Beauty products company Coty has upgraded its first-half and full-year sales guidance for FY24 after witnessing strong market demand, particularly in prestige fragrances.

The company has raised its core like-for-like (LFL) sales growth forecast for the first half of FY24 from 10 per cent to 12 per cent from the previous estimates of 8 per cent to 10 per cent.

For FY24, Coty has raised the annual core LFL sales growth forecast to 8 per cent to 10 per cent from the previous outlook to be at the top end of 6 per cent to 8 per cent.

Coty noted that the rollout of its new fragrance Burberry Goddess in August set new market records and that two of its fragrance innovations are among the top five fall fragrances. Three of the company’s fragrance lines have joined the US top 10.

“The success of Burberry Goddess across key markets confirms that Coty is the go-to destination to create top quality winning fragrances and execute unique and disruptive campaigns,” said Sue Nabi, CEO at Coty.

“Having spent the past three years strengthening Coty’s fundamentals and elevating Coty’s organizational capabilities across our categories, we enter the next phase of growth with best-in-class innovation and marketing power.”

The company has upgraded its adjusted EBITDA forecast to about $1.08 billion to $1.09 billion from the prior estimated range of $1.07 billion to $1.08 billion. It continues to target modest gross margin expansion.

In FY23, Coty saw net revenues of $5.55 billion, net income of $495.0 million, and adjusted EBITDA of $972.8 million.