Coty Wraps Up Year with 3.7% Drop in Sales, Confirms Financial Losses

Coty confirms its decline. The U.S. cosmetics group has closed the year confirming the decline in business that has been dragging on since the beginning of the fiscal year. The company only recorded a positive business performance in the first quarter, after which it has been recording consecutive declines in sales until finally entering into losses at the end of the previous quarter.

At the close of the full year (ended June 30th) , the company confirmed this downward trend, after posting a 3.7% drop in sales for the fiscal year, to $5,893 million. Gross profit also fell slightly, to $3,821 million, although the margin increased by four tenths of a percentage point compared to the previous year, to 64.8%.

Since mid-April, Coty has been immersed in a restructuring plan aimed at optimizing resources, accelerating processes and strengthening margins. By 2027, the company expects to have saved up to 500 million dollars by making decisions such as staff reductions, reducing the number of launches and opening up new markets.The company expects to save up to $500 million by 2027, through decisions such as staff reductions, fewer launches and the opening of a production plant in the United States to manufacture part of its fragrances in the country and avoid paying tariffs.

Coty has reduced sales in the Americas by 8%, compared to the small growth in the European market

After making a loss in the third quarter, the company finally ended the full year in the red. Compared to the 89.4 million euros Coty earned in the previous year, it has now closed the year with losses amounting to 367.9 million euros.“ Coty is very well positioned to succeed, we are the only global fragrance company that addresses both the high-price and low-price segments,“ said group CEO Sue Nabi.

Despite the company’s optimism, which expects to return to growth in the second half of the new fiscal year, the drop in sales in its last full year was widespread. On the one hand, in its Prestige category, which accounts for 65% of turnover, Coty posted a 1% drop, to record sales of 3,820.2 million dollars, mainly due to the fall in skin care and make-up products, but not in fragrances. In Consumer Beauty, however, the drop was greater, 8%, to $2,072.7 million.

By markets, only Europe, Africa and the Middle East closed the year in positive territory, with a small rise in sales of 1% to 2,811.8 million dollars. This was not the case in the Americas, its main market, where Coty suffered a drop of 8% to $2,373 million, nor in Asia Pacific, with another 8% drop and sales of $708.1 million.