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Jun 30, 2021
Coty Q4 2021 Earnings Report
Coty's financial performance improved significantly, with topline and profit exceeding expectations.
Key Takeaways
Coty Inc. reported a strong recovery in Q4 2021, with revenues increasing by 89.6% and demonstrating progress across its strategic plan. The company exceeded its FY21 revenue guidance and anticipates low teens sales growth in FY22.
Q4 net revenues increased by 89.6% as reported and 80.7% LFL.
Reported operating income was $1.8 million, a significant improvement from the prior year.
Adjusted EBITDA increased significantly to $127.3 million.
Cost reductions totaled approximately $70 million in the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Coty expects 1Q22 LFL sales growth in the high teens percentage and is targeting FY22 LFL sales growth in the low teens coupled with adjusted EBITDA of ~$900 million on a constant currency basis.
Positive Outlook
- Strong fragrance demand across the U.S. and China.
- Early signs of recovery in Europe and Travel Retail.
- Improving cosmetics trends.
- Strong launch calendar.
- Very strong double digit growth in July and August to date.
Challenges Ahead
- Base year comparisons getting more difficult in subsequent quarters.
- Some uncertainty in market conditions due to the Delta variant of COVID.
- Potential impact of COVID-19 on market conditions.
- Uncertainty related to the future
Historical Earnings Impact
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Avg. Return Before/After Earnings
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