Coty Q4 2024 Earnings Report
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.
Coty
Coty
Coty Revenue by Segment
Coty 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.
- Potential negative impacts from geopolitical risks
Revenue & Expenses
Visualization of income flow from segment revenue to net income