admin Coty recorded net revenues of 1,641.4 million dollars, up 18 percent as reported and like-for-like driven by a 22 percent like-for-like increase in Prestige and a 10 percent like-for-like increase in consumer beauty.
Given Coty’s strong first quarter, the Company now expects FY24 like-for-like revenue growth of 9 to 11 percent, ahead of its recently raised guidance of 8 to 10 percent.
Commenting on the operating results, Sue Nabi, Coty’s CEO, said in a statement: “We are proud of our great Q1 results, with sales growth once again amongst the best in our peer set and ahead of the beauty market. We remain well positioned to benefit from this strong beauty performance, while capitalising on the multiple white space opportunities in our portfolio, including female fragrances, ultra premium fragrances, skincare, China and travel retail.”
Highlights of Coty’s Q1 results
The company’s reported gross margin of 63.5 percent, down 40 basis points, while adjusted gross margin of 63.5 percent decreased by 60 basis points.
The company’s reported operating income of 197.5 million dollars increased by 15 percent and adjusted operating income of 302.2 million dollars rose 21 percent.
The adjusted EBITDA of 360.3 million dollars grew 17 percent. The adjusted operating margin was 18.4 percent reflecting 40 basis points of margin expansion.
Reported net loss was 1.7 million dollars, while adjusted net income was 74.1 million dollars. Adjusted EPS decreased to 9 cents.
Coty posts sales growth across segments, raises outlook
Prestige net revenues during the first quarter of 1,064.7 million dollars or 65 percent of Coty sales, increased by 23 percent on a reported basis, supported by strong momentum in prestige beauty demand, which led to double-digit percentage growth in all regions, and outperformance in Americas, APAC and travel retail.
Consumer Beauty net revenues of 576.7 million dollars or 35 percent of Coty sales, increased by 10 percent as reported, led by growth in colour cosmetics, mass fragrance and mass skin & bodycare. Most regions generated strong LFL growth in the quarter, including North America, Europe, Brazil and Latin America.
For the first half FY24, Coty now expects like-for-like revenue growth of 11 to 13 percent, an increase from its previous outlook of 10 to 12 percent.
Coty is targeting FY24 adjusted EBITDA margin expansion of 10 to 30 bps on the stronger revenue outlook. As a result, adjusted EBITDA is expected between 1,080 to 1,090 million dollars based on current FX rates, above its recently raised EBITDA outlook of 1,075 to 1,085 million dollars. Coty continues to target FY24 adjusted EPS of 44 cents to 47 cents, implying 16 to 25 percent growth.
