- Coty’s third-quarter net revenue for the Americas was $529.7 million, falling short of the $548.7 million estimate.
- Total net revenue came in at $1.30 billion.
- EMEA region’s net revenue was slightly below predictions, reaching $610.0 million compared to the $616 million estimate.
- APAC region exceeded expectations, reporting $159.4 million against a $145.1 million estimate.
- Prestige channel revenues were slightly lower than estimates, achieving $829.4 million versus the anticipated $836.9 million.
- Consumer beauty net revenue was $469.7 million, under the estimated $472.3 million.
- Gross margin was 64.1%, slightly below the projected 64.3%.
- Adjusted gross margin matched expectations at 64.3%.
- Adjusted EBITDA was $204.2 million, exceeding the $186.8 million estimate.
- A fixed cost savings program is expected to deliver approximately $500 million in savings between FY25 and FY27, with annual productivity savings projected at $120 million.
- The company anticipates continued expansion in gross margins to approximately 65% for FY25.
- FY25 free cash flow is expected to be around $300 million.
- EPS for FY25 is projected to be between $0.49-0.50, near the low end of the previous guidance range.
- Coty is strategically positioned to manage complex dynamics, supported by strengthened fundamentals over the past four years.
- Consumer Beauty is being recalibrated to respond to shifting trends between cosmetics and fragrances.
- The beauty category remains resilient across economic cycles due to its aspirational nature and consumer affordability.
- Pricing power combined with savings measures is expected to cushion the impact of announced tariffs.
- The market sentiment includes 10 buy ratings, 11 holds, and 2 sells for Coty.
A look at Coty Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Coty Inc. Cl A, a company known for manufacturing and distributing beauty products globally, demonstrates a strong outlook for value, growth, and momentum according to Smartkarma Smart Scores. With a high score in the value category and decent scores for growth and momentum, Coty Inc. appears well-positioned for long-term success in the beauty industry. Despite lower scores in dividend and resilience, the company’s robust performance in other areas signifies a promising future.
Additionally, Coty Inc. Cl A’s diverse product line, including fragrances, color cosmetics, hygiene, sun care, and skin treatment products, indicates its ability to cater to a wide range of customers through various retail channels worldwide. While challenges may exist in terms of dividends and resilience, the company’s strength in value, growth, and momentum suggests a positive long-term outlook for investors seeking potential opportunities in the beauty sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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