SAO PAULO, March 12 (Reuters) - Shares in Brazilian cosmetics maker Natura&Co rose more than 6% on Tuesday as positive margin trends and the announcement of dividends offset the fact that its quarterly loss more than tripled from a year earlier.

Natura posted a net loss for the fourth quarter of 2.7 billion reais ($542.27 million), logging a hit of 1 billion reais from a discontinued business that it sold recently, and a 664 million-real impairment related to Avon.

The firm, however, said its stronger capital structure meant it would dole out 979 million reais in dividends.

Sao Paulo-listed shares in Natura closed up 6.6% in afternoon trading to 18.48 reais each, their highest closing price since April 2022.

"Results continued to show a good and consistent trajectory to deliver the expected turnaround results, bringing the solid free cash flow and cash back to shareholders," analysts at JPMorgan wrote in a note, while adding the non-recurring expenses brought volatility to the results.

Natura has been shedding global assets, including the sale of the Aesop and The Body Shop brands, as it turned its focus to Latin America, where it has been integrating Avon and its namesake brand.

The firm's core earnings, or adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 671 million reais, up 31% from the same quarter in the previous year but below analysts' estimate of 722.9 million reais.

The cosmetic group's net revenue fell 17.4% to 6.61 billion reais in the quarter, with management saying it is prioritizing profitability rather than revenue growth.

Goldman Sachs analysts wrote the results "brought some encouraging trends with robust high-single-digit growth of the Natura brand in Brazil, as well as overall margin gains from portfolio optimization, positive mix effects, price increases and G&A (general and administrative expenses) control."

Natura&Co's Director for Latin America Joao Paulo Ferreira told analysts in an earnings call he sees room for a further expansion of gross margin in the region, which rose 3.8 percentage points in the quarter year-on-year.

CEO Fabio Barbosa also told journalists that Natura was not considering selling the Avon brand outside of Latin America, known as Avon International, after media reports last year that a divestment was on the table.

($1 = 4.9791 reais) (Reporting by Andre Romani and Peter Frontini; additional reporting by Alberto Alerigi Jr.; Editing by Kim Coghill and Kylie Madry)