Coty reports double digit growth in sales and profits in Q4 2023

Coty reports double digit growth in sales and profits in Q4 2023

THE WHAT? Coty has announced its results for the fourth quarter of fiscal 2023. The US beauty behemoth saw LFL sales increase 17 percent, ahead of its recently raised guidance of 12 to 15 percent. Adjusted EBITDA  soared 25 percent to US$165.4 million.

THE DETAILS That strong finish contributed to FY sales growth of 5 percent, including a 2 percent negative impact from the Russia business exit and core LFL sales growth of 12 percent.

By segment, the prestige business led during the final quarter with LFL sales growth of 21 percent versus the prior year. Consumer beauty saw LFL revenue rise 10 percent. Geographically, Coty said that all regions contributed to growth.

THE WHY? Sue Y. Nabi, Coty’s CEO, said, “In the midst of on-going macroeconomic uncertainty, beauty demand remains resilient across our key categories and geographies, with no signs of tradedown, while the ‘fragrance index’ we have been discussing for over a year shows no sign of slowing. In fact, the beauty category continues to be a standout in key markets like the U.S., as the only category amongst all CPG and general merchandise categories to grow volumes in the last six months, speaking to the beauty industry’s ability to meet consumers’ emotional needs.