Coty has posted a bag of mixed results for the first half of FY25 as a decline in cosmetics sales more than offset growth in fragrance.

The company saw a 1 per cent decrease in reported net revenue for the six months ended December 31. This included a 2 per cent negative impact from foreign exchange and a 1 per cent headwind from the divestiture of the Lacoste license. 

Like-for-like revenue grew 2 per cent, compared to previous guidance of a 3-4 per cent growth. The company said the increase was supported by growth in fragrances and skin care, partially offset by declines in cosmetics and body care. 

The prestige segment saw a 2 per cent uplift in net revenue and 4 per cent growth in like-for-like sales thanks to solid growth in the underlying fragrance category and Coty’s brands’ performance partially offset by lower cosmetics sales.

The consumer beauty segment’s revenue was down 6 per cent on a reported basis and 2 per cent on like-for-like basis due to falling demand for body care and mass color cosmetics.

By region, sales fell 5 per cent in the Americas and 8 per cent in Apac, but rose 4 per cent in EMEA.

On the bottom line, operating income was up 17 per cent while net income dropped 43 per cent.

“The global beauty market continues to grow at a healthy pace, even if growth has moderated off of the elevated levels of the last few years, which benefited from more material pricing increases,” commented Sue Nabi, Coty’s CEO.

“On the other hand, the pressure in pockets of our business … namely in China, Travel Retail Asia, Australia and in Consumer Beauty US, impacted us even more significantly in Q2,” she added.