Sao Paulo. Brazilian cosmetics company Natura & Co said on Monday it had begun studying a possible US initial public offering (IPO) or spin-off of its Aesop brand as it seeks to finance its expansion.
Natura said that in the event of an initial public offering or spin-off, the luxury cosmetics brand would continue to be led by its current chief executive, Michael O’Keeffe.
The announcement comes less than a month after Natura management denied rumors that it was considering spinning off Aesop or selling Body Shop, following a string of lackluster quarterly results.
“The initial public offering has been evaluated in recent months as an alternative to finance Aesop’s accelerated growth, and Natura & Co’s management has been taking the necessary steps to seek such an alternative.”
Natura reported a higher-than-expected quarterly net loss in August as inflation and difficult market conditions put pressure on its margins.
The company had announced a sweeping organizational reorganization in June, when CEO and CEO Roberto Marques resigned and handed the reins of the company to board member Fabio Barbosa.
It said at the time that it planned to increase responsibility for its business units after years of expansion fueled by high-profile acquisitions.