Coty is riding a wave of maximum publicity after re-establishing itself as a beauty powerhouse and media worldwide are closely tracking its progress. Recently, Retail Beauty reported that the multinational was seeking a dual listing in Paris to expand its already considerable presence in Europe.
Coty’s Q3 results confirmed the company continues to exceed targets well ahead of expectations. Net revenues increased 9 per cent to US$1.288 billion to take nine month sales to US$4.202 billion.
Prestige fragrance and beauty was the backbone of revenues, accounting for 62 per cent of sales to US$799.7 million – a rise of 10 per cent and 16 per cent like-for like.
The Consumer Beauty division, including benchmark brands Covergirl, Rimmel London and Max Factor, delivered 38 per cent of sales to US$489.2 million – a double digit spike of 12 per cent.
Strong demand for prestige fragrances accelerated across all geographic regions, fueled by new launches such as Burberry Hero, Gucci Flora Gorgeous Jasmine and Gorgeous Gardenia, Boss Bottled Parfum and Chloe Atelier des Fleurs.
Coty’s new makeup launches were also a standout. Covergirl’s Clean Fresh Yummy Gloss became the #1 lip launch in the US during the Northern Hemisphere Spring and Sally Hansen boosted the artificial nail category with its Perfect Manicure Collection.
Travel retail was a key driver of Coty’s Q3 results with growth of 30 per cent in the sector, representing 8 per cent of total sales. An impressive feat when international travel is still 20 per cent below pre-Covid levels. “We saw double digit growth in nearly every market”, said Sue Y. Nabi, CEO of Coty. “Importantly, April sales in China, including Hainan, increased both versus last year and versus two years ago”.
Nabi underlined the fact that beauty remains an advantaged category with consumers – the sweet spot of affordable luxury, self care and confidence boosting.
“This dynamic reinforces our confidence in global beauty consumption outperforming in a variety of macroeconomic scenarios, with Coty well placed to succeed, supported by our positions as a leader in fragrances and cosmetics, and significant untapped potential in skincare, China and travel retail.
“Nine months into FY23, we are continuing to deliver sales growth amongst the best in our peer set, strong profit growth and operating margin expansion, and solid free flow cash flow. I am excited by the many initiatives planned for the coming quarters and years, as we continue on our journey to transform Coty into a true beauty powerhouse”, she noted.
Earlier this year, Coty renewed its license with Jil Sander to strengthen the existing relationship and pave the way for a new 10 year strategic partnership. The two companies have a shared history dating back to the 1980s and one of the major projects going forward will see the Jil Sander brand enter the ultra-premium sector for the first time.
In early May, the multinational also renewed its two decade-long license with Davidoff with plans to update and premiumise Cool Water – its longtime global blockbuster – and expand into new markets.
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