Coty sees sales up 18% and calls off Wella sale

American-French beauty multinational Coty has reported revenue of $1.64bn up by 18% on a like-for-like basis for the first quarter of its fiscal year 2024, marking its 13th​ consecutive quarter of growth.

The company also announced that it no longer planned to sell a stake of hair care company Wella.

Ahead of its earnings call today, Coty’s CFO Laurent Mercier said: “Specific to Wella, in light of Coty’s strong free cash flow trajectory in the first half fiscal 24, our successful Paris dual listing, and given misalignment on final deal terms, Coty and the counterparties have decided to end the partial sale of our Wella stake.”

Prestige fragrance is boosting sales

The business said revenues for its Prestige portfolio grew by 22% on a like-for-like basis, which CEO Sue Nabi said: “was fuelled by outperformance in volumes coupled with pricing and mix”.

There was continued momentum in fragrance demand, with fragrance sales up by 25% on a like-for-like basis.

New scent Burberry Goddess Eau de Parfum – which features British-French actress Emma McKay in the ad campaign – has been the number one female fragrance launch in six of Coty’s key markets and has also helped to aid sales of other scents such as Burberry’s Hero and Her.

Along with Burberry Goddess, Coty also gave a special mention to the Gucci Flora and Burberry Her franchises, which have all reached the US’ top 10 female fragrances in the for the first time in the company’s history.

In terms of skin care, the philosophy and Lancaster brands both grew at double digits in Q1, as well as in the past six months.

Source link

About The Author

Scroll to Top