Coty has raised its full year’s guidance thanks to a "strong” demand for brands in its Prestige Beauty Division and by “diversifying geographically”.
The beauty giant now expects 10% to 11% like-for-like sales gains for Fiscal Year 2023 compared to its previous outlook of 9% to 10%.
This excludes the impact of its Russia exit, read the company statement.
The conglomerate has also adjusted its EBITDA outlook to US$965m to $970m, previously it was $955m to $965m.
This is the third time Coty has increased its FY23 guidance this year.
The group’s Q4 FY23 revenue guidance has also been upped to 12% to 15% like-for-like sales growth for the three months ending 30 June.
“This is a true testament to the attractiveness of both the beauty industry and our strong execution,” said Coty CEO Sue Nabi.
“By combining our robust operational and financial performance and diverse team of beauty experts, we are accelerating our position as a global leader in fragrances and cosmetics.
“Together, we are realising significant untapped potential in areas such as ultra-premium skin care, ultra-premium scenting, China, Brazil and travel retail.”
The company said the growth was a result of driving forward the “premiumisation” of its portfolio.
Coty’s Prestige Beauty Division, which includes brands Gucci, Chloé and Marc Jacobs, now accounts for 62% of company sales, compared to 38% for its Consumer Beauty Division.
“Fiscal year to date, through the third quarter, prestige fragrances accounted for more than 50% of the mix,” explained Nabi.
“Max Cosmetics is the second largest category at 25% of the mix of the company.
“Skin care and prestige cosmetics are still fairly small, with each at the low-to-mid single-digit percentages of the mix, and these are the areas we plan to meaningfully grow in the coming years.
“Body care and mass fragrances are each mid-to-high single-digits”
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Actively capturing white space opportunities has also been cited as a key driver behind its market share growth.
“We have also diversified geographically,” explained Nabi.
“North America is roughly one third of our revenues and Western Europe is less than 30%.
“We are still small in China, Asia-Pacific and Latin America, and, of course, see a lot of white space opportunity to grow meaningfully in each of these markets.
“This is particularly true in China, where currently it accounts for around 4% of our sales but represents an important percentage of the global beauty market.”
Going forward Coty said it will focus on its digital strategy, including “high potential initiatives” in social media, further Gen Z-driven schemes and digitalisation in China.
Coty unveiled its revised profit outlook for the year at its first-ever investor conference held in Paris, France.
During the event, the company spoke of how it is in an “exploratory phase” about a potential stock listing on the Euronext Paris exchange, in a bid to attract more investors in the European market and strengthen its presence in the region.
This would be in addition to its current listing on the New York Stock Exchange in the US, where the company is headquartered.
Earlier this year, Coty launched the world’s first globally distributed fragrance which is manufactured using 100% carbon-captured alcohol.
The company’s Gucci Where My Heart Beats perfume is manufactured using alcohol from 100% recycled carbon emissions.