Coty raises guidance and praises performance

Coty has increased its guidance for the fourth quarter and full-year as it remains "well positioned" to capitalise on continued growth across most categories and markets.

The group expects fourth quarter revenue to increase between 12-15% on a like-for-like basis, up from its previous outlook of 10% growth. This reflects "strong" momentum in the prestige division and recovery in China.

For the full year, Coty has raised its guidance to 10-11% against its previous outlook of 9-10%. It also anticipates adjusted EBITDA of £755-759 million  ($965-970 million), ahead of its previous outlook of £747-755 million ($955-965 million).

The move reflects the group's "success in whitespace categories and geographies, delivering on its strategic pillars, providing insights on the company’s near-term pipeline of innovations, and on its sustainability agenda".

Looking ahead, Coty said it will also continue to focus on its digital strategy, including high potential initiatives in social media driven categories, further Gen Z driven initiatives, and the next phase of the group's digitalisation in China.

Sue Nabi, CEO of Coty, said: "I am incredibly proud to showcase our differentiated business model of an innovative prestige as well as rejuvenated, focused and increasingly strong consumer beauty portfolio, global reach in developed and emerging countries, strategically located centres of R&D excellence, award-winning IP, and leading end-to-end capabilities.

"By combining our robust operational and financial performance and diverse team of beauty experts, we are accelerating our position as a global leader in fragrances and cosmetics.

"Together, we are realising significant untapped potential in areas such as ultra-premium skincare, ultra premium scenting, China, Brazil, and Travel Retail. Uniting our beauty heritage, rooted in Paris, with cutting edge innovation and science, we will continue to create long-term value for our stakeholders.”