UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-35964 COTY INC. (Exact name of registrant as specified in its charter) Delaware 13-3823358 (State or other jurisdiction of i ...

Financial Performance - Coty reported Q1 net revenues of $1,671.5 million, reflecting a 2% increase on a reported basis and a 4.5% increase on a like-for-like (LFL) basis[24]. - Reported operating income was $237.8 million, up 20% year-over-year, resulting in an operating margin of 14.2%[7]. - Adjusted net income increased to $128.1 million, a 73% rise year-over-year, with an adjusted net income margin of 7.7%[8]. - Total net revenues for the first quarter of fiscal 2025 were $1,671.5 million, representing a 2% increase compared to $1,641.4 million in the prior year[64]. - Adjusted operating income for the total company was $303.6 million, reflecting a 1% increase year-over-year[64]. - Adjusted EBITDA for the total company was $360.1 million, slightly down from $360.3 million in the previous year[65]. - Net income attributable to Coty Inc. was $82.9 million, significantly up from $1.6 million in the prior year, with a net income margin of 5.4%[69]. - Adjusted EBITDA for the twelve months ended September 30, 2024, reached $1,090.9 million, reflecting a significant increase in operational performance[88]. Segment Performance - The prestige fragrance segment saw a reported revenue increase of 5%, with LFL growth of 7%, driven by strong performance in the fragrance category[3]. - Consumer Beauty net revenues declined by 3% on a reported basis, with LFL revenues flat year-over-year, impacted by a 3% headwind from foreign exchange[4]. - Prestige segment net revenues reached $1,114.1 million, a 5% increase on a reported basis, with a 7% increase on a like-for-like basis[38]. - Consumer Beauty segment net revenues were $557.4 million, down 3% as reported, with flat performance on a like-for-like basis[41]. - The Consumer Beauty segment reported a significant decline in operating income, down 56% to $14.0 million from $32.0 million in the prior year[76]. Gross Margin and Operating Income - Gross margin expanded to 65.5%, an increase of 200 basis points year-over-year, supported by premiumization and pricing actions[6]. - 1Q25 reported gross margin improved by 200 basis points to 65.5%, driven by premiumization, pricing actions, and supply chain savings[31]. - The adjusted operating income margin for the total company was 18%[64]. - The adjusted operating income margin improved to 25.1% in Q3 2024, up from 24.4% in Q3 2023[75]. Cash Flow and Debt - FY25 free cash flow is anticipated to grow by a double-digit percentage YoY, targeting the low to mid $400 million range[27]. - Net cash provided by operating activities decreased to $67.4 million in Q3 2024, down from $186.2 million in Q3 2023[85]. - Total debt as of September 30, 2024, was $4,002.2 million, with financial net debt at $3,718.6 million after accounting for cash and cash equivalents[86]. - Cash and cash equivalents decreased to $283.6 million as of September 30, 2024, down from $300.8 million[96]. Strategic Initiatives - Coty aims for close to double-digit growth in adjusted EBITDA for FY25, supported by ongoing strategic initiatives and operational adaptations[20]. - The company launched its first Scientific Advisory Board to enhance R&D and innovation efforts[47]. - Coty Inc. reported a significant focus on strategic transformation to stabilize consumer beauty brands and enhance innovation, aiming for revenue growth and cost control[51]. - The company is exploring strategic transactions, including potential divestitures and acquisitions, to enhance its operational efficiency[52]. - Coty is investing in new product launches and rebranding efforts, particularly in its skincare and prestige cosmetics portfolios[52]. Market and Economic Conditions - The company continues to expand its footprint in growth engine markets, which accounted for approximately 21% of total sales in Q1, with strong LFL growth[15]. - Americas net revenues decreased 2% to $693.5 million, impacted by a 5% negative FX effect, but LFL revenues increased by 4%[45]. - Coty anticipates ongoing inflationary pressures and plans to implement pricing actions to mitigate increased costs[51]. - The company faces risks related to geopolitical uncertainties, including the impact of the war in Ukraine and conflicts in the Middle East on its operations[53]. Sustainability Efforts - Coty has made significant progress on its sustainability agenda, achieving a 65% reduction in Scope 3 air freight emissions compared to the 2019 baseline[16]. - The company is committed to sustainability initiatives and aims to establish itself as an industry leader in this area[51]. - Coty is addressing climate change concerns through the implementation of new technologies and processes[53].

Companies in the Zacks Cosmetics industry are facing challenges due to a tough consumer environment, with inflationary pressures causing consumers to become more selective in their spending habits. As a result, many beauty industry players are experiencing a decline in consumer demand. In addition, companies in the cosmetics sector are grappling with escalated production costs, further impacting their profitability and operational efficiency.Despite these challenges, companies like Coty Inc. (COTY) , Helen ...

Coty Inc. (COTY) , a major player in the global beauty industry, shared its preliminary results for the first quarter of fiscal 2025, reiterating its optimistic adjusted EBITDA growth forecast. The company is ramping up its cost-reduction efforts across all areas to enhance savings. The global beauty market has shown solid growth, yet the growth rates have dipped slightly. The prestige fragrance segment is thriving, driven by increases in both volume and pricing strategies. In contrast, the mass beauty cate ...

Coty, Inc. (COTY) is leveraging strong brand recognition and favorable conditions in the global beauty market to drive impressive growth. The company's strategic focus on core categories such as skincare, fragrances and cosmetics allowed it to meet evolving consumer preferences while expanding its e-commerce capabilities. Despite rising costs and currency fluctuations, Coty is committed to innovation and strategic partnerships, positioning itself for long-term success. Let's delve deeper. Coty's Strong Fina ...

Coty Inc. (COTY) capitalized on its strong brand presence in fragrances, cosmetics and skincare. It continue s to thrive in the booming global beauty market despite some headwinds. The focus on expanding its consumer beauty and fragrance segments, coupled with a commitment to innovation and sustainability, positions COTY to benefit from growing consumer demand. In a backdrop where the beauty sector is integral to personal well-being, Coty benefits from a resilient consumer base. Consumers are not only gravi ...

It has been about a month since the last earnings report for Coty (COTY) . Shares have lost about 8.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Coty due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. COTY's Q4 Loss Wider Than Estimates, Sales Increase Y/Y Cot ...

Coty Inc. (COTY) continues to benefit from robust growth in the global beauty market, driven by a strong brand presence and consumer demand for fragrances, cosmetics and skincare. With a focus on six growth pillars, including growing Consumer Beauty and fragrances, the company demonstrates a proactive approach to sustainable growth. Despite rising costs and currency fluctuations, Coty's commitment to innovation and strategic partnerships enhances its competitive position across the beauty market. These fund ...

Have you evaluated the performance of Coty's (COTY) international operations for the quarter ending June 2024? Given the extensive global presence of this beauty products company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth. In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For inves ...

Coty Inc. (COTY) posted drab fourth-quarter fiscal 2024 results, with the bottom line missing the Zacks Consensus Estimate and declining year over year. The top line missed the consensus mark but rose year over year. Looking forward to the fiscal 2025, management anticipates its financial results to align with medium-term growth expectations. White space opportunities, strong commercial strategies and a robust innovation pipeline support the outlook. Notable upcoming products include Chloe Signature Intense ...