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Coty<\/strong><\/b> ended its 2023-2024 fiscal year…on a high note!<\/p>\n <\/p>\n The American group, Europe’s No. 2 in fragrances, has just published the enviable performance of its latest fiscal year,<\/strong><\/b> ending last June.<\/p>\n <\/p>\n Unlike other<\/strong><\/b> beautygiants<\/strong><\/b>, such as compatriot Est\u00e9e Lauder (<\/strong><\/b>which has just announced declining 2023-2024 results and the departure of its CEO) and France’s L’Or\u00e9al<\/strong><\/b>, the world’s No.1, Coty was not adversely affected by the difficulties of the Chinese market.<\/p>\n <\/p>\n As Laurent Mercier, the Group’s CFO, told Afp<\/strong><\/b>, Coty<\/strong><\/b> generates only 3% to 4% of its sales in the Middle Kingdom<\/strong><\/b>…<\/p>\n <\/p>\n <\/p>\n Laurent Mercier also described this final 2023\/2024 financial year as \u201ca very fine year\u201d.<\/strong><\/b><\/p>\n\n <\/p>\n More concretely, Coty’s net sales<\/strong><\/b> rose by 10% on a reported basis (+11% on a like-for-like basis),<\/strong><\/b> to $6.1 billion (\u20ac5.5 billion), better than analysts’ estimates. Coty also argues that this \u201ccorresponds to the upper end\u201d of its own \u201cforecast range<\/strong><\/b>\u201d and that it \u201coutperformed the global beauty market, which grew by around 9%.\u201d<\/strong><\/b><\/p>\n <\/p>\n Net profit, however, fell to $76.2 million<\/strong><\/b> (\u20ac69 million), 6.5 times less than before<\/strong><\/b>! In addition to an accounting effect linked to the fall in the Group’s shares, Coty was hit by an unfavorable basis for comparison<\/strong><\/b>. Last year, the sale of the Lacoste license<\/strong><\/b> to its competitor Interparfums and the sale of its shares in the Wella group<\/strong><\/b> had had a positive and short-lived impact on profits.<\/p>\n <\/p>\n <\/p>\n However, Laurent Mercier pointed out to Afp that this impact of the Lacoste license had been offset, in terms of sales, by other activities<\/strong><\/b> \u201cnotably in the Prestige section, where Burberry Goddess was Coty’s biggest success in the history of the group<\/strong><\/b> in terms of fragrance launches\u201d.<\/p>\n <\/p>\n In more detail, sales growth was driven bythe Prestige division (+14% like-for-like)<\/strong><\/b>, and, to a lesser extent, by the Consumer division (+6%).<\/strong><\/b> Both were driven by \u201cgrowth in fragrances, cosmetics and skincare\u201d.<\/strong><\/b><\/p>\n <\/p>\n Geographically, all regions performed well<\/strong><\/b>, with high single- and double-digit sales growth for the full 2023-24 financial year.<\/p>\n <\/p>\n Driven by \u201cmany European markets, African markets and the Travel Retail channel\u201d, EMEA <\/strong><\/b>sales growth was 11% on a reported and comparable basis <\/strong><\/b>for the full year. However, growth slowed to 1% on a reported basis and 5% on a comparable basis in the fourth quarter<\/strong><\/b>.<\/p>\n <\/p>\n <\/p>\n Driven by Latin America, Canada and the Travel Retail channel, the Americas<\/strong><\/b> grew by 10% as reported (12% on a comparable basis)<\/strong><\/b>. However, they changed tempo (+3% reported and +8% like-for-like) in the fourth quarter.<\/strong><\/b><\/p>\n <\/p>\n Lastly, net sales in Asia-Pacific<\/strong><\/b>, boosted by double-digit growth in Asia excluding China and by the regional retail channel, rose by 9% as reported (+11% on a comparable basis)<\/strong><\/b> over the full 2023-24 financial year. In the fourth quarter<\/strong><\/b>, however, net sales fell by 4% as reported and 2% on a comparable basis<\/strong><\/b>.<\/p>\n <\/p>\n After this good year, Coty is relatively cautious<\/strong><\/b> for the next. Indeed, the group is expecting like-for-like sales growth of 6-8% in fiscal 2024-25,<\/strong><\/b> slightly less than the 11% in 2023-24.<\/p>\n <\/p>\n \u201cWe are confident in our ability to deliver another year of growth<\/strong><\/b> in line with our medium-term objectives,\u201d said Coty CEO Sue Nabi.<\/strong><\/b><\/p>\n <\/p>\n“A very good year<\/h2>\n
Historic launch for Burberry Goddess<\/h2>\n
More difficult fourth quarter<\/h2>\n
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