Coty is off to a flying start in fiscal 2024, with exceptional first-quarter results that saw sales surge by 18%, surpassing forecasts. Sales in the Americas, EMEA and Asia-Pacific all recorded double-digit growth, testifying to Coty’s strength in global markets.
Coty last week unveiled excellent results for the first quarter of fiscal 2024, ending September 30, 2023. The American company, which floated on the Paris stock exchange last September, maintained its solid financial momentum, once again outperforming growth in the beauty market. This quarter marks the 13th consecutive quarter in which Coty’s operating results have met or exceeded expectations.
Sales rose by 18% to $1.6 billion in the first quarter, well ahead of forecasts. This has prompted Coty to revise its projections upwards, targeting +10 to 12% growth for the first half of fiscal 2024.
Strong first-quarter sales translated into a substantial increase in profits. Coty’s operating income rose by 15% year-on-year to $197.5 million. Adjusted operating income grew by 21% year-on-year to $302.2 million, while adjusted EBITDA, up 17%, reached $360.3 million.
“We are proud of our excellent first-quarter results, with sales growth once again among the best in our peer group and ahead of the beauty market,” said Coty CEO Sue Nabi. “Coty continues to deliver on its balanced growth program, with strong growth in both divisions and in all regions.”
In the first quarter, Coty’s free cash flow reached $124 million, marking a significant improvement of $35.8 million over the previous year. This performance maintained net financial debt at $3.9 billion.
Prestige segment up
Revenues in the Prestige segment (fragrances and cosmetics) rose by 23% as reported in the first quarter. The strong demand for prestige fragrances seen over the years was maintained, with continued growth of over 10% in the first quarter.
In addition, the recent launch of Burberry Goddess eau de parfum drove sales in key markets. This has driven sales of other iconic Burberry fragrances such as Hero and Her. Three franchises – Burberry Goddess, Gucci Flora and Burberry Her – also reached the Top 10 women’s fragrances in the US for the first time in the company’s history.
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Featured photo : ©Coty
