Beauty giant Coty Inc. reported net revenues of USD 5.55 billion for fiscal 2023, up 5 percent, on the back of a strong fourth quarter, which saw revenues in Asia Pacific surge by more than 30 percent.
The New York-based Coty said total revenues for the fourth quarter ending June 30 increased 16 percent to USD 1.35 billion.
Beating prior estimates of an increase of 12 percent to 15 percent, like-for-like (LFL) quarterly revenue increased 17 percent, driven by a 21 percent LFL increase in prestige, and a 10 percent LFL increase in consumer beauty.
Overall, prestige net revenues of were up 21 percent to USD 799.6 million, while total consumer beauty net revenues grew 9 percent to USD 552 million.
Asia Pacific net revenues for the quarter reached USD 189.5 million, representing 14 percent of Coty sales, up 34 percent as reported, and 40 percent LFL. The region’s strong performance was driven by strong LFL growth in both prestige and consumer beauty. In prestige, performance was supported by double-digit growth in key markets, with robust growth in China, Hainan and Japan.
In consumer beauty, growth was driven by Australia and New Zealand, China and Japan. For the full year 2023, Asia-Pacific net revenue increased 7 percent to USD 705.9 million, and 13 percent LFL.
“Today’s FY23 results mark the third consecutive year that Coty has delivered strong financial, operational and strategic performance, and the twelfth consecutive quarter of results inline to ahead of expectations. We are incredibly proud of the focus and agility that we see across the whole Coty organization as we continue to amplify our strengths, adjust to evolving market conditions, and capture new opportunities, all of which has enabled us to deliver results which are again amongst the best in our competitive set,” said Sue Nabi, CEO of Coty.
“In the midst of on-going macroeconomic uncertainty, beauty demand remains resilient across our key categories and geographies, with no signs of tradedown, while the ‘fragrance index’ we have been discussing for over a year shows no sign of slowing. In fact, the beauty category continues to be a standout in key markets like the U.S., as the only category amongst all CPG and general merchandise categories to grow volumes in the last six months, speaking to the beauty industry’s ability to meet consumers’ emotional needs.”
The company clocked net income of USD 29.6 million in the fourth quarter, improved from a net loss of $286 million in the prior year. Annually, net income grew to USD 495 million, compared to net income of $55.5 million in the prior year.
Looking ahead, Coty said it expects its core business to grow at the top of its medium term target range of 6-8 percent LFL for FY24.
Coinciding with the earnings update, Marc Jacobs International said it has signed an expanded long-term license agreement with Coty, that will bring Marc Jacobs Beauty into its iconic portfolio.
Coty inc. has long held the license for Marc Jacobs fragrances, with the new deal bringing back Marc Jacobs cosmetics to the beauty arena.