THE WHAT? Coty has reported its results for the second quarter of the current financial year. The US beauty behemoth saw sales drop 16 percent (18 percent LFL) in the three months to December 31, 2020 versus the same period last year. This was, however, 1 percentage point ahead of its Q1 performance, leading Coty to hail its performance as ‘continued improvement’.
THE DETAILS Reported adjusted operating income hit US$188.4 million, up 7 percent versus the prior year period.
Prestige and E-commerce were highlights, Coty said, with online sales up 40 percent, while the prestige business saw LFL trends improve by 9 percentage points sequentially, despite the continuing woes of the travel retail channel.
THE WHY? Sue Y. Nabi, Coty’s CEO, explains, “Our strong second quarter results build on the momentum of the first quarter, as the entire organization continued to act with discipline, flexibility and creativity in an uncertain environment. With revenues delivering on our objectives and profit, cash flow and debt all ahead of expectations, including 6 percent EBITDA growth, it is clear that a much stronger Coty is emerging, which we believe will weather any near-term market headwinds while simultaneously positioned strongly to capture the opportunities of the eventual global recovery. Entering Q3, January trends are starting inline with our expectations.”