Coty sales rise thanks to growth in fragrance

Coty has reported an increase in sales for the first quarter ending 30 September 2024, as the company  continues to execute its strategic growth pillars.

The owner of Rimmel London and Max Factor saw revenues rise 2% on a reported basis and 4.5% on a LFL basis, compared to the prior year, when revenues grew 18%.

Sales growth was supported by fragrance across all price points, including prestige, ultra premium and mass fragrances, but offset by the mass cosmetics market.

The overall prestige division lifted 5% on a reported basis, including a 2% negative impact from the divestiture of the Lacoste license, with net revenues up 7% on a LFL basis.

Meanwhile, the consumer beauty division saw revenues drop 3% on a reported basis, with LFL net revenues flat year-over-year. Growth in mass fragrance and mass skincare was offset by declines in bodycare and mass cosmetics.

By geography, EMEA revenues increased 8% on both a reported and LFL basis, driven by continued growth across nearly all markets and the travel retail channel.

Elsewhere, revenues declined 2% on a reported basis but grew 4% on a LFL basis in the Americas, while Asia Pacific revenues declined 5% on both a reported and LFL basis.

Sue Nabi, CEO of Coty, said: "As we enter FY25, the macroeconomic environment remains as complex as ever and the outsized growth of the last few years is now entering the normalisation phase. Nevertheless, one thing is very clear: consumers continue to prioritise beauty in their spending routines, even as they pull back on many other consumer segments. And within the broader beauty backdrop, fragrances remain a top performing category.

"As a beauty leader, Coty remains at the forefront of fuelling consumer desire and driving category growth through disruptive launches, new and improved formulations, and engaging activations and campaigns.

"We will continue to play the full range of our brands and categories to capture growth opportunities and support sustained outperformance. We continue to grow our footprint across growth engine markets, expand our product range and distribution across skincare, prestige cosmetics, mass fragrances and ultra premium fragrances, and capture share in growth channels like e-commerce and travel retail.

"As we strengthen our position as a global beauty powerhouse, acting with the agility of smaller brands but also creating the beauty trends of today and tomorrow, Coty remains one of the most compelling investment opportunity in our industry."