Coty Inc. has reported strong financial results for the full fiscal year 2024, demonstrating double-digit growth and outpacing the global beauty market. In FY24, total net revenues grew 10% on a reported basis and 11% on a like-for-like (LFL) basis, exceeding the company's guidance range and the industry growth rate. The company achieved balanced revenue growth across both prestige and consumer beauty segments, with all regions and core categories contributing to this performance.
Prestige net revenues grew a robust 13% on a reported basis and 14% on an LFL basis in FY24, driven by growth in fragrances, cosmetics, and skincare. Coty's largest prestige fragrance brands experienced mid-single-digit to double-digit percentage growth, with standout success from the launch of Burberry Goddess, which became the number one female fragrance innovation in certain key markets.
Consumer beauty revenues increased by 6% on both a reported and LFL basis in FY24, with growth in color cosmetics, mass fragrances, and mass skin & body care. The segment also saw significant e-commerce sales growth of approximately 30% during the fiscal year, contributing to the division's overall performance.
The company's reported and adjusted gross margin expanded by 50 basis points year-over-year to 64.4% in FY24, driven by supply chain savings and pricing actions. However, reported operating income for FY24 increased by 1% year-over-year, with a reported operating margin of 8.9%. Adjusted operating income grew 17% to $863.4 million, supported by strong margin expansion and operating leverage on fixed costs.
Coty's e-commerce channel reported net revenues grew by over 20% in FY24, contributing to an increase in e-commerce penetration of approximately 170 basis points year-over-year to nearly 20%. The company also maintained momentum in growth engine markets and high growth channels, with robust reported net revenue growth in global travel retail and growth engine markets.
Sue Nabi, Coty's CEO, emphasized the company's top-notch execution and market outperformance in FY24, highlighting four key achievements, including sustained outperformance relative to the beauty market, expertise in core categories, advocacy-led consumer engagement, and consistent double-digit growth in sales and adjusted EPS.
Overall, Coty's strong financial performance in FY24 reflects its strategic execution and market leadership, positioning the company as a beauty powerhouse with a focus on sustained growth and brand value creation.
The market has reacted to these announcements by moving the company's shares -0.2% to a price of $9.53. If you want to know more, read the company's complete 8-K report here.
