Tue, Aug 20, 8:42 PM (147 days ago)
Coty Inc. reported a strong fiscal year ending June 30, 2024, with net revenues rising to $6,118 million, a 10% increase from $5,554 million in 2023. The growth was driven by a 6% increase in Consumer Beauty and a 13% rise in Prestige segments. However, net income attributable to Coty Inc. dropped to $89.4 million from $508.2 million due to losses on forward repurchase contracts and reduced unrealized gains from equity investments. Operating income remained stable at $546.7 million, reflecting a slight decrease in operating margin to 8.9%. The company continued its strategic transformation, focusing on digital advocacy and expanding its skincare portfolio, while also managing supply chain improvements. Coty's financial condition remains robust, with total assets of $12,082 million and total debt of $3,913 million. The company is actively working on deleveraging its balance sheet and has suspended dividends since April 2020 to preserve cash. Risks include inflationary pressures, geopolitical tensions, and evolving consumer preferences, particularly in the Chinese market. The future outlook anticipates mid to high single-digit revenue growth for fiscal 2025.