AFK Sistema acquires Natura Siberica group of companies

MOSCOW. May 2 (Interfax) - Sistema JSFC has purchased Natura Siberica group of companies, the corporation said in a statement.

Namely, Sistema became the owner of 100% of the charter capital of JSC Organic Rus (which owns 100% of shares in the charter capital of LLC Natura Siberica and a number of other Russian companies; together - the Natura Siberica group of companies).

The value of the deal has not been disclosed.

Natura Siberica Group is a leading Russian manufacturer of certified organic cosmetics. The Group sells products under the brands Natura Siberica, Organic Shop, Organic People, Organic Kitchen, Planeta Organica, and Grandma Agafya's Recipes. Today, Natura Siberica produces more than 1,600 SKUs.

In 2022, Natura Siberica group revenue amounted to 10.2 billion rubles. At the end of April 2023, the group had no net debt.

"Natura Siberica is a quality asset and a recognizable brand with many years of history behind it, and it demonstrates strong financial and operating performance. The company has a great potential for further growth through expansion of the output and product mix, optimization of business processes and development of R&D, as well as consolidation of the Russian cosmetics market. We believe that Sistema's investment and our expertise in building leading retailers will accelerate Natura Siberica's growth and will help it to become a leader in the Russian cosmetics market," Sistema President Tagir Sitdekov said.

Today, Natura Siberica's share of the Russian cosmetics market is no more than 4%, the company's CEO Felix Lieb said in an interview with the Vedomosti newspaper. In the medium term, in 3-5 years, the company expects to be at least in the top three market leaders, he said. The company's goals also include capitalization growth and payment of dividends, Lieb said.