social contribution for the six ended June 3 0 , 20 20 and 2019 were as follows : Asset Liability Balance at December 31, 2018 398,400 ( 431,534 Effect on profit or loss 44,859 3,298 Reserve for grant of options and restricted shares 13,380 - Effect on other comprehensive income ( 53,701 - Exchange variation on other comprehensive income 4,615 13,649 Balance at June 30, 2019 407,553 ( 414,587 Balance at December 31, 2019 374,448 ( 450,561 Effect on profit or loss ( 22,022 ( 28,630 Acquisition of subsidiary 667,034 ( 713,199 Reserve for grant of options and restricted shares 2,865 - Effect on other comprehensive income ( 75,842 - Exchange variation on other comprehensive income 29,409 ( 221,081 Balance at June 30, 2020 975,892 ( 1,413,471 |
Judicial Deposits (Tables)
Judicial Deposits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Judicial Deposits [Abstract] | |
Summary of detailed information about judicial deposits | The judicial deposits of the Company as of June 30 , 20 20 and December 31, 2019 are as follows: June 30, 2020 December 31, 2019 Unaccrued tax lawsuits (a) 296,529 203,403 Accrued tax lawsuits (b) (note 20 21 249,576 116,415 Unaccrued civil lawsuits 6,570 2,541 Accrued civil lawsuits (note 21 2,505 426 Unaccrued labor lawsuits 14,330 8,683 Accrued labor lawsuits (note 21 30,830 5,787 Total judicial deposits 600,340 337,255 (a) The proceedings related to these judicial deposits are mainly re lated to ICMS - ST, highlighted on note 20 ( b ) - contingent liability - possible risk of loss. (b) The lawsuits related to these judicial deposits are mainly related to the sum of amounts disclosed in note 2 1 , item (b) and the amount accrued as explained in the note 20 . |
Summary of detailed information about changes in judicial deposits | Changes in the balances of escrow deposits are as follows : Balance at December 31, 2018 333,577 New deposits 1,367 Redemptions ( 1,362 Interests 7,447 Write-offs for expenses ( 3,569 Balance at June 30, 2019 337,460 Balance at December 31, 2019 337,255 Acquisition of subsidiary 283,885 New deposits 7,911 Redemptions ( 21,186 Interests 6,216 Payments ( 10,070 Write-offs for expenses ( 3,671 Balance at June 30, 2020 600,340 |
Assets held for sale (Tables)
Assets held for sale (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Assets Held for Sale Disclosure [Abstract] | |
Schedule of the changes in assets classified as held for sale | Acquisition by Avon on January 3, 2020 186,518 Transfer to property, plant and equipment (a) ( 39,186 Transfer from property, plant and equipment (b) 16,210 Sale ( 22,287 Exchange variation 54,302 Balance on June 30, 2020 195,557 a) During the first quarter of 2020 Avon decided not to proceed with the sale two propert ies. As a result, Avon reclassified such properties from held for sale to property, plant and equipment during the first quarter of 2020 . At the time of reclassification, the Company recorded a true up on depreciation resulting in an immaterial impact . b) Includes a property that was classified as held for sale during the period. On June 30, 2020, assets held for sale include two with a carrying amount of R$ 195,557 |
Other Current And Non-Current_2
Other Current And Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Assets [Abstract] | |
Summary of detailed information about other assets | June 30, 2020 December 31, 2019 Marketing and advertising advances 99,545 28,669 Supplier advances 224,335 102,225 Employee advances 79,882 13,983 Rent advances and guarantee deposits (a) 133,448 96,202 Prepaid insurance expenses 170,277 29,647 Overfunded pension plan (b) 711,526 - Customs broker advances - Import taxes 38,592 34,932 Subleasing receivables (c) 395,605 - Carbon credits 3,799 3,508 Other 543,806 39,868 2,400,815 349,034 Current 799,222 265,198 Non-current 1,601,593 83,836 (a) Mainly related to: (i) advances of rental agreements that were not included in the initial measurement of lease liabilities / right-of-use of the subsidiary The Body Shop International Limited, in accordance with the exemptions on IFRS 16 (b) Pension plan arising from the Avon’s acquisition on January 3, 2020 4 (c) Relates to the sublease receivables of a property owned by Avon in New York . |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary Of Detailed Information About Property, Plant And Equipment | Useful life range (in years) December 31, 2019 Acquisition of subsidiary Additions Write-offs Reversal of impairment (impairment loss) Transfers Exchange variation June 30, 2020 Cost: Vehicles 2 5 45,578 25,789 128 ( 4,519 - 2,171 12,042 81,189 Templates 3 192,556 - 8 ( 19,713 - 4,690 8,065 185,606 Tools and accessories 3 20 11,974 52,410 4,362 ( 158 - ( 876 12,721 80,433 Facilities 3 60 309,772 1,431 23 ( 3,428 - 3,298 10,922 322,018 Machinery and accessories 3 15 866,451 746,734 7,352 ( 925 - 45,638 171,314 1,836,564 Leasehold improvements 2 20 615,103 58,548 11,653 ( 1,177 ( 8,650 5,618 177,970 859,065 Buildings 14 60 386,957 1,168,837 3,484 1,590 324 20,246 293,891 1,875,329 Furniture and fixture 2 25 397,727 32,566 10,622 ( 1,012 ( 8,883 7,545 95,387 533,952 Land - 35,157 568,470 - 73 - 4,060 191,749 799,509 IT equipment 3 15 297,228 112,369 4,691 ( 494 - 12,550 85,224 511,568 Other assets - - 40,090 - - - - 14,086 54,176 Projects in progress - 156,011 78,965 104,602 ( 526 - ( 89,486 11,155 260,721 Total cost 3,314,514 2,886,209 146,925 ( 30,289 ( 17,209 15,454 1,084,526 7,400,130 Depreciation: Vehicles ( 16,924 - ( 12,932 2,174 - ( 2,093 ( 3,524 ( 33,299 Templates ( 175,938 - ( 4,824 19,684 - - ( 172 ( 161,250 Tools and accessories ( 3,255 - ( 20,769 - - 10 ( 2,451 ( 26,465 Facilities ( 167,362 - ( 11,582 282 - 900 ( 3,269 ( 181,031 Machinery and accessories ( 416,736 - ( 95,836 157 - ( 1,072 ( 16,382 ( 529,869 Leasehold improvements ( 267,371 - ( 60,425 450 - 25 ( 68,175 ( 395,496 Buildings ( 101,785 - ( 51,515 - - - ( 4,847 ( 158,147 Furniture and fixture ( 193,973 - ( 44,342 612 - ( 26 ( 43,546 ( 281,275 IT equipment ( 197,281 - ( 47,588 37 - - ( 30,091 ( 274,923 Other assets - - - ( 6,841 - - - ( 769 ( 7,610 Total accrued depreciation ( 1,540,625 - ( 356,654 23,396 - ( 2,256 ( 173,226 ( 2,049,365 Net total 1,773,889 2,886,209 ( 209,729 ( 6,893 ( 17,209 13,198 911,300 5,350,765 |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill | Useful life range (years) December 31, 2019 Acquisition of subsidiary Additions Write-offs Reversal of impairment Transfers Exchange variation June 30, 2020 Cost: Software 2.5 10 1,313,090 291,239 65,382 ( 1,492 - 112,649 153,649 1,934,517 Trademarks and patents (Defined useful life) 24 25 116,805 517,592 - - - - 220,524 854,921 Trademarks and patents (Indefinite useful life) - 2,171,585 1,893,224 - - - - 1,255,816 5,320,625 Goodwill Avon (Note 4 - - 10,973,474 - - - - 3,855,691 14,829,165 Goodwill Emeis Brazil Pty Ltd. - 100,237 - - - - - 33,364 133,601 Goodwill The Body Shop International Limited - 1,434,369 - 8,039 - - - 388,384 1,830,792 Goodwill acquisition of The Body Shop stores - 1,456 - - 1,456 Relationship with retail clients 10 1,987 - - - - - 656 2,643 Key money (indefinite useful life) 17,801 - - - - 6,996 2,697 27,494 Key money (Defined useful life) 3 18 12,447 - - - 1,065 ( 3,414 ( 1,043 9,055 Relationship with franchisees and sub franchisees 15 602,958 1,876,169 - - - - 822,215 3,301,342 Developed technology (by acquired subsidiary) - - 1,131,573 - - - - 397,595 1,529,168 Other intangible assets 2 10 110,288 - 41,452 - - ( 100,153 18,071 69,658 Total cost 5,883,023 16,683,271 114,873 ( 1,492 1,065 16,078 7,147,619 29,844,437 Amortization value: Software ( 649,347 - ( 179,508 43 - ( 3,634 ( 39,399 ( 871,845 Trademarks and patents ( 44,108 - ( 18,303 - - - ( 12,810 ( 75,221 Key money ( 2,197 - ( 242 - - ( 4,634 1,213 ( 5,860 Relationship with retail clients ( 1,939 - ( 114 - - - ( 531 ( 2,584 Relationship with franchisees and sub franchisees ( 95,772 - ( 147,980 - - - ( 41,555 ( 285,307 Developed technology (by acquired subsidiary) - - ( 137,361 - - - ( 15,419 ( 152,780 Other intangible assets ( 13,159 - ( 1,042 - - - ( 5,390 ( 19,591 Total accumulated amortization ( 806,522 - ( 484,550 43 - ( 8,268 ( 113,891 ( 1,413,188 Net total 5,076,501 16,683,271 ( 369,677 ( 1,449 1,065 7,810 7,033,728 28,431,249 |
Right of Use And Lease (Tables)
Right of Use And Lease (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Schedule of Quantitative Information About Right-Of-Use Assets | Useful life in Years (i) December 31, 2019 Acquisition of subsidiary Additions Write-offs Transfers (a) Exchange variation June 30, 2020 Cost Value: Vehicles 3 40,018 42,467 46,577 ( 219 - 11,435 140,278 Machinery and equipment 3 10 15,578 14,034 610 - - 8,958 39,180 Facilities 3 10 784,900 489,739 90,560 ( 4,380 - 211,050 1,571,869 IT equipment 10 283 18,429 1,447 - - 5,751 25,910 Retail stores 3 10 2,350,377 - 180,059 ( 8,309 ( 3,582 767,063 3,285,608 Tools and accessories 3 2,803 - - - - 761 3,564 Total cost 3,193,959 564,669 319,253 ( 12,908 ( 3,582 1,005,018 5,066,409 - - - - - - Depreciation value: Vehicles ( 8,109 - ( 25,316 150 - ( 2,236 ( 35,511 Machinery and equipment ( 4,317 - ( 7,142 - - ( 2,036 ( 13,495 Facilities ( 97,190 - ( 144,715 2,852 - ( 27,349 ( 266,402 IT equipment ( 214 - ( 10,320 - - ( 1,100 ( 11,634 Retail stores ( 463,332 - ( 300,558 4,016 4,634 ( 172,458 ( 927,698 Tools and accessories ( 936 ( 462 - - ( 298 ( 1,696 Total accrued depreciation ( 574,098 - ( 488,513 7,018 4,634 ( 205,477 ( 1,256,436 Net total 2,619,861 564,669 ( 169,260 ( 5,890 1,052 799,541 3,809,973 (a) Those are initial costs (key money) related to store rentals . T his 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 | June 30, 2020 December 31, 2019 Values recognized in the income statement Financial expense on lease 119,398 64,137 Amortization of right of use 488,513 271,591 Appropriation in the result of variable lease installments not included in the measurement of rental liabilities 15,013 14,023 Sublease revenue ( 16,033 ( 1,331 Short-term rental expenses and low-value assets 38,274 78,774 Concessions granted by lessors related to Covid- 19 ( 12,685 - Expenses related to leases 17,497 9,933 Total 649,977 437,127 Values recognized in the financing cash flow statement Payment of leasing (principal) 426,154 273,681 Values recognized in the operating cash flow statement Payment of leasing (interest) 88,443 75,259 Variable lease payments not included in the measurement of rental liabilities 4,448 8,100 Sort-term lease payments and low-value assets 30,699 978 Lease-related payments 20,174 15,985 Total 569,918 374,003 |
Schedule Of Lease Obligation | June 30, 2020 December 31, 2019 Current 1,081,059 542,088 Non-current 3,026,116 1,975,477 Total 4,107,175 2,517,565 |
Schedule Of Changes In The Balance Of Lease Obligation | The following table shows the changes in the balance of lease obligations : Balance at December 31, 2019 2,517,565 New agreements 324,878 Acquisition of subsidiary 777,200 Payment of leasing (principal) ( 380,902 Payment of leasing (interest) ( 133,695 Recognition of financial charges 119,398 Write-offs (i) ( 3,863 Translation effects (other comprehensive income) 886,594 Balance at June 30, 2020 4,107,175 (i) Mainly related to termination contracts related to lease of stores . |
Schedule Of Maturities Of The Balance Of Non-current Lease Liabilities | Maturities of the balance of non-current lease liabilities are shown below: June 30, 2020 December 31, 2019 2021 441,760 374,746 2022 428,033 361,688 2023 422,877 358,274 2024 1,733,446 880,769 3,026,116 1,975,477 |
Borrowings, Financing And Deb_2
Borrowings, Financing And Debentures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Schedule Of Detailed Information About Borrowing | June 30, 2020 December 31, 2019 Local Currency Financing Agency for Studies and Projects (FINEP) 87,617 101,988 Debentures (a) 4,171,432 4,251,231 BNDES 17,451 35,390 BNDES – FINAME 46 183 Promissory Notes 1,322,889 2,883,382 Working capital – Operation Mexico 24,219 31,802 Working capital – Operation Peru 23,271 - Working capital – Operation Aesop 98,559 100,438 Working capital – Operation The Body Shop 477,770 - Working capital – Operation Avon 154,198 - Notes - Avon ( 1 9,720,254 - Total in local currency 16,097,706 7,404,414 Foreign Currency BNDES 4,721 8,029 Export Credit note (NCE) 110,148 81,210 Notes 4,179,182 3,090,490 Resolution nº 4131 62 274,342 202,231 Total in foreign currency 4,568,393 3,381,960 Overall total 20,666,099 10,786,374 Current 2,631,068 3,354,355 Non-current 18,035,031 7,432,019 (a) Debentures Current 164,555 246,017 Non-current 4,006,877 4,005,214 ( 1 Balances recorded for their estimated fair value resulting from business combination with Avon (Note 4 |
Schedule Of Changes In Balances Of Borrowing | Changes in the balances of borrowings, financings and debentures are presented below: Balance at December 31, 2019 10,786,374 Acquisition of subsidiary 7,250,735 New borrowings and financing 1,341,538 Amortizations ( 2,485,231 Financial charges accrued 557,122 Payment of financial charges ( 535,568 Exchange variation (unrealized) 1,101,306 Exchange variation (realized) 3,889 Translation effects (other comprehensive income) 2,645,934 Balance at June 30, 2020 20,666,099 a) Refers mainly reclassified leasing balances; and balances reclassified from government grants considering BNDES loans |
Schedule Of Maturity Analysis For Noncurrent Borrowings | Maturities of non-current June 30, 2020 December 31, 2019 2021 2,253,221 - 2022 5,450,177 2,279,759 2023 6,644,547 527,596 2024 3,687,086 4,624,664 18,035,031 7,432,019 |
Schedule of detailed information about Notes - Avon | Avon has issued the following notes: Notes – Avon Principal (USD) Principal (R$) Annual interest rate Maturity No guarantee 461,883 2,529,271 5.00 March 15, 2023 No guarantee 243,847 1,335,306 6.95 March 15, 2043 With guarantee 500,000 2,738,000 7.88 August 15, 2022 With guarantee 400,000 2,190,400 6.50 August 15, 2022 |
Trade Payables And Reverse Fa_2
Trade Payables And Reverse Factoring Operations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Trade Payables And Reverse Factoring Operations [Abstract] | |
Trade payables and reverse factoring operations | June 30, 2020 December 31, 2019 Domestic trade payables 4,593,288 1,581,759 Foreign trade payables 861,849 105,073 5,455,137 1,686,832 Reverse factoring operations 254,832 142,924 5,709,969 1,829,756 |
Tax Liabilities (Tables)
Tax Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Dislosure Of Tax Liabilities [Abstract] | |
Schedule of detailed information about tax liabilities | June 30, 2020 December 31, 2019 Ordinary ICMS 120,393 120,300 ICMS ST provision (a) 61,926 72,423 Taxes on invoicing – subsidiaries abroad 296,430 145,992 Social Security Tax (INSS) - suspension of the enforceability - 50,147 Withholding tax (IRRF) 110,084 48,593 Other taxes payable - foreign subsidiaries 2,987 1,180 PIS and COFINS payable 101 1,207 INSS and service tax (ISS) payable 54,371 3,218 Others 77,355 399 723,647 443,459 Judicial Deposits (note 12 ( 54,909 ( 62,356 Current 614,839 320,890 Noncurrent 108,808 122,569 (a) The Company has been discussing the illegality of changes in the state legislation for the payment of ICMS - ST. Part of the unpaid amount has been discussed in court by the Company and, in certain cases, the amounts have been deposited with the courts, as mentioned in Note 12 |
Provision For Tax, Civil And _2
Provision For Tax, Civil And Labor Risks (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of other provisions [line items] | |
Schedule of detailed information about other provisions | The Company is party to tax, labor and civil lawsuits. Management believes, based on the opinion of its legal counsel, that the provision for tax, civil and labor risks are sufficient to cover potential losses. This provision is broken down as follows: June 30, 2020 December 31, 2019 Tax 876,036 127,842 Civil 180,491 30,653 Labor 257,241 61,571 Total 1,313,768 220,066 Judicial deposits (note 12 ( 228,002 ( 60,272 Current 127,825 18,650 Noncurrent 1,185,943 201,416 |
Schedule of detailed information about changes In other provisions and deposits | The changes in the provision for tax, civil and labor risks and contingent liabilities is presented below: Tax Civil Labor Provision Deposits Provision Deposits Provision Deposits Balance at beginning of year 127,842 ( 54,059 30,653 ( 426 61,571 ( 5,787 Acquisition of subsidiary ( 1 657,647 ( 155,219 51,263 ( 4,898 164,091 ( 27,329 Additions 78,727 ( 198 99,774 ( 2,648 21,388 ( 5,362 Reversals ( 29,946 10,208 ( 24,371 1,022 1,105 2,546 Payments ( 52,412 - ( 10,703 3,549 ( 21,470 5,244 Inflation adjustment 2,274 ( 2,516 2,802 ( 10 3,553 ( 92 Translation effects (other comprehensive income) 92,145 2,533 31,103 344 26,166 263 Other movements ( 241 4,584 ( 30 562 837 ( 313 Balance on June 30, 2020 876,036 ( 194,667 180,491 ( 2,505 257,241 ( 30,830 |
Schedule of contingent liabilities | As of June 30, 2020 , t he total amounts under discussion for which a negative outcome is considered possible, due to the nature of the claims, is as follows : June 30, 2020 December 31, 2019 Tax 8,715,657 3,503,392 Civil 144,151 61,532 Labor 208,062 77,295 Total contingent liabilities 9,067,870 3,642,219 Judicial deposits (note 12 ( 242,817 ( 136,258 |
Other Liabilities (Table)
Other Liabilities (Table) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Schedule of detailed information about other liabilities | June 30, 2020 December 31, 2019 Post-employment healthcare plan (a) 777,228 98,792 Carbon credit 6,386 4,519 Exclusivity contract 4,200 5,400 Crer para Ver (b) 52,427 51,543 Deferred revenue from performance obligations with customers 349,470 76,250 Provisions for sundry expenses 275,147 156,895 Provisions for rentals 40,363 26,568 Provisions for apportionment of benefits and partnerships payable 5,426 7,860 Long-term incentives 286,595 3,022 Provision for restructuring 101,212 3,401 Provision for store renovation 85,469 15,997 Discontinued operations (c) 94,840 - Professional fees 95,782 - Other provisions 313,310 67,846 Total 2,487,855 518,093 Current 1,322,558 396,391 Noncurrent 1,165,297 121,702 a) As of June 30, 2020 674,514 J anuary 3 2020 102,714 98,792 on December 31, 2019 b) Social program contribution for developing the quality of education; c) On December 17, 2015 March 1, 2016 30, 20 20 , and amount of R$ 48,723 was recorded in administrative expenses pertaining to this provision. |
Shareholder's Equity (Table)
Shareholder's Equity (Table) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Schedule of changes in issued capital | The changes in Issued capital is as follows : Date Description Number of shares Value in R$ December 31, 2019 Initial share capital 865,659,942 1,485,436,464 January 03, 2020 Capital increase 321,830,266 3,397,745,864 March 15, 2020 Issue of new stock for stock option plans and restricted stock 780,808 21,936,005 May 05, 2020 June 30, 2020 Issue of new stock for stock option plans and restricted stock 621,653 16,811,439 June 01, 2020 June 30, 2020 Capital increase 62,347,090 1,995,106,880 June 30, 2020 Total shares capital subscribed and paid-up 1,251,239,759 6,917,036,652 |
Schedule of changes in treasury shares | On June 30, 20 20 19 , item “Treasury shares” is as follows : Number of shares R$ (in thousands) Average price per share - R$ Balance on December 31, 2019 - - - Used ( 740,697 ( 40,981 55.33 Acquisition 1,114,460 54,936 49.29 Balance on June 30, 2020 373,763 13,955 37.34 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of operating segment | June 30, 2020 Reconciliation to profit (loss) for the year Net revenue Performance assessed by the Company Depreciation and amortization Financial income Financial expenses Income tax Net income (loss) Natura & Co Latam 8,138,082 680,802 ( 458,872 1,749,654 ( 1,932,291 ( 207,473 ( 168,179 Avon International 3,771,535 40,361 ( 390,836 356,290 ( 676,915 ( 12,223 ( 683,323 TBS International 1,872,436 278,581 ( 356,197 43,491 ( 75,346 ( 57,290 ( 166,761 Aesop International 723,121 180,574 ( 123,813 10,403 ( 28,729 ( 10,018 28,416 Corporate expenses - ( 431,830 - 65,884 ( 8,577 147,348 ( 227,175 14,505,174 748,488 ( 1,329,718 2,225,722 ( 2,721,858 ( 139,656 ( 1,217,022 June 30, 2019 Reconciliation to profit (loss) for the year Net revenue Performance assessed by the Company Depreciation and amortization Financial income Financial expenses Income tax Net income (loss) Natura &Co Latam 4,048,390 728,909 ( 167,260 769,227 ( 1,102,304 ( 79,148 149,425 TBS International 1,717,823 286,527 ( 286,141 18,140 ( 46,057 12,983 ( 14,548 Aesop International 552,646 118,183 ( 83,299 4,792 ( 13,455 ( 7,802 18,419 Corporate expenses - ( 127,120 - - - 43,221 ( 83,899 6,318,859 1,006,499 ( 536,700 792,159 ( 1,161,816 ( 30,746 69,397 |
Summary of operating segments of assets and liabilities | June 30, 2020 December 31, 2019 Non-current assets Total assets Current liabilities Non-current liabilities Non-current assets Total assets Current liabilities Non-current liabilities Natura & CoLatam 9,204,837 17,876,818 5,937,239 10,281,619 4,574,087 9,328,858 3,116,454 8,235,679 Avon International 25,758,269 29,338,889 3,415,813 12,056,797 - - - - TBS International 7,726,417 9,828,551 1,989,604 1,885,255 6,146,960 7,369,250 1,065,447 1,477,148 Aesop International 1,338,875 1,954,858 418,223 730,817 1,033,408 1,435,830 255,616 590,917 Corporate - 2,093,806 1,103,010 1,082 - 3,050,574 3,080,906 - 44,028,398 61,092,922 12,863,889 24,955,570 11,754,455 21,184,512 7,518,423 10,303,744 |
Summary of revenue and assets by geographical area wise | June 30, 2020 December 30, 2019 Net Revenue Natura &Co Latam Avon International TBS International Aesop International Natura &Co Latam TBS International Aesop International Asia - 653,102 101,024 356,245 - 137,196 225,245 North America 1,650,053 - 269,200 113,706 345,507 305,852 88,129 Mexico 1,328,100 - - - 343,888 - - Other 321,953 - 269,200 113,706 1,619 305,852 88,129 South America 6,485,785 - - - 3,700,224 - - Brazil 4,533,315 - - - 2,776,153 - - Argentina 690,221 - - - 355,098 - - Other 1,262,249 - - - 568,973 - - EMEA 2,244 3,118,433 1,351,971 154,393 2,659 1,157,888 100,838 United Kingdom - 371,923 1,083,032 82,005 - 881,543 48,801 Other 2,244 2,746,510 268,939 72,388 2,659 276,345 52,037 Oceania - - 150,241 98,777 - 116,887 138,434 8,138,082 3,771,535 1,872,436 723,121 4,048,390 1,717,823 552,646 June 30, 2020 December 30, 2019 Non-current assets Natura &Co Latam Avon International TBS International Aesop International Natura &Co Latam TBS International Aesop International Asia - 245,854 170,999 298,185 - 140,760 227,670 North America 699,318 - 626,188 365,465 185,646 523,351 272,676 Mexico 602,043 - - - 183,250 - - Other 97,275 - 626,188 365,465 2,396 523,351 272,676 South America 8,495,351 - - - 4,378,676 - - Brazil 6,985,784 - - - 4,197,259 - - Argentina 355,420 - - - 63,050 - - Other 1,154,147 - - - 118,367 - - EMEA 10,168 25,512,415 6,452,367 234,424 9,765 5,105,903 190,442 United Kingdom - 23,781,822 5,780,380 97,827 - 4,602,066 76,073 Other 10,168 1,730,593 671,987 136,597 9,765 503,837 114,369 Oceania - - 476,863 440,801 - 376,946 342,620 9,204,837 25,758,269 7,726,417 1,338,875 4,574,087 6,146,960 1,033,408 |
Summary of recast operating segments of assets and liabilities | Presented in the financial statement for the year ended December 31, 2019 December 31, 2019 Non-current assets Total assets Current liabilities Non-current liabilities Natura Brasil (a) 4,181,261 7,618,551 2,207,944 8,119,890 Natura LATAM (a) 349,698 1,592,912 774,521 105,423 Natura others (a) 12,161 18,126 8,591 1,558 Aesop (b) 1,035,432 1,442,214 274,539 592,531 The Body Shop (c) 6,175,903 7,462,135 1,171,922 1,484,342 Corporate - 3,050,574 3,080,906 - Consolidated 11,754,455 21,184,512 7,518,423 10,303,744 |
Summary of recast operating segments of income and expenses | Presented in the financial statement for the period ended June 30, 2019 June 30, 2019 Net revenue Performance assessed by the Company Depreciation and amortization Financial income Financial expenses Income tax Net income (loss) Natura Brasil (a) 2,750,169 588,399 ( 130,112 749,538 ( 1,071,733 ( 54,149 81,943 Natura LATAM (a) 1,253,535 162,932 ( 28,027 19,689 ( 27,504 ( 24,900 102,190 Natura outros (a) 4,292 ( 15,780 ( 1,093 - ( 121 - ( 16,994 Aesop (b) 554,090 117,590 ( 83,761 4,792 ( 13,520 ( 7,802 17,299 The Body Shop (c) 1,756,773 280,479 ( 293,707 18,140 ( 48,938 12,884 ( 31,142 Corporate - ( 127,120 - - - 43,221 ( 83,899 Consolidated 6,318,859 1,006,500 536,700 792,159 1,161,816 30,746 69,397 |
Net Revenue (Tables)
Net Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of revenue by Geographical Area Wise | Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Gross revenue: Domestic market 3,304,281 2,233,256 6,317,607 3,927,472 Foreign market 5,692,919 2,384,838 12,274,126 4,616,740 Other sales 117,881 11,849 242,336 26,306 9,115,081 4,629,943 18,834,069 8,570,518 Returns and cancellations ( 148,477 ( 5,876 ( 270,994 ( 31,947 Commercial discounts and rebates ( 171,310 ( 257,481 ( 409,895 ( 507,871 Taxes on sales ( 1,808,114 ( 962,877 ( 3,648,006 ( 1,711,841 Net revenue 6,987,180 3,403,709 14,505,174 6,318,859 |
Operating Expenses and Cost o_2
Operating Expenses and Cost of Sales (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Operating Expenses and Cost of Sale | Three months ended June 30 Six months ended June 30 Breakdown by function 2020 2019 2020 2019 Cost of sales 2,375,507 964,555 5,254,229 1,773,727 Selling, marketing and logistics expenses 3,149,807 1,552,309 6,448,997 2,875,375 Administrative, R&D, IT and Project expenses 1,337,544 567,221 2,603,635 1,104,252 Total 6,862,858 3,084,085 14,306,861 5,753,354 |
Summary of Operating Expenses and Cost of Sale Breakdown by Nature | Breakdown by nature Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Cost of sales 2,375,507 964,555 5,254,229 1,773,727 Raw material/packaging material/resale 1,744,178 813,313 4,365,991 1,485,379 Personnel expenses (Note 27 174,213 74,565 285,508 145,572 Depreciation and amortization 60,779 14,196 98,639 28,028 Others 396,337 62,481 504,091 114,748 Selling, marketing and logistics expenses 3,149,807 1,552,309 6,448,997 2,875,375 Logistics costs 496,669 172,384 1,063,015 344,782 Personnel expenses (Note 27 897,081 417,059 1,839,299 805,518 Marketing, sales force and other selling expenses 1,401,336 783,994 2,884,442 1,367,657 Depreciation and amortization 354,721 178,872 662,241 357,418 Administrative, R&D, IT and project expenses 1,337,544 567,221 2,603,635 1,104,252 Investments in innovation ( 51,233 16,397 115,977 33,277 Personnel expenses (Note 27 573,770 307,175 1,031,894 585,142 Other administrative expenses 526,608 164,329 886,926 334,579 Depreciation and amortization 288,399 79,320 568,838 151,254 Total 6,862,858 3,084,085 14,306,861 5,753,354 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Employee Benefit Expense | Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Payroll, profit sharing and bonuses 1,170,123 593,120 2,312,050 1,146,868 Pension Plan 45,468 22,831 89,581 43,605 Share-based payments (note 31.1 41,500 16,029 76,387 26,903 Charges on restricted shares (note 31.1 54,170 10,036 11,475 15,670 Health medical care, food, transportation and other benefits 144,805 63,131 291,956 120,311 Charges, taxes and social contributions 147,456 51,552 284,248 98,699 INSS 41,542 42,100 91,004 84,176 Total 1,645,064 798,799 3,156,701 1,536,232 |
Summary of Number and Weighted Average Number of Shares | The variations in the number of outstanding stock options and their related weighted-average prices, as well as variations in the number of restricted stock are as follows: Stock Option Plan and Strategy Acceleration Plan Average exercise price per option - R$ Options (thousands) Balance on December 31, 2019 16.51 17,568 Related to Avon subsidiary – Business Combination (Note 4 0.01 1,994 Expired 21.35 ( 72 Exercised 26.35 ( 727 Balance on June 30, 2020 16.29 18,763 Restricted shares (thousands) Performance shares (thousands) Balance on December 31, 2019 3,092 688 Granted 862 - Expired ( 22 - Exercised ( 1,046 ( 40 Balance on June 30, 2020 2,886 648 |
Summary of Terms and Conditions of Share-based Payment Arrangement | Options for buying outstanding shares and restricted shares at the period ended June 30, 2020 have the following due dates prices: As of June 30, 2020 -Stock option plan Grant date Right acquisition conditions Exercise price - R$ Fair value 1 Existing options Remaining contractual life (years) Vested options (thousands) March 18, 2013 4 37.60 6.05 386 0.2 386 March 17, 2014 4 25.16 4.27 102 1.7 102 March 16, 2015 From 2 4 13.60 4.85 5.29 210 2.7 210 July 28, 2015 (Strategy acceleration) From 4 5 12.90 6.20 6.23 1,296 3.1 196 March 15, 2016 From 2 4 12.84 7.16 7.43 286 3.8 284 July 11, 2016 (Strategy acceleration) From 4 5 11.41 6.84 6.89 2,640 4.1 - March 10, 2017 From 2 4 12.59 6.65 6.68 696 4.8 372 March 10, 2017 (Strategy acceleration) From 4 5 12.59 6.87 6.89 2,210 4.8 - March 12, 2018 From 2 4 16.96 7.96 8.21 1,998 5.8 642 March 12, 2018 (Strategy acceleration) From 3 5 12.16 16.96 8.21 9.67 3,800 5.8 - April 12, 2019 From 3 4 23.54 11.71 11.82 1,636 6.8 - April 12, 2019 (Strategy acceleration) From 4 5 23.54 11.51 11.71 1,900 6.8 - December 31, 2020 to May 9, 2017 1 0.01 19.80 65 - 65 March 14, 2018 to December 17, 2018 From 1 3 0.01 19.70 334 1.2 55 March 13, 2019 to December 16, 2019 From 1 3 0.01 19.58 1,204 0.4 2.2 - 18,763 2,312 As of June 30 , 20 20 - restricted shares Grant date Right acquisition conditions Existing stock Fair value (R$) Remaining contractual life (years) March 10, 2017 From 2 4 206 11.69 12.51 0.7 March 12, 2018 – Plan I From 2 4 470 15.18 15.9 0.7 March 12, 2018 – Plan II From 0.4 2.4 90 15.76 16.49 0.1 March 12, 2018 – Plan III From 1 3 74 15.54 16.27 0.8 March 12, 2018 – Extraordinary Plan I From 1 3 4 15.54 16.28 0.7 August 13, 2018 – Extraordinary Plan VI From 1.6 3.6 50 12.24 13.13 0.7 1.7 April 12, 2019 – Plan I From 2 4 814 21.62 22.53 0.7 2.8 April 12, 2019 – Plan II From 1 3 312 22.14 22.85 0.7 1.7 March 27, 2020 - Co-Investment Plan From 1 3 866 29.00 3 2,886 As of June 30 , 20 20 – Performance shares Grant date Right acquisition conditions Existing stock (thousands) Fair value (R$) Remaining contractual life (years) Vested stock (thousands) May 21, 2019 From 3 4 648 23.10 45.70 3.0 4.0 - 648 - |
Financial Income (Expenses) (Ta
Financial Income (Expenses) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Detailed Information About Finance Income Expense | Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 FINANCE INCOME: Interest on short-term investments 38,888 14,484 74,306 37,445 Gains on monetary and exchange rate variations (a) 157,780 221,307 394,807 410,393 Gains on swap and forward transactions (c) 559,770 167,748 1,634,968 318,873 Gains on fair value adjustment of swap and forward derivatives ( 136,420 656 3,020 1,003 Reversal of the monetary update of provision for tax risks and tax obligations - - 42,378 - Debt structuring revenues for acquisition of Avon 26,106 - 52,434 - Other financial income 19,414 9,862 23,809 24,445 665,538 414,057 2,225,722 792,159 FINANCE EXPENSE: Interest on financing ( 286,577 ( 129,072 ( 539,671 ( 257,764 Interest on leases ( 65,035 ( 33,163 ( 119,398 ( 64,137 Losses on monetary and exchange rate variations (b) ( 330,883 ( 159,641 ( 1,529,458 ( 311,015 Losses on swap and forward transactions (d) ( 283,417 ( 243,564 ( 431,567 ( 455,352 Loss on fair value adjustment of swap and forward derivatives 79,237 ( 309 ( 5,170 ( 786 Inflation adjustment of provision for tax, civil and labor risks and tax liabilities ( 2,664 ( 3,845 ( 6,410 ( 8,080 Appropriation of funding costs (debentures and notes) ( 2,822 ( 3,204 ( 5,653 ( 6,452 Pension plan interest ( 8,204 - ( 15,512 - Adjustment for hyperinflationary economy (Argentina) ( 10,368 ( 3,225 ( 5,556 ( 5,864 Debt structuring expenses for acquisition of Avon - ( 29,360 ( 29,360 Other financial expenses ( 23,346 ( 13,076 ( 63,463 ( 23,006 ( 934,079 ( 618,459 ( 2,721,858 ( 1,161,816 Finance income (expenses) ( 268,541 ( 204,402 ( 496,136 ( 369,657 |
Summary of Foreign Exchange Hedging Transactions and the Related Balancing Items in the Income Statement | The objective of the breakdowns below is to explain more clearly the foreign exchange hedging transactions contracted by the Company and the related balancing items in the income statement shown in the previous table: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 (a) Gains on monetary and exchange rate variations 157,780 221,307 394,807 410,393 Gains on exchange rate variation on loans, financing and debentures ( 14,391 160,466 ( 393 313,365 Exchange rate variation on imports ( 13,581 2,506 15,746 6,541 Exchange rate variation on export receivables 16,804 585 46,580 7,322 Exchange rate variation on accounts payable to subsidiaries abroad 109,119 57,750 183,468 83,165 Exchange variations of Demand Deposits in foreign currency 59,829 - 149,406 (b) Losses on monetary and exchange rate variations ( 330,883 ( 159,641 ( 1,529,458 ( 311,015 Losses on exchange rate variation on loans, financing and debentures ( 151,795 ( 120,445 ( 1,089,680 ( 228,287 Exchange rate variation on imports ( 24,740 ( 3,964 ( 43,774 ( 9,791 Exchange rate variation on export receivables ( 5,857 ( 2,935 ( 7,901 ( 8,483 Exchange rate variation on accounts payable to subsidiaries abroad ( 30,551 ( 32,224 ( 192,414 ( 64,220 Exchange rate variation on financing ( 117,940 ( 73 ( 195,689 ( 234 (c) Gains on swap and forward transactions 559,770 167,748 1,634,968 318,873 Revenue from swap exchange coupons 64,923 45,518 112,090 86,811 Gains from exchange variations on swap instruments 494,847 122,230 1,522,878 232,062 (d) Losses on swap and forward transactions ( 283,417 ( 243,564 ( 431,567 ( 455,352 Losses on exchange rate variation on swap instruments ( 5,982 ( 160,474 ( 5,982 ( 314,136 Financial costs of swap instruments ( 277,435 ( 83,090 ( 425,585 ( 141,216 |
Other Operating Income (Expen_2
Other Operating Income (Expenses), Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Detailed Information About Other Operating Income (Expense) | Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Others operating income, net Result on write-off of property, plant and equipment 7,129 ( 582 8,620 142 ICMS-ST 7,051 3,626 14,345 39,722 Sale of customer portfolio - 10,125 - 10,125 Tax contingencies 100,192 94,978 101,473 96,062 Other operating income 7,221 ( 3,492 7,764 - Total Other operating income 121,593 104,655 132,202 146,051 Others expenses operating income, net Crer para Ver (a) ( 11,360 ( 8,140 ( 19,720 ( 16,771 Expenses with the sale of customer portfolio ( 2,967 - ( 2,967 - Initial costs of acquisition of Avon (b) ( 6,947 ( 67,497 ( 304,057 ( 67,497 Transformation Plan ( 54,486 ( 19,543 ( 79,558 ( 26,374 Tax contingencies ( 3,774 ( 3,926 ( 3,774 ( 3,926 Other operating expenses 32,617 2,538 - ( 9,151 Total other operating expenses ( 46,917 ( 96,568 ( 410,076 ( 123,719 Other operating income (expenses), net 74,676 8,087 ( 277,874 22,332 a) Allocation of operating profit from sales of “ Crer para Ver” line of non-cosmetic products to Natura Institute, specifically directed to social projects for developing the quality of education . b) Related to expenses associated with the Avon acquisition process, which include: financial structuring expenses (R$ 115,696 17,281 18,030 152,909 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Total Compensation of the Company's Management | The total compensation of the Company’s Management is as follows: Three months ended June 30 2020 2019 Compensation Compensation Fixed Variable Total Fixed Variable Total (a) (b) (a) (b) Board of Directors 2,246 14,764 17,010 5,180 9,866 15,046 Officers 9,157 31,132 40,289 10,791 12,568 23,359 11,403 45,896 57,299 15,971 22,434 38,405 Six months ended June 30 2020 2019 Compensation Compensation Fixed Variable Total Fixed Variable Total (a) (b) (a) (b) Board of Directors 7,591 20,619 28,210 10,230 15,782 26,012 Officers 22,661 39,574 62,235 19,963 30,153 50,116 30,252 60,193 90,445 30,193 45,935 76,128 a) The item “Officers” includes the amount of R$ 510 referred to the amortization of the Confidentiality and Non-Compete Agreement during the period ended June 3 0 , 20 20 (R$ 29 in in the six ). b) Refers to profit sharing, on an accrual basis, net of reversals, regarding the Restricted Stock Plan and Strategy Acceleration Program, including charges, as applicable, to be determined in the year. The amounts include additions to and/or reversals of provisions made in the previous year, due to final assessment of the targets established for board members and officers, statutory and non-statutory, in relation to profit sharing. |
Summary of the Company Officers and Executives' Compensation | Breakdown of the Company officers and executives’ compensation: Grant of options June 30, 2020 June 30, 2019 Stock option balance (number) 1 (a) Average fair value of stock options 1 – R$ Average exercise price 1 - R$ (b) Stock option balance (number) 1 (a) Average fair value of stock options 1 – R$ Average exercise price 1 - R$ (b) Officers 13,723,236 8.39 16.29 14,203,364 8.24 16.43 Restricted shares June 30, 2020 June 30, 2019 Stock option balance (number) 2 (a) Average fair value 2 - R$ Stock option balance (number) 2 (a) Average fair value 2 - R$ (b) Officers 1,564,143 25.15 1,069,642 19.05 ¹ The number of stock options granted, expired and exercised and their respective fair values are shown already considering the stock split approved at the Extraordinary Shareholders Meeting held on September 17, 2019. ² The number of restricted stock and performance shares granted, expired and exercised is shown already considering the stock split approved at the Extraordinary Shareholders’ Meeting held on September 17, 2019 a) Refers to the balance of the options and restricted shares ripe ("vested") and mature ("unvested"), not carried out, at the balance sheet dates. b) Refers to the weighted-average exercise price of the option at the time of the stock option plans, adjusted for interest based on the Extended Consumer Price Index (IPCA) through the end of the reporting period. The new Stock Option Plan implemented in 2015 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Contractual Commitments | Total minimum supply payments, measured at nominal value, according to the contract, are: June 30, 2020 December 31, 2019 Less than one 10,206 17,918 Between one and five 2,552,017 13,160 Total 2,562,223 31,078 |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Text Block [Abstract] | |
Summary of Types of Insurance Coverage | The Group has an insurance policy that considers principally risk concentration and materiality, taking into consideration the nature of its activities and the opinion of its insurance advisors. As of June 3 0 , 20 20 , insurance coverage is as follows: Amount insured Item Type of coverage June 30, 2020 December 31, 2019 Industrial complex and administrative sites Any damages to buildings, facilities, inventories, and machinery and equipment 5,511,760 2,322,801 Vehicles Fire, theft and collision for 818 936 2018 259,004 212,027 Loss of profits No loss of profits due to material damages to facilities buildings and production machinery and equipment 1,582,000 1,582,000 Transport Damages to products in transit 97,086 32,309 Civil liability Protection against error or complaints in the exercise of professional activity that affect third parties 1,392,756 532,510 Environmental liability Protection against environmental accidents that may result in environmental lawsuits 30,000 30,000 |
Additional Statements of Cash_2
Additional Statements of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Additional Cash Flow Information [Abstract] | |
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: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Non-cash items Hedge accounting, net of tax effects ( 11,768 47,701 153,114 105,997 Net effect of acquisition of property, plant and equipment and intangible assets not yet paid 1,700 ( 12,163 46,778 31,638 Consideration per acquisition of the subsidiary - - 13,366 - |
Summary of Significant Accoun_4
Summary of Significant Accounting Polices - Summary of Information About Company Principal Subsidiaries (Detail) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Avon Products, Inc. [Member] | |||
Statement [Line Items] | |||
Direct interest | 100.00% | ||
Natura Cosméticos S.A. [Member] | |||
Statement [Line Items] | |||
Direct interest | 100.00% | 100.00% | |
Natura &Co International S.à r.l [Member] | |||
Statement [Line Items] | |||
Direct interest | [1] | 100.00% | |
[1] | Natura &Co International S.a.r.l., was incorporated in 2020 under the laws of Luxembourg with the purpose of acquiring, managing and selling interests in domestic and foreign companies, other than raising and borrowing funds to other consolidated entities of the Company. |
Summary of Significant Accoun_5
Summary of Significant Accounting Polices - Additional Information (Detail) - IAS 29 [Member] - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Capital reserve [member] | ||
Statement1 [Line Items] | ||
Effect of initial application of standards | R$ 256679 | |
Profit Reserve [Member] | ||
Statement1 [Line Items] | ||
Effect of initial application of standards | 151,384 | |
Financial Result [Member] | ||
Statement1 [Line Items] | ||
Effect of initial application of standards | 5,556 | R$ 5864 |
Net loss | ||
Statement1 [Line Items] | ||
Effect of initial application of standards | 22,221 | 29,888 |
Other comprehensive income [Member] | ||
Statement1 [Line Items] | ||
Gains on exchange differences on translation | R$ 4247 | R$ 393 |
Business Combinations - Summary
Business Combinations - Summary of the preliminary fair value calculation of the consideration transferred (Details) - Avon Products, Inc. [Member] R$ / shares in Units, R$ in Thousands | Jan. 03, 2020BRL (R$)R$ / sharesshares | |
Summary of the preliminary fair value calculation of the consideration transferred | ||
Number of outstanding common shares of acquiree | shares | 536,383,776 | |
Multiplied by the exchange ratio of 0.600 entity shares per each acquiree common share | 321,830,266 | |
Multiplied by the market price of entity shares | R$ / shares | R$ 41.00 | |
Consideration in the issuance of shares | R$ 13195000 | |
Consideration transferred adjustment | 171,000 | [1] |
Fair value of the consideration transferred | R$ 13366000 | |
Exchange ratio per each common share of acquiree | 0.006 | |
Settlements of share-based payment plan, consideration recognised | R$ 80 | |
Stock option plans liquidated for consideration recognised | R$ 91 | |
[1] | Related to the effects of replacements and settlements of share-based payment plans, of which the amount of R$80 thousand refers to the share-based payment plans of Avon, in which it was substituted by Natura &Co, and R$91 thousand refers to the stock option plans liquidated as a result of the conclusion of the transaction. These are pre-combination installments that were regarded as a transferred compensation. |
Business Combinations - Schedul
Business Combinations - Schedule of preliminary allocation prepared by Company and resulting goodwill (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Jan. 03, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
(+) Fair value of liabilities assumed: | ||||||
Fair value of the accounts receivable, provision for expected losses | R$ 244972 | R$ 107995 | R$ 108692 | R$ 129242 | ||
Avon Products, Inc. [Member] | ||||||
Schedule of preliminary allocation prepared by Company and resulting goodwill | ||||||
Total estimated consideration to be transferred: | R$ 13366000 | |||||
(-) Fair value of acquired assets: | ||||||
Cash and cash equivalent | 2,636,000 | |||||
Accounts receivable | [1] | 1,135,000 | ||||
Inventories | 1,942,000 | |||||
Other current assets | 1,056,000 | |||||
Assets available for sale | 187,000 | |||||
Property, plant and equipment | 2,886,000 | |||||
Income tax and deferred social contribution | 667,000 | |||||
Assets of right of use | 565,000 | |||||
Other non-current assets | 475,000 | |||||
Judicial deposits | 284,000 | |||||
Recoverable taxes | 518,000 | |||||
Employee benefit plan | 553,000 | |||||
Intangible | [2] | 5,710,000 | ||||
(+) Fair value of liabilities assumed: | ||||||
Current liabilities | 6,267,000 | |||||
Provision for contingencies | [3] | 724,000 | ||||
Long-term debt | 7,078,000 | |||||
Leasing | 588,000 | |||||
Deferred taxes | [4] | 728,000 | ||||
Other liabilities | 809,000 | |||||
(-) Net assets | 2,420,000 | |||||
Non-controlling interest | 28,000 | |||||
Estimated preliminary goodwill | [5] | 10,974,000 | ||||
Fair value of the accounts receivable, provision for expected losses | R$ 270200 | |||||
[1] | On the acquisition date, the fair value of the accounts receivable approximate their carrying value, net of a provision for expected losses in the amount of R$ 270.2 million | |||||
[2] | The fair value of intangible assets includes intangible assets acquired and registered by Avon prior to the fair value allocation, in the sum of R$ 291, added by the effects of allocation of the fair value of the following items: | |||||
[3] | The provision for contingencies amount shown in the table above corresponds to the historical amount recorded by Avon, since the Company is still in the process of estimating their fair value as well as identifying additional contingencies that may be required to be recorded in accordance with the provisions of paragraph 23 of IFRS 3 , i.e., contingencies that: (i) represent a present obligation arising from past events and (ii) can be reliably measured. | |||||
[4] | Consists of net operating loss deferred tax assets of approximately R$311 million and other net deferred tax liabilities of R$1,309 million. | |||||
[5] | Goodwill represents the stronger market position and geographic regions that will result in a more diversified and balanced global portfolio, as well as future expected profitability and operational synergies such as supply, manufacturing, distribution and efficiency of the administrative structure and revenue growth. This goodwill arising from the transaction is not expected to result in a tax benefit or to be deductible for tax purposes. |
Business Combinations - Sched_2
Business Combinations - Schedule of fair value of intangible assets (Details) R$ in Thousands | Jan. 03, 2020BRL (R$) |
Schedule of preliminary allocation prepared by Company and resulting goodwill | |
Estimated fair value | R$ 5419000 |
Avon Products, Inc. [Member] | |
Schedule of preliminary allocation prepared by Company and resulting goodwill | |
Effects of allocation of the fair value | 291 |
Avon Products, Inc. [Member] | Power brands [Member] | |
Schedule of preliminary allocation prepared by Company and resulting goodwill | |
Estimated fair value | R$ 518000 |
Estimated useful life | 20 years |
Avon Products, Inc. [Member] | Developed technologies [Member] | |
Schedule of preliminary allocation prepared by Company and resulting goodwill | |
Estimated fair value | R$ 1132000 |
Estimated useful life | 7 years |
Avon Products, Inc. [Member] | Sales representatives [Member] | |
Schedule of preliminary allocation prepared by Company and resulting goodwill | |
Estimated fair value | R$ 1876000 |
Estimated useful life | 14 years |
Avon Products, Inc. [Member] | Trade name “Avon” [Member] | |
Schedule of preliminary allocation prepared by Company and resulting goodwill | |
Estimated fair value with indefinite useful life | R$ 1893000 |
Business Combinations - Additio
Business Combinations - Additional information (Details) - Avon Products, Inc. [Member] - BRL (R$) R$ in Thousands | Jan. 03, 2020 | Jan. 03, 2020 | Jun. 30, 2020 |
Disclosure of detailed information about business combination [line items] | |||
Transaction costs incurred through the completion of the transaction | R$ 112000 | ||
Net operating loss deferred tax assets | R$ 311000 | 311,000 | |
Other net deferred tax liabilities | 1,309,000 | R$ 1309000 | |
Net revenues contributed by acquiree since the acquisition date | R$ 7510700 | ||
Losses of acquiree since the acquisition date | R$ 1041000 | ||
Revenue of acquiree through the date the acquisition was completed | R$ 0 |
Financial Risk Management - Dis
Financial Risk Management - Disclosure Of Carrying Amounts And Fair Values Of The Company's Financial Instruments (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Cash and banks | R$ 2872297 | R$ 3110220 | |||
Certificate of bank deposits | [1] | 766,703 | 211,261 | ||
Repurchase operations | [2] | 1,181,116 | 1,192,101 | ||
Total | 4,820,116 | 4,513,582 | R$ 1215048 | ||
Government bonds | 1,486,999 | 221,900 | |||
Restricted cash | 58,764 | ||||
Financial letter | 377,033 | 374,690 | |||
Loan Investment Funds | 376,538 | 407,928 | |||
Dynamo Beauty Ventures Ltd fund | 11,326 | 7,402 | |||
Certificate of Bank Deposits | [3] | 270,870 | 21,327 | ||
Total | 2,581,530 | 1,033,247 | |||
Trade receivables | 2,644,601 | 1,685,764 | |||
Court deposit | 600,340 | 337,255 | R$ 337460 | R$ 333577 | |
Financial and Operating derivatives | 2,199,173 | 737,378 | |||
Total | (20,666,099) | (10,786,374) | |||
Financial and operating derivatives | (75,247) | (11,806) | |||
Lease | (4,107,175) | (2,517,565) | |||
Trade payables, reverse factoring operations and related parties | (5,709,969) | (1,829,756) | |||
Financial liabilities at amortised cost, category [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Borrowings in domestic currency | (16,097,706) | (7,412,443) | |||
Borrowings in foreign currency | (4,568,393) | (3,373,931) | |||
Lease | (4,107,175) | (2,517,565) | |||
Trade payables, reverse factoring operations and related parties | (5,709,969) | (1,829,756) | |||
Financial liabilities at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Financial and operating derivatives | (75,247) | (1,648) | |||
Fair Value Hedge Instrument [Member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Financial and Operating derivatives | 2,163,255 | 737,378 | |||
Financial Liabilities - Fair Value Hedge Instrument [Member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Financial and operating derivatives | (10,158) | ||||
Financial assets at amortised cost, class [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Cash and banks | 2,872,297 | 3,110,220 | |||
Certificate of bank deposits | 766,703 | 211,261 | |||
Trade receivables | 2,644,601 | 1,685,764 | |||
Court deposit | 600,340 | 337,255 | |||
Financial assets at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Repurchase operations | 1,181,116 | 1,192,101 | |||
Government bonds | 1,486,999 | 221,900 | |||
Restricted cash | 58,764 | ||||
Financial letter | 377,033 | 374,690 | |||
Loan Investment Funds | 376,538 | 407,928 | |||
Dynamo Beauty Ventures Ltd fund | 11,326 | 7,402 | |||
Certificate of Bank Deposits | 270,870 | 21,327 | |||
Financial and Operating derivatives | 35,918 | ||||
Fair value [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Total | 4,820,116 | 4,513,582 | |||
Total | 2,581,530 | 1,033,247 | |||
Financial and Operating derivatives | 2,199,173 | 737,378 | |||
Total | (20,401,651) | (10,987,213) | |||
Financial and operating derivatives | (75,247) | (11,806) | |||
Fair value [member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Financial and Operating derivatives | 2,123,926 | 725,572 | |||
Fair value [member] | Financial liabilities at amortised cost, category [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Borrowings in domestic currency | (15,981,649) | (7,445,672) | |||
Borrowings in foreign currency | (4,420,002) | (3,541,541) | |||
Lease | (4,107,175) | (2,517,565) | |||
Trade payables, reverse factoring operations and related parties | (5,709,969) | (1,829,756) | |||
Fair value [member] | Financial liabilities at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Financial and operating derivatives | (75,247) | (1,648) | |||
Fair value [member] | Fair Value Hedge Instrument [Member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Financial and Operating derivatives | 2,163,255 | 737,378 | |||
Fair value [member] | Financial Liabilities - Fair Value Hedge Instrument [Member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Financial and operating derivatives | (10,158) | ||||
Fair value [member] | Financial assets at amortised cost, class [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Cash and banks | 2,872,297 | 3,110,220 | |||
Certificate of bank deposits | 766,703 | 211,261 | |||
Trade receivables | 2,644,601 | 1,685,764 | |||
Court deposit | 600,340 | 337,255 | |||
Fair value [member] | Financial assets at fair value through profit or loss, category [member] | Level 2 [member] | |||||
Disclosure Of Carrying Amounts And Fair Values Of The Companys Financial Instruments [Line Items] | |||||
Repurchase operations | 1,181,116 | 1,192,101 | |||
Government bonds | 1,486,999 | 221,900 | |||
Restricted cash | 58,764 | ||||
Financial letter | 377,033 | 374,690 | |||
Loan Investment Funds | 376,538 | 407,928 | |||
Dynamo Beauty Ventures Ltd fund | 11,326 | 7,402 | |||
Certificate of Bank Deposits | 270,870 | 21,327 | |||
Financial and Operating derivatives | R$ 35918 | ||||
[1] | As of June 30, 2020, investments in Certificate of Bank Deposits (“CDB”) are remunerated at an average rate of 102.7% of CDI with daily maturities redeemable with the issuer itself, without significant loss of value. | ||||
[2] | Repurchase operations are securities issued by banks with a commitment by the bank to repurchase them, and by the client to resell them, at defined rates and within a predetermined term, backed by public or private securities, depending on bank availabilities and registered with the CETIP. On June 30, 2020, repurchase operations are remunerated at an average rate of 103.8% of CDI (106.9% of the CDI on December 31, 2019). | ||||
[3] | As of June 30, 2020, the CDBs classified as short-term investments are remunerated at an average rate of 103.8% of CDI (106.9% of CDI as of December 31, 2019). The balance on 30 June 2020, related to the “Crer para Ver” line within the exclusive fund is R$ 35,423 (R$ 38,018 on December 31, 2019). |
Financial Risk Management - Sum
Financial Risk Management - Summary of Derivative Instruments (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Total | R$ 2199173 | R$ 737378 |
Fair value [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Total | 2,199,173 | 737,378 |
Fair value [member] | Level 2 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Financial derivatives | 2,121,287 | 725,060 |
Operational derivatives | 2,639 | 512 |
Total | R$ 2123926 | R$ 725572 |
Financial Risk Management - S_2
Financial Risk Management - Summary of Derivative Positions (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of fair value measurement of liabilities [line items] | ||
Total net derivative financial instruments: | R$ 5442792 | R$ 200896 |
Derivative financial assets | 2,199,173 | 737,378 |
Total net derivative financial instruments | 244,884 | 64,796 |
Long Position CDI Floating Rate Swap Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative Liability Notional Amount | 2,661,494 | 2,664,001 |
Gain (Loss) on Derivative Financial Liabilities | 213,770 | 248,028 |
Long Position at Interbank Rate NDFs Forward Agreement Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative Liability Notional Amount | 5,442,792 | 200,896 |
Gain (Loss) on Derivative Financial Liabilities | (40,376) | (160) |
Short Position US Dollar Swap Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative Asset Notional Amount | 2,661,494 | 2,664,001 |
Gain (Loss) on Derivative Financial Assets | 499,030 | 312,984 |
Fair value [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative financial assets | 2,199,173 | 737,378 |
Total net derivative financial instruments | 2,121,287 | 725,060 |
Fair value [member] | Long Position CDI Floating Rate Swap Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative financial liabilities | 2,942,841 | 3,002,623 |
Fair value [member] | Long Position at Interbank Rate NDFs Forward Agreement Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative financial liabilities | (38,494) | (2,008) |
Fair value [member] | Short Position US Dollar Swap Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative financial assets | 5,102,622 | 3,729,691 |
Book Value [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Total net derivative financial instruments | 1,876,404 | 660,264 |
Book Value [Member] | Long Position CDI Floating Rate Swap Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative financial liabilities | 2,729,070 | 2,754,595 |
Book Value [Member] | Long Position at Interbank Rate NDFs Forward Agreement Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative financial liabilities | 1,882 | (1,848) |
Book Value [Member] | Short Position US Dollar Swap Contract [Member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Derivative financial assets | R$ 4603592 | R$ 3416707 |
Financial Risk Management - D_2
Financial Risk Management - Disclosure Of Derivatives Are Measured At Fair Value With Gains And Losses Recognized In The Group Of Costs Of Products Sold (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
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$ 3582240 | |
Net position - 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 | 1,093,241 | |
Net position - GBP and USD [Member] | Fair value [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 | 5,898 | |
Forward contract [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 | 119,851 | 1,302,869 |
Forward contract [member] | Fair value [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 | 512 | |
Derivative instruments | (3,259) | |
Derivative [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 | 1,213,092 | 1,302,869 |
Derivative [Member] | Fair value [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$ 2639 | R$ 512 |
Financial Risk Management - S_3
Financial Risk Management - Summary of Net Asset Exposure (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Net Asset Exposure [Abstract] | |||
Loans and financing registered in Brazil in foreign currency | [1] | R$ 4587578 | R$ 3381959 |
Receivables registered in Brazil in foreign currency | 11,727 | 10,007 | |
Accounts payable registered in Brazil in foreign currencies | (11,686) | (10,543) | |
Value of the financial derivatives | 5,102,622 | 3,729,691 | |
Net asset exposure | R$ 515085 | R$ 347196 | |
[1] | Excluding transaction costs. |
Financial Risk Management - D_3
Financial Risk Management - Disclosure Of Net Foreign Exchange Exposure (Detail) R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$) | |
Disclosure Of Net Foreign Exchange Exposure [Line Items] | |
Risk | Dollar decrease |
Probable scenario [Member] | |
Disclosure Of Net Foreign Exchange Exposure [Line Items] | |
Net Foreign Exchange Exposure | R$ 2481 |
Scenario Two [Member] | |
Disclosure Of Net Foreign Exchange Exposure [Line Items] | |
Net Foreign Exchange Exposure | 101,032 |
Scenario Three [Member] | |
Disclosure Of Net Foreign Exchange Exposure [Line Items] | |
Net Foreign Exchange Exposure | R$ 170041 |
Financial Risk Management - D_4
Financial Risk Management - Disclosure of Detailed Information About Cash Flow Hedged Items (Detail) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020BRL (R$) | ||
Disclosure of financial assets [line items] | ||
Notional value | R$ 3582240 | |
Accrual value | 1,876,480 | |
Fair value | 2,163,255 | [1] |
Accumulated contract gain (loss) | 291,114 | |
Gain in the 6-month period | R$ 228956 | |
Currency Swap Contract One [Member] | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Notional value | R$ 2659360 | |
Accrual value | 1,872,141 | |
Fair value | 2,157,449 | [1] |
Accumulated contract gain (loss) | 285,308 | |
Gain in the 6-month period | R$ 223672 | |
Forward contract one [Member] | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Notional value | R$ 883167 | |
Accrual value | 4,339 | |
Fair value | 5,613 | [1] |
Accumulated contract gain (loss) | 5,613 | |
Gain in the 6-month period | R$ 198 | |
Forward contract two [Member] | ||
Disclosure of financial assets [line items] | ||
Hedged item | Currency | |
Notional currency | BRL | |
Notional value | R$ 39713 | |
Accrual value | ||
Fair value | 193 | [1] |
Accumulated contract gain (loss) | 193 | |
Gain in the 6-month period | R$ 5482 | |
[1] | The method used by the Company to determine fair value consists in calculating the future value based on the contracted conditions and determines present value based on market accrual extracted from B3. |
Financial Risk Management - D_5
Financial Risk Management - Disclosure of Detailed Information About Cash Flow Hedged Reserve Booked Under Other Comprehensive Income (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of Detailed Information About Cash Flow Hedged Reserve Booked Under Other Comprehensive Income [Abstract] | ||||
Cash flow hedge balance | R$ 42729 | R$ 27706 | ||
Change in the fair value of hedge instrument recognized in other comprehensive income | R$ 19728 | R$ 70475 | 228,956 | 159,698 |
Tax effects on fair value of hedge instrument | 7,960 | (22,773) | (75,842) | (53,701) |
Cash flow hedge balance | R$ 195843 | R$ 78291 | R$ 195843 | R$ 78291 |
Financial Risk Management - D_6
Financial Risk Management - Disclosure of Detailed Information About Interest Rate Risks of Transactions (Detail) R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$) | |
Disclosure of Detailed Information About Interest Rate Risks of Transactions [Abstract] | |
Total borrowings and financing - in local currency | R$ 16097706 |
Operations in foreign currency with derivatives pegged to CDI | (4,568,393) |
Short-term investments | 4,459,259 |
Net exposure | R$ 16206840 |
Financial Risk Management - S_4
Financial Risk Management - Summary of Net Exposure to Interest Rate Risk by Scenario (Detail) - Interest rate risk [member] R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$) | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Risk | Rate increase |
Probable scenario [Member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Net liability | R$ 4574 |
Scenario Two [Member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Net liability | (29,406) |
Scenario Three [Member] | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Net liability | R$ 63386 |
Financial Risk Management - S_5
Financial Risk Management - Summary of Working Capital Calculation (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Net current assets (liabilities) [abstract] | ||
Total current assets | R$ 17064524 | R$ 9430057 |
Total current liabilities | (12,863,889) | (7,518,423) |
Total net working capital | R$ 4200635 | R$ 1911634 |
Financial Risk Management - D_7
Financial Risk Management - Disclosure of Maturity Analysis for Non-Derivative Financial Liabilities (Detail) R$ in Thousands | Jun. 30, 2020BRL (R$) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | R$ 20666099 |
Lease | 4,107,175 |
Payables to related parties, trade payables and reverse factoring operations | 5,709,969 |
Total expected cash flow [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | 21,884,336 |
Lease | 5,170,360 |
Payables to related parties, trade payables and reverse factoring operations | 5,709,969 |
Interest to be accrued [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures, interest to be accrued | (1,218,237) |
Lease, interest to be accrued | (1,063,185) |
Payables to related parties, trade payables and reverse factoring operations | |
Less than one year [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | 2,554,860 |
Lease | 1,272,171 |
Payables to related parties, trade payables and reverse factoring operations | 5,709,969 |
One to five years [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | 19,329,476 |
Lease | 2,883,814 |
Payables to related parties, trade payables and reverse factoring operations | |
Over five years [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Borrowings, financing and debentures | |
Lease | 1,014,375 |
Payables to related parties, trade payables and reverse factoring operations |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) R$ in Thousands, £ in Millions | 6 Months Ended | ||
Jun. 30, 2020GBP (£) | Jun. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |||
Foreign exchange liabilities | R$ 4568393 | R$ 3381960 | |
Percentage of borrowings linked to CDI rate | 98.42% | 98.42% | |
Seventy Million British Pounds Credit Facility [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Undrawn credit line | £ | £ 70 | ||
One Hundred Fifty Million Reais Unsecured Credit Line [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Undrawn credit line | R$ 150000 | ||
Undrawn credit line, maturity date | January 2020 | ||
Scenario Two [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign exchange rate | 4.09 | 4.09 | |
Foreign exchange rate, percentage of decrease | 25.00% | 25.00% | |
Borrowings interest rate, percentage of increase | 25.00% | 25.00% | |
Borrowings interest rate | 2.60% | 2.60% | |
Scenario Three [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign exchange rate | 2.72 | 2.72 | |
Foreign exchange rate, percentage of decrease | 50.00% | 50.00% | |
Borrowings interest rate, percentage of increase | 50.00% | 50.00% | |
Borrowings interest rate | 3.10% | 3.10% | |
Probable scenario [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign exchange rate | 5.45 | 5.45 | |
Borrowings interest rate | 2.10% | 2.10% |
Financial Risk Management - A_2
Financial Risk Management - Additional Information (Detail 2) R$ in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020BRL (R$) | Apr. 30, 2020 | Jun. 30, 2020BRL (R$) | Jun. 30, 2020BRL (R$) | Jun. 30, 2020USD ($) | |
Covid 19 Impact | |||||
Percentage of closure of retail stores due to lockdown | 16.00% | 87.00% | 90.00% | ||
Percentage of Covid 19 impact on sale offset | 90.00% | 90.00% | |||
Percentage of reopened retail stores after lockdown | 60.00% | ||||
Percentage of increse in production capacity of essential products | 30.00% | ||||
Amount raised in private placement | R$ 2000000 | R$ 2000000 | R$ 2000000 | ||
Amount of new financing raised | 750,000 | 750,000 | 750,000 | ||
Amount of cash position | R$ 4820 | R$ 4820 | 4,820 | ||
Cyber incident impact | |||||
Cyber incident impact on revenue of Avon | R$ 450000 | $ 87 |
Cash And Cash Equivalent - Summ
Cash And Cash Equivalent - Summary of Detailed Information About Cash And Cash Equivalents (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||||
Cash and banks | R$ 2872297 | R$ 3110220 | ||
Certificate of Bank Deposits | [1] | 766,703 | 211,261 | |
Repurchase agreements | [2] | 1,181,116 | 1,192,101 | |
Total | R$ 4820116 | R$ 4513582 | R$ 1215048 | |
[1] | As of June 30, 2020, investments in Certificate of Bank Deposits (“CDB”) are remunerated at an average rate of 102.7% of CDI with daily maturities redeemable with the issuer itself, without significant loss of value. | |||
[2] | Repurchase operations are securities issued by banks with a commitment by the bank to repurchase them, and by the client to resell them, at defined rates and within a predetermined term, backed by public or private securities, depending on bank availabilities and registered with the CETIP. On June 30, 2020, repurchase operations are remunerated at an average rate of 103.8% of CDI (106.9% of the CDI on December 31, 2019). |
Cash And Cash Equivalent - Su_2
Cash And Cash Equivalent - Summary of Detailed Information About Cash And Cash Equivalents (Parenthetical) (Detail) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Average deposit remuneration rate | 102.70% | |
Average repurchase operations remuneration rate | 103.80% | 106.90% |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short-Term Investments (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Short Term Investments [Abstract] | |||
Loan investment funds | R$ 376538 | R$ 407928 | |
Certificate of Bank Deposits | [1] | 270,870 | 21,327 |
Treasury bills | 377,033 | 374,690 | |
Government bonds (LFT) | 1,486,999 | 221,900 | |
Dynamo Beauty Ventures Ltd. Fund | 11,326 | 7,402 | |
Restricted cash | 58,764 | ||
Total | 2,581,530 | 1,033,247 | |
Current | 2,570,204 | 1,025,845 | |
Non-current | R$ 11326 | R$ 7402 | |
[1] | As of June 30, 2020, the CDBs classified as short-term investments are remunerated at an average rate of 103.8% of CDI (106.9% of CDI as of December 31, 2019). The balance on 30 June 2020, related to the “Crer para Ver” line within the exclusive fund is R$ 35,423 (R$ 38,018 on December 31, 2019). |
Short-Term Investments - Summ_2
Short-Term Investments - Summary of Short-Term Investments (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Short Term Investments [Line Items] | ||
Short-term investments | R$ 2570204 | R$ 1025845 |
Average rate of remuneration for Certificate of Bank Deposits | 103.80% | 106.90% |
Crer Para Ver [Member] | ||
Short Term Investments [Line Items] | ||
Short-term investments | R$ 35423 | R$ 38018 |
Short-Term Investments - Summ_3
Short-Term Investments - Summary of Detailed Information About Investment Portfolio (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Short Term Investments [Abstract] | |||
Certificates of deposit | R$ 270870 | R$ 21327 | |
Repurchase agreements | [1] | 1,181,116 | 1,192,101 |
Treasury bills | 377,033 | 374,690 | |
Government bonds (LFT) | 1,486,999 | 221,900 | |
Exclusive Investment Fund Portfolio | R$ 3316018 | R$ 1810018 | |
[1] | Repurchase operations are securities issued by banks with a commitment by the bank to repurchase them, and by the client to resell them, at defined rates and within a predetermined term, backed by public or private securities, depending on bank availabilities and registered with the CETIP. On June 30, 2020, repurchase operations are remunerated at an average rate of 103.8% of CDI (106.9% of the CDI on December 31, 2019). |
Trade Receivables - Summary of
Trade Receivables - Summary of Detailed Information About Trade Receivables (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Trade and other current receivables [abstract] | ||||
Trade receivables | R$ 2889573 | R$ 1793759 | ||
Provision for doubtful accounts | (244,972) | (107,995) | R$ 108692 | R$ 129242 |
Trade Receivables, Net | R$ 2644601 | R$ 1685764 |
Trade Receivables - Summary o_2
Trade Receivables - Summary of Carrying Amount of Each Aging Range (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||||
Current Trade Receivables Gross | R$ 2889573 | R$ 1793759 | ||
Provision for doubtful accounts | (244,972) | (107,995) | R$ 108692 | R$ 129242 |
Current Trade Receivables | 2,644,601 | 1,685,764 | ||
Current [member] | ||||
Disclosure of financial assets [line items] | ||||
Current Trade Receivables Gross | 1,632,884 | 1,501,958 | ||
Provision for doubtful accounts | (46,358) | (38,060) | ||
Up to 30 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Current Trade Receivables Gross | 874,649 | 142,069 | ||
Provision for doubtful accounts | (9,229) | (14,311) | ||
31 to 60 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Current Trade Receivables Gross | 138,467 | 36,466 | ||
Provision for doubtful accounts | (23,549) | (6,663) | ||
61 to 90 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Current Trade Receivables Gross | 40,178 | 27,789 | ||
Provision for doubtful accounts | (10,185) | (6,333) | ||
91 to 180 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Current Trade Receivables Gross | 203,395 | 85,477 | ||
Provision for doubtful accounts | R$ 155651 | R$ 42628 |
Trade Receivables - Summary o_3
Trade Receivables - Summary of Allowance For Credit Losses (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Beginning Balance | R$ 107995 | R$ 129242 | |
Additions | (447,669) | (118,037) | |
Write-offs | [1] | 371,004 | 138,116 |
Exchange variation | (60,312) | 471 | |
Ending balance | R$ 244972 | R$ 108692 | |
[1] | Refers to accounts overdue for more than 180 days which are written off when the Company has no expectation of recovering the trade receivable and sales of customer portfolio. |
Trade Receivables - Summary o_4
Trade Receivables - Summary of Trade Receivables by Exposure to Doubtful Accounts (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||||
Trade receivables | R$ 2889573 | R$ 1793759 | ||
Provision for doubtful accounts | (244,972) | (107,995) | R$ 108692 | R$ 129242 |
Current [member] | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 1,632,884 | 1,501,958 | ||
Provision for doubtful accounts | (46,358) | (38,060) | ||
Up to 30 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 874,649 | 142,069 | ||
Provision for doubtful accounts | (9,229) | (14,311) | ||
31 to 60 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 138,467 | 36,466 | ||
Provision for doubtful accounts | (23,549) | (6,663) | ||
61 to 90 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 40,178 | 27,789 | ||
Provision for doubtful accounts | (10,185) | (6,333) | ||
91 to 180 days [member] | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 203,395 | 85,477 | ||
Provision for doubtful accounts | R$ 155651 | R$ 42628 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of Inventories [Abstract] | ||||
Finished products | R$ 3515022 | R$ 1253145 | ||
Raw materials and packaging | 1,030,020 | 253,063 | ||
Promotional material | 211,372 | 82,228 | ||
Work in progress | 34,690 | 27,346 | ||
Provision for losses | (309,757) | (185,232) | R$ 188366 | R$ 178268 |
Current Inventories | R$ 4481347 | R$ 1430550 |
Inventories - Summary of Change
Inventories - Summary of Changes In The Provision For Inventory Losses (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of Changes In The Provision For Inventory Losses [Abstract] | ||
Beginning balance | R$ 185232 | R$ 178268 |
Additions, net | (190,763) | (72,980) |
Write-offs | 166,520 | 60,743 |
Exchange Variation | (100,282) | 2,139 |
Ending balance | R$ 309757 | R$ 188366 |
Recoverable Taxes - Summary of
Recoverable Taxes - Summary of Current Tax Assets (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | |||
ICMS on purchase of goods | [1] | R$ 671227 | R$ 434832 |
Taxes on purchase of inputs - subsidiaries abroad | 214,702 | 39,475 | |
ICMS on purchase of property, plant and equipment | 10,024 | 10,628 | |
PIS and COFINS on purchase of property, plant and equipment | [2] | 179 | 3,826 |
PIS and COFINS on purchase of inputs | 802,466 | 280,087 | |
PIS, COFINS and CSLL - withheld at source | 3,779 | 2,378 | |
IPI (Tax on Manufactured Products) | 83,828 | 30,190 | |
Others | 152,402 | 3,438 | |
Total | 1,938,607 | 804,854 | |
Current | 1,045,201 | 395,640 | |
Non-current | R$ 893406 | R$ 409214 | |
[1] | Accumulated Brazilian tax on the circulation of goods, interstate and intercity transportations and communication services (“ICMS”) tax credits. | ||
[2] | Brazilian tax for the Integration Program Tax on Revenue (“PIS”) and Social Security Funding Tax on Revenue (COFINS). |
Recoverable Taxes - Summary o_2
Recoverable Taxes - Summary of Current Tax Assets (Detail) (Calc 2) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current tax assets, current | R$ 1045201 | R$ 395640 |
Current tax assets, non-current | R$ 893406 | R$ 409214 |
Income Tax And Social Contrib_3
Income Tax And Social Contribution - Summary of changes In Deferred Income Tax Asset And Liabilities Social Contribution (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Begining balance, asset | R$ 374448 | R$ 398400 |
Beginning balance, liability | (450,561) | (431,534) |
Ending balance, asset | 975,892 | 407,553 |
Ending balance, liability | (1,413,471) | (414,587) |
Effect on profit or loss [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Increase decrease in deferred tax asset | (22,022) | 44,859 |
Increase decrease in deferred tax liability | (28,630) | 3,298 |
Acquisition of subsidiary [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Increase decrease in deferred tax asset | 667,034 | |
Increase decrease in deferred tax liability | (713,199) | |
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 | 2,865 | 13,380 |
Increase decrease in deferred tax liability | ||
Effect on other comprehensive income [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Increase decrease in deferred tax asset | (75,842) | (53,701) |
Increase decrease in deferred tax liability | ||
Exchange variation on other comprehensive income [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Increase decrease in deferred tax asset | 29,409 | 4,615 |
Increase decrease in deferred tax liability | R$ 221081 | R$ 13649 |
Income Tax And Social Contrib_4
Income Tax And Social Contribution - Additional Information (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Effective tax rate | 13.00% | 30.70% | ||
Loss before taxes | R$ 1077400 | R$ 100100 | ||
Tax expense (income) | R$ 44853 | R$ 24777 | R$ 139656 | R$ 30746 |
Applicable tax rate | 34.00% | 34.00% | ||
Effective tax rate excluding adverse effect | 31.10% | |||
Bottom of range [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Applicable tax rate | 17.00% | |||
Top of range [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Applicable tax rate | 19.00% |
Judicial Deposits - Summary of
Judicial Deposits - Summary of Detailed Information About Judicial Deposits (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Statement [Line Items] | ||||
Judicial deposits | R$ 600340 | R$ 337255 | R$ 337460 | R$ 333577 |
Unaccrued tax lawsuits [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 296,529 | 203,403 | ||
Accrued tax lawsuits [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 249,576 | 116,415 | ||
Unaccrued civil lawsuits [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 6,570 | 2,541 | ||
Accrued civil lawsuits [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 2,505 | 426 | ||
Unaccrued labor lawsuits [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | 14,330 | 8,683 | ||
Accrued labor lawsuits [Member] | ||||
Statement [Line Items] | ||||
Judicial deposits | R$ 30830 | R$ 5787 |
Judicial Deposits - Summary o_2
Judicial Deposits - Summary of Detailed Information About Changes In Judicial Deposits (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Judicial Deposits [Abstract] | ||
Deposits - Beggining balance | R$ 337255 | R$ 333577 |
Acquisition of subsidiary | 283,885 | |
New deposits | 7,911 | 1,367 |
Redemptions | (21,186) | (1,362) |
Interests | 6,216 | 7,447 |
Payments | (10,070) | |
Write-offs for expenses | (3,671) | (3,569) |
Deposits - Ending balance | R$ 600340 | R$ 337460 |
Assets held for sale (Details)
Assets held for sale (Details) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020BRL (R$)properties | Jun. 30, 2020BRL (R$) | Jun. 30, 2020BRL (R$)properties | Jan. 03, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | ||
Assets Held for Sale Disclosure [Abstract] | ||||||
Acquisition by Avon on January 3, 2020 | R$ 186518 | |||||
Transfer to property, plant and equipment | [1] | R$ 39186 | ||||
Transfer from property, plant and equipment | [2] | 16,210 | ||||
Sale | (22,287) | |||||
Exchange variation | 54,302 | |||||
Balance on June 30, 2020 | R$ 195557 | R$ 195557 | R$ 195557 | R$ 0 | ||
Number of properties from held for sale | properties | 2 | 2 | ||||
[1] | During the first quarter of 2020, Avon decided not to proceed with the sale two properties. As a result, Avon reclassified such properties from held for sale to property, plant and equipment during the first quarter of 2020. At the time of reclassification, the Company recorded a true up on depreciation resulting in an immaterial impact. | |||||
[2] | Includes a property that was classified as held for sale during the period. |
Other Current And Non-Current_3
Other Current And Non-Current Assets - Summary of detailed information about other assets (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Other Assets [Abstract] | |||
Marketing and advertising advances | R$ 99545 | R$ 28669 | |
Supplier advances | 224,335 | 102,225 | |
Employee advances | 79,882 | 13,983 | |
Rent advances and guarantee deposits | [1] | 133,448 | 96,202 |
Prepaid insurance expenses | 170,277 | 29,647 | |
Overfunded pension plan | [2] | 711,526 | |
Customs broker advances - Import taxes | 38,592 | 34,932 | |
Subleasing receivables | [3] | 395,605 | |
Carbon credits | 3,799 | 3,508 | |
Other | 543,806 | 39,868 | |
Total | 2,400,815 | 349,034 | |
Current | 799,222 | 265,198 | |
Non-current | R$ 1601593 | R$ 83836 | |
[1] | Mainly related to: (i) advances of rental agreements that were not included in the initial measurement of lease liabilities / right-of-use of the subsidiary The Body Shop International Limited, in accordance with the exemptions on IFRS 16; and (ii) security deposits for the rental of certain stores of the subsidiaries The Body Shop International Limited and Emeis Holdings Pty Ltd. which will be returned by the lessor at the end of the rental agreements. | ||
[2] | Pension plan arising from the Avon’s acquisition on January 3, 2020 (Note 4) | ||
[3] | Relates to the sublease receivables of a property owned by Avon in New York. |
Property, Plant And Equipment -
Property, Plant And Equipment - Summary Of Detailed Information About Property, Plant And Equipment (Detail) R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | R$ 1773889 |
Acquisition of subsidiary | 2,886,209 |
Additions | (209,729) |
Write-offs | (6,893) |
Reversal of impairment (impairment loss) | (17,209) |
Transfers | 13,198 |
Exchange variation | 911,300 |
Property, Plant And Equipment, Ending | R$ 5350765 |
Vehicles [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 2 years |
Vehicles [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Templates [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Tools And Accessories [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Tools And Accessories [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 20 years |
Facilities [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Facilities [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 60 years |
Machinery and accessories [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Machinery and accessories [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 15 years |
Leasehold improvements [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 2 years |
Leasehold improvements [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 20 years |
Buildings [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 14 years |
Buildings [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 60 years |
Furniture and fixtures [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 2 years |
Furniture and fixtures [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 25 years |
IT equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
IT equipment [member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 15 years |
Cost [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | R$ 3314514 |
Acquisition of subsidiary | 2,886,209 |
Additions | 146,925 |
Write-offs | (30,289) |
Reversal of impairment (impairment loss) | (17,209) |
Transfers | 15,454 |
Exchange variation | 1,084,526 |
Property, Plant And Equipment, Ending | 7,400,130 |
Cost [Member] | Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 45,578 |
Acquisition of subsidiary | 25,789 |
Additions | 128 |
Write-offs | (4,519) |
Reversal of impairment (impairment loss) | |
Transfers | 2,171 |
Exchange variation | 12,042 |
Property, Plant And Equipment, Ending | 81,189 |
Cost [Member] | Templates [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 192,556 |
Acquisition of subsidiary | |
Additions | 8 |
Write-offs | (19,713) |
Reversal of impairment (impairment loss) | |
Transfers | 4,690 |
Exchange variation | 8,065 |
Property, Plant And Equipment, Ending | 185,606 |
Cost [Member] | Tools And Accessories [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 11,974 |
Acquisition of subsidiary | 52,410 |
Additions | 4,362 |
Write-offs | (158) |
Reversal of impairment (impairment loss) | |
Transfers | (876) |
Exchange variation | 12,721 |
Property, Plant And Equipment, Ending | 80,433 |
Cost [Member] | Facilities [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 309,772 |
Acquisition of subsidiary | 1,431 |
Additions | 23 |
Write-offs | (3,428) |
Reversal of impairment (impairment loss) | |
Transfers | 3,298 |
Exchange variation | 10,922 |
Property, Plant And Equipment, Ending | 322,018 |
Cost [Member] | Machinery and accessories [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 866,451 |
Acquisition of subsidiary | 746,734 |
Additions | 7,352 |
Write-offs | (925) |
Reversal of impairment (impairment loss) | |
Transfers | 45,638 |
Exchange variation | 171,314 |
Property, Plant And Equipment, Ending | 1,836,564 |
Cost [Member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 615,103 |
Acquisition of subsidiary | 58,548 |
Additions | 11,653 |
Write-offs | (1,177) |
Reversal of impairment (impairment loss) | (8,650) |
Transfers | 5,618 |
Exchange variation | 177,970 |
Property, Plant And Equipment, Ending | 859,065 |
Cost [Member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 386,957 |
Acquisition of subsidiary | 1,168,837 |
Additions | 3,484 |
Write-offs | 1,590 |
Reversal of impairment (impairment loss) | 324 |
Transfers | 20,246 |
Exchange variation | 293,891 |
Property, Plant And Equipment, Ending | 1,875,329 |
Cost [Member] | Furniture and fixtures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 397,727 |
Acquisition of subsidiary | 32,566 |
Additions | 10,622 |
Write-offs | (1,012) |
Reversal of impairment (impairment loss) | (8,883) |
Transfers | 7,545 |
Exchange variation | 95,387 |
Property, Plant And Equipment, Ending | 533,952 |
Cost [Member] | Land [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 35,157 |
Acquisition of subsidiary | 568,470 |
Additions | |
Write-offs | 73 |
Reversal of impairment (impairment loss) | |
Transfers | 4,060 |
Exchange variation | 191,749 |
Property, Plant And Equipment, Ending | 799,509 |
Cost [Member] | IT equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 297,228 |
Acquisition of subsidiary | 112,369 |
Additions | 4,691 |
Write-offs | (494) |
Reversal of impairment (impairment loss) | |
Transfers | 12,550 |
Exchange variation | 85,224 |
Property, Plant And Equipment, Ending | 511,568 |
Cost [Member] | Other assets [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | |
Acquisition of subsidiary | 40,090 |
Additions | |
Write-offs | |
Reversal of impairment (impairment loss) | |
Transfers | |
Exchange variation | 14,086 |
Property, Plant And Equipment, Ending | 54,176 |
Cost [Member] | Projects In Progress [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | 156,011 |
Acquisition of subsidiary | 78,965 |
Additions | 104,602 |
Write-offs | (526) |
Reversal of impairment (impairment loss) | |
Transfers | (89,486) |
Exchange variation | 11,155 |
Property, Plant And Equipment, Ending | 260,721 |
Depreciation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (1,540,625) |
Acquisition of subsidiary | |
Additions | (356,654) |
Write-offs | 23,396 |
Reversal of impairment (impairment loss) | |
Transfers | (2,256) |
Exchange variation | (173,226) |
Property, Plant And Equipment, Ending | (2,049,365) |
Depreciation [member] | Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (16,924) |
Acquisition of subsidiary | |
Additions | (12,932) |
Write-offs | 2,174 |
Reversal of impairment (impairment loss) | |
Transfers | (2,093) |
Exchange variation | (3,524) |
Property, Plant And Equipment, Ending | (33,299) |
Depreciation [member] | Templates [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (175,938) |
Acquisition of subsidiary | |
Additions | (4,824) |
Write-offs | 19,684 |
Reversal of impairment (impairment loss) | |
Transfers | |
Exchange variation | (172) |
Property, Plant And Equipment, Ending | (161,250) |
Depreciation [member] | Tools And Accessories [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (3,255) |
Acquisition of subsidiary | |
Additions | (20,769) |
Write-offs | |
Reversal of impairment (impairment loss) | |
Transfers | 10 |
Exchange variation | (2,451) |
Property, Plant And Equipment, Ending | (26,465) |
Depreciation [member] | Facilities [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (167,362) |
Acquisition of subsidiary | |
Additions | (11,582) |
Write-offs | 282 |
Reversal of impairment (impairment loss) | |
Transfers | 900 |
Exchange variation | (3,269) |
Property, Plant And Equipment, Ending | (181,031) |
Depreciation [member] | Machinery and accessories [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (416,736) |
Acquisition of subsidiary | |
Additions | (95,836) |
Write-offs | 157 |
Reversal of impairment (impairment loss) | |
Transfers | (1,072) |
Exchange variation | (16,382) |
Property, Plant And Equipment, Ending | (529,869) |
Depreciation [member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (267,371) |
Acquisition of subsidiary | |
Additions | (60,425) |
Write-offs | 450 |
Reversal of impairment (impairment loss) | |
Transfers | 25 |
Exchange variation | (68,175) |
Property, Plant And Equipment, Ending | (395,496) |
Depreciation [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (101,785) |
Acquisition of subsidiary | |
Additions | (51,515) |
Write-offs | |
Reversal of impairment (impairment loss) | |
Transfers | |
Exchange variation | (4,847) |
Property, Plant And Equipment, Ending | (158,147) |
Depreciation [member] | Furniture and fixtures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (193,973) |
Acquisition of subsidiary | |
Additions | (44,342) |
Write-offs | 612 |
Reversal of impairment (impairment loss) | |
Transfers | (26) |
Exchange variation | (43,546) |
Property, Plant And Equipment, Ending | (281,275) |
Depreciation [member] | IT equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | (197,281) |
Acquisition of subsidiary | |
Additions | (47,588) |
Write-offs | 37 |
Reversal of impairment (impairment loss) | |
Transfers | |
Exchange variation | (30,091) |
Property, Plant And Equipment, Ending | (274,923) |
Depreciation [member] | Other assets [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, Plant And Equipment, Beginning | |
Acquisition of subsidiary | |
Additions | (6,841) |
Write-offs | |
Reversal of impairment (impairment loss) | |
Transfers | |
Exchange variation | (769) |
Property, Plant And Equipment, Ending | R$ 7610 |
Intangibles - Disclosure Of Rec
Intangibles - Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill (Detail) R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | R$ 5076501 |
Acquisition of subsidiary | 16,683,271 |
Additions | (369,677) |
Write-offs | (1,449) |
Reversal (provision) of impairment | 1,065 |
Transfers | 7,810 |
Exchange variation | 7,033,728 |
Intangible assets and goodwill, Ending | 28,431,249 |
Cost [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | 5,883,023 |
Acquisition of subsidiary | 16,683,271 |
Additions | 114,873 |
Write-offs | (1,492) |
Reversal (provision) of impairment | 1,065 |
Transfers | 16,078 |
Exchange variation | 7,147,619 |
Intangible assets and goodwill, Ending | 29,844,437 |
Cost [Member] | Software [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | 1,313,090 |
Acquisition of subsidiary | 291,239 |
Additions | 65,382 |
Write-offs | (1,492) |
Reversal (provision) of impairment | |
Transfers | 112,649 |
Exchange variation | 153,649 |
Intangible assets and goodwill, Ending | R$ 1934517 |
Cost [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 |
Cost [Member] | Software [member] | Top of range [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | 10 years |
Cost [Member] | Trademarks and patents Finite [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | R$ 116805 |
Acquisition of subsidiary | 517,592 |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 220,524 |
Intangible assets and goodwill, Ending | R$ 854921 |
Cost [Member] | Trademarks and patents Finite [Member] | Bottom of range [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | 24 years |
Cost [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 |
Cost [Member] | Trademarks and patents Indefinite [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | |
Intangible assets and goodwill, Beginning | R$ 2171585 |
Acquisition of subsidiary | 1,893,224 |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 1,255,816 |
Intangible assets and goodwill, Ending | R$ 5320625 |
Cost [Member] | Goodwill Avon [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | |
Intangible assets and goodwill, Beginning | |
Acquisition of subsidiary | 10,973,474 |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 3,855,691 |
Intangible assets and goodwill, Ending | R$ 14829165 |
Cost [Member] | Goodwill Emeis Brazil Pty Ltd [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | |
Intangible assets and goodwill, Beginning | R$ 100237 |
Acquisition of subsidiary | |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 33,364 |
Intangible assets and goodwill, Ending | R$ 133601 |
Cost [Member] | Goodwill The Body Shop International Limited [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | |
Intangible assets and goodwill, Beginning | R$ 1434369 |
Acquisition of subsidiary | |
Additions | 8,039 |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 388,384 |
Intangible assets and goodwill, Ending | R$ 1830792 |
Cost [Member] | Goodwill acquisition of The Body Shop stores [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | |
Intangible assets and goodwill, Beginning | R$ 1456 |
Acquisition of subsidiary | |
Additions | |
Intangible assets and goodwill, Ending | R$ 1456 |
Cost [Member] | Relationship with retail clients [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | 10 years |
Intangible assets and goodwill, Beginning | R$ 1987 |
Acquisition of subsidiary | |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 656 |
Intangible assets and goodwill, Ending | 2,643 |
Cost [Member] | Key Money Indefinite [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | 17,801 |
Acquisition of subsidiary | |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | 6,996 |
Exchange variation | 2,697 |
Intangible assets and goodwill, Ending | 27,494 |
Cost [Member] | Key Money Finite [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | 12,447 |
Acquisition of subsidiary | |
Additions | |
Write-offs | |
Reversal (provision) of impairment | 1,065 |
Transfers | (3,414) |
Exchange variation | (1,043) |
Intangible assets and goodwill, Ending | R$ 9055 |
Cost [Member] | Key Money Finite [Member] | Bottom of range [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | 3 years |
Cost [Member] | Key Money Finite [Member] | Top of range [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | 18 years |
Cost [Member] | Relationship with franchisees and sub franchisees [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | 15 years |
Intangible assets and goodwill, Beginning | R$ 602958 |
Acquisition of subsidiary | 1,876,169 |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 822,215 |
Intangible assets and goodwill, Ending | R$ 3301342 |
Cost [Member] | Developed technology (by acquired subsidiary) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Useful life | |
Intangible assets and goodwill, Beginning | |
Acquisition of subsidiary | 1,131,573 |
Additions | |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | 397,595 |
Intangible assets and goodwill, Ending | 1,529,168 |
Cost [Member] | Other intangible assets [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | 110,288 |
Acquisition of subsidiary | |
Additions | 41,452 |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | (100,153) |
Exchange variation | 18,071 |
Intangible assets and goodwill, Ending | R$ 69658 |
Cost [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 |
Cost [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 |
Amortization value [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | R$ 806522 |
Acquisition of subsidiary | |
Additions | (484,550) |
Write-offs | 43 |
Reversal (provision) of impairment | |
Transfers | (8,268) |
Exchange variation | (113,891) |
Intangible assets and goodwill, Ending | (1,413,188) |
Amortization value [Member] | Software [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | (649,347) |
Acquisition of subsidiary | |
Additions | (179,508) |
Write-offs | 43 |
Reversal (provision) of impairment | |
Transfers | (3,634) |
Exchange variation | (39,399) |
Intangible assets and goodwill, Ending | (871,845) |
Amortization value [Member] | Trademarks and patents Finite [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | (44,108) |
Acquisition of subsidiary | |
Additions | (18,303) |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | (12,810) |
Intangible assets and goodwill, Ending | (75,221) |
Amortization value [Member] | Relationship with retail clients [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | (1,939) |
Acquisition of subsidiary | |
Additions | (114) |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | (531) |
Intangible assets and goodwill, Ending | (2,584) |
Amortization value [Member] | Key Money Finite [Member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | (2,197) |
Acquisition of subsidiary | |
Additions | (242) |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | (4,634) |
Exchange variation | 1,213 |
Intangible assets and goodwill, Ending | (5,860) |
Amortization value [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 | (95,772) |
Acquisition of subsidiary | |
Additions | (147,980) |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | (41,555) |
Intangible assets and goodwill, Ending | (285,307) |
Amortization value [Member] | Developed technology (by acquired subsidiary) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | |
Acquisition of subsidiary | |
Additions | (137,361) |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | (15,419) |
Intangible assets and goodwill, Ending | (152,780) |
Amortization value [Member] | Other intangible assets [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill, Beginning | (13,159) |
Acquisition of subsidiary | |
Additions | (1,042) |
Write-offs | |
Reversal (provision) of impairment | |
Transfers | |
Exchange variation | (5,390) |
Intangible assets and goodwill, Ending | R$ 19591 |
Right of Use And Lease - Schedu
Right of Use And Lease - Schedule of Quantitative Information About Right-of-Use Assets (Detail) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020BRL (R$) | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | R$ 2619861 | |
Acquisition of subsidiary | 564,669 | |
Additions | (169,260) | |
Write-offs | (5,890) | |
Transfers | 1,052 | [1] |
Exchange variation | 799,541 | |
Right of use, Ending | 3,809,973 | |
Cost Value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | 3,193,959 | |
Acquisition of subsidiary | 564,669 | |
Additions | 319,253 | |
Write-offs | (12,908) | |
Transfers | (3,582) | [1] |
Exchange variation | 1,005,018 | |
Right of use, Ending | 5,066,409 | |
Depreciation value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | (574,098) | |
Acquisition of subsidiary | ||
Additions | (488,513) | |
Write-offs | 7,018 | |
Transfers | 4,634 | [1] |
Exchange variation | (205,477) | |
Right of use, Ending | R$ 1256436 | |
Vehicles [member] | Cost Value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Useful life | 3 years | |
Right of use, Beginning | R$ 40018 | |
Acquisition of subsidiary | 42,467 | |
Additions | 46,577 | |
Write-offs | (219) | |
Transfers | ||
Exchange variation | 11,435 | |
Right of use, Ending | 140,278 | |
Vehicles [member] | Depreciation value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | (8,109) | |
Acquisition of subsidiary | ||
Additions | (25,316) | |
Write-offs | 150 | |
Transfers | ||
Exchange variation | (2,236) | |
Right of use, Ending | (35,511) | |
Machinery and equipment [member] | Cost Value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | 15,578 | |
Acquisition of subsidiary | 14,034 | |
Additions | 610 | |
Write-offs | ||
Transfers | ||
Exchange variation | 8,958 | |
Right of use, Ending | R$ 39180 | |
Machinery and equipment [member] | Cost Value [member] | Bottom of range [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Useful life | 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 | 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$ 4317 | |
Acquisition of subsidiary | ||
Additions | (7,142) | |
Write-offs | ||
Transfers | ||
Exchange variation | (2,036) | |
Right of use, Ending | (13,495) | |
Facilities [member] | Cost Value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | 784,900 | |
Acquisition of subsidiary | 489,739 | |
Additions | 90,560 | |
Write-offs | (4,380) | |
Transfers | ||
Exchange variation | 211,050 | |
Right of use, Ending | R$ 1571869 | |
Facilities [member] | Cost Value [member] | Bottom of range [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Useful life | 3 years | |
Facilities [member] | Cost Value [member] | Top of range [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Useful life | 10 years | |
Facilities [member] | Depreciation value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | R$ 97190 | |
Acquisition of subsidiary | ||
Additions | (144,715) | |
Write-offs | 2,852 | |
Transfers | ||
Exchange variation | (27,349) | |
Right of use, Ending | R$ 266402 | |
IT equipment [member] | Cost Value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Useful life | 10 years | |
Right of use, Beginning | R$ 283 | |
Acquisition of subsidiary | 18,429 | |
Additions | 1,447 | |
Write-offs | ||
Transfers | ||
Exchange variation | 5,751 | |
Right of use, Ending | 25,910 | |
IT equipment [member] | Depreciation value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | (214) | |
Acquisition of subsidiary | ||
Additions | (10,320) | |
Write-offs | ||
Transfers | ||
Exchange variation | (1,100) | |
Right of use, Ending | (11,634) | |
Retail stores [member] | Cost Value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | 2,350,377 | |
Acquisition of subsidiary | ||
Additions | 180,059 | |
Write-offs | (8,309) | |
Transfers | (3,582) | [1] |
Exchange variation | 767,063 | |
Right of use, Ending | R$ 3285608 | |
Retail stores [member] | Cost Value [member] | Bottom of range [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Useful life | 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 | 10 years | |
Retail stores [member] | Depreciation value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | R$ 463332 | |
Acquisition of subsidiary | ||
Additions | (300,558) | |
Write-offs | 4,016 | |
Transfers | 4,634 | [1] |
Exchange variation | (172,458) | |
Right of use, Ending | R$ 927698 | |
Tools and accessories [member] | Cost Value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Useful life | 3 years | |
Right of use, Beginning | R$ 2803 | |
Acquisition of subsidiary | ||
Additions | ||
Write-offs | ||
Transfers | ||
Exchange variation | 761 | |
Right of use, Ending | 3,564 | |
Tools and accessories [member] | Depreciation value [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use, Beginning | (936) | |
Additions | (462) | |
Write-offs | ||
Transfers | ||
Exchange variation | (298) | |
Right of use, Ending | R$ 1696 | |
[1] | Those are initial costs (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. |
Right of Use And Lease - Sche_2
Right of Use And Lease - Schedule of Detailed information about cash outflow related to leases (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Values recognized in the income statement | |||||
Financial expense on lease | R$ 65035 | R$ 33163 | R$ 119398 | R$ 64137 | R$ 64137 |
Amortization of right of use | 488,513 | 271,591 | |||
Appropriation in the result of variable lease installments not included in the measurement of rental liabilities | 15,013 | 14,023 | |||
Sublease revenue | (16,033) | (1,331) | |||
Short-term rental expenses and low-value assets | 38,274 | 78,774 | |||
Concessions granted by lessors related to Covid-19 | (12,685) | ||||
Expenses related to leases | 17,497 | 9,933 | |||
Total | 649,977 | 437,127 | |||
Values recognized in the financing cash flow statement | |||||
Payment of leasing (principal) | 426,154 | 273,681 | |||
Values recognized in the operating cash flow statement | |||||
Payment of leasing (interest) | 88,443 | 75,259 | |||
Variable lease payments not included in the measurement of rental liabilities | 4,448 | 8,100 | |||
Short-term lease payments and low-value assets | 30,699 | 978 | |||
lease-related payments | 20,174 | 15,985 | |||
Total | R$ 569918 | R$ 374003 |
Right of Use And Lease - Sche_3
Right of Use And Lease - Schedule of Lease Obligation (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of quantitative information about right-of-use assets [abstract] | ||
Current | R$ 1081059 | R$ 542088 |
Non-current | 3,026,116 | 1,975,477 |
Total | R$ 4107175 | R$ 2517565 |
Right of Use And Lease - Sche_4
Right of Use And Lease - Schedule of Changes In The Balance of Lease Obligations (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||
Disclosure of quantitative information about right-of-use assets [abstract] | ||||||
Beginning balance | R$ 2517565 | |||||
New agreements | 324,878 | |||||
Acquisition of subsidiary | 777,200 | |||||
Payment of leasing (principal) | (380,902) | R$ 284803 | ||||
Payment of leasing (interest) | (133,695) | |||||
Recognition of financial charges | R$ 65035 | R$ 33163 | 119,398 | R$ 64137 | R$ 64137 | |
Write-offs | [1] | (3,863) | ||||
Translation effects (other comprehensive income) | 886,594 | |||||
Ending balance | R$ 4107175 | R$ 4107175 | R$ 2517565 | |||
[1] | Mainly related to termination contracts related to lease of stores. |
Right of Use And Lease - Sche_5
Right of Use And Lease - Schedule of maturities of the balance of non-current lease liabilities (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Non-current lease liabilities | R$ 3026116 | R$ 1975477 |
2021 [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Non-current lease liabilities | 441,760 | 374,746 |
2022 [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Non-current lease liabilities | 428,033 | 361,688 |
2023 [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Non-current lease liabilities | 422,877 | 358,274 |
2024 onwards [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Non-current lease liabilities | R$ 1733446 | R$ 880769 |
Borrowings, Financing And Deb_3
Borrowings, Financing And Debentures - Schedule Of Detailed Information About Borrowings (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 20666099 | R$ 10786374 | |
Current | 2,631,068 | 3,354,355 | |
Non-current | 18,035,031 | 7,432,019 | |
Debentures Current | 164,555 | 246,017 | |
Debentures Non-current | 4,006,877 | 4,005,214 | |
BRL | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 16,097,706 | 7,404,414 | |
BRL | FINEP [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 87,617 | 101,988 | |
BRL | Debentures [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 4,171,432 | 4,251,231 | |
BRL | BNDES [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 17,451 | 35,390 | |
BRL | BNDES FINAME [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 46 | 183 | |
BRL | Promissory Notes [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,322,889 | 2,883,382 | |
BRL | Notes - Avon [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 9,720,254 | |
BRL | Operations Mexico [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 24,219 | 31,802 | |
BRL | Operations Peru [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 23,271 | ||
BRL | Operations Aesop [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 98,559 | 100,438 | |
BRL | Operation The Body Shop [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 477,770 | ||
BRL | Operations Avon [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 154,198 | ||
Foreign Currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 4,568,393 | 3,381,960 | |
Foreign Currency | BNDES [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 4,721 | 8,029 | |
Foreign Currency | Export Credit Note NCE [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 110,148 | 81,210 | |
Foreign Currency | Notes [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 4,179,182 | 3,090,490 | |
Foreign Currency | Resolution [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 274342 | R$ 202231 | |
[1] | Balances recorded for their estimated fair value resulting from business combination with Avon (Note 4). |
Borrowings, Financing And Deb_4
Borrowings, Financing And Debentures - Schedule Of Changes In Balances Of Borrowings (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of detailed information about borrowings [abstract] | ||
Balance at December 31, 2019 | R$ 10786374 | |
Acquisition of subsidiary | 7,250,735 | |
New borrowings and financing | 1,341,538 | R$ 294842 |
Amortizations | (2,485,231) | |
Financial charges accrued | 557,122 | |
Payment of financial charges | (535,568) | |
Exchange variation (unrealized) | 1,101,306 | |
Exchange variation (realized) | 3,889 | |
Translation effects (other comprehensive income) | 2,645,934 | |
Balance at December 31, 2020 | R$ 20666099 |
Borrowings, Financing And Deb_5
Borrowings, Financing And Debentures - Schedule of maturity analysis for non-current borrowings (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, financing and debentures | R$ 18035031 | R$ 7432019 |
Less than one year [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, financing and debentures | 2,253,221 | |
Later than one year and not later than two years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, financing and debentures | 5,450,177 | 2,279,759 |
Later than two years and not later than three years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, financing and debentures | 6,644,547 | 527,596 |
Later than three years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, financing and debentures | R$ 3687086 | R$ 4624664 |
Borrowings, Financing And Deb_6
Borrowings, Financing And Debentures - Additional Information (Detail) R$ in Thousands, £ in Millions, S/ in Millions | Jun. 29, 2020BRL (R$) | Jun. 05, 2020BRL (R$) | Jun. 05, 2020PEN (S/) | Jan. 14, 2020BRL (R$) | Jun. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Jun. 30, 2020GBP (£) | Jun. 30, 2020BRL (R$) | Apr. 29, 2020BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional Amount | R$ 3582240 | ||||||||
Proceeds from issue of bonds, notes and debentures | R$ 22000 | S/ 15 | |||||||
Promissory notes [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Appropriation of costs related to the issuance of promissory notes | R$ 19461 | R$ 11135 | |||||||
Issuance costs to appropriate | R$ 20962 | R$ 7866 | |||||||
Promissory notes [Member] | 1st issue [Member] | First series [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Early redemption of the Commercial Notes | R$ 370000 | R$ 1830000 | |||||||
Promissory notes [Member] | 1st issue [Member] | Second series [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Early redemption of the Commercial Notes | R$ 140000 | ||||||||
Promissory notes [Member] | 2nd issue [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional Amount | R$ 500000 | ||||||||
Promissory notes [Member] | 4th issue [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional Amount | R$ 250000 | ||||||||
Working capital [Member] | Operation The Body Shop [Member] | No guarantee [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Annual interest payment basis | Libor + 2% | ||||||||
Working capital [Member] | Operation The Body Shop [Member] | No guarantee [Member] | Top of range [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | £ | £ 70 | ||||||||
Working capital [Member] | Operations peru [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Annual interest rate | 4.24% | 4.24% |
Borrowings, Financing And Deb_7
Borrowings, Financing And Debentures - Schedule of detailed information about Notes - Avon (Detail) R$ in Thousands, $ in Thousands | Jun. 30, 2020BRL (R$) | Jun. 30, 2020USD ($) |
Disclosure of detailed information about borrowings [line items] | ||
Principal (USD) | R$ 3582240 | |
Principal (R$) | 3,582,240 | |
Notes - Avon [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Effects of allocation of fair values from the business combination | 779,497 | |
Notes 5 Percent Due March 15, 2023 [Member] | No guarantee [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal (USD) | 2,529,271 | $ 461,883 |
Principal (R$) | R$ 2529271 | $ 461,883 |
Annual interest rate | 5.00% | 5.00% |
Notes 6 Point Ninety Five Percent Due March 15, 2043 [Member] | No guarantee [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal (USD) | R$ 1335306 | $ 243,847 |
Principal (R$) | R$ 1335306 | $ 243,847 |
Annual interest rate | 6.95% | 6.95% |
Notes 7 Point Eighty Eight Percent Due August 15, 2022 [Member] | With guarantee [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal (USD) | R$ 2738000 | $ 500,000 |
Principal (R$) | R$ 2738000 | $ 500,000 |
Annual interest rate | 7.88% | 7.88% |
Notes 6 Point Five Percent Due August 15, 2022 [Member] | With guarantee [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal (USD) | R$ 2190400 | $ 400,000 |
Principal (R$) | R$ 2190400 | $ 400,000 |
Annual interest rate | 6.50% | 6.50% |
Trade Payables And Reverse Fa_3
Trade Payables And Reverse Factoring Operations (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Trade Payables And Reverse Factoring Operations [Line Items] | ||
Trade and other payables | R$ 5455137 | R$ 1686832 |
Reverse factoring operations | 254,832 | 142,924 |
Trade payables | 5,709,969 | 1,829,756 |
Domestic market [member] | ||
Trade Payables And Reverse Factoring Operations [Line Items] | ||
Trade and other payables | 4,593,288 | 1,581,759 |
Foreign countries [member] | ||
Trade Payables And Reverse Factoring Operations [Line Items] | ||
Trade and other payables | R$ 861849 | R$ 105073 |
Tax Liabilities - Schedule of d
Tax Liabilities - Schedule of detailed information about tax liabilities (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Dislosure Of Tax Liabilities [Line Items] | |||||
Ordinary ICMS | R$ 120393 | R$ 120300 | |||
ICMS ST provision | [1] | 61,926 | 72,423 | ||
Taxes on invoicing – subsidiaries abroad | 296,430 | 145,992 | |||
Social Security Tax (INSS) - suspension of the enforceability | 50,147 | ||||
Withholding tax (IRRF) | 110,084 | 48,593 | |||
Other taxes payable - foreign subsidiaries | 2,987 | 1,180 | |||
PIS and COFINS payable | 101 | 1,207 | |||
INSS and service tax (ISS) payable | 54,371 | 3,218 | |||
Others | 77,355 | 399 | |||
Total | 723,647 | 443,459 | |||
Judicial deposits | (600,340) | (337,255) | R$ 337460 | R$ 333577 | |
Current | 614,839 | 320,890 | |||
Noncurrent | 108,808 | 122,569 | |||
Tax Law Suits [Member] | |||||
Dislosure Of Tax Liabilities [Line Items] | |||||
Judicial deposits | R$ 54909 | R$ 62356 | |||
[1] | The Company has been discussing the illegality of changes in the state legislation for the payment of ICMS - ST. Part of the unpaid amount has been discussed in court by the Company and, in certain cases, the amounts have been deposited with the courts, as mentioned in Note 12. |
Tax Liabilities - Schedule of_2
Tax Liabilities - Schedule of detailed information about tax liabilities (Detail) (Calc 2) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current tax liabilities, current | R$ 614839 | R$ 320890 |
Current tax liabilities, non-current | R$ 108808 | R$ 122569 |
Provision For Tax, Civil And _3
Provision For Tax, Civil And Labor Risks - Schedule of detailed information about other provisions (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of other provisions [line items] | ||||
Other provisions | R$ 1313768 | R$ 220066 | ||
Judicial deposits | (600,340) | (337,255) | R$ 337460 | R$ 333577 |
Current | 127,825 | 18,650 | ||
Noncurrent | 1,185,943 | 201,416 | ||
Tax provision [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions | 876,036 | 127,842 | ||
Judicial deposits | (194,667) | (54,059) | ||
Civil provision [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions | 180,491 | 30,653 | ||
Judicial deposits | (2,505) | (426) | ||
Labor provision [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions | 257,241 | 61,571 | ||
Judicial deposits | (30,830) | (5,787) | ||
Law suits [member] | ||||
Disclosure of other provisions [line items] | ||||
Judicial deposits | R$ 228002 | R$ 60272 |
Provision For Tax, Civil And _4
Provision For Tax, Civil And Labor Risks - Schedule of detailed information about changes In other provisions Tax Risk (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of other provisions [line items] | ||
Provisions - Beggining balance | R$ 220066 | |
Provisions - Balance End | 1,313,768 | |
Deposits - Beginning balance | (337,255) | R$ 333577 |
Deposits - Acquisition of subsidiary | 283,885 | |
Deposits - Additions | 7,911 | 1,367 |
Deposits - Payments | 10,070 | |
Deposits - Ending balance | (600,340) | R$ 337460 |
Tax provision [member] | ||
Disclosure of other provisions [line items] | ||
Provisions - Beggining balance | 127,842 | |
Provision - Acquisition of subsidiary | 657,647 | |
Provisions - Additions | 78,727 | |
Provision - Reversals | (29,946) | |
Provisions - Payments | (52,412) | |
Provisions - Inflation adjustment | 2,274 | |
Provisions - Translation effects (other comprehensive income) | 92,145 | |
Provisions - Other movements | (241) | |
Provisions - Balance End | 876,036 | |
Deposits - Beginning balance | (54,059) | |
Deposits - Acquisition of subsidiary | (155,219) | |
Deposits - Additions | (198) | |
Deposits - Reversals | 10,208 | |
Deposits - Payments | ||
Deposits - Inflation adjustment | (2,516) | |
Deposits - Translation effects (other comprehensive income) | 2,533 | |
Deposits - Other movements | (4,584) | |
Deposits - Ending balance | (194,667) | |
Civil provision [member] | ||
Disclosure of other provisions [line items] | ||
Provisions - Beggining balance | 30,653 | |
Provision - Acquisition of subsidiary | 51,263 | |
Provisions - Additions | 99,774 | |
Provision - Reversals | (24,371) | |
Provisions - Payments | (10,703) | |
Provisions - Inflation adjustment | 2,802 | |
Provisions - Translation effects (other comprehensive income) | 31,103 | |
Provisions - Other movements | (30) | |
Provisions - Balance End | 180,491 | |
Deposits - Beginning balance | (426) | |
Deposits - Acquisition of subsidiary | (4,898) | |
Deposits - Additions | (2,648) | |
Deposits - Reversals | 1,022 | |
Deposits - Payments | 3,549 | |
Deposits - Inflation adjustment | (10) | |
Deposits - Translation effects (other comprehensive income) | 344 | |
Deposits - Other movements | (562) | |
Deposits - Ending balance | (2,505) | |
Labor provision [member] | ||
Disclosure of other provisions [line items] | ||
Provisions - Beggining balance | 61,571 | |
Provision - Acquisition of subsidiary | 164,091 | |
Provisions - Additions | 21,388 | |
Provision - Reversals | 1,105 | |
Provisions - Payments | (21,470) | |
Provisions - Inflation adjustment | 3,553 | |
Provisions - Translation effects (other comprehensive income) | 26,166 | |
Provisions - Other movements | 837 | |
Provisions - Balance End | 257,241 | |
Deposits - Beginning balance | (5,787) | |
Deposits - Acquisition of subsidiary | (27,329) | |
Deposits - Additions | (5,362) | |
Deposits - Reversals | 2,546 | |
Deposits - Payments | 5,244 | |
Deposits - Inflation adjustment | (92) | |
Deposits - Translation effects (other comprehensive income) | 263 | |
Deposits - Other movements | (313) | |
Deposits - Ending balance | R$ 30830 |
Provision For Tax, Civil And _5
Provision For Tax, Civil And Labor Risks - Additional Information (Detail) R$ in Thousands, $ in Millions | Feb. 14, 2019BRL (R$) | Feb. 14, 2019USD ($) | Jun. 30, 2020BRL (R$)Cases | Dec. 31, 2019BRL (R$) |
Disclosure of other provisions [line items] | ||||
Amount under discussion classified as possible loss | R$ 9067870 | R$ 3642219 | ||
Amount of Dispute on ICMS-ST | R$ 1458918 | 406,002 | ||
Number of pending individual cases | Cases | 139 | |||
Number of new proceedings filed | Cases | 11 | |||
Number of cases dismissed, settled or otherwise resolved | Cases | 20 | |||
Settlement amount | R$ 79000 | $ 14.5 | ||
Settlement amount to be paid by entity | R$ 16000 | $ 3 | ||
Tax contingent liability [member] | ||||
Disclosure of other provisions [line items] | ||||
Amount under discussion classified as possible loss | R$ 1951431 | |||
Indstria e Comrcio de Cosmticos Natura Ltda Brazil [Member] | ||||
Disclosure of other provisions [line items] | ||||
Tax on Industrialized Products-IPI | 1,533,078 | 389,017 | ||
Amount of Dispute on ICMS-ST | 526,933 | 521,903 | ||
Possible Loss on Tax | 1,390,597 | 1,379,189 | ||
Amount of dispute on IPI Debts | 296,898 | 218,204 | ||
Inflation on Reclamation Claims | R$ 132653 | R$ 26933 |
Provision For Tax, Civil And _6
Provision For Tax, Civil And Labor Risks - Schedule of contingent liabilities (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [line items] | ||||
Total contingent liabilities | R$ 9067870 | R$ 3642219 | ||
Judicial deposits | (600,340) | (337,255) | R$ 337460 | R$ 333577 |
Tax Contignecy [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Total contingent liabilities | 8,715,657 | 3,503,392 | ||
Civil Contignecy [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Total contingent liabilities | 144,151 | 61,532 | ||
Labor Contignecy [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Total contingent liabilities | 208,062 | 77,295 | ||
Contigent Deposits [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Judicial deposits | R$ 242817 | R$ 136258 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of detailed information about other liabilities (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | ||
Disclosure Of Other Liabilities [Abstract] | ||||
Post-employment healthcare plan | [1] | R$ 777228 | R$ 98792 | |
Carbon credit | 6,386 | 4,519 | ||
Exclusivity contract | 4,200 | 5,400 | ||
Crer para Ver | [2] | 52,427 | 51,543 | |
Deferred revenue from performance obligations with customers | 349,470 | 76,250 | ||
Provisions for sundry expenses | 275,147 | 156,895 | ||
Provisions for rentals | 40,363 | 26,568 | ||
Provisions for apportionment of benefits and partnerships payable | 5,426 | 7,860 | ||
Long-term incentives | 286,595 | 3,022 | ||
Provision for restructuring | 101,212 | 3,401 | ||
Provision for store renovation | 85,469 | 15,997 | ||
Discontinued operations | 94,840 | [3] | ||
Professional fees | 95,782 | |||
Other provisions | 313,310 | 67,846 | ||
Total | 2,487,855 | 518,093 | ||
Current | 1,322,558 | 396,391 | ||
Noncurrent | R$ 1165297 | R$ 121702 | ||
[1] | As of June 30, 2020, there is R$674,514 related to pension plans assumed in the Avon’s acquisition on January 3, 2020 and R$102,714 related to Natura’s pension plan (R$98,792 on December 31, 2019). | |||
[2] | Social program contribution for developing the quality of education; | |||
[3] | On December 17, 2015, Avon entered into agreements resulting in the splitting of operations in the United Stated, Canada and Puerto Rico. These transactions were terminated on March 1, 2016. From this date, the contingent liabilities prior to this transaction and related to the operations in the United States, Canada and Puerto Rico are treated as discontinued operations. During the period ending on June 30, 2020, and amount of R$ 48,723 was recorded in administrative expenses pertaining to this provision. |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | ||
Disclosure Of Other Liabilities [Line Items] | |||
Administrative expenses | R$ 48723 | ||
Post-employment healthcare plan | [1] | 777,228 | R$ 98792 |
Avon [member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Post-employment healthcare plan | 674,514 | ||
Natura (France e USA) [Member] | |||
Disclosure Of Other Liabilities [Line Items] | |||
Post-employment healthcare plan | R$ 102714 | R$ 98792 | |
[1] | As of June 30, 2020, there is R$674,514 related to pension plans assumed in the Avon’s acquisition on January 3, 2020 and R$102,714 related to Natura’s pension plan (R$98,792 on December 31, 2019). |
Shareholder's Equity - Schedule
Shareholder's Equity - Schedule of Composition of Share Capital (Detail) | Jan. 03, 2020BRL (R$)R$ / sharesshares | Jan. 03, 2020BRL (R$) | Jun. 30, 2020BRL (R$)R$ / sharesshares |
SHAREHOLDER’S EQUITY | |||
Initial share capital | R$ 1485436000 | R$ 1485436000 | |
Capital increase | R$ 13274894000 | 13,302,449,000 | |
Capital increase | 1,995,107,000 | ||
Total shares capital subscribed and paid-up | 6,917,037,000 | ||
Issued Capital | |||
SHAREHOLDER’S EQUITY | |||
Capital increase | R$ 3397746000 | 3,397,746,000 | |
Capital increase | 1,995,107,000 | ||
Issued Capital | Common shares | |||
SHAREHOLDER’S EQUITY | |||
Initial share capital | R$ 1485436464 | R$ 1485436464 | |
Initial share capital (in shares) | shares | 865,659,942 | 865,659,942 | |
Capital increase | R$ 3397745864 | ||
Capital increase (in shares) | shares | 321,830,266 | ||
Issue of new stock for stock option plans and restricted stock | R$ 21936005 | ||
Issue of new stock for stock option plans and restricted stock (in shares) | shares | 780,808 | ||
Issue of new stock for stock option plans and restricted stock | R$ 16811439 | ||
Issue of new stock for stock option plans and restricted stock (in shares) | shares | 621,653 | ||
Capital increase | R$ 1995106880 | ||
Capital increase (in shares) | shares | 62,347,090 | ||
Total shares capital subscribed and paid-up | R$ 6917036652 | ||
Total shares capital subscribed and paid-up (in shares) | shares | 1,251,239,759 | ||
Average price per share | R$ / shares | R$ 32.24 | R$ 32.00 | |
Par value per share | R$ / shares | R$ 0 | ||
Issued Capital | Common shares | Natura Cosméticos S.A. | |||
SHAREHOLDER’S EQUITY | |||
Initial share capital | R$ 1242165000 | R$ 1242165000 | |
Total shares capital subscribed and paid-up | R$ 1711138000 | ||
Total shares capital subscribed and paid-up (in shares) | shares | 865,142,456 | ||
Par value per share | R$ / shares | R$ 0 | ||
Increase in equity with a bonus in shares, through the capitalization of part of the balance of the profit reserve account, pursuant to Article 169 of the Brazilian Corporation Law | R$ 468973000 | ||
Number of shares issued, common shares | shares | 432,571,228 | ||
Stock split, conversion ratio for each common share as a bonus | 1 | ||
The number of shares increased, common shares, nominative and with no nominal value | shares | 432,571,228 |
Shareholder's Equity - Schedu_2
Shareholder's Equity - Schedule of changes in treasury shares (Detail) R$ / shares in Units, R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$)R$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Balance at beginning of period | R$ 0 |
Acquisition | 54,936 |
Balance at end of period | 13,955 |
Treasury shares [member] | |
Disclosure of classes of share capital [line items] | |
Balance at beginning of period | |
Initial share capital (in shares) | shares | |
Average price per share, outstanding at beginning of period | R$ / shares | |
Used | R$ 40981 |
Used (in shares) | shares | (740,697) |
Average price per share, issued | R$ / shares | R$ 55.33 |
Acquisition | R$ 54936 |
Acquisition (in shares) | shares | 1,114,460 |
Average price per share, purchased | R$ / shares | R$ 49.29 |
Balance at end of period | R$ 13955 |
Total shares capital subscribed and paid-up (in shares) | shares | 373,763 |
Average price per share, outstanding at end of period | R$ / shares | R$ 37.34 |
Treasury shares [member] | Minimum [Member] | |
Disclosure of classes of share capital [line items] | |
Average price per share, outstanding at end of period | R$ / shares | 29.75 |
Treasury shares [member] | Maximum [Member] | |
Disclosure of classes of share capital [line items] | |
Average price per share, outstanding at end of period | R$ / shares | R$ 49.71 |
Shareholder's Equity - Addition
Shareholder's Equity - Additional Information (Detail) - BRL (R$) R$ in Thousands | Jan. 03, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
SHAREHOLDER’S EQUITY | |||||
Capital increase | R$ 13274894 | R$ 13302449 | |||
Allocation of the special reserve to the profit reserve | 0 | ||||
Capital reserve amount | 23,273,463 | R$ 3362345 | R$ 2699139 | R$ 2574102 | |
Capital stock | |||||
SHAREHOLDER’S EQUITY | |||||
Capital increase | 3,397,746 | 3,397,746 | |||
Allocation of the special reserve to the profit reserve | 0 | ||||
Capital reserve amount | 6,917,037 | 1,485,436 | R$ 451315 | R$ 427073 | |
Capital reserve | |||||
SHAREHOLDER’S EQUITY | |||||
Capital increase | R$ 9877148 | ||||
Allocation of the special reserve to the profit reserve | 147,592 | ||||
Increase due to the effects of IAS 29 - Financial Reporting in Hyperinflationary Economies | 26,679 | ||||
Decrease regarding the movement of stock option and restricted stock plans | 22,063 | ||||
Capital reserve amount | 11,037,162 | R$ 1302990 | |||
Profit reserve | |||||
SHAREHOLDER’S EQUITY | |||||
Allocation of the special reserve to the profit reserve | 147,592 | ||||
Increase due to the effects of IAS 29 - Financial Reporting in Hyperinflationary Economies applied to the balances | R$ 151384 |
Segment Information - Summary o
Segment Information - Summary of operating segment (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||||
Net revenue | R$ 6987180 | R$ 3403709 | R$ 14505174 | R$ 6318859 | |
Performance Assessed By Company | 748,488 | 1,006,499 | 748,488 | 1,006,499 | |
Depreciation and amortization | (1,329,718) | (536,700) | |||
Financial income | 665,538 | 414,057 | 2,225,722 | 792,159 | |
Financial expenses | (934,079) | (618,459) | (2,721,858) | (1,161,816) | |
Income tax | (139,656) | (30,746) | |||
Net income (loss) | (392,083) | 55,923 | (1,217,022) | 69,397 | |
Natura and Co Latam [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenue | 8,138,082 | 4,048,390 | R$ 4048390 | ||
Performance Assessed By Company | 680,802 | 728,909 | 680,802 | 728,909 | |
Depreciation and amortization | (458,872) | (167,260) | |||
Financial income | 1,749,654 | 769,227 | |||
Financial expenses | (1,932,291) | (1,102,304) | |||
Income tax | (207,473) | (79,148) | |||
Net income (loss) | (168,179) | 149,425 | |||
Avon International [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenue | 3,771,535 | ||||
Performance Assessed By Company | 40,361 | 40,361 | |||
Depreciation and amortization | (390,836) | ||||
Financial income | 356,290 | ||||
Financial expenses | (676,915) | ||||
Income tax | (12,223) | ||||
Net income (loss) | (683,323) | ||||
TBS International [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenue | 1,872,436 | 1,717,823 | 1,717,823 | ||
Performance Assessed By Company | 278,581 | 286,527 | 278,581 | 286,527 | |
Depreciation and amortization | (356,197) | (286,141) | |||
Financial income | 43,491 | 18,140 | |||
Financial expenses | (75,346) | (46,057) | |||
Income tax | (57,290) | 12,983 | |||
Net income (loss) | (166,761) | (14,548) | |||
Aesop International [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenue | 723,121 | 552,646 | R$ 552646 | ||
Performance Assessed By Company | 180,574 | 118,183 | 180,574 | 118,183 | |
Depreciation and amortization | (123,813) | (83,299) | |||
Financial income | 10,403 | 4,792 | |||
Financial expenses | (28,729) | (13,455) | |||
Income tax | (10,018) | (7,802) | |||
Net income (loss) | 28,416 | 18,419 | |||
Corporate Expenses [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenue | |||||
Performance Assessed By Company | R$ 431830 | R$ 127120 | (431,830) | (127,120) | |
Depreciation and amortization | |||||
Financial income | 65,884 | ||||
Financial expenses | (8,577) | ||||
Income tax | 147,348 | 43,221 | |||
Net income (loss) | R$ 227175 | R$ 83899 |
Segment Information - Summary_2
Segment Information - Summary of operating segments of assets and liabilities (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | ||
Non-current assets | R$ 44028398 | R$ 11754455 |
Total assets | 61,092,922 | 21,184,512 |
Current liabilities | 12,863,889 | 7,518,423 |
Non-current liabilities | 24,955,570 | 10,303,744 |
Natura and Co Latam [Member] | ||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | ||
Non-current assets | 9,204,837 | 4,574,087 |
Total assets | 17,876,818 | 9,328,858 |
Current liabilities | 5,937,239 | 3,116,454 |
Non-current liabilities | 10,281,619 | 8,235,679 |
Avon International [Member] | ||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | ||
Non-current assets | 25,758,269 | |
Total assets | 29,338,889 | |
Current liabilities | 3,415,813 | |
Non-current liabilities | 12,056,797 | |
TBS International [Member] | ||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | ||
Non-current assets | 7,726,417 | 6,146,960 |
Total assets | 9,828,551 | 7,369,250 |
Current liabilities | 1,989,604 | 1,065,447 |
Non-current liabilities | 1,885,255 | 1,477,148 |
Aesop International [Member] | ||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | ||
Non-current assets | 1,338,875 | 1,033,408 |
Total assets | 1,954,858 | 1,435,830 |
Current liabilities | 418,223 | 255,616 |
Non-current liabilities | 730,817 | 590,917 |
Corporate [Member] | ||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | ||
Non-current assets | ||
Total assets | 2,093,806 | 3,050,574 |
Current liabilities | 1,103,010 | 3,080,906 |
Non-current liabilities | R$ 1082 |
Segment Information - Summary_3
Segment Information - Summary of revenue and assets by geographical area wise (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | R$ 6987180 | R$ 3403709 | R$ 14505174 | R$ 6318859 | |
Non-current assets | 44,028,398 | 44,028,398 | R$ 11754455 | ||
Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 8,138,082 | 4,048,390 | 4,048,390 | ||
Non-current assets | 9,204,837 | 9,204,837 | 4,574,087 | ||
Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 3,771,535 | ||||
Non-current assets | 25,758,269 | 25,758,269 | |||
TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 1,872,436 | 1,717,823 | 1,717,823 | ||
Non-current assets | 7,726,417 | 7,726,417 | 6,146,960 | ||
Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 723,121 | R$ 552646 | 552,646 | ||
Non-current assets | 1,338,875 | 1,338,875 | 1,033,408 | ||
Asia [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Asia [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 653,102 | ||||
Non-current assets | 245,854 | 245,854 | |||
Asia [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 101,024 | 137,196 | |||
Non-current assets | 170,999 | 170,999 | 140,760 | ||
Asia [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 356,245 | 225,245 | |||
Non-current assets | 298,185 | 298,185 | 227,670 | ||
North America [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 1,650,053 | 345,507 | |||
Non-current assets | 699,318 | 699,318 | 185,646 | ||
North America [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
North America [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 269,200 | 305,852 | |||
Non-current assets | 626,188 | 626,188 | 523,351 | ||
North America [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 113,706 | 88,129 | |||
Non-current assets | 365,465 | 365,465 | 272,676 | ||
Mexico [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 1,328,100 | 343,888 | |||
Non-current assets | 602,043 | 602,043 | 183,250 | ||
Mexico [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Mexico [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Mexico [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Other [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 321,953 | 1,619 | |||
Non-current assets | 97,275 | 97,275 | 2,396 | ||
Other [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Other [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 269,200 | 305,852 | |||
Non-current assets | 626,188 | 626,188 | 523,351 | ||
Other [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 113,706 | 88,129 | |||
Non-current assets | 365,465 | 365,465 | 272,676 | ||
South America [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 6,485,785 | 3,700,224 | |||
Non-current assets | 8,495,351 | 8,495,351 | 4,378,676 | ||
South America [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
South America [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
South America [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Brazil [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 4,533,315 | 2,776,153 | |||
Non-current assets | 6,985,784 | 6,985,784 | 4,197,259 | ||
Brazil [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Brazil [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Brazil [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Argentina [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 690,221 | 355,098 | |||
Non-current assets | 355,420 | 355,420 | 63,050 | ||
Argentina [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Argentina [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Argentina [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Other [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 1,262,249 | 568,973 | |||
Non-current assets | 1,154,147 | 1,154,147 | 118,367 | ||
Other [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Other [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Other [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
EMEA [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 2,244 | 2,659 | |||
Non-current assets | 10,168 | 10,168 | 9,765 | ||
EMEA [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 3,118,433 | ||||
Non-current assets | 25,512,415 | 25,512,415 | |||
EMEA [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 1,351,971 | 1,157,888 | |||
Non-current assets | 6,452,367 | 6,452,367 | 5,105,903 | ||
EMEA [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 154,393 | 100,838 | |||
Non-current assets | 234,424 | 234,424 | 190,442 | ||
United Kingdom [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
United Kingdom [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 371,923 | ||||
Non-current assets | 23,781,822 | 23,781,822 | |||
United Kingdom [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 1,083,032 | 881,543 | |||
Non-current assets | 5,780,380 | 5,780,380 | 4,602,066 | ||
United Kingdom [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 82,005 | 48,801 | |||
Non-current assets | 97,827 | 97,827 | 76,073 | ||
Other [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 2,244 | 2,659 | |||
Non-current assets | 10,168 | 10,168 | 9,765 | ||
Other [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 2,746,510 | ||||
Non-current assets | 1,730,593 | 1,730,593 | |||
Other [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 268,939 | 276,345 | |||
Non-current assets | 671,987 | 671,987 | 503,837 | ||
Other [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 72,388 | 52,037 | |||
Non-current assets | 136,597 | 136,597 | 114,369 | ||
Oceania [Member] | Natura & Co Latam [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Oceania [Member] | Avon International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | |||||
Non-current assets | |||||
Oceania [Member] | TBS International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 150,241 | 116,887 | |||
Non-current assets | 476,863 | 476,863 | 376,946 | ||
Oceania [Member] | Aesop International [Member] | |||||
Disclosure Of Revenue And Assets By Geographical Area Wise [Line Items] | |||||
Net revenue | 98,777 | 138,434 | |||
Non-current assets | R$ 440801 | R$ 440801 | R$ 342620 |
Segment Information - Summary_4
Segment Information - Summary of reconciliation for the recast segments (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | R$ 44028398 | R$ 11754455 | |
Total assets | 61,092,922 | 21,184,512 | |
Current liabilities | 12,863,889 | 7,518,423 | |
Non-current liabilities | 24,955,570 | 10,303,744 | |
Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | 11,754,455 | ||
Total assets | 21,184,512 | ||
Current liabilities | 7,518,423 | ||
Non-current liabilities | 10,303,744 | ||
Natura Brazil [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | [1] | 4,181,261 | |
Total assets | [1] | 7,618,551 | |
Current liabilities | [1] | 2,207,944 | |
Non-current liabilities | [1] | 8,119,890 | |
Natura LATAM [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | [1] | 349,698 | |
Total assets | [1] | 1,592,912 | |
Current liabilities | [1] | 774,521 | |
Non-current liabilities | [1] | 105,423 | |
Natura Others [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | [1] | 12,161 | |
Total assets | [1] | 18,126 | |
Current liabilities | [1] | 8,591 | |
Non-current liabilities | [1] | 1,558 | |
Aesop [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | 1,338,875 | 1,033,408 | |
Total assets | 1,954,858 | 1,435,830 | |
Current liabilities | 418,223 | 255,616 | |
Non-current liabilities | 730,817 | 590,917 | |
Aesop [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | [2] | 1,035,432 | |
Total assets | [2] | 1,442,214 | |
Current liabilities | [2] | 274,539 | |
Non-current liabilities | [2] | 592,531 | |
Aesop [Member] | Brazil and Latins America [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | 2,024 | ||
Total assets | 6,384 | ||
Current liabilities | 18,923 | ||
Non-current liabilities | 1,614 | ||
The Body Shop [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | [3] | 6,175,903 | |
Total assets | [3] | 7,462,135 | |
Current liabilities | [3] | 1,171,922 | |
Non-current liabilities | [3] | 1,484,342 | |
The Body Shop [Member] | Brazil and Latins America [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | 28,943 | ||
Total assets | 92,885 | ||
Current liabilities | 106,475 | ||
Non-current liabilities | 7,193 | ||
Corporate [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | |||
Total assets | 2,093,806 | 3,050,574 | |
Current liabilities | 1,103,010 | 3,080,906 | |
Non-current liabilities | R$ 1082 | ||
Corporate [Member] | Segment Recast [Member] | |||
Disclosure Of Operating Segments Of Assets And Liabilities [Line Items] | |||
Non-current assets | |||
Total assets | 3,050,574 | ||
Current liabilities | 3,080,906 | ||
Non-current liabilities | |||
[1] | Amounts included in the new segment information Natura &Co Latam. | ||
[2] | Amounts related to the Aesop's operations located in Brazil and Latins America, representing non-current asset (R$ 2,024), total assets (R$ 6,384), current liabilities (R$ 18,923) and non-current liabilities (R$1,614) included in the recast segment Natura &Co Latam. | ||
[3] | Amount related to The Body Shop's operations located in Brazil and Latins America, representing non-current asset (R$ 28,943), total assets (R$92,885), current liabilities (R$106,475) and non-current liabilities (R$7,193) included in the recast segment Natura &Co Latam. |
Segment Information - Summary_5
Segment Information - Summary of reconciliation for the recast segments (Detail 2) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||
Disclosure of operating segments [line items] | ||||||
Net revenue | R$ 6987180 | R$ 3403709 | R$ 14505174 | R$ 6318859 | ||
Performance Assessed By Company | 748,488 | 1,006,499 | 748,488 | 1,006,499 | ||
Depreciation and amortization | (1,329,718) | (536,700) | ||||
Financial income | 665,538 | 414,057 | 2,225,722 | 792,159 | ||
Financial expenses | (934,079) | (618,459) | (2,721,858) | (1,161,816) | ||
Income tax | (139,656) | (30,746) | ||||
Net income (loss) | (392,083) | 55,923 | (1,217,022) | 69,397 | ||
Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | 6,318,859 | |||||
Performance Assessed By Company | 1,006,500 | 1,006,500 | ||||
Depreciation and amortization | (536,700) | |||||
Financial income | 792,159 | |||||
Financial expenses | (1,161,816) | |||||
Income tax | (30,746) | |||||
Net income (loss) | 69,397 | |||||
Natura Brazil [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | [1] | 2,750,169 | ||||
Performance Assessed By Company | [1] | 588,399 | 588,399 | |||
Depreciation and amortization | [1] | (130,112) | ||||
Financial income | [1] | 749,538 | ||||
Financial expenses | [1] | (1,071,733) | ||||
Income tax | [1] | (54,149) | ||||
Net income (loss) | [1] | 81,943 | ||||
Natura LATAM [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | [1] | 1,253,535 | ||||
Performance Assessed By Company | [1] | 162,932 | 162,932 | |||
Depreciation and amortization | [1] | (28,027) | ||||
Financial income | [1] | 19,689 | ||||
Financial expenses | [1] | (27,504) | ||||
Income tax | [1] | (24,900) | ||||
Net income (loss) | [1] | 102,190 | ||||
Natura Outros [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | [1] | 4,292 | ||||
Performance Assessed By Company | [1] | (15,780) | (15,780) | |||
Depreciation and amortization | [1] | (1,093) | ||||
Financial income | [1] | |||||
Financial expenses | [1] | (121) | ||||
Income tax | [1] | |||||
Net income (loss) | [1] | (16,994) | ||||
Aesop [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | 723,121 | 552,646 | R$ 552646 | |||
Performance Assessed By Company | 180,574 | 118,183 | 180,574 | 118,183 | ||
Depreciation and amortization | (123,813) | (83,299) | ||||
Financial income | 10,403 | 4,792 | ||||
Financial expenses | (28,729) | (13,455) | ||||
Income tax | (10,018) | (7,802) | ||||
Net income (loss) | 28,416 | 18,419 | ||||
Aesop [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | [2] | 554,090 | ||||
Performance Assessed By Company | [2] | 117,590 | 117,590 | |||
Depreciation and amortization | [2] | (83,761) | ||||
Financial income | [2] | 4,792 | ||||
Financial expenses | [2] | (13,520) | ||||
Income tax | [2] | (7,802) | ||||
Net income (loss) | [2] | 17,299 | ||||
Aesop [Member] | Brazil and Latins America [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | 1,444 | |||||
Performance Assessed By Company | 593 | 593 | ||||
Depreciation and amortization | (462) | |||||
Financial expenses | (65) | |||||
Net income (loss) | 1,120 | |||||
The Body Shop [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | [3] | 1,756,773 | ||||
Performance Assessed By Company | [3] | 280,479 | 280,479 | |||
Depreciation and amortization | [3] | (293,707) | ||||
Financial income | [3] | 18,140 | ||||
Financial expenses | [3] | (48,938) | ||||
Income tax | [3] | 12,884 | ||||
Net income (loss) | [3] | (31,142) | ||||
The Body Shop [Member] | Brazil and Latins America [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | 38,950 | |||||
Performance Assessed By Company | 6,048 | 6,048 | ||||
Depreciation and amortization | (7,566) | |||||
Financial expenses | (2,881) | |||||
Income tax | (99) | |||||
Net income (loss) | 16,594 | |||||
Corporate [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | ||||||
Performance Assessed By Company | R$ 431830 | (127,120) | (431,830) | (127,120) | ||
Depreciation and amortization | ||||||
Financial income | 65,884 | |||||
Financial expenses | (8,577) | |||||
Income tax | 147,348 | 43,221 | ||||
Net income (loss) | R$ 227175 | (83,899) | ||||
Corporate [Member] | Segment Recast [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Net revenue | ||||||
Performance Assessed By Company | R$ 127120 | (127,120) | ||||
Depreciation and amortization | ||||||
Financial income | ||||||
Financial expenses | ||||||
Income tax | 43,221 | |||||
Net income (loss) | R$ 83899 | |||||
[1] | Amounts included in the new segment information Natura &Co Latam. | |||||
[2] | Amounts related to the Aesop's operations located in Brazil and Latins America, representing net revenue (R$ 1,444), performance assessed by Company (R$ 593), depreciation and amortization (R$ 462), financial expense (R$65), and net income (loss) (R$1,120) included in the recast segment Natura &Co Latam. | |||||
[3] | Amount related to The Body Shop's operations located in Brazil and Latins America, representing net revenue (R$ 38,950), performance assessed by Company (R$ 6,048), depreciation and amortization (R$ 7,566), financial expense (R$2,881), income tax (R$99) and net income (loss) (R$16,594) included in the recast segment Natura &Co Latam. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020customer | |
Major Customer [Member] | |
Statement [Line Items] | |
Number of major customers | 0 |
Benchmark for major customer | 10.00% |
Natura & Co Latam [Member] | |
Statement [Line Items] | |
Percentage of entity's revenue | 56.00% |
Avon International [Member] | |
Statement [Line Items] | |
Percentage of entity's revenue | 26.00% |
TBS International [Member] | |
Statement [Line Items] | |
Percentage of entity's revenue | 13.00% |
Aesop International [Member] | |
Statement [Line Items] | |
Percentage of entity's revenue | 5.00% |
Net Revenue - Summary of Revenu
Net Revenue - Summary of Revenue by Geographical Area Wise (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of geographical areas [line items] | ||||
Gross revenue | R$ 9115081 | R$ 4629943 | R$ 18834069 | R$ 8570518 |
Returns and cancellations | (148,477) | (5,876) | (270,994) | (31,947) |
Commercial discounts and rebates | (171,310) | (257,481) | (409,895) | (507,871) |
Taxes on sales | (1,808,114) | (962,877) | (3,648,006) | (1,711,841) |
Net Revenue | 6,987,180 | 3,403,709 | 14,505,174 | 6,318,859 |
Domestic market [member] | ||||
Disclosure of geographical areas [line items] | ||||
Gross revenue | 3,304,281 | 2,233,256 | 6,317,607 | 3,927,472 |
Foreign Market [member] | ||||
Disclosure of geographical areas [line items] | ||||
Gross revenue | 5,692,919 | 2,384,838 | 12,274,126 | 4,616,740 |
Other sales [member] | ||||
Disclosure of geographical areas [line items] | ||||
Gross revenue | R$ 117881 | R$ 11849 | R$ 242336 | R$ 26306 |
Operating Expenses and Cost o_3
Operating Expenses and Cost of Sales - Summary of Operating Expenses and Cost of Sale (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure Of Operating Expenses And Cost Of Sale [abstract] | ||||
Cost of sales | R$ 2375507 | R$ 964555 | R$ 5254229 | R$ 1773727 |
Selling, marketing and logistics expenses | 3,149,807 | 1,552,309 | 6,448,997 | 2,875,375 |
Administrative, R&D, IT and Project expenses | 1,337,544 | 567,221 | 2,603,635 | 1,104,252 |
Total | R$ 6862858 | R$ 3084085 | R$ 14306861 | R$ 5753354 |
Operating Expenses and Cost o_4
Operating Expenses and Cost of Sales - Summary of Operating Expenses and Cost of Sale Breakdown by Nature (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating expenses and cost of sale breakdown by nature [line Items] | ||||
Cost of sales | R$ 2375507 | R$ 964555 | R$ 5254229 | R$ 1773727 |
Selling, marketing and logistics expenses | 3,171,808 | 1,552,309 | 6,448,997 | 2,875,375 |
Administrative, R&D, IT and project expenses | 1,337,544 | 567,221 | 2,603,635 | 1,104,252 |
Personnel expenses (Note 27) | 57,299 | 38,405 | 90,445 | 76,128 |
Depreciation and amortization | 1,329,718 | 536,700 | ||
Total | 6,862,858 | 3,084,085 | 14,306,861 | 5,753,354 |
Cost of sales [member] | ||||
Disclosure of operating expenses and cost of sale breakdown by nature [line Items] | ||||
Cost of sales | 2,375,507 | 964,555 | 5,254,229 | 1,773,727 |
Raw material/packaging material/resale | 1,744,178 | 813,313 | 4,365,991 | 1,485,379 |
Personnel expenses (Note 27) | 174,213 | 74,565 | 285,508 | 145,572 |
Depreciation and amortization | 60,779 | 14,196 | 98,639 | 28,028 |
Others | 396,337 | 62,481 | 504,091 | 114,748 |
Selling, marketing and logistics expenses [member] | ||||
Disclosure of operating expenses and cost of sale breakdown by nature [line Items] | ||||
Selling, marketing and logistics expenses | 3,149,807 | 1,552,309 | 6,448,997 | 2,875,375 |
Logistics costs | 496,669 | 172,384 | 1,063,015 | 344,782 |
Personnel expenses (Note 27) | 897,081 | 417,059 | 1,839,299 | 805,518 |
Marketing, sales force and other selling expenses | 1,401,336 | 783,994 | 2,884,442 | 1,367,657 |
Depreciation and amortization | 354,721 | 178,872 | 662,241 | 357,418 |
Administrative RD IT and project expenses [member] | ||||
Disclosure of operating expenses and cost of sale breakdown by nature [line Items] | ||||
Administrative, R&D, IT and project expenses | 1,337,544 | 567,221 | 2,603,635 | 1,104,252 |
Investments in innovation | (51,233) | 16,397 | 115,977 | 33,277 |
Personnel expenses (Note 27) | 573,770 | 307,175 | 1,031,894 | 585,142 |
Other administrative expenses | 526,608 | 164,329 | 886,926 | 334,579 |
Depreciation and amortization | R$ 288399 | R$ 79320 | R$ 568838 | R$ 151254 |
Employee Benefits - Summary of
Employee Benefits - Summary of Employee Benefit Expense (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of defined benefit plans [abstract] | ||||
Payroll, profit sharing and bonuses | R$ 1170123 | R$ 593120 | R$ 2312050 | R$ 1146868 |
Pension Plan | 45,468 | 22,831 | 89,581 | 43,605 |
Share-based payments | 41,500 | 16,029 | 76,387 | 26,903 |
Charges on restricted shares | 54,170 | 10,036 | 11,475 | 15,670 |
Health medical care, food, transportation and other benefits | 144,805 | 63,131 | 291,956 | 120,311 |
Charges, taxes and social contributions | 147,456 | 51,552 | 284,248 | 98,699 |
INSS | 41,542 | 42,100 | 91,004 | 84,176 |
Total | R$ 1645064 | R$ 798799 | R$ 3156701 | R$ 1536232 |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Number and Weighted Average Number of Shares (Detail) Pure in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020R$ / shares | Dec. 31, 2019R$ / shares | |
DisclosureOfNumberAndWeightedAverageExercisePricesOfShareOptionsline item [Line Items] | ||
Options, Balance | 17,568 | |
Options, Exercised | 2,312 | 604 |
Options, Balance | 18,763 | 17,568 |
Stock Option [Member] | ||
DisclosureOfNumberAndWeightedAverageExercisePricesOfShareOptionsline item [Line Items] | ||
Average exercise price, Balance | R$ 16.51 | |
Average exercise price, Related to Avon subsidiary – Business Combination | 0.01 | |
Average exercise price per option, Expired | 21.35 | |
Average exercise price per option, Exercised | 26.35 | |
Average exercise price, Balance | R$ 16.29 | R$ 16.51 |
Options, Balance | 17,568 | |
Options, Related to Avon subsidiary – Business Combination | 1,994 | |
Options, Expired | (72) | |
Options, Exercised | (727) | |
Options, Balance | 18,763 | 17,568 |
Restricted Stock [Member] | ||
DisclosureOfNumberAndWeightedAverageExercisePricesOfShareOptionsline item [Line Items] | ||
Shares, Balance | 3,092 | |
Shares,Granted | 862 | |
Shares, Expired | (22) | |
Shares, Exercised | (1,046) | |
Shares, Balance | 2,886 | 3,092 |
Performance Shares [Member] | ||
DisclosureOfNumberAndWeightedAverageExercisePricesOfShareOptionsline item [Line Items] | ||
Shares, Balance | 688 | |
Shares,Granted | ||
Shares, Expired | ||
Shares, Exercised | (40) | |
Shares, Balance | 648 | 688 |
Employee Benefits - Summary o_3
Employee Benefits - Summary of Terms and Conditions of Share-based Payment Arrangement (Detail) Pure in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020R$ / shares | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Existing options | 18,763 | 17,568 |
Vested options | 2,312 | 604 |
Stock Option [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Existing options | 18,763 | 17,568 |
Vested options | (727) | |
Stock Option [Member] | March 18, 2013 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 18, 2013 | |
Right acquisition conditions | 4 years of service as from the grant date | |
Exercise price | R$ 37.60 | |
Fair value | R$ 6.05 | |
Existing options | 386 | |
Remaining contractual life | 2 months 12 days | |
Vested options | 386 | |
Stock Option [Member] | March 17, 2014 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 17, 2014 | |
Right acquisition conditions | 4 years of service as from the grant date | |
Exercise price | R$ 25.16 | |
Fair value | R$ 4.27 | |
Existing options | 102 | |
Remaining contractual life | 1 year 8 months 12 days | |
Vested options | 102 | |
Stock Option [Member] | March 16, 2015 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 16, 2015 | |
Right acquisition conditions | From 2 to 4 years of service as from the grant date | |
Exercise price | R$ 13.60 | |
Existing options | 210 | |
Remaining contractual life | 2 years 8 months 12 days | |
Vested options | 210 | |
Stock Option [Member] | July 28, 2015 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | July 28, 2015 (Strategy acceleration) | |
Right acquisition conditions | From 4 to 5 years of service as from the grant date | |
Exercise price | R$ 12.90 | |
Existing options | 1,296 | |
Remaining contractual life | 3 years 1 month 6 days | |
Vested options | 196 | |
Stock Option [Member] | March 15, 2016 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 15, 2016 | |
Right acquisition conditions | From 2 to 4 years of service as from the grant date | |
Exercise price | R$ 12.84 | |
Existing options | 286 | |
Remaining contractual life | 3 years 9 months 18 days | |
Vested options | 284 | |
Stock Option [Member] | July 11, 2016 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | July 11, 2016 (Strategy acceleration) | |
Right acquisition conditions | From 4 to 5 years of service as from the grant date | |
Exercise price | R$ 11.41 | |
Existing options | 2,640 | |
Remaining contractual life | 4 years 1 month 6 days | |
Vested options | ||
Stock Option [Member] | March 10, 2017 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 10, 2017 | |
Right acquisition conditions | From 2 to 4 years of service as from the grant date | |
Exercise price | R$ 12.59 | |
Existing options | 696 | |
Remaining contractual life | 4 years 9 months 18 days | |
Vested options | 372 | |
Stock Option [Member] | March 10, 2017 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 10, 2017 (Strategy acceleration) | |
Right acquisition conditions | From 4 to 5 years of service as from the grant date | |
Exercise price | R$ 12.59 | |
Existing options | 2,210 | |
Remaining contractual life | 4 years 9 months 18 days | |
Vested options | ||
Stock Option [Member] | March 12, 2018 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 12, 2018 | |
Right acquisition conditions | From 2 to 4 years of service as from the grant date | |
Exercise price | R$ 16.96 | |
Existing options | 1,998 | |
Remaining contractual life | 5 years 9 months 18 days | |
Vested options | 642 | |
Stock Option [Member] | March 12, 2018 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 12, 2018 (Strategy acceleration) | |
Right acquisition conditions | From 3 to 5 years of service as from the grant date | |
Existing options | 3,800 | |
Remaining contractual life | 5 years 9 months 18 days | |
Vested options | ||
Stock Option [Member] | April 12, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | April 12, 2019 | |
Right acquisition conditions | From 3 to 4 years of service as from the grant date | |
Exercise price | R$ 23.54 | |
Existing options | 1,636 | |
Remaining contractual life | 6 years 9 months 18 days | |
Vested options | ||
Stock Option [Member] | April 12, 2019 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | April 12, 2019 (Strategy acceleration) | |
Right acquisition conditions | From 4 to 5 years of service as from the grant date | |
Exercise price | R$ 23.54 | |
Existing options | 1,900 | |
Remaining contractual life | 6 years 9 months 18 days | |
Vested options | ||
Stock Option [Member] | December 31, 2020 to May 9, 2017 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | December 31, 2020 to May 9, 2017 | |
Right acquisition conditions | 1 year of service as from the grant date | |
Exercise price | R$ 0.01 | |
Fair value | R$ 19.80 | |
Existing options | 65 | |
Remaining contractual life | ||
Vested options | 65 | |
Stock Option [Member] | March 14, 2018 to December 17, 2018 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 14, 2018 to December 17, 2018 | |
Right acquisition conditions | From 1 to 3 years of service as from the grant date | |
Exercise price | R$ 0.01 | |
Fair value | R$ 19.70 | |
Existing options | 334 | |
Remaining contractual life | 1 year 2 months 12 days | |
Vested options | 55 | |
Stock Option [Member] | March 13, 2019 to December 16, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 13, 2019 to December 16, 2019 | |
Right acquisition conditions | From 1 to 3 years of service as from the grant date | |
Exercise price | R$ 0.01 | |
Fair value | R$ 19.58 | |
Existing options | 1,204 | |
Vested options | ||
Stock Option [Member] | Bottom of range [member] | March 16, 2015 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 4.85 | |
Stock Option [Member] | Bottom of range [member] | July 28, 2015 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.20 | |
Stock Option [Member] | Bottom of range [member] | March 15, 2016 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 7.16 | |
Stock Option [Member] | Bottom of range [member] | July 11, 2016 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.84 | |
Stock Option [Member] | Bottom of range [member] | March 10, 2017 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.65 | |
Stock Option [Member] | Bottom of range [member] | March 10, 2017 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.87 | |
Stock Option [Member] | Bottom of range [member] | March 12, 2018 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 7.96 | |
Stock Option [Member] | Bottom of range [member] | March 12, 2018 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price | 12.16 | |
Fair value | 8.21 | |
Stock Option [Member] | Bottom of range [member] | April 12, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 11.71 | |
Stock Option [Member] | Bottom of range [member] | April 12, 2019 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 11.51 | |
Stock Option [Member] | Bottom of range [member] | March 13, 2019 to December 16, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Remaining contractual life | 4 months 24 days | |
Stock Option [Member] | Top of range [Member] | March 16, 2015 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 5.29 | |
Stock Option [Member] | Top of range [Member] | July 28, 2015 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.23 | |
Stock Option [Member] | Top of range [Member] | March 15, 2016 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 7.43 | |
Stock Option [Member] | Top of range [Member] | July 11, 2016 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.89 | |
Stock Option [Member] | Top of range [Member] | March 10, 2017 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.68 | |
Stock Option [Member] | Top of range [Member] | March 10, 2017 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 6.89 | |
Stock Option [Member] | Top of range [Member] | March 12, 2018 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 8.21 | |
Stock Option [Member] | Top of range [Member] | March 12, 2018 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price | 16.96 | |
Fair value | 9.67 | |
Stock Option [Member] | Top of range [Member] | April 12, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 11.82 | |
Stock Option [Member] | Top of range [Member] | April 12, 2019 (Strategy acceleration) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 11.71 | |
Stock Option [Member] | Top of range [Member] | March 13, 2019 to December 16, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Remaining contractual life | 2 years 2 months 12 days | |
Restricted Stock [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Existing stock | 2,886 | |
Restricted Stock [Member] | March 10, 2017 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 10, 2017 | |
Right acquisition conditions | From 2 to 4 years of service as from the grant date | |
Remaining contractual life | 8 months 12 days | |
Existing stock | 206 | |
Restricted Stock [Member] | March 12, 2018 – Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 12, 2018 – Plan I | |
Right acquisition conditions | From 2 to 4 years of service as from the grant date | |
Remaining contractual life | 8 months 12 days | |
Existing stock | 470 | |
Restricted Stock [Member] | March 12, 2018 – Plan II | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 12, 2018 – Plan II | |
Right acquisition conditions | From 0.4 to 2.4 years of service as from the grant date | |
Remaining contractual life | 1 month 6 days | |
Existing stock | 90 | |
Restricted Stock [Member] | March 12, 2018 – Plan III | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 12, 2018 – Plan III | |
Right acquisition conditions | From 1 to 3 years of service as from the grant date | |
Remaining contractual life | 9 months 18 days | |
Existing stock | 74 | |
Restricted Stock [Member] | March 12, 2018 – Extraordinary Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 12, 2018 – Extraordinary Plan I | |
Right acquisition conditions | From 1 to 3 years of service as from the grant date | |
Remaining contractual life | 8 months 12 days | |
Existing stock | 4 | |
Restricted Stock [Member] | August 13, 2018 – Extraordinary Plan VI | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | August 13, 2018 – Extraordinary Plan VI | |
Right acquisition conditions | From 1.6 to 3.6 years of service as from the grant date | |
Existing stock | 50 | |
Restricted Stock [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 | |
Right acquisition conditions | From 2 to 4 years of service as from the grant date | |
Existing stock | 814 | |
Restricted Stock [Member] | April 12, 2019 – Plan II | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | April 12, 2019 – Plan II | |
Right acquisition conditions | From 1 to 3 years of service as from the grant date | |
Existing stock | 312 | |
Restricted Stock [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 | |
Right acquisition conditions | From 1 to 3 years of service as from the grant date | |
Fair value | R$ 29.00 | |
Remaining contractual life | 3 years | |
Existing stock | 866 | |
Restricted Stock [Member] | Bottom of range [member] | March 10, 2017 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 11.69 | |
Restricted Stock [Member] | Bottom of range [member] | March 12, 2018 – Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 15.18 | |
Restricted Stock [Member] | Bottom of range [member] | March 12, 2018 – Plan II | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 15.76 | |
Restricted Stock [Member] | Bottom of range [member] | March 12, 2018 – Plan III | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 15.54 | |
Restricted Stock [Member] | Bottom of range [member] | March 12, 2018 – Extraordinary Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 15.54 | |
Restricted Stock [Member] | Bottom of range [member] | August 13, 2018 – Extraordinary Plan VI | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 12.24 | |
Remaining contractual life | 8 months 12 days | |
Restricted Stock [Member] | Bottom of range [member] | April 12, 2019 – Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 21.62 | |
Remaining contractual life | 8 months 12 days | |
Restricted Stock [Member] | Bottom of range [member] | April 12, 2019 – Plan II | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 22.14 | |
Remaining contractual life | 8 months 12 days | |
Restricted Stock [Member] | Top of range [Member] | March 10, 2017 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 12.51 | |
Restricted Stock [Member] | Top of range [Member] | March 12, 2018 – Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 15.9 | |
Restricted Stock [Member] | Top of range [Member] | March 12, 2018 – Plan II | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 16.49 | |
Restricted Stock [Member] | Top of range [Member] | March 12, 2018 – Plan III | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 16.27 | |
Restricted Stock [Member] | Top of range [Member] | March 12, 2018 – Extraordinary Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | 16.28 | |
Restricted Stock [Member] | Top of range [Member] | August 13, 2018 – Extraordinary Plan VI | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 13.13 | |
Remaining contractual life | 1 year 8 months 12 days | |
Restricted Stock [Member] | Top of range [Member] | April 12, 2019 – Plan I | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 22.53 | |
Remaining contractual life | 2 years 9 months 18 days | |
Restricted Stock [Member] | Top of range [Member] | April 12, 2019 – Plan II | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 22.85 | |
Remaining contractual life | 1 year 8 months 12 days | |
Performance Shares [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Existing stock | 648 | |
Vested stock | ||
Performance Shares [Member] | May 21, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | May 21, 2019 | |
Right acquisition conditions | From 3 to 4 years of service as from the grant date and if the performance conditions are met | |
Existing stock | 648 | |
Vested stock | ||
Performance Shares [Member] | Bottom of range [member] | May 21, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 23.10 | |
Remaining contractual life | 3 years | |
Performance Shares [Member] | Top of range [Member] | May 21, 2019 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value | R$ 45.70 | |
Remaining contractual life | 4 years |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) R$ / shares in Units, R$ in Thousands, Pure in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020BRL (R$)R$ / shares | Dec. 31, 2019R$ / shares | |
Text Block [Abstract] | ||
Number of options outstanding | 18,763 | 17,568 |
Number of options exercised | 2,312 | 604 |
Share based compensation expense | R$ | R$ 81350 | |
Share Price | R$ / shares | R$ 39.90 | R$ 38.67 |
Financial Income (Expenses) - S
Financial Income (Expenses) - Summary of Detailed Information About Finance Income Expense (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
FINANCIAL INCOME: | |||||
Interest on short-term investments | R$ 38888 | R$ 14484 | R$ 74306 | R$ 37445 | |
Gains on monetary and exchange rate variations | 157,780 | 221,307 | 394,807 | 410,393 | |
Gains on swap and forward transactions | 559,770 | 167,748 | 1,634,968 | 318,873 | |
Gains on fair value adjustment of swap and forward derivatives | (136,420) | 656 | 3,020 | 1,003 | |
Reversal of the monetary update of provision for tax risks and tax obligations | 42,378 | ||||
Debt structuring revenues for acquisition of Avon | 26,106 | 52,434 | |||
Other financial income | 19,414 | 9,862 | 23,809 | 24,445 | |
Total Finance Income | 665,538 | 414,057 | 2,225,722 | 792,159 | |
Financial expenses: | |||||
Interest on financing | (286,577) | (129,072) | (539,671) | (257,764) | |
Interest on leases | (65,035) | (33,163) | (119,398) | (64,137) | R$ 64137 |
Losses on monetary and exchange rate variations | (330,883) | (159,641) | (1,529,458) | (311,015) | |
Losses on swap and forward transactions | (283,417) | (243,564) | (431,567) | (455,352) | |
Loss on fair value adjustment of swap and forward derivatives | 79,237 | (309) | (5,170) | (786) | |
Inflation adjustment of provision for tax, civil and labor risks and tax liabilities | (2,664) | (3,845) | (6,410) | (8,080) | |
Appropriation of funding costs (debentures and notes) | (2,822) | (3,204) | (5,653) | (6,452) | |
Pension plan interest | (8,204) | (15,512) | |||
Adjustment for hyperinflationary economy (Argentina) | (10,368) | (3,225) | (5,556) | (5,864) | |
Debt structuring expenses for acquisition of Avon | (29,360) | (29,360) | |||
Other finance cost | (23,346) | (13,076) | (63,463) | (23,006) | |
Total finance expenses | (934,079) | (618,459) | (2,721,858) | (1,161,816) | |
Financial income (expenses) | R$ 268541 | R$ 204402 | R$ 496136 | R$ 369657 |
Financial Income (Expenses) -_2
Financial Income (Expenses) - Summary of Foreign Exchange Hedging Transactions and the Related Balancing Items in the Income Statement (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finance Income Cost [line items] | ||||
Gains on monetary and exchange rate variations | R$ 157780 | R$ 221307 | R$ 394807 | R$ 410393 |
Losses on monetary and exchange rate variations | (330,883) | (159,641) | (1,529,458) | (311,015) |
Gains on swap and forward transactions | 559,770 | 167,748 | 1,634,968 | 318,873 |
Revenue from swap exchange coupons | 64,923 | 45,518 | 112,090 | 86,811 |
Gains from exchange variations on swap instruments | 494,847 | 122,230 | 1,522,878 | 232,062 |
Losses on swap and forward transactions | (283,417) | (243,564) | (431,567) | (455,352) |
Losses on exchange rate variation on swap instruments | (5,982) | (160,474) | (5,982) | (314,136) |
Financial costs of swap instruments | (277,435) | (83,090) | (425,585) | (141,216) |
Variation on loans financing and debentures [Member] | ||||
Finance Income Cost [line items] | ||||
Gains on monetary and exchange rate variations | (14,391) | 160,466 | (393) | 313,365 |
Losses on monetary and exchange rate variations | (151,795) | (120,445) | (1,089,680) | (228,287) |
Variation on imports [member] | ||||
Finance Income Cost [line items] | ||||
Gains on monetary and exchange rate variations | (13,581) | 2,506 | 15,746 | 6,541 |
Losses on monetary and exchange rate variations | (24,740) | (3,964) | (43,774) | (9,791) |
Variation on export receivables [member] | ||||
Finance Income Cost [line items] | ||||
Gains on monetary and exchange rate variations | 16,804 | 585 | 46,580 | 7,322 |
Losses on monetary and exchange rate variations | (5,857) | (2,935) | (7,901) | (8,483) |
Variation on accounts payable to subsidiaries abroad [member] | ||||
Finance Income Cost [line items] | ||||
Gains on monetary and exchange rate variations | 109,119 | 57,750 | 183,468 | 83,165 |
Losses on monetary and exchange rate variations | (30,551) | (32,224) | (192,414) | (64,220) |
Variation on financing [member] | ||||
Finance Income Cost [line items] | ||||
Losses on monetary and exchange rate variations | (117,940) | (73) | (195,689) | R$ 234 |
Variations of demand deposits in foreign currency [member] | ||||
Finance Income Cost [line items] | ||||
Gains on monetary and exchange rate variations | R$ 59829 | R$ 149406 |
Other Operating Income (Expen_3
Other Operating Income (Expenses), Net - Summary of Detailed Information About Other Operating Income (Expense) (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Others operating income, net | |||||
Result on write-off of property, plant and equipment | R$ 7129 | R$ 582 | R$ 8620 | R$ 142 | |
ICMS-ST | 7,051 | 3,626 | 14,345 | 39,722 | |
Sale of customer portfolio | 10,125 | 10,125 | |||
Tax contingencies | 100,192 | 94,978 | 101,473 | 96,062 | |
Other operating income | 7,221 | (3,492) | 7,764 | ||
Total Other operating income | 121,593 | 104,655 | 132,202 | 146,051 | |
Others expenses operating income, net | |||||
Crer para Ver | [1] | (11,360) | (8,140) | (19,720) | (16,771) |
Expenses with the sale of customer portfolio | (2,967) | (2,967) | |||
Initial costs of acquisition of Avon | [2] | (6,947) | (67,497) | (304,057) | (67,497) |
Transformation Plan | (54,486) | (19,543) | (79,558) | (26,374) | |
Tax contingencies | (3,774) | (3,926) | (3,774) | (3,926) | |
Other operating expenses | 32,617 | 2,538 | (9,151) | ||
Total other operating expenses | (46,917) | (96,568) | (410,076) | (123,719) | |
Other operating income (expenses), net | R$ 74676 | R$ 8087 | R$ 277874 | R$ 22332 | |
[1] | Allocation of operating profit from sales of “Crer para Ver” line of non-cosmetic products to Natura Institute, specifically directed to social projects for developing the quality of education. | ||||
[2] | Related to expenses associated with the Avon acquisition process, which include: financial structuring expenses (R$ 115,696), legal expenses (R$ 17,281), regulatory expenses (R$ 18,030) and executive plans (R$ 152,909). |
Other Operating Income (Expen_4
Other Operating Income (Expenses), Net - Additional Information (Detail) - Avon [member] R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$) | |
Statement [Line Items] | |
Financial Structuring Expense | R$ 115696 |
Legal Expense | 17,281 |
Regulatory Expenses | 18,030 |
Executive plans | R$ 152909 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |||
Amortisation of intangible assets | R$ 1449 | ||
Confidentiality and NonCompete Agreement [Member] | Officers [Member] | |||
Disclosure of subsidiaries [line items] | |||
Amortisation of intangible assets | 510 | R$ 29 | |
Buildings [member] | |||
Disclosure of subsidiaries [line items] | |||
Purchases of property and other assets related party transaction | 41,809 | R$ 44244 | |
Fundo de Investimento Essencial [Member] | |||
Disclosure of subsidiaries [line items] | |||
Investments | 3,395 | R$ 3766 | |
Natura Cosméticos S.A. | |||
Disclosure of subsidiaries [line items] | |||
Reimbursement of transaction cost of acquisition | 147,486 | ||
Donations associated with maintenance | R$ 692 | ||
Percentage of corresponding net income | 0.50% | ||
Donations associated with sale | R$ 21000 | R$ 12500 |
Related-Party Transactions - Su
Related-Party Transactions - Summary of Total Compensation of the Company's Management (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Key Management Personnel Compensation [Line Items] | |||||
Fixed | [1] | R$ 11403 | R$ 15971 | R$ 30252 | R$ 30193 |
Variable | [2] | 45,896 | 22,434 | 60,193 | 45,935 |
Total | 57,299 | 38,405 | 90,445 | 76,128 | |
Board of Directors [Member] | |||||
Key Management Personnel Compensation [Line Items] | |||||
Fixed | [1] | 2,246 | 5,180 | 7,591 | 10,230 |
Variable | [2] | 14,764 | 9,866 | 20,619 | 15,782 |
Total | 17,010 | 15,046 | 28,210 | 26,012 | |
Officers [Member] | |||||
Key Management Personnel Compensation [Line Items] | |||||
Fixed | [1] | 9,157 | 10,791 | 22,661 | 19,963 |
Variable | [2] | 31,132 | 12,568 | 39,574 | 30,153 |
Total | R$ 40289 | R$ 23359 | R$ 62235 | R$ 50116 | |
[1] | The item “Officers” includes the amount of R$510referred to the amortization of the Confidentiality and Non-Compete Agreement during the period ended June 30, 2020 (R$29 in in the six-month period ending on June 30, 2019). | ||||
[2] | Refers to profit sharing, on an accrual basis, net of reversals, regarding the Restricted Stock Plan and Strategy Acceleration Program, including charges, as applicable, to be determined in the year. The amounts include additions to and/or reversals of provisions made in the previous year, due to final assessment of the targets established for board members and officers, statutory and non-statutory, in relation to profit sharing. |
Related-Party Transactions - _2
Related-Party Transactions - Summary of the Company Officers and Executives' compensation (Detail) | 6 Months Ended | ||||
Jun. 30, 2020R$ / shares | Jun. 30, 2019R$ / shares | Dec. 31, 2019 | |||
Officers and executives compensation [Line Items] | |||||
Stock option balance | 18,763,000 | 17,568,000 | |||
Officers [Member] | |||||
Officers and executives compensation [Line Items] | |||||
Stock option balance | [1],[2] | 13,723,236 | 14,203,364 | ||
Average fair value of stock options | [2] | R$ 8.39 | R$ 8.24 | ||
Average exercise price | [2],[3] | R$ 16.29 | R$ 16.43 | ||
Officers [Member] | Restricted Shares [Member] | |||||
Officers and executives compensation [Line Items] | |||||
Stock option balance | [1],[4] | 1,564,143 | 1,069,642 | ||
Average fair value of stock options | [4] | R$ 25.15 | R$ 19.05 | [3] | |
[1] | Refers to the balance of the options and restricted shares ripe ("vested") and mature ("unvested"), not carried out, at the balance sheet dates. | ||||
[2] | The number of stock options granted, expired and exercised and their respective fair values are shown already considering the stock split approved at the Extraordinary Shareholders Meeting held on September 17, 2019. | ||||
[3] | Refers to the weighted-average exercise price of the option at the time of the stock option plans, adjusted for interest based on the Extended Consumer Price Index (IPCA) through the end of the reporting period. The new Stock Option Plan implemented in 2015, include no monetary adjustment. | ||||
[4] | The number of restricted stock and performance shares granted, expired and exercised is shown already considering the stock split approved at the Extraordinary Shareholders’ Meeting held on September 17, 2019. |
Commitments - Additional Inform
Commitments - Additional Information (Detail) R$ in Thousands | Jun. 30, 2020BRL (R$) |
Agreements that started in 2018 and effective up to 2020 [member] | Bottom of range [member] | |
Contractual Commitments Disclosure [Line Items] | |
Value of Megawatts/h | R$ 265 |
Agreements that started in 2018 and effective up to 2020 [member] | Top of range [Member] | |
Contractual Commitments Disclosure [Line Items] | |
Value of Megawatts/h | 363 |
Agreements that started in 2019 and effective up to 2022 [member] | Bottom of range [member] | |
Contractual Commitments Disclosure [Line Items] | |
Value of Megawatts/h | 155 |
Agreements that started in 2019 and effective up to 2022 [member] | Top of range [Member] | |
Contractual Commitments Disclosure [Line Items] | |
Value of Megawatts/h | 305 |
Agreements that started in 2020 and effective up to 2022 [member] | Bottom of range [member] | |
Contractual Commitments Disclosure [Line Items] | |
Value of Megawatts/h | 204 |
Agreements that started in 2020 and effective up to 2022 [member] | Top of range [Member] | |
Contractual Commitments Disclosure [Line Items] | |
Value of Megawatts/h | R$ 238 |
Commitments - Summary of Contra
Commitments - Summary of Contractual Commitments (Detail) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Contractual commitments disclosure [line items] | ||
Total | R$ 2562223 | R$ 31078 |
Less than one year [member] | ||
Contractual commitments disclosure [line items] | ||
Total | 10,206 | 17,918 |
Between one and five years [member] | ||
Contractual commitments disclosure [line items] | ||
Total | R$ 2552017 | R$ 13160 |
Insurance - Summary of Types of
Insurance - Summary of Types of Insurance Coverage (Detail) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
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$ 5511760 | R$ 2322801 |
Vehicles [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | Fire, theft and collision for 818 vehicles (936 in 2018) | |
Amount insured | R$ 259004 | 212,027 |
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$ 1582000 | 1,582,000 |
Transport [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Type of coverage | Damages to products in transit | |
Amount insured | R$ 97086 | 32,309 |
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$ 1392756 | 532,510 |
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 Statement Of Cash Fl
Additional Statement Of Cash Flows - Summary of additional information on transactions related to the cash flow statement (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Non-cash items | ||||
Hedge accounting, net of tax effects | R$ 11768 | R$ 47701 | R$ 153114 | R$ 105997 |
Net effect of acquisition of property, plant and equipment and intangible assets not yet paid | 1,700 | (12,163) | 46,778 | 31,638 |
Consideration per acquisition of the subsidiary | R$ 13366 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ in Thousands, R$ in Thousands, $ in Thousands | Jul. 02, 2020BRL (R$) | Jul. 02, 2020USD ($) | Jun. 30, 2020JPY (¥) | Jun. 30, 2020BRL (R$) |
Major business combination [member] | Aeon Forest Co., Ltd [Member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Purchase price of entity | ¥ 2,623,000 | R$ 133275 | ||
Remittance to Subsidiary [Member] | Natura &Co International S.à r.l [Member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Resource remittance to subsidiary | R$ 252334 | $ 47,000 |