Fragrance demand sees Coty’s sales ‘exceed expectations’
Coty, the owner of Rimmel and Kylie Cosmetics, has reported "above-market sales growth" with net revenues up by 10% on a like-for-like basis to £1.1 billion ($1.4 billion) during the third quarter of 2024.
For the third quarter, ending 31 March, net revenues grew by 13% year-on-year. These results exceeded the company's expectations of 6-8% growth for the second half of FY24.
Growth was reported across both the company’s prestige and consumer beauty divisions across all regions. The prestige division skyrocketed by 13%, accounting for 63% (£690 million/ $867 million) of sales during the quarter.
Speaking to the appeal of fragrances and the wide set of consumers, Prestige fragrances in particular fuelled growth. New launches including Kylie Jenner’s Cosmic and Marc Jacobs’ Daisy Wild helped this sector to grow by 12%.
Sue Nabi, Coty's CEO, said: "Our Q3 results reinforce Coty's established track record of delivering results ahead of the beauty market and ahead of expectations, and once again illustrate that we are executing on our imperative to drive balanced portfolio growth.
"Our execution in our core businesses remains top-notch... We are also complementing our core business momentum by unlocking white space opportunities.
"Our growth is further reinforced by our strong e-commerce momentum with our online sales expanding approximately 20% in both Q3 and fiscal year-to-date and now accounting for one-fifth of our business. I am particularly proud of our market share expansion in this critical channel, with share gains in both Prestige and Consumer Beauty.
"As we continue to reinforce our position as a beauty powerhouse, in our 120th anniversary year, we remain excited by the many opportunities ahead."
Today, news also broke that Coty secured a licensing deal with fashion brand LeGer. Germany’s Next Top Model winner Gercke founded the fashion label in 2017, and it has since expanded into furniture and home accessories. However, the new fragrance, reportedly launching in the summer, will be the brand's first foray into beauty.
