Beauty products manufacturer Coty has reported a better-than-expected Q2 with shares on the rise thanks to its P&G beauty acquisitions starting to pay off.
The company stock rose nearly 9 percent in pre-market trading, prompting it to upgrade its full-year sales forecast to ‘modest’ growth having previously predicted it to be flat.
With organic net sales up 2.8 percent in the three months to the end December, it is thought that Coty is finally turning around the $11.6bn of P&G brands acquired in 2016, with Younique and Burberry contributing to the net revenues of $2.6bn.
The luxury division continued to prove its nettle, contributing 29 percent to the company’s adjusted operating income, with even the trouble-hit consumer division posting positive gains of a 10 percent revenues rise.
Camillo Pane, Chief Executive, says, “Fiscal 2018 continues to be a year of stabilization and this is what our results have shown so far. While I am pleased with our performance, there is still much work to be done before we achieve the consistency that we seek as we still need to relaunch many brands, deliver our synergies and continue with our integration of the P&G Beauty business.”