Coty Q3 revenues rise with growth across prestige and consumer beauty divisions

Coty has reported a 9% increase in net revenue to £953 million ($1.2 billion) for the third quarter ending 31 March 2023, driven by accelerating demand for prestige fragrances, retailer restocking and various company initiatives. 

Revenues grew across the Americas and EMEA regions on a reported basis. EMEA sales were up 7%, reflecting "strong increases" in both prestige and consumer beauty across most markets, as well as regional travel retail.

The prestige beauty division saw revenues rose 10% to £635 million ($799.7 million), boosted by growth in the prestige fragrance category across North America and Europe.

The consumer beauty division reported revenues up 6% to £388 million ($489.2 million), helped by colour cosmetics, bodycare and skincare. The division also saw double-digit revenue growth across CoverGirl, Rimmel, Max Factor, Monange and Paixao.

The group's net income totalled £83 million ($105.1 million), compared to £39 million ($49.6 million) in the prior year.

Looking ahead, Coty now expects full-year revenue between 9%-10%. This reflects an increase from the company's previous outlook of 6%-8%.

Sue Y. Nabi, CEO of Coty, said: "We are once again proud to report strong operational and financial performance, with today’s Q3 results marking the eleventh consecutive quarter of results in-line to ahead of expectations.

"We are delivering on our balanced growth agenda, with strong growth across both divisions and all regions, with growth contribution from volume, price and mix, and from our key categories including fragrances, cosmetics, and bodycare.

"In a complex global environment, beauty remains an advantaged category with consumers, at the sweet spot of affordable luxury, self-care, and confidence boosting. This dynamic reinforces our confidence in global beauty consumption outperforming in a variety of macroeconomic scenarios, with Coty well placed to succeed, supported by our positions as a leader in fragrances and cosmetics, and significant untapped potential in skincare.

"Nine months into FY23, we are continuing to deliver sales growth amongst the best in our peer set, strong profit growth and operating margin expansion. I am excited by the many initiatives planned for the coming quarters and years, as we continue on our journey to transform Coty into a true beauty powerhouse."

The trading update follows Coty's partnership with  3D social platform Spatial to develop an internal metaverse for its 11,000 global employees. Launching this autumn, the Coty Campus hopes to upskill the company's global workforce and "empower future innovation" for its broad portfolio of brands.