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Sep 30, 2021
Coty Q1 2022 Earnings Report
Achieved strong financial results and made progress across strategic growth pillars.
Key Takeaways
Coty Inc. reported a strong first quarter for fiscal year 2022, with revenues surpassing guidance, driven by growth in the Prestige business and e-commerce. Gross margins expanded, and cost reductions fueled reinvestment in marketing. The company raised its FY22 sales growth outlook to low to mid teens.
Revenues increased 22%, or 20.6% LFL, surpassing guidance.
Prestige business delivered superior 35% reported and 34% LFL growth.
Consumer Beauty revenues increased 4% as reported and 3% LFL.
Reported gross margins expanded 460 bps to 63.2%.
Coty
Coty
Coty Revenue by Segment
Coty Revenue by Geographic Location
Revenue by Segment
Prestige Revenue
CapyFin.comConsumer Beauty Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Coty raised its FY22 LFL sales outlook to low-to-mid teens percentage growth and expects FY22 adjusted EBITDA of $900 million at a minimum.
Positive Outlook
- Beauty market momentum continues, including strength in the U.S. and China.
- Strong rebound in Travel Retail.
- Steady improvement in Western Europe.
- Very strong performance of Coty's recent product launches.
- FY22 adjusted EPS in the $0.19-0.23 range is anticipated.
Challenges Ahead
- Inflation impact is expected to step up in the second half of FY22.
- Select component shortages.
- Supply chain bottlenecks.
- Inflationary pressure in materials.
- Inflationary pressure in freight.
Revenue & Expenses
Visualization of income flow from segment revenue to net income