“Avon is evaluating the scope of this incident and working diligently to mitigate its effects, doing everything possible to normalize its operations,” Natura & Co said in a securities statement without giving further details. The company did not say how Avon’s operations were affected and when the problem would be resolved.
The Brazilian Stockbrokers Guide saw the announcement as negative, adding that the cyber attack shows “the weakness of the company’s digital security system.” Natura & Co shares were trading 1.8% lower on Tuesday at 40.46 reais after hitting an intraday low of 39.88 reais earlier. In May 2019, Natura & Co became the fourth largest beauty group in the world after acquiring rival Avon Products.
Almost a year later, the company raised the total expected synergies for its acquisition to between $ 300 and $ 400 million annually on a recurring basis, from $ 200 to $ 300 million in January when the transaction was completed. But linkage-related costs dragged Natura & Co’s bottom line in the first quarter, dwarfing the timid revenue growth during the coronavirus pandemic.