Coty has announced its results for the fourth quarter and fiscal year ended June 30, 2019. Revenue was down 8 percent to US$8,648.5 million over the year, mainly due to a poor performance from the consumer segment, which saw revenues drop 17.1 percent on a reported basis.
The US beauty behemoth’s loss widened during the final quarter, affected by the company’s US$3 billion writedown in value of its consumer brands, announced in July together with its turnaround plan.
“2019 is the beginning of a new phase in Coty’s journey, but I am pleased to start delivering against the targets we shared with you in February, with FY19 adjusted EPS of $0.65, constant currency adjusted operating income of $992 million, and solid cash flow generation. We are now fully engaged in FY20. Our Turnaround Plan focuses on reshaping and simplifying our beauty business to generate fuel for growth and leverage the potential of our Consumer Beauty brands, while continuing to improve growth and margins in our Luxury and Professional Beauty divisions. Our plan will deliver gradually, but we expect dynamics to start changing as soon as this upcoming year, as reflected in our targets for FY20.”
The company has also announced that it has terminated its partnership with Younique by mutual agreement. Coty will sell its controlling stake in the direct sales firm to Younique’s Founders as soon as practicable.