By Gabriel Araujo

SAO PAULO (Reuters) – Brazil’s Natura & Co Holding SA said on Wednesday that Chief Executive and Executive Chairman Roberto Marques was stepping down in an organizational shakeup, handing over the reins of the cosmetics maker to board member Fabio Barbosa.

Natura’s goal is to reduce its complexity and eliminate its chief transformation officer (sustainable growth officer)

The shares of Natura rose 7.8% following the announcement. This makes it the largest gainer in Brazil’s stock market, which rose 1.2%.

The owner of Natura and Avon brands as well as Aesop, Aesop, The Body Shop brand, said it was “time to change”. He also plans to raise the accountability for its business units following years of high-profile acquisitions.

Barbosa indicated that Natura was not looking to reduce costs but, while he called it “absolutely crucial”, its main goal was making their organizations more flexible and leaner.

We also focus on revenue. “We know we need to increase margins, revenue and pay more attention to costs,” he said on a conference phone.

Barbosa, who was chief executive at Santander (BME 🙂 Brasil between 2008 and 2011, led Banco Real for over a decade as well as Grupo Abril from 2011 to 2015.

Marques will be a board member for his successor, but plans on retiring at the end 2022.

JPMorgan analysts (NYSE:) believe that the move gives Natura business units more freedom to realize their targets and execute them.

They stated that the market would likely welcome changes in the “context of a difficult operating environment, limited visibility on growth trends and profitability trends”, they added.

Natura suffered a larger-than-expected loss due to rising costs and weak sales during the first quarter. This pushed Natura back by one year from its financial goals, including net revenue.