Coty this week released its preliminary results for the first fiscal quarter of 2024. The US group reported sales growth of between 4% and 5% on a like-for-like basis (LFL), despite a strong base of comparison to the previous year, when growth reached 6%.
Coty faces challenges in key revenue markets such as the US, Australia, China and retail in Asia. In these territories, sales to retailers have remained below expectations due to tight order and inventory management by distributors. However, Coty has experienced solid growth in other key markets, with mid-single to double-digit sales growth.
The US group expects moderate growth in the second quarter. However, the company expects growth to accelerate in the second half of the year, supported by easier comparisons, product launches in both divisions and selective distribution expansion. Coty reaffirms its goal of achieving 9% to 11% adjusted EBITDA growth by FY2025, reflecting continued margin expansion and further cost savings. The company also maintains its goal of reducing its financial leverage to around 2.5 times by the end of 2024.
The beauty and fragrance company will release its final first quarter results on 6 November 2024, along with a live call with financial analysts on 7 November to discuss these results.