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As we enter 2024, the beauty market<\/strong> is clearly in fine fettle.<\/p>\n <\/p>\n After L’Or\u00e9al<\/strong>, it was Coty<\/strong>‘s turn to unveil, on May 6, a quarter ending last March (the third of its fiscal year), exceeding expectations.<\/strong><\/p>\n <\/p>\n This enabled the American group to raise, for the third time, its targets for the 2023-24 financial year<\/strong> ending June. It now expects LFL sales growth for FY24 to be at the upper end of its previous forecast<\/strong> range of +9 to +11%.<\/p>\n <\/p>\n Third-quarter sales, up 8% on a reported basis (+10% in constant currencies)<\/strong> to $1.3 billion, thus outperformed the company’s forecasts (+6-8% in constant currencies).<\/p>\n <\/p>\n <\/p>\n Coty’s adjusted operating income itself rose by 17%<\/strong> to $143.9 million, representing a 90 basis point increase in adjusted operating margin to 10.4%. While adjusted EBITDA rose by 10%<\/strong> to $199.9 million.<\/p>\n <\/p>\n\n <\/p>\n The Group benefited both from \u201cmarket share gains in the prestige sector\u201d and \u201cstrong demand in the beauty sector\u201d at the start of the year.<\/strong><\/p>\n <\/p>\n <\/p>\n \u201cOur third-quarter results reinforce Coty’s reputation for delivering results ahead of the beauty market and expectations<\/strong>, and illustrate once again that we are implementing our imperative of balanced portfolio growth<\/strong>,\u201d enthused Coty CEO Sue Nabi<\/strong>. \u201cIn the third quarter and since the start of the fiscal year, we have recorded strong growth in both Prestige and Consumer Beauty (FMCG), in each of our three regions.\u201d<\/strong><\/p>\n <\/p>\n The growth of the Prestige division (+8% and +13% in constant currencies<\/strong> to $867.2 million) is all the more commendable as the loss of the Lacoste license (recovered by Interparfums)<\/strong> had a negative impact of 4%<\/strong>, not to mention a negative impact of 1% due to exchange rates<\/strong>. Coty made up for this with the successful launch of the Burberry Goddess fragrance, and those of the Hugo Boss and Chlo\u00e9 juices<\/strong>, on \u201ca perfume market that is itself already very dynamic\u201d and where the American group continues to \u201coutperform and gain market share\u201d, Laurent Mercier, Coty’s CFO, told Les Echos-Investir<\/strong>.<\/p>\n <\/p>\n <\/p>\n Overall, \u201cin Q3 24 and year-to-date\u201d, the company \u201ccontinued to record balanced net sales growth, including growth in both Prestige and Consumer Beauty, in all regions and in each of its main categories\u201d.<\/strong><\/p>\n The Consumer Division grew by 6% on both a reported and constant currency basis<\/strong>, to $518.4 million. Net sales were driven by \u201ccolor cosmetics, fragrances and skin and body care\u201d<\/strong> in most countries, offsetting \u201cmarket weakness in cosmetics in the United States\u201d.<\/p>\n <\/p>\n <\/p>\n Geographically, the US market, which already accounts for 43% of Coty’s sales<\/strong>, was again very dynamic in the third quarter, with an increase of 8% on a reported basis (+11% in constant currencies)<\/strong> to $589 million, thanks to good performances in Latin America, Canada and Travel Retail. In contrast to the Group as a whole, the Consumer division was more buoyant<\/strong>, with double-digit growth on a reported basis than the \u201cPrestige division, posting mid-single-digit growth, partially offset by a 2% negative currency impact\u201d.<\/p>\n <\/p>\n Coty’s second major market, the EMEA zone (Europe, Middle East, Africa)<\/strong> also maintained a good pace between January and March 2024, with an increase of 7% on a reported basis (+9% in constant currencies)<\/strong> to $628 million (or 45% of the Group’s total sales). Most markets and Travel Retail underpinned this good performance.<\/p>\n <\/p>\n <\/p>\n In Asia Pacific<\/strong>, Coty’s smallest market (12% of sales), sales were also up 7% on a reported basis (+11% in constant currencies)<\/strong> to $168.6 million. They were driven by double-digit growth in the Prestige division, partially offset by a 3% negative impact from exchange rates, the dynamic Travel Retail business and double-digit growth in Asia excluding China. In China, Prestige sales almost tripled!<\/strong><\/p>\n First-quarter highlights for Coty included the announcement, both in February, of a new licensing agreement with Italian fashion house Etro<\/strong>, to produce and distribute its signature fragrance lines and home fragrance collections beyond 2040, and the launch of Infiniment Coty Paris, its ultra-premium fragrance brand.<\/strong><\/p>\nA virtuous mix<\/h2>\n
Results ahead of schedule<\/h2>\n
Balanced growth<\/h2>\n
All markets dynamic<\/h2>\n
Prestige division sales triple in China<\/h2>\n
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