NYSE$COTY
Coty Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Coty achieved strong sales and profit growth, exceeding expectations with double-digit growth in both divisions.
Coty Inc. reported strong Q4 FY23 results, with sales increasing 16% and profits growing significantly. The company's performance exceeded expectations and raised guidance, driven by momentum in both the Prestige and Consumer Beauty segments. Coty is well-positioned for future growth, with a focus on innovation, sustainability, and deleveraging.
- Q4 net revenues increased 16% as reported and 17% LFL, driven by strong double-digit LFL growth in both Prestige and Consumer Beauty.
- Reported operating income totaled $129.0 million in 4Q23.
- 4Q23 adjusted operating income increased 61% to $105.1 million from $65.1 million in the prior year.
- Financial Net Debt was $4.0 billion and Economic Net Debt totaled $3.0 billion at quarter end, resulting in financial leverage of approximately 4.1x.
Headline financials
Revenue & EPS history
Coty · Revenue · Quarterly
$1.35B
Revenue by segment
Coty · $1.35B total across 2 segments · Q4 2023
- Prestige$800M+20.6%59.2%
- Consumer Beauty$552M+9.2%40.8%
Forward guidance
Coty expects its core business to grow at the top of its medium-term target range of 6-8% LFL, with neutral to 2% benefit from FX and a 1-2% scope headwind from the Lacoste license divestiture. The company targets adjusted EBITDA margin expansion of 10-30bps and adjusted EPS of $0.44-0.47, excluding equity swap.
Tailwinds
- Beauty market remains a strong and outperforming category.
- Ongoing premiumization trends benefit Coty.
- Momentum across core categories.
- Strong innovation pipeline.
- Early wins in key white spaces.
Headwinds
- Reported FY24 revenues are expected to include neutral to 2% benefit from FX, primarily in first half of FY24.
- A 1-2% scope headwind from the divestiture of the Lacoste license, concentrated in the second half of FY24.
- Expects modest FY24 gross margin expansion year on year, with some negative phasing impacts in 1H24, followed by strong improvement in 2H24.
- The company continues to target further reduction in leverage toward ~3x exiting CY23, ~2.5x exiting CY24 and ~2x exiting CY25.
- Macroeconomic uncertainty.
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 Q4 2023
+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 | — | — | — |
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