The perfume and cosmetic company stated that the growth of 4.7% in the luxury division was not enough to compensate the descent in the sales of cosmetics and the professional division.
Coty shrinks results in its last fiscal year. The perfume and cosmetic company ended its fiscal year 2019 with a drop of 6% in its net benefit. The company registered a revenue of 487.6 million dollars during the last year.
The operative profit of the company dropped 5%, up to 949.7 million dollars. Sales, on the other hand were 8.6 billion dollars, 8% less than one year earlier. By exchange rate, the drop was 3.5%.
The group explains that the growth of the luxury division, that rose 2.6% and wasn’t enough to compensate the drop in sales of cosmetics and the professional division, which were down 17.1% and 5.4%, respectively.
Burberry, Calvin Klein and Gucci where the boosters of the sales for the luxury division
The luxury division represented for Coty a total of 3.2 billion dollars, 40% of the total sales of the company. The group explains that the boost of this area came from Asia, Africa and Latin America, next to Europe though its travel retail channel. Specifically, Burberry, Calvin Klein and Gucci where the brands with the best performance in this division.
Cosmetics business, on the other hand, arrived at 3.5 billion dollars. According to the group, sales in this area dropped because of the weakening of the market in North America and Europe, that represents 70% of this division.
The beauty division arrived at 1.8 billion dollars, with a drop because of the chain of its supply chain and the closure of some strategic partners. By geographical areas, the company reduced its double digits in North America and Europe, with 10.4% and 10.1% drops. In Asia, Africa and Latin America the drop was not as big, 0.7%.