Coty Inc. Reports 2% Revenue Growth, Net Income Surge to $90.7 Million in Q3 2024

Coty Inc. reported a notable increase in financial performance for the three months ended September 30, 2024, with net revenues reaching $1,671.5 million, a 2% rise from $1,641.4 million in the same period of 2023. This growth was primarily driven by a positive price and mix impact of 5%, despite a 1% decline in unit volume, particularly in the U.S. color cosmetics market. The Prestige segment saw revenues increase by 5% to $1,114.1 million, bolstered by strong sales from brands like Burberry and Chloe, while the Consumer Beauty segment experienced a 3% decline to $557.4 million.

Gross profit for the quarter was $1,094.6 million, up from $1,041.9 million year-over-year, reflecting a gross margin increase of approximately 200 basis points to 65.5%. Operating income also improved significantly, rising 20% to $237.8 million from $197.5 million in the prior year, with the operating margin increasing to 14.2%. The increase in operating income was attributed to lower costs of goods sold and a reduction in restructuring expenses.

Coty's net income for the quarter surged to $90.7 million, compared to $10.2 million in the same period last year, marking a substantial improvement. Net income attributable to Coty Inc. was $82.9 million, up from $1.6 million, while net income attributable to common stockholders was $79.6 million, reversing a loss of $(1.7) million. Earnings per share for the quarter were reported at $0.09.

The company’s total assets increased to $12,516.0 million as of September 30, 2024, up from $12,082.5 million at the end of June 2024. Total liabilities also rose to $8,042.9 million, leading to total stockholders’ equity of $4,231.9 million, an increase from $4,011.7 million.

Coty has been focusing on strategic priorities, including stabilizing its Consumer Beauty brands and expanding its Prestige fragrance and skincare portfolios. The company is also enhancing its digital capabilities and pursuing sustainability initiatives. Despite challenges in the Consumer Beauty segment, particularly in the U.S. and Brazil, Coty anticipates low to mid-single-digit revenue growth for fiscal year 2025, excluding foreign exchange impacts.

In terms of restructuring, Coty reported minimal costs of $0.7 million for the quarter, a significant decrease from $28.6 million in the same period last year. The company continues to manage its debt effectively, with total debt reported at $4,002.2 million as of September 30, 2024.