Coty CEO Sue Nabi.

Beauty giant Coty has reported double-digit growth in FY24, with its global travel retail business, which accounts for 9% of the company’s sales, generating robust trends in all three regions (Americas, EMEA and Asia Pacific), fuelling reported net revenue growth of roughly 20% for the channel.

From an overall perspective, the company’s results for the full fiscal year 2024 and the fourth quarter (ended June 30, 2024) are ahead of or in-line with expectations.

Coty’s total net revenues grew 10% (to reach $6,118m) on a reported and 11% on a like-for-like (LFL) basis, which is at the upper end of Coty’s FY24 guidance range of +9% to +11% LFL, and ahead of the global beauty market which grew approximately 9%, says the company.

Coty delivered balanced reported net revenue growth, including growth in both prestige and consumer beauty, across all regions and in each of its core categories.

Source: Coty. Results for the full fiscal year 2024 and the fourth quarter, ended June 30, 2024.

Highlights include prestige net revenues lifting by 13% on a reported and 14% on a LFL basis over the FY24 reporting period. Reported net revenue growth in prestige was fuelled by growth in fragrances, cosmetics and skincare.

Consumer beauty revenues increased 6% on both a reported basis and LFL basis, with growth in colour cosmetics, mass fragrances and mass skin and bodycare.

All regions generated high-single-digit to double-digit percentage reported net revenue growth.

Source: Coty. Results for the full fiscal year 2024 and the fourth quarter, ended June 30, 2024.

“Our FY24 results set a new milestone in Coty’s sustained track record of top-notch execution and market outperformance,” said Sue Nabi, Coty’s CEO.

“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.

“This is what fuels the strong global beauty growth that we continue to see to this day and which we expect to continue for the quarters and years to come.”

Nabi continued: “At Coty, having transformed our organisation and strategic path several years ago, we are now performing as a beauty leader and more and more as a beauty trendsetter, which we believe is an opening for a new era for Coty as a beauty powerhouse.

“Importantly, a key element of this outperformance has been our unwavering strong investment into our marketing, regardless of the macroeconomic volatility, because we believe that this is what will create value for our brands for the long term.”

Source: Coty. Results for the full fiscal year 2024 and the fourth quarter, ended June 30, 2024.

Looking at the outlook for FY25, Coty expects to continue to benefit from beauty market growth and strength in prestige fragrances.

It’s hoped that this will pave the way for growth across its core categories, backed by a strong innovation pipeline and sustained progress in key white spaces.

The company anticipates beauty demand in mature markets to expand in the mid-single-digits. At the same time, Coty is targeting double-digit percentage revenue growth in its growth engine markets as well as in the ‘high-growth’ travel retail channel, which together account for over 30% of the company’s business.

Source: Coty. Results for the full fiscal year 2024 and the fourth quarter, ended June 30, 2024.

Ultimately, Coty expects its core business to grow in-line with its medium-term target range of 6-8% LFL both in FY25 and in 1H25, with LFL growth in Q1 of approximately 6% due to ‘elevated launch-related comparisons in Q1 of last year when LFL revenues grew 18%’.

“Looking to FY25, we expect our financial results to be consistent with our medium-term algorithm, with our FY25 outlook further reinforced by our white space opportunities, our robust commercial plans, and the strength of our innovation pipeline, including Burberry Goddess Intense, Chloe Signature Intense, Gucci Flora Gorgeous Orchid, Lancaster Golden Lift, CoverGirl Eye Enhancer 3D Mascara and adidas Vibes, the first mass fragrance line designed and scientifically proven to enhance one’s mood,” commented Nabi.

“In sum, we are confident in delivering another year of growth in line with our medium-term targets, steady margin expansion, cash flow improvement and deleveraging progress.”

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