Coty exceeds expectations

Coty exceeds expectations

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.

Questions or comments? Please feel free to contact the editors


Sephora launches smaller store formula

24/07/2017

Cosmetics manufacturer Sephora launched a smaller store formula in the United States. Up until now, it had focused on large stores, but has now turned its attention to smaller stores.

Brazilian takeover of The Body Shop confirmed

29/06/2017

L’Oréal has officially confirmed the sale of its British subsidiary The Body Shop to Brazilian Natura Cosméticos. The deal was signed this week, is estimated to be worth 1 billion euro and should be finalized before the end of the year.

AS Watson wants to acquire Holland & Barrett

22/06/2017

AS Watson, Kruidvat’s parent company, has entered negotiations to acquire Holland & Barrett. It is apparently willing to pay one billion pounds (1.15 billion euro).

Estée Lauder doubles Victoria Beckham product range

22/06/2017

Things are going very smoothly for Estée Lauder and Victoria Beckham. Their first two “limited collections” sold out instantly and that is why the former Spice Girl will create a third collection.

Brazilian competitor on the verge of The Body Shop acquisition

09/06/2017

French L’Oréal has entered exclusive negotiations with Brazilian Natura Cosméticos to sell store chain The Body Shop, in a deal that should be worth a billion euro.

Belgian online pharmacy Pharmasimple wants to conquer Europe

29/05/2017

Pharmasimple, an online pharmacy founded in Brussels seven years ago, experienced a 66.2 % turnover growth to 11.3 million euro in 2016. However, it has lofty ambitions, targeting a 100 million euro turnover in the next five years.

Back to top