Coty Inc has once again demonstrated robust financial health in the third quarter of fiscal 2024, with notable growth in both its Prestige and Consumer Beauty segments.

 The company’s Prestige segment, which accounts for 63 per cent  of its sales, reported a significant 13 per cent  increase in net revenues, totalling US$867.2 million. This growth is attributed to strong global demand and standout performance in regions such as APAC, EMEA, and the Travel Retail channel, despite a four per cent impact from the divestiture of the Lacoste license.

Coty’s Prestige fragrances saw accelerated growth across major markets including the US, Canada, Mexico, Germany, the UK, and Italy. The segment benefited greatly from both existing icons and new launches, with the Global Travel Retail channel showing over 20 per cent  revenue growth. Prestige cosmetics, led by brands like Burberry, Kylie, and Gucci, grew by over 25 per cent during the quarter.

On the other hand, the Consumer Beauty segment, representing 37 per cent of Coty sales, also showed a positive trajectory with a six per cent increase in net revenues to US$518.4 million. Growth was driven by mass fragrances, skin and body care, and colour cosmetics, with strong regional performances in Latin America and Canada. Notable brand performances included Rimmel, Bruno Banani, Bourjois, and CoverGirl, with the latter leveraging social media influencers effectively.

Despite challenges in the US mass cosmetics market, the Consumer Beauty segment managed to turn around its performance, improving its operating margin significantly from the previous year.

In addition to financial growth, Coty announced strategic developments including a new licensing agreement with the luxury Italian fashion house, Etro, to extend their collaboration beyond 2040. The company also celebrated the launch of Infiniment Coty Paris, a new ultra-premium fragrance brand that emphasises sustainability with its innovative use of 100 per cent  carbon-captured alcohol and artcycling packaging.

Commenting on the operating results, Sue Nabi, Coty’s CEO, said:

“Our Q3 results reinforce Coty’s established track record of delivering results ahead of the beauty market and ahead of expectations, and once again illustrate that we are executing on our imperative to drive balanced portfolio growth. In both Q3 and fiscal year-to-date, we delivered strong growth in both the Prestige and Consumer Beauty businesses, in each of our three regions, and in our core categories of fragrances, colour cosmetics, skin care and body care, all supported by a broad range of our leading brands.

“Our execution in our core businesses remains top notch. Building on our track record of leading fragrance launches in FY22 and FY23, we are elevating our leadership further with the blockbuster launch last fall of Burberry Goddess, which continues to grow and exceed all prior Coty benchmarks, and now in the spring the very successful launches of Marc Jacobs Daisy Wild and Cosmic Kylie Jenner, which are the #1 and #2 fragrance launches in the US calendar year-to-date, respectively.

“In our colour cosmetics business, first-to-market innovations like CoverGirl’s Simply Ageless Skin Perfector Essence and Rimmel’s Wonder’Bond mascara are resonating with consumers, while both brands are making strong strides in accelerating their advocacy across social media platforms. Both CoverGirl and Rimmel now rank in the Top 4 in terms of earned media value in their core markets of US and UK, respectively, which is a significant improvement from last year.”

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