NYSE$COTY
Coty Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Reported strong results across all metrics, demonstrating significant momentum into the next quarter.
Coty's Q2 2022 results demonstrated strong financial improvement and delivery across its strategic growth pillars, with sales increasing 12% as reported and LFL. The company experienced significant gross margin expansion and cost reductions, allowing for profit growth and reinvestment in media. Coty is raising its FY22 adjusted EPS guidance to $0.22-0.26.
- Net revenues increased 12% on a reported and LFL basis, driven by solid growth in both Prestige and Consumer Beauty.
- Reported operating income was $244.0 million.
- Adjusted EBITDA increased 10%, with an adjusted EBITDA margin of 19.8%.
- Adjusted EPS of $0.17, improved from $0.13 last year, including a 2 cent discrete tax benefit in the quarter.
Headline financials
Revenue & EPS history
Coty · Revenue · Quarterly
$1.58B
Revenue by segment
Coty · $1.58B total across 2 segments · Q2 2022
- Prestige$1.01B—63.9%
- Consumer Beauty$570M—36.1%
Forward guidance
Coty expects FY22 LFL sales growth to be at the upper end of its guidance range of low-to-mid teens percentage growth. The Company continues to expect FY22 adjusted EBITDA of $900 million at a minimum, on a constant currency basis, and raises its FY22 adjusted EPS guidance to $0.22-0.26.
Tailwinds
- FY22 LFL sales will be at the upper end of its guidance range of low-to-mid teens percentage growth.
- FY22 adjusted EBITDA of $900 million at a minimum, on a constant currency basis.
- FY22 adjusted EPS guidance to $0.22-0.26.
- Target leverage of approximately 4x exiting CY22.
- Target leverage of approximately 2x exiting CY25.
Headwinds
- A headwind of 3-4% to its reported sales in 2H22 is expected based on current FX rates.
- The impact of inflation is anticipated to increase in the second half of FY22.
- FX benefits in 1H22 are expected to be offset by FX headwinds in 2H22.
- Global supply chain challenges.
- Inflationary pressures.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2022
+0.2%
Avg return
Earnings day
+0.1%
Avg return
5 days after
+1.8%
Avg return
30 days after
44%
23 / 52 earnings
Positive
+36.8%
Q2 2019
Best reaction
-25.8%
Q1 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | +3.9% | -9.4% | -23.4% | |
| Q2 2026 | -14.5% | -19.7% | -24.8% | |
| Q1 2026 | -0.8% | -5.6% | -8.7% | |
| Q3 2025 | -11.6% | -3.1% | -2.9% | |
| Q2 2025 | -9.3% | -17.6% | -19.8% | |
| Q1 2025 | -3.8% | -2.4% | +0.9% | |
| Q4 2024 | +6.1% | +4.3% | -1.7% | |
| Q3 2024 | -4.3% | -3.7% | -12.8% | |
| Q2 2024 | -3.2% | -3.6% | +3.7% | |
| Q1 2024 | +1.8% | -0.6% | +18.4% | |
| Q4 2023 | +2.6% | +0.5% | +11.9% | |
| Q3 2023 | -3.7% | -7.3% | -2.6% | |
| Q2 2023 | -0.2% | +7.9% | +3.6% | |
| Q1 2023 | -5.2% | +11.2% | +14.9% | |
| Q4 2022 | +7.4% | +5.7% | -0.1% | |
| Q3 2022 | -13.3% | -9.6% | -1.1% | |
| Q2 2022 | +12.2% | +8.6% | -5.6% | |
| Q1 2022 | +16.4% | +16.4% | +10.5% | |
| Q4 2021 | +15.6% | +18.7% | -2.7% | |
| Q3 2021 | -10.9% | -13.4% | -14.9% | |
| Q2 2021 | -17.3% | -14.6% | +11.5% | |
| Q1 2021 | +33.2% | +38.6% | +132.0% | |
| Q4 2020 | -3.6% | -6.8% | -29.9% | |
| Q3 2020 | -16.7% | -36.7% | -0.8% | |
| Q2 2020 | +13.6% | +12.5% | -19.2% | |
| Q1 2020 | +13.4% | +8.4% | +3.6% | |
| Q4 2019 | +6.2% | +8.5% | +19.7% | |
| Q3 2019 | -5.6% | -4.2% | +10.4% | |
| Q2 2019 | +36.8% | +58.2% | +55.8% | |
| Q1 2019 | -25.8% | -22.6% | -32.9% | |
| Q4 2018 | -5.5% | -3.4% | +4.9% | |
| Q3 2018 | -8.8% | -11.0% | -12.6% | |
| Q2 2018 | +13.6% | +17.6% | +11.0% | |
| Q1 2018 | +10.5% | +14.8% | +20.5% | |
| Q4 2017 | -14.4% | -16.1% | -18.2% | |
| Q3 2017 | +9.9% | +7.5% | +5.1% | |
| Q2 2017 | -8.8% | -3.8% | -4.7% | |
| Q1 2017 | -15.3% | -16.7% | -12.5% | |
| Q4 2016 | -6.9% | -3.6% | -18.2% | |
| Q3 2016 | -12.2% | — | — | |
| Q2 2016 | +14.0% | — | — | |
| Q1 2016 | -4.8% | — | — | |
| Q4 2015 | +3.1% | — | — | |
| Q3 2015 | -1.4% | — | — | |
| Q2 2015 | +15.6% | — | — | |
| Q1 2015 | +6.6% | — | — | |
| Q4 2012 | -4.6% | — | — | |
| Q4 2014 | -4.6% | — | — | |
| Q3 2014 | +3.4% | — | — | |
| Q2 2014 | +3.4% | — | — | |
| Q1 2014 | -2.7% | — | — | |
| Q4 2013 | +0.8% | — | — | |
| Q3 2013 | — | — | — | |
| Q2 2013 | — | — | — | |
| Q1 2013 | — | — | — | |
| Q3 2012 | — | — | — | |
| Q2 2012 | — | — | — | |
| Q1 2012 | — | — | — | |
| Q4 2011 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro