Coty Inc

Latest Results (18.11.2025):

Coty Inc. reported its Q1 FY26 financial results, ending September 30, 2025, with overall performance in line with expectations and Q2 sales tracking toward the more favorable end of prior guidance. Despite a 6% year‐over‐year decline in reported net revenue to $1,577.2 million, the Company noted encouraging trends in its U.S. Prestige fragrance segment and continued to drive strategic initiatives aimed at a return to profitable sales and growth in the second half of FY26.

Financial Performance

Coty Inc.'s Q1 FY26 results showed reported net revenue of $1,577.2 million, down 6% YoY (8% on a like-for-like basis). Reported operating income declined to $185.0 million while adjusted operating income fell by 21% to $240.5 million. Both reported and adjusted EPS saw comparable declines, with reported EPS at $0.07 and adjusted EPS at $0.12.

Margin and EBITDA Trends

The Company experienced a 100 basis point decline in gross margins, now at 64.5%. Adjusted EBITDA reached $296.1 million, marking an 18% decrease, with the adjusted EBITDA margin down by 270 basis points to 18.8%.

Strategic Initiatives and Market Position

Coty Inc. is focused on reinforcing its global leadership in fragrance and scenting through innovation and strategic integration. Key initiatives include the accelerated roll-out of innovative launches like BOSS Bottled Beyond and expansions into scenting adjacencies, a review of its mass cosmetics and Brazil businesses, and more closely integrating its Prestige Beauty and Mass Fragrance segments.

Market and Operational Highlights

The U.S. Prestige fragrance sell-out grew by a mid-to-high single digit percentage in Q1, aligning it with overall market trends. Additionally, the Company noted strong retail performance in China, robust e-commerce gains, and advancements in cost discipline and agility, setting the stage for improved results in Q2 and a return to growth in the second half of FY26.

Balance Sheet and Financial Health

At quarter-end, Coty Inc. reported total debt of $4,069.3 million and financial net debt of $3,804.7 million, with a debt to net income ratio of 11.1x and a net debt to adjusted EBITDA ratio of 3.7x. The Company’s 25.8% stake in Wella was valued at $1,003.0 million, underscoring its robust asset positioning amid ongoing strategic investments.