05.06.24
Coty Inc. reported double-digit growth in Q3 2024 with sales exceeding expectations on prestige share gains.
Officials said the company's strong above-market sales growth, reported and adjusted operating income growth, and reported and adjusted gross and operating margin expansion in Q3 solidifies nearly four years of Coty reporting results in-line to ahead of expectations.
In Q3 2024, Coty's net revenues grew 8% on a reported basis and 10% on a LFL basis, with reported and LFL results supported by growth in fragrances, color cosmetics, skin care and body care. These results trended above the company's guidance of +6-8% LFL for the second half of FY24.
On a year-to-date basis, net revenues grew 13% on both a reported and LFL basis. In Q3 2024 and year-to-date, the company continued to deliver balanced reported net revenue growth, including growth in both prestige and consumer beauty, across all regions and in each of its core categories partially offset by a 2% headwind in Q3 from the divestiture of the Lacoste license. In Q3 and year-to-date, Coty said it delivered a healthy reported growth mix with low to mid-single-digit percentage volume growth and estimated high-single-digit percentage pricing contribution, with the estimated impact from mix & other slightly negative in Q3, but a positive low-single-digit contribution fiscal year-to-date.
In Q3 2024, prestige net revenues increased 8% on a reported basis and 13% on a LFL basis. On a year-to-date basis, prestige net revenues grew a strong 17% on both a reported and LFL basis. In Q3 2024 and year-to-date, reported net revenue growth in prestige remained strong in fragrances, cosmetics and skin care, but Q3 included a 4% negative impact from the divestiture of the Lacoste license and a 1% negative impact from FX.
Consumer beauty net revenues increased 6% on a reported and LFL basis. On a year-to-date basis, Consumer Beauty revenues increased 8% on a reported basis and 7% on a LFL basis. In Q3 2024 and year-to-date, consumer beauty's reported net revenues grew in color cosmetics, mass fragrances and mass skin and body care in most countries, offsetting the market weakness in US mass cosmetics.