Coty reports a loss in third quarter results

Coty reports a loss in third quarter results

Personal care giant Coty has reported a third quarter loss of $26.8 million, which is down from a net profit of $75.5million in 2015.

Meanwhile net revenues increased by 2 percent on a reported basis to $950.7million in the three months ending March 31, 2016. 

This decline came in part due to a fall in fragrances and skin and body care, while there was a like for like growth in the color cosmetics sector, driven by the company’s power brand Rimmel. Despite there being growth for the Marc Jacobs fragrance brand, others fell flat in terms of sales.

Bart Becht, Coty Chairman and Interim CEO, said, “Q3 revenues were consistent with our expectations for muted like-for-like trends through the end of the fiscal year, as we gradually rationalize non-strategic product lines and businesses. Power brands on the other hand continued to outperform the overall business both for the quarter and fiscal year-to-date. While Q3 adjusted operating income was down due to one-off items and fiscal year-to-date adjusted operating income is largely flat, we continue to target high single digit growth for the full year adjusted operating income at constant rates largely offset by negative FX impact.”

The company is looking to the financial benefits of the integration of the Bourjois business and acquisition of the Brazilian Beauty Business acquired from Hypermarcas.