Beauty company Coty has reported a solid increase in revenues for the third quarter, driven by growth in all of its three regions.
The company’s net revenues for the three months ended March 31 rose 8 per cent to $1.385 billion, supported by growth in fragrances, color cosmetics, skin care and body care.
The results included increases of 8 per cent and 6 per cent from the Prestige and Consumer Beauty segments respectively, offset by a 2 per cent headwind from the divestiture of the Lacoste license.
By region, Americas net revenues increased 8 per cent to $589 million, accounting for 43 per cent of Coty sales. The performance was supported by strong growth in nearly all markets, especially in Latin America, Canada and the regional travel retail channel.
EMEA net revenues rose 7 per cent to $628 million, or 45 per cent of Coty sales. Asia Pacific net revenues were up 7 per cent to $168.6 million, or 12 per cent of overall sales, driven by strong growth in Asia excluding China.
On the bottom line, adjusted operating income rose 17 per cent to $143.9 million. Net income dropped to $43.8 million from $168.1 million in the prior year as profit expansion was more than offset by a $133 million reversal in the benefit from the equity swap mark-to-market.
Total debt increased slightly to $3.972 billion, resulting in a total debt to net income ratio of 16.5x.
Sue Nabi, Coty’s CEO, said the results exceeded expectations as the company worked to drive balanced portfolio growth.
“Coty’s global and multi-category presence is proving to be a key area of strength and differentiation, as subdued trends in a very few markets and subcategories, such as US mass cosmetics, are more than offset by continued strong momentum in the majority of our core business areas,” added Nabi.
