Conference Call Transcription - 3Q06


Atualizado em 2007-01-31T18:28:42
All the dates of this page are presented in official timezone of Brasilia - Brazil.

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Local Conference Call

                 NATURA INT`L

          3Q06 Earnings Presentation

               October 27, 2006

               (9:55 to 28.31)

                Q & A SESSION

Operator: Excuse me.  Ladies  and  gentlemen,
we will now begin  the  Question  and  Answer
session.  If  you  have  a  question,  please
press the star (*) key, followed by  the  one
(1) key on your touch-tone phone. If  at  any
time you would like to remove  yourself  from
the questioning queue, press star two.

Excuse me. Our first question comes from  Ms.
Daniela Bretthauer from Banco Santander.

Ms. Daniela Bretthauer: Hi, good morning  and
congratulations on a very strong  quarter.  I
have a  question  on  the  sustainability  of
your margins. You  obviously  had  a  record-
high gross margin in the quarter,  which  led
to also record-high Ebitda margin,  but  what
can you tell us in  terms  of  gross  margins
estimates or guidance going  forward?  Is  it
possible to enjoy such a  strong  combination
again on the cost front? And  then  how  much
do   you    plan    to    spend    on    your
internationalization process so that,  to  be
able to post a very good Ebitda margin?

Mr. José David Uba: Daniela,  this  is  David
speaking. Let's start with the gross  margin.
We do not have, at this  moment,  any  reason
to believe that our gross  margin  should  go
down in the near future.  We  think  that  we
are now operating at a  feasible  margin,  as
far as we can see in the  future.  Of  course
we were, in some sense, helped  by  the  fact
that our  raw  materials  had  a  very  small
adjustment for inflation  this  year  but  we
believe  that  in  the  next  years  we   can
compensate that for a larger leverage if  our
Atualizado em 2007-01-31T18:28:42
All the dates of this page are presented in official timezone of Brasilia - Brazil.