Coty 1H25: revenue dips 1 percent as mass beauty slows in second quarter

THE WHAT? Coty has reported its results for the second quarter and first half of fiscal 2025. Net revenue dropped 3 percent on a reported basis in the three months to December 31, 2024, to US$1669.9 million.

THE DETAILS Meanwhile, in 1H25, Coty’s reported net revenue dipped 1 percent however, as Coty was keen to point out, across both periods, the company delivered strong gross and operating margin expansion, while continuing to invest behind its brands and execute across its strategic growth pillars.

THE WHY? Sue Nabi, Coty’s CEO, explains, “As we are now midway through our fiscal year, it is clear that FY25 is shaping up to be a pivotal year.

“On the one hand, the global beauty market continues to grow at a healthy pace, even if growth has moderated off of the elevated levels of the last few years, which benefited from more material pricing increases. And in this backdrop, fragrances of all price points continue to outperform most other beauty categories, which strongly benefits Coty’s business as fragrances account for over 60 percent of our revenues and an even bigger portion of our profits.

“On the other hand, the pressure in pockets of our business, namely in China, Travel Retail Asia, Australia and in Consumer Beauty US, impacted us even more significantly in Q2. And in our core markets, despite a seemingly strong holiday period, where beauty performed strongly and consumers engaged with the category, this did not translate into improved replenishment orders for Coty as retailers managed their inventory very tightly.”

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