Cosmetics firm Coty has performed better in the fourth quarter than analysts had expected. It revealed a nice profit, which is much better than the loss it had to endure in the same time frame last year.
Turnover dropped 2 %
Analysts had expected a 999 million dollar (900 million euro) turnover, but Coty exceeded that with a 1.02 billion dollar (915 million euro) turnover. Despite the fact that it managed to slightly outperform expectations, it still suffered a 2.1 % turnover drop. However, it is the first time in 5 quarters Coty managed to beat expectations.
Its profits were also higher than expected: it generated a 21 million dollar (19 million euro) net profit, which boils down to 5 cents per share. Excluding items, it managed 8 cents per share, while analysts had predicted 7 cents. Only last year, it suffered a 316.9 million dollar loss, because of an asset impairment charge.
Its cosmetics turnover grew 13 % over the last quarter, while its perfume sales dropped 10 %, which means that cosmetics were Coty's largest division for the first time ever. Much of that is thanks to the 43 brands acquisition from its competitor Procter & Gamble. It may have paid 12 billion dollars (11 billion euro), but has gained brands like Wella and Clairol. Once the deal is finalized, its size will double instantly, which it hopes will help to take strides in new, emerging markets.