Coty Inc. (COTY) announced its financial results for the fourth quarter and fiscal year ending June 30, 2024, revealing a mixed performance. While the company experienced strong growth in key segments, it missed analyst expectations on both earnings and revenue.
For the quarter, Coty reported a loss of 3 cents per share, falling short of the anticipated earnings of 4 cents per share. Quarterly sales reached $1.36 billion, slightly below the analyst consensus estimate of $1.38 billion. Looking at the full fiscal year, Coty reported earnings of 37 cents per share, missing the analyst consensus estimate of 44 cents by 15.91%. Fiscal-year sales of $6.12 billion also fell short of the consensus estimate.
Despite these misses, Coty highlighted positive growth in its core business segments. Prestige net revenues, encompassing fragrances, cosmetics, and skincare, increased by 13% in fiscal year 2024. Consumer Beauty revenues, including color cosmetics, mass fragrances, and mass skin and body care, grew by 6% for the year.
Coty’s CEO, Sue Nabi, expressed confidence in the company’s performance and outlook: “Our FY24 results set a new milestone in Coty’s sustained track record of top-notch execution and market outperformance. In a dynamic macroeconomic backdrop, beauty maintains its privileged position, being neither a consumer goods industry nor a luxury goods industry. Instead, beauty is at the sweet-spot of desire, well-being, self-confidence, affordability, ritual, indulgence, and many new things that we and our consumers will invent.”
Looking ahead, Coty anticipates significant growth. The company expects free cash flow to reach a range of $400 million to $450 million for fiscal year 2025. Furthermore, Coty forecasts earnings per share to fall between 54 cents and 57 cents, surpassing the current analyst estimate of 44 cents.
In after-hours trading, Coty shares rose slightly by 0.21%, reaching $9.55 at the time of publication.
