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Coty raises FY outlook on strong Q3

By Huw Hughes

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Business

Image: Coty, Facebook

Coty has upped its full-year outlook after reporting robust sales and profit growth in the third quarter.

The beauty and cosmetics giant reported sales of 1.29 billion dollars in the three months ended March 31, which was “well ahead of expectations”, and was 9 percent higher than the same period a year earlier.

The increase also came despite a negative foreign exchange (FX) impact and a hit from the company’s exit from Russia.

Like-for-like revenue, meanwhile, increased by 15 percent, driven by a 16 percent increase in Prestige and a 12 percent increase in Consumer Beauty.

Profits widen as Coty explores dual listing

The company’s Q3 net profit more than doubled to 105.1 million dollars from 49.6 million dollars the prior year.

Chief executive officer Sue Y. Nabi told investors: “We are once again proud to report strong operational and financial performance, with today’s Q3 results marking the eleventh consecutive quarter of results in-line to ahead of expectations.

“We are delivering on our balanced growth agenda, with strong LFL growth across both divisions and all regions, with growth contribution from volume, price and mix, and from our key categories including fragrances, cosmetics, and bodycare.”

Coty now expects FY23 revenue for the core business, adjusted for the impact of its Russia exit, to grow by between 9 percent and 10 percent on a LFL basis, compared to its original estimate of between 6 percent and 8 percent.

The company expects FY23 adjusted EPS growth of between 38 cents and 39 cents, up from its previous guidance of between 35 cents and 36 cents.

The financial update comes on the heels of Coty announcing it is exploring a dual listing on the Paris Stock Exchange (PAR) as it looks to strengthen its presence in the European market. The company is currently already listed on the New York Stock Exchange (NYSE).

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