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Jun 30, 2024
Coty Q4 2024 Earnings Report
Coty's Q4 2024 results reflected growth in net revenue and adjusted operating income, driven by strong performance in Consumer Beauty and prestige fragrances.
Key Takeaways
Coty's Q4 2024 net revenues grew by 1% on a reported basis and 5% on a LFL basis. The reported sales growth was supported by growth in both prestige and mass fragrances, prestige cosmetics and mass skin & body care, partially offset by a 2% FX headwind and a 2% negative impact from the divestiture of the Lacoste license. Adjusted operating income increased by 3% year-over-year.
Net revenues grew 1% on a reported basis and 5% on a LFL basis.
Prestige net revenues were flattish on a reported basis and increased 6% on a LFL basis.
Consumer Beauty net revenues increased 2% on a reported basis and 4% on a LFL basis.
Reported gross margin increased 130 basis points year-over-year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Coty expects FY25 financial results to be consistent with its medium-term algorithm, with LFL revenue growth of 6-8% and adjusted EPS growth of 15-20%.
Positive Outlook
- Beauty demand in mature markets to expand in the mid-single-digits.
- Prestige fragrance growth above mid-single digits.
- Mass beauty growth below mid-single digits.
- Strong e-commerce momentum.
- Double-digit percentage revenue growth in growth engine markets and in the high growth travel retail channel.
Challenges Ahead
- Low-single-digit percentage headwind from FX.
- 1% scope headwind in 1H25 from the divestiture of the Lacoste license.
- Elevated launch-related comparisons in Q1.
- Close management of cash and inventory by retailers is contributing to some fluctuation in Coty's estimated cash flow in 1H25.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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