Coty’s quarterly profits up on demand for higher margin brands
Bengaluru — On Thursday, beauty products maker Coty reported a better-than-expected quarterly profit, gaining from strong demand for higher margin brands such as Younique and ghd.
Total sales in its consumer beauty business, which is its biggest by revenue, rose 2% on a constant currency basis.
In the past year, Coty has bought more than 40 brands from Procter & Gamble (P&G) as well as the personal care and beauty business of Brazil’s Hypermarcas to boost its consumer beauty business.
The company posted net loss of $19.7m, or 3c per share, in the first quarter ended September 30, compared with a break-even in the same quarter a year earlier, due to higher expenses related to the P&G deal.
Excluding items, it earned 10c per share, compared to analysts’ estimates of a profit of 7c per share.
Net sales more than doubled to $2.24bn, but was in line with analysts’ estimates, according to Thomson Reuters.