Coty : Third Quarter 2024 Q3 Investor Presentation
May 06, 2024 at 10:33 pm
Share
COTY 3Q24
EARNINGS CALL
May 6, 2024
1
3Q24 LFL GROWTH +10% AND FYTD LFL GROWTH +13%
CB +6% LFL PRESTIGE +13% LFL
LFL REVENUE +10% LFL IN Q3 AND +13% LFL FYTD,
AHEAD OF GUIDANCE
PRESTIGE LFL +13% IN Q3 AND +17% FYTD
37%
Q3
➢ STRONG LFL GROWTH ACROSS ALL CATEGORIES
➢ MOMENTUM ACROSS ACROSS ALL REGIONS, WITH
ESPECIALLY ROBUST GROWTH IN APAC, EMEA AND THE
GLOBAL TRAVEL RETAIL CHANNEL
REVENUE
MIX
63%
➢ MINOR IMPACT FROM PRIOR YEAR RETAILER RESTOCKING
WITH MORE SIGNIFICANT HEADWIND IN Q4
➢ RETAILER INVENTORIES IN KEY MARKETS AT HEALTHY LEVELS
CONSUMER BEAUTY LFL +6% IN Q3 AND +7% FYTD
LFL GROWTH ACROSS ALL CATEGORIES, PARTICULARLY IN MASS FRAGRANCES AND SKINCARE
MOMENTUM IN EUROPE, LATAM AND ASIA EX. CHINA
4
GROWTH ACROSS ALL REGIONS
APAC
+11% LFL
12%
AMERICAS
+11% LFL
Q3 43%
REVENUE
MIX
45%
EMEA
+9% LFL
AMERICAS LFL +11% IN Q3 AND +13% FYTD
DRIVEN BY VERY STRONG DOUBLE-DIGIT % GROWTH IN LATIN AMERICA, CANADA AND THE TRAVEL RETAIL CHANNEL
EMEA LFL +9% IN Q3 AND +12% FYTD SUPPORTED BY GROWTH ACROSS MOST MARKETS AND THE TRAVEL RETAIL CHANNEL
ASIA PACIFIC LFL +11% IN Q3 AND +16% FYTD
FUELED BY STRONG GROWTH ACROSS MOST MARKETS AND THE TRAVEL RETAIL CHANNEL. IN CHINA, PRESTIGE SALES GREW STRONGLY, WHILE CONSUMER BEAUTY SALES WERE LOWER
5
GROWTH FUELED BY BOTH VOLUMES AND PRICE & MIX
Q3FYTD
Volume
+ MSD % + LSD %
Price*
+ HSD % + HSD %
Mix & Other*
~ SLIGHTLY
+ LSD %
NEGATIVE
LSD - MSD % VOLUME GROWTH IN Q3 IN BOTH PRESTIGE & CONSUMER BEAUTY
TARGETED PRICING ACTIONS GOING FORWARD
SLIGHTLY NEGATIVE IMPACT FROM MIX AND OTHER IN Q3, WITH +LSD % BENEFIT FYTD
*Estimated
6
STRONG SERVICE LEVELS & EASING INFLATION
CONTINUED STRONG SERVICE LEVELS AT ~94% IN Q3
NEGLIGIBLE IMPACT FROM COGS INFLATION IN Q3 AND EXPECTED TO CONTINUE IN Q4
CURRENTLY SEE LIMITED RISK FROM RED SEA CONFLICT & BALTIMORE PORT CLOSURE
EXCESS & OBSOLESCENCE HEADWIND MODERATING IN 2H24 AND INTO FY25
8
CONFIRMED FY24 & FY25 SAVINGS TARGET
Q3 SAVINGS DELIVERED OF ~$25M, WITH FYTD TOTAL OF OVER $90M
CONFIRMING FY24 SAVINGS TARGET TO $110-120M
DRIVEN BY MATERIAL COSTS, DISTRIBUTION AND STRUCTURAL A&CP SAVINGS
INCREASED SAVINGS FUELING REINVESTMENT IN STRUCTURAL GROWTH CAPABILITIES AND TEAMS, PARTICULARLY DIGITAL, SKINCARE AND RETAIL
FY25 SAVINGS TARGET OF ~$75M REAFFIRMED
ROBUST Q3 GROSS MARGIN EXPANSION, WITH FY24 REAFFIRMED
ADJUSTED GROSS MARGIN
+190 bps YoY
+20 bps YoY
64.8%
64.2%
64.4%
62.9%
Q3
FYTD
FY23
FY24
GROSS MARGIN 190 BPS BETTER YOY IN Q3, DRIVEN BY:
BENEFIT FROM PREMIUMIZATION AND CARRY-OVERPRICING
SIGNIFICANTLY EASING INFLATION
SUPPLY CHAIN PRODUCTIVITY SAVINGS
EXPECT GROSS MARGIN EXPANSION IN Q4, SUPPORTING OUTLOOK FOR MODEST FY24 GROSS
MARGIN EXPANSION
10
Attachments
Original Link
Original Document
Permalink
Disclaimer
Coty Inc. published this content on
06 May 2024 and is solely responsible for the information contained therein. Distributed by
Public, unedited and unaltered, on
06 May 2024 21:32:20 UTC.
Founded in Paris in 1904, Coty Inc. is one of the world's largest beauty companies with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care. Net sales break down by family of products as follows:
- fragrances (59%): with the vast majority being prestige fragrances;
- color cosmetics (28%);
- bodycare and skincare products and other (13%).
Coty Inc. serves consumers around the world, selling prestige and mass market products in over 125 countries and territories.