- Coty Inc COTY reported fourth-quarter FY22 sales growth of 10% year-on-year to $1.17 billion, beating the analyst consensus of $1.14 billion.
- Like-For-Like (LFL) revenue increased 16% Y/Y, driven by a 23% increase in Prestige and a 7% increase in Consumer Beauty.
- Revenue in the Americas rose 14% Y/Y, EMEA increased 10%, and Asia-Pacific declined 2%.
- The gross margin expanded 140 basis points Y/Y to 61.8%, and the gross profit rose 12.6% to $722.1 million.
- The adjusted operating margin was 5.6%, and the adjusted operating income for the quarter was $65.1 million.
- Adjusted EBITDA of $132.4 million increased 4% Y/Y, resulting in an adjusted EBITDA margin of 11.3%, 70 basis points contraction versus 2Q21.
- Adjusted EPS was $(0.01), in line with the Street view.
- Cash from operating activities for twelve months totaled $726.6 million with a free cash flow of $552.5 million. The company held $263.8 million in cash and equivalents as of June 30, 2022.
- "While macro concerns continue to dominate headlines, it's important to remember that beauty is amongst the most resilient discretionary categories," said CEO Sue Y. Nabi.
- "With continued momentum in the fragrance category, Europe and global travel retail, and a strong pipeline of innovation, we expect FY23 to be a year of continued expansion, in-line with our medium-term growth targets," Nabi added.
- Outlook: Coty anticipates FY23 adjusted EPS growth in the mid-teens. The company expects adjusted EPS growth acceleration in FY24 and beyond, fueled by lower interest expenses.
- Price Action: COTY shares are trading higher by 7.17% at $7.92 on the last check Thursday.
- Photo Via Company
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