Coty beats expectations with Q4 revenue up 80.7 percent LFL

Coty beats expectations with Q4 revenue up 80.7 percent LFL

THE WHAT? Coty says it is on the road to recovery, announcing another quarter of improvement in its financial results for the fourth quarter of fiscal year 2021. Indeed, the US beauty behemoth ended the year with revenues of US$4.63 billion, above the high-end of its guidance range (US$4.5-4.6 billion).

THE DETAILS Net revenues rose 80.7 percent like-for-like in the final quarter of the financial year to US$1,062.4 million, showing a strong improvement across all regions despite continuing COVID-related restrictions in certain markets. For FY21, net revenues were down 3.5 percent like-for-like.

Reported operating income for the three months to June 30, 2021 stood at US$1.8 million, while the FY21 reported operating loss stood at US$48.6 million. FY21 adjusted EBITDA exceeded Coty’s guidance of US$750, hitting US$760.4 million, up from US$174.6 million in FY20.

In terms of regions, all areas returned to growth in the final quarter, with the US and China standout markets. Indeed, the Americas saw revenues rise 68.9 percent in 4Q21 versus the prior year period, spurred on by prestige brand sales in particular. EMEA net revenues increased 123.4 percent yoy and triple digit prestige growth in China sent Asia net revenues up 70 percent yoy.  

Prestige brand sales more than doubled in Q4, with nearly all luxury labels up double- to triple-digits. Mass beauty revenues also increased, up 37.9 percent LFL in Q4, with growth across every region.

THE WHY? Sue Y. Nabi, Coty’s CEO, said, “Today marks the completion of transformational year for Coty, as we advance on our journey in strengthening Coty’s position as a global beauty powerhouse. Over the last 12 months, we have built a leadership team of beauty and transformation experts, unveiled and began executing on our multi-year strategy, completed the divestiture Wella, significantly improved our leverage profile, and over-delivered on our savings, revenue, and profit objectives.

“We have ended the year on a high note, with Q4 sales nearly doubling YoY. Sales in the Americas expanded in FY21, and we saw particular strength in the U.S. and China. This a true testament not only to the strength of our prestige brand portfolio, but also to our innovation capabilities, with Marc Jacobs Perfect the best performing U.S. fragrance launch in the industry over the last 3 years, Gucci Guilty Pour Homme and Burberry Her driving market share gains for the beauty brands, and Chloe Atelier des Fleurs solidifying its position as a leading ultra premium artisanal fragrance collection.”