Coty: third upward revision of annual results

After announcing plans for a second stock market listing two months ago, Coty has now forecast even better than expected annual performance. These new forecasts were unveiled on July 6, at the company’s first presentation to the press and European investors.

 

Two years after Sue Nabi took over as CEO, Coty Inc. has raised its annual growth guidance for the third time.

 

The American fragrance, cosmetics and skincare specialist now expects “core sales growth for fiscal 2023 of 10-11% on a comparable basis (LFL)” (instead of 9-10% according to its previous outlook), “excluding the impact of the exit from Russia”. While it expects adjusted EBITDA for FY23 of $965 to $970 million, ahead of its previous forecast of $955 to $965 million, despite a negative exchange rate impact of almost $70 million.

 

IPO ?

 

This revised performance stems from an even better-than-expected fourth quarter, with growth of +12-15% on a like-for-like LFL basis, compared with +10% previously. All this was driven by “the strong momentum of Prestige and the recovery of the Chinese market”.

 

This should put the company in a strong position for its probable IPO on the Paris Euronext stock exchange. Two months ago, the American group, already listed in New York, announced plans for a second listing…To unveil this new ambition, as well as the launch of ultra-high-end products (Orveda Omnipotent Sérum and the Infiniment Coty Paris fragrance line), Coty chose an emblematic location: Grasse, the heart of French scents.

 

On July 6, the U.S.-based group kicked things off in Paris with a first-ever presentation in the French capital for the press and, above all, European investors. To win them over, Coty CEO Sue Nabi and CFO Laurent Mercier had plenty to “showcase” their group’s “more than 120 years of heritage, innovation and operations in Europe” and its “attractive prospects”.

 

And it was on this occasion that Coty’s executives lifted the veil on its latest results and financial outlook.

 

A differentiated business model

 

Overall, Coty today says it is “well positioned to take advantage of continued strong demand growth in most categories and markets”.

 

Sue Nabi said she was “incredibly proud to present” Coty’s “differentiated business model”, “composed of innovative Prestige and a rejuvenated, focused and increasingly robust consumer beauty portfolio, a global presence in developed and emerging countries, strategically located R&D centers of excellence, award-winning intellectual property and leading end-to-end capabilities that make Coty the partner of choice for global fashion houses”.

Accelerating its leadership position

 

The stated ambition is to “accelerate” the Group’s position as world leader in fragrances and cosmetics, by exploring “significant untapped potential in areas such as ultra-premium skincare, ultra-premium fragrances, China, Brazil and Travel Retail”.

 

Ironically, it is an ex-L’Oréal woman, Sue Nabi, who is giving the American company, the world’s number one in the fragrance market, the means to compete even more fiercely with the world’s number one in beauty. Even if, according to the Journal les Echos, with a current value of 10 billion euros, it is still a long way behind L’Oréal. The latter was already valued at over 200 billion euros in 2021!

 

Read also > Coty’s IPO on the Paris Stock Exchange: a return to its roots?

 

Featured photo : © Coty

Picture of Sophie Michentef
Sophie Michentef
Sophie Michentef has worked for more than 30 years in the professional press. For fifteen years, she managed the French and international editorial staff of the Journal du Textile. She now puts her press, textile, fashion, and luxury expertise at the service of newspapers, professional organizations, and companies.

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