Prestige performance was supported by double-digit growth in key markets, particularly strong in China, Hainan, and Japan. In the Consumer Beauty segment, growth was driven by Australia and New Zealand, China, and Japan.
Yesterday, on August 22nd, Coty Inc. (NYSE: COTY) announced its financial results for the fourth quarter of fiscal year 2023, which ended on June 30, 2023.
In the fourth quarter, the company reported a net revenue of $129 million, with adjusted net revenue growth of 61% to reach $105.1 million. For the entire fiscal year 2023, reported net revenue more than doubled to $543.7 million, with adjusted net revenue increasing by 20% to $738.8 million.
Coty’s sales growth was primarily driven by the sustained development momentum of its two divisions and strong global demand for beauty products across different categories, regions, and channels.
In terms of divisions, the Prestige segment reported net revenue of $799.6 million in the fourth quarter, accounting for 59% of Coty’s sales and representing a 21% growth compared to the previous year according to reported data. On a like-for-like (LFL) basis, Prestige net revenue achieved a robust growth of 21%, driven by strong double-digit growth in almost all markets, particularly in the Asia-Pacific region, travel retail, and Europe. For the fiscal year 2023, Prestige net revenue reached $3.4205 billion, with a 5% growth on a reported basis and a 13% core LFL growth.
In the fourth quarter, the high-end fragrance category continued its strong growth in North America and Europe, with almost all major markets achieving double-digit growth. Coty’s Prestige fragrance revenues grew by over 20% in the fourth quarter, maintaining its growth momentum driven by strong demand and continued premiumization. The global travel retail trend was particularly strong in all regions, with LFL growth exceeding 30% in the fourth quarter and fiscal year 2023, supported by the ongoing recovery of international travel and Coty’s channel expansion.
Notably, Coty’s recent innovations such as Burberry Hero and Her, Gucci Flora Gorgeous Jasmine and Gorgeous Gardenia, Boss Bottled Parfum, and Chloe Atelier des Fleurs continued to perform strongly in the fiscal year 2023, positioning the company among the top performers in key markets. High-end cosmetics also experienced 25% growth in the fourth quarter, driven by the reopening of China and effective activations for Burberry and Gucci. The high-end skincare brands Lancaster and Philosophy achieved over 10% growth in the fourth quarter after successful launches.
In the Consumer Beauty segment, net revenue for the fourth quarter of 2023 was $552 million, accounting for 41% of Coty’s sales and increasing by 9% compared to the same period last year. On a core LFL basis, Consumer Beauty net revenue grew by 10%, with strong growth across all categories. Importantly, all regions achieved LFL growth in the quarter, with particularly strong momentum in Brazil and Latin America. For the fiscal year 2023, Consumer Beauty sales reached $2.1336 billion, with a 5% growth on a reported basis and an 11% core LFL growth.
In the fourth quarter, cosmetics, body care, and mass-market fragrance revenues achieved high single-digit to double-digit growth. Most of Coty’s major brands demonstrated strong performance in both the fourth quarter and fiscal year 2023, with double-digit LFL revenue growth for Rimmel, Bourjois, Risque, Monange, Bozzano, and Paixao. This was primarily driven by impactful innovations and strong pricing execution in all markets.
Geographically, in the fourth quarter of 2023, the Americas region reported net revenue of $567.9 million, accounting for 42% of Coty’s sales and growing by 11% according to reported data. The Europe, Middle East, and Africa (EMEA) region achieved net revenue of $594.2 million, representing 44% of Coty’s sales and growing by 15% reported and 13% LFL. In the Asia-Pacific region, net revenue reached $189.5 million, accounting for 14% of Coty’s sales and growing by 34% reported and 40% LFL in the fourth quarter. This performance was driven by strong LFL growth in both the Prestige and Consumer Beauty segments. Prestige performance was supported by double-digit growth in key markets, particularly strong in China, Hainan, and Japan. In the Consumer Beauty segment, growth was driven by Australia and New Zealand, China, and Japan. For the fiscal year 2023, net revenue in the Asia-Pacific region reached $705.9 million, with reported growth of 7% and LFL growth of 13%.
Coty stated that the investor conference held in Paris on July 6th led to a significant increase in its revenue growth guidance for the fourth quarter of fiscal year 2023.
