Fabio Barbosa - Chief Executive Officer
Joao Paulo Ferreira - Chief Executive Officer for Latin America
Guilherme Castellan - Chief Financial Officer
Conference Call Participants
Joseph Giordano - JPMorgan Chase & Co.
Ruben Couto - Santander Investment Securities Inc.
Danniela Eiger - XP Investimentos
Joao Soares - Citigroup Inc.
Irma Sgarz - Goldman Sachs Group, Inc.
Gustavo Fratini - Bank of America Merrill Lynch
Good morning, ladies and gentlemen, and thank you very much for waiting. Welcome to our Third Quarter 2024 Earnings Call of Natura &Co. It is important to highlight the fact that we count on simultaneous translation resources. [Operator Instructions]
Today with us Fabio Barbosa, Global CEO for Natura &Co; Joao Paulo Ferreira, CEO; and Guilherme Castellan, our CFO. This presentation is available on our Investor Relations website.
I would like to pass the floor to Fabio Barbosa. You may now proceed.
Fabio Barbosa
Good morning, and thank you very much for attending this conference. Starting our financial performance, I would like to highlight the fact that it was an excellent quarter. There was a continued acceleration in sales with an increase of 18.5% in constant currency, or 11%, excluding Argentina. This good movement in revenues combined mainly with operating leverage and the simplification of the operation allowed us to report a robust evolution on profitability. Profitability expanded by 340 bps and recurring to EBITDA more than 50%. Wave 2 evolving, delivering expected results, profitability and cash conversion and cash conversion. Joao Paulo will give you details about Wave 2.
This positive result will not yet be able to be seen on the last line. At the squadron, we are already de-consolidating the results of API subsidiaries from the results