Coty reveals strong growth driven by prestige and consumer beauty

Coty has released its financial results for the second quarter of the fiscal year 2022, highlighting the company's continued strong delivery across its strategic growth pillars.

In Q2, ending 31 December 2021, Coty reported net revenues of £1.2 billion ($1.5 billion), up by 12% year-over-year.

This revenue was driven by "solid growth" across both prestige and consumer beauty, following a strong sales growth in Q1 with launches including Gucci Flora, Gorgeous Gardenia, Burberry Hero and the relaunch of the full Kylie Cosmetics range.

Prestige fragrance sales continued to grow at a double-digit pace in Q2, with nearly all brands contributing, particularly Gucci, Burberry, Chloe and Hugo Boss.

The early success of Coty's strategy to develop its consumer beauty business is supported by the growth of its market share on a global basis for the first time in 5 years. This was underpinned by market share gains across Cover Girl, Rimmel, Sally Hansen and Max Factor, due to new brand equities, communications and product launches resonating with consumers.

Sue Y. Nabi, CEO at Coty, said: "During the quarter, we continued to execute on our strategic growth pillars, allowing us to deliver sales, profit and leverage results inline or ahead of guidance for the sixth consecutive quarter.

"Trends within our prestige fragrance portfolio remained strong, with double digit sell-out growth and strategic launches like Gucci Flora and Burberry Hero already on track to become global icons. At the same time, the success of Gucci makeup and continued expansion of Kylie cosmetics are further cementing Coty's position within prestige cosmetics.

"Meanwhile, Q2 was a busy quarter in relation to our skincare ambitions, as we announced the license of the Orveda brand and the launch of CoverGirl skincare. Our short term and medium-term ambitions remain fully on track, as we continue to transform Coty into a true global beauty powerhouse."