Coty turns back to profitability in first quarter
The American perfume company has ended the first quarter of the year with sales of 1.9 billion dollars (1.7 billion euros).
Coty closes the first quarter at double speed. The American perfume and cosmetics company, which operates with licenses of brands like Gucci, Burberry, Hugo Boss and Calvin Klein, has ended the period with a revenue of 1.9 billion dollars (1.7 billion euros), a 4.3% less than in the same period of the previous year.
However, the group has returned to the path of profitability in the first quarter. Coty has ended the period with a profit of 52.3 million dollars (47.1 million euros), compared to the red numbers of 10.1 million dollars (9 million euros) in the same period of the previous year.
These results come shortly after the launch of the group’s new plan to recover profitability.
The company announced in July that its goal was to implement a four-year strategy to return to black numbers. “The results of the first quarter have been marked by the first steps of implementing our new plan,” said Pierre Laubies, chief executive officer of the group in a statement.
Coty is studying the sale of its professional cosmetics business and operations in Brazil
The professional cosmetics division of the group has been the one that has evolved best during the period, with a 2.4% rise. However, the company is considering the sale of this business unit, which includes Wella, Clairol, Opi and GHD.
With this, the company’s goal is to focus on the cosmetics and skin care business, which has reduced its revenues by 13.5% between June and September. The luxury division, meanwhile, has risen 1.7% in the period.
Coty has dropped its revenue in all regions where it operates. The biggest fall has been in the United States, its local market, where it has fallen by 9%. In Europe, meanwhile, the fall has been 0.2%.
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