- Coty Inc COTY reported first-quarter FY22 sales growth of 22% year-on-year, to $1.37 billion, beating the analyst consensus of $1.36 billion.
- Like-For-Like (LFL) revenue increased 20.6% Y/Y, driven by a 33.6% increase in Prestige and a 3.0% increase in Consumer Beauty.
- Revenue in the Americas rose 23.6% Y/Y, EMEA increased 18.2%, and Asia-Pacific grew 32.5%.
- The gross margin expanded 460 basis points Y/Y to 63.2%, and the gross profit rose 31.5% to $866.9 million.
- The adjusted operating margin expanded 700 basis points to 14.6%, and the adjusted operating income for the quarter was $200.5 million.
- Adjusted EBITDA of $278.5 million increased 67% Y/Y, resulting in an adjusted EBITDA margin of 20.3%, 550 basis points improvement versus 1Q21.
- Adjusted EPS of $0.08 beat the analyst consensus of $0.03.
- Cash from operating activities totaled $285.7 million with a free cash flow of $240.7 million. The company held $422.4 million in cash and equivalents as of September 30, 2021.
- "While inflation impact is expected to step up in the second half of FY22, we believe the impact is quite manageable, particularly as we double-down on accretive innovations and premiumizing our portfolio," said CEO Sue Y. Nabi.
- Outlook: Coty raised its FY22 Like For Like sales outlook to low-to-mid teens percentage growth, up from its previous guidance of low teens growth.
- The company expects FY22 adjusted EBITDA of $900 million at a minimum on a constant currency basis.
- Coty anticipates FY22 adjusted EPS of $0.19-$0.23 against the consensus of $0.20.
- Price Action: COTY shares are trading higher by 8.93% at $10.12 in premarket on the last check Monday.
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