Coty has reported operating losses of $77.4m in its fourth quarter 2022 results, despite seeing a double-digit revenue boost during the period.
The Kylie Cosmetics-owner said the losses were the result of a $31.4m in impairment charges, which was further exacerbated by $45.9m in costs related to the business’ exit of the Russian market.
Reported net revenues fared better, however, increasing by 10% to $1,168.3m compared with the same period last year, supported by prestige and consumer beauty sales.
“While the external environment became increasingly complex through the year, Coty proved resilient through operational excellence that enabled us to surpass our guidance and deliver double-digit sales and EBITDA growth,” said Sue Nabi, Coty's CEO.
“We have generated sales growth in both Q4 and FY22 that is well above the underlying beauty market and among the best in our competitive set.”
The beauty brand, whose portfolio also includes Burberry, Calvin Klein and Gucci, said prestige net revenues were US$662.8m, making up 57% of Coty sales and marking an increase of 16% on the prior year.
Fragrance sales were highlighted as a key performer, delivering another quarter of growth of 20% compared with the previous fourth quarter.
Consumer beauty net revenues were $505.5m in Q4, making up the final 43% of Coty’s overall sales during the period.
The category was boosted by a 7% growth across colour cosmetics, mass fragrances, body care and skin care sales.
"Today marks the end of another successful year at Coty as we continued to make significant progress strategically, operationally, and financially,” added Nabi.
She added that the company had also “demonstrated the sustainability of Coty's turnaround in the business” with eight consecutive quarters of results either in line with, or ahead of expectations.
