Rising inflation and unemployment has hit Brazil’s personal care industry as consumers pull back their spending on non-essential goods.

Brazil’s leading cosmetics manufacturer, Natura, has announced a fall in second-quarter profit to the tune of 34 percent to BRL117 million, thanks to weak demand, higher selling expenses and rising debt costs.

Meanwhile, Brazilian health and hygiene company Hypermarcas’ low-price strategy has hit profits; the company reported a 9 percent drop in the second quarter of 2015 versus a year earlier. However, net sales rose 11 percent proving the company’s tactics, aimed at gaining market share, are paying off.