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Published
May 12, 2015
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Coty, net income rose sharply in Q3

Published
May 12, 2015

For its third quarter ending on March 31, Coty recorded sales of 933.8 million dollars, down by 7% and impacted by a strong dollar. At constant exchange rates, growth was sluggish. However the American fragrance company’s net income reached 75.5 million dollars, as compared to a loss of 253.3 million dollars one year earlier. 


Mod Noir, the latest fragrance by Marc Jacobs - Foto: Coty


During the period, its fragrance division recorded sales of 431.3 million dollars, down 9% (-2% at constant exchange rates). Its cosmetics division, meanwhile, recorded 336.6 million dollars, down 2% (+6% at constant exchange rates), while its skin and body care division saw sales fall by 12 % (-2% at constant exchange rates) to 165.9 million dollars. Coty chairman Bart Becht stated that the brands that saw bright spots were Sally Hansen, Rimmel, Chloe, Marc Jacobs and Philosophy.

The Americas region recorded sales up 3% at 394.8 million dollars, driven in particular by sales in the US and by the Avon commercial partnership in Brazil signed more than a year ago. In Europe, the Middle East and Africa, sales fell by 16% (-3% at constant exchange rates) to 419.5 million dollars, particularly affected by declines in mature markets and travel retail. 

The Asia-Pacific region saw sales of 119.5 million dollars, down 6%, dragged down by restructuring costs in the Chinese market. 

During the first nine first months of its fiscal year, Coty recorded 3.37 billion dollars in turnover, down 4%. Net income was 211.5 million dollars, as compared to a loss of 77.3 million dollars one year earlier. 

It’s worth noting that the company’s acquisition of Bourjois became effective on April 1, and, as part of this acquisition, Chanel became a shareholder in Coty.

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