Coty: second quarter down 3% to 1.52 billion dollars

In the second quarter of its 2022/23 financial year ending on December 31 last, the American beauty group Coty saw its sales fall by 3% to 1.52 billion dollars (1.42 billion euros), a fall largely attributed to the strength of the dollar, since on a like-for-like basis sales rose by 4%. Over the period, the Ebitda of Coty, whose portfolio includes the Gucci and Burberry beauty licences, reached 317.6 million dollars, up by 2%. Over the first six months, Coty recorded a turnover of 2.91 billion dollars, down 1%, and up 6% on a comparable basis. Ebitda was 625.5 million dollars, up 6%.

In the second quarter, the prestige division (Gucci, Burberry and Hugo Boss) saw its sales fall by 5% to 957.7 million dollars, impacted by the effects of exchange rates and the shortage of certain perfume components, a major segment for Coty.

However, on a comparable basis, the division, which represents 63% of Coty’s sales, grew slightly by 3%. For the period, the operating profit of Coty’s prestige division amounted to 164.4 million euros, compared to 141.6 million euros for the same period a year earlier. Last December Coty renewed the Hugo Boss licence until 2035. The group then indicated that its six most important licences, including Burberry and Gucci, which together account for 80% of sales in its prestige perfume segment, all run for an average of about ten years. This statement comes amid growing speculation that Kering will take over Gucci’s beauty licence internally. 

With CoverGirl, Rimmel, Max Factor and Adidas, Coty’s beauty division saw its sales reach 565.9 million dollars, down 1% in the second quarter of the year. On a comparable basis, the increase was 6%, while its operating profit reached 49.4 million dollars against 43.3 million for the same period a year earlier. 

In terms of geographical regions, the Americas, which account for 41% of Coty’s sales, reached 624.3 million dollars, up 6%, while Europe, the Middle East and Asia recorded a 10% drop in sales to 713.5 million dollars, heavily impacted by negative exchange rates, while the Asia Pacific region, still constrained by Covid related restrictions in China, saw its sales fall by 5% to 185.8 million dollars.