Coty Inc. Revenue & Financials

Coty Inc. reported total revenue of $5.63 billion for the fiscal year 2024, representing a 4 percent year-over-year increase at constant currency, driven primarily by the 12 percent growth in the Prestige Cosmetics segment and the 6 percent expansion of the Prestige Fragrance division, which partially offset the 3 percent decline in the Consumer Beauty segment due to mass-market share loss. The Prestige Beauty division, the company’s primary growth engine, generated $4.17 billion in revenue, a 8 percent increase year-over-year, fueled by a 22 percent surge in influencer brand sales to $1.2 billion and a 5 percent increase in fragrance license revenue to $2.8 billion, which benefited from the recovery of the Asian travel retail channel in the second half of the fiscal year. The Consumer Beauty division contributed $1.46 billion in revenue, a 3 percent decline year-over-year, reflecting the ongoing impact of e.l.f. Beauty’s aggressive pricing strategies and the expansion of ULTA Beauty into the mass channel, which eroded CoverGirl’s market share in the US drugstore channel. Despite the top-line growth, Coty achieved a gross profit of $3.66 billion, representing a gross margin of 65 percent, an improvement of 180 basis points year-over-year, driven by the favorable product mix shift toward higher-margin prestige cosmetics and the realization of $120 million in manufacturing synergies following the consolidation of the European supply chain. Operating income reached $480 million, resulting in an operating margin of 8.5 percent, while net income attributable to shareholders was $45 million, or $0.02 per share, a 110 percent increase compared to FY2023, reflecting the company’s disciplined cost management and the $85 million gain on the sale of its remaining stake in the YouGov consumer insights business. Adjusted EBITDA, a critical metric for the company’s capital allocation strategy, totaled $750 million, a 14 percent increase year-over-year, providing the financial flexibility to pay down $1.2 billion of net debt, fund the $180 million marketing investment program, and allocate $320 million to research and development. The company’s balance sheet remains robust, with net debt standing at $4.8 billion at year-end 2024, representing a net debt-to-EBITDA ratio of 2.4x, well within the company’s target range of 2.0x to 3.0x. The effective tax rate for FY2024 was 18.5 percent, significantly below the statutory US rate of 21 percent, reflecting the benefit of the company’s global intellectual property structure and the utilization of foreign tax credits. Looking ahead to FY2025, management has issued guidance for constant currency revenue growth of 5 to 7 percent, driven by the anticipated launches of new fragrance licenses for Tiffany & Co. and the expansion of the Fenty Beauty skincare line, with adjusted EBITDA margin expected to expand to 14.5 percent as the company realizes the full benefit of its $150 million cost optimization program, which includes the consolidation of its global commercial headquarters in London and the outsourcing of 40 percent of its IT infrastructure to third-party providers.