Cosmetics giant reports increase in like-for-like and as-reported net revenues
Cosmetics giant Coty has reported a 2% like-for-like and 1% as-reported increase in net revenues compared to the prior-year period for the third quarter ending 31 March 2014.
By segment, Fragrances grew 6%, supported by growth in four of Coty’s five fragrance power brands: Calvin Klein, Davidoff, Marc Jacobs and Playboy. Skin & Body Care increased 8%, while Color Cosmetics fell 6% as a result of pressure on the nail category in the US. Regionally, growth was driven by EMEA and Asia Pacific, partially offset by continued challenges in the overall US market, the company said. EMEA net revenues increased 8% in the quarter, supported by strong results in the UK, southern Europe, Eastern Europe, South Africa and the Middle East. Asia Pacific revenues grew 19%, with strong momentum in Australia and southeast Asia.
Growth was also strong in the emerging markets (15%), helped by Coty’s new joint ventures and subsidiaries in southeast Asia, South Africa and the Middle East.Going forward, the company said it expects the fiscal 2014 fourth quarter to be flat overall, in comparison with the strong Q4 it had in 2013. Therefore, Coty said it is targeting growth acceleration in the first half of fiscal year 2015.