Coty has reported US$5.89 billion in net revenues for the fiscal year ended 30 June, which represented a -4% decline year-on-year (-2% like-for-like).
The beauty company recorded a net loss of US$381.1 million, compared to profit of US$76.2 million in FY2024. Adjusted EBITDA was US$1.08 billion (-1%), with a margin of 18.4% (+60bps).
Lower net revenues in Mainland China and Asia Pacific travel retail, which were hit by challenging market dynamics, impacted overall performance. This was partially offset by growth in Asia (excluding China) where Coty’s sell-out grew ahead of the market.
Coty said its performance was in line with expectations in the fourth quarter and that it was able to advance margin expansion despite revenue declines. The company outlined a multi-pronged plan to strengthen operations and financial trends from FY2026 onward.
“Coty is operating from a position of reinvigorated strength after five years of transformation and proven execution,” commented Coty CEO Sue Nabi.
“In FY2025, despite headwinds from US softness, retailer destocking, fragrance phasing off a strong FY2024 and pressure in mass cosmetics, we moved with speed and focus to return Coty to a path of consistent and profitable growth.
“We implemented a nimbler regional model with new seasoned US leadership to close the Prestige sell-out gap and return to market outperformance; kicked off the next phase of our ‘All-In to Win’ strategy, delivering US$140 million of productivity savings for the year and initial fixed cost reductions; embedded our digital and e-commerce teams within markets and brands, supporting e-commerce revenue of US$1 billion; and elevated our CIO to accelerate AI across demand planning, procurement, media allocation, marketing content, and back-office processes.
“And amidst the shifting global tariff landscape, we are strengthening our competitive advantages by actively transferring production of our mass fragrances, entry prestige fragrances and other adjacencies sold in the US to our US manufacturing plant, reinforcing our resiliency and relative cost advantage.”
Nabi added: “Consumer demand for beauty continues to grow at a solid pace, with ongoing fragrance category outperformance, even as retailers are acting with caution in the current environment.
“Coty is perfectly positioned to win, as the only global fragrance player actively targeting both the high and low price tiers, playing into the booming ‘treatonomics’ trend where consumers look for a mood-boost in the highly uncertain economic backdrop. In fact, we are already succeeding on both ends of the fragrance market, delivering like-for-like sales growth in FY2025 of +9% in Ultra-Premium fragrances, +2% in Prestige fragrances and +8% in Consumer Beauty fragrances.
“We are returning to our cadence of blockbuster launches, with the early results on our recently-launched Boss Bottled Beyond already exceeding our prior blockbuster benchmarks. At the same time, we have unleashed a major attack plan in the affordable, complementary and strongly profitable fragrance mists category, with mist launches across more than a dozen of our brands rolling out in the coming 12 months and strong initial results on our recently launched CK mists.
“All of this underpins our expectations for steady, sequential trend improvement in like-for-like sales and adjusted EBITDA through FY2026, returning to growth in the second half of FY2026.
“With financial strength, strategic execution, proactive management of underperforming areas, and organisational discipline, Coty is primed to win in a promising but dynamic beauty landscape.”
Fourth quarter performance
The company narrowed its reported net loss to US$72.1 million versus a loss of US$100.2 million in the same period last year in the fourth quarter.
Q4 net revenues reached US$1.25 billion (-8% reported, -9% like-for-like). In the quarter, Prestige revenues reached US$760.6 million representing a -5% reported -7% like-for-like decline.
Prestige continued to outperform in sell-out terms but were affected by inventory rightsizing and weakness in prestige makeup and skincare. Consumer Beauty revenues fell -12% to US$491.8 million on both a reported and like-for-like basis.
Speaking about Coty’s quarterly performance, Nabi added: “While Q4 was broadly in line with expectations as we set the baseline for a strong launch calendar in FY2026, and we expect our organisational changes will start yielding results in the coming year, there is more to do. We are entering the next phase of our strategy with a sharper focus on our core strengths and the most attractive categories where we can deliver outsized returns.
“First, we will leverage and prioritise our leadership position and best-in-class capabilities in global fragrances to fuel strong expansion – with fragrances already more than 60% of revenues and an even bigger portion of our profits. Second, we will continue to grow Coty’s footprint and diversification in a limited number of structurally profitable and growing beauty categories and geographic markets at scale.
“We believe fragrances will remain a structurally advantageous category, supported by beauty category-leading brand loyalty, strong consumer demand, increasing usage, broader price points and formats, and expanding global penetration.
“We have a clear right to win as a Top 3 prestige fragrance company globally, and the #1 mass fragrance company in developed markets, underpinned by our best-in-class R&D, IP, olfactive expertise, manufacturing, marketing, and distribution. FY2025 proved this, with our like-for-like fragrance sales growing across price points including +2% for Prestige fragrances, +8% for Consumer Beauty fragrances and +9% for Ultra-Premium fragrances. As a result, our focus on scenting and fragrances across the price spectrum from US$5 to US$500, including licensed brands, is unwavering.
“Our innovation remains among the best in the market – from Burberry Goddess in FY2024 to very positive early signals from BOSS Bottled Beyond, as well as Davidoff Cool Elixir, Gucci Flora Gorgeous Gardenia Intense and adidas Vibes. In fact, our ability to launch new blockbusters and build on them over time underpins the +14% expansion in our Prestige fragrance revenues in the last two years.
“As the only global company to couple prestige fragrance launches with a different but complementary offering of affordable fragrance mists, we are perfectly positioned to serve the high- and low-income consumers as they look for small indulgences in a time of great uncertainty.
“Skincare remains another key focus, and we will steadily build this business, while remaining vigilant with our investment levels. We have strong scale and capabilities in mass colour cosmetics, and our priority is to improve profitability; we will share more details on our plans in the coming quarters.
“Following four years of strong outperformance and with these plans well underway, Coty is poised to deliver consistent, multi-year profitable growth, fuelled by our best-in-class capabilities, highly desirable brands, scaled operations, and strong ROI focus.”
Regional overview
In the Americas, FY2025 revenues fell -8% reported (-3% like-for-like) to US$2.37 billion, reflecting pressure in US prestige and mass channels. Q4 net revenues reached US$511.2 million, a -12% decline on a reported basis.
In Asia Pacific, full-year revenues decreased -8% reported (-7% like-for-like) to US$708.1 million. The region, which represents 12% of the company’s total annual sales experienced declines in Mainland China, Australia, New Zealand and regional travel retail partially offset by strong double-digit fragrance and skincare sell-out growth across the rest of Asia. Travel retail represents 9% of total Coty sales.
Europe, Middle East and Africa revenues rose +1% to US$2.81 billion, supported by growth in Europe and Africa. The region represented 48% of the company’s total annual sales. Q4 revenues decreased to US$574.2 million a -4% reported (-9% like-for-like) decline due to proactive inventory adjustments.
Performance by segment
In FY2025, Prestige revenues, which account for 65% of group sales, were broadly stable at US$3.82 billion -1% reported with low single-digit sell-out growth across the year. Consumer Beauty recorded revenues of US$2.07 billion falling -8% (-5% like-for-like).
Consumer Beauty, which represents 35% of the company’s total sales weighed by softness in colour cosmetics and body care. Operating loss widened to US$127.4 million versus a profit of US$89.3 million last year.
Prestige delivered US$3.82 billion in FY2025 revenues (-1% reported, +LFL). Prestige operating income was stable at US$580.6 million, while adjusted operating income rose +5% to US$773.2 million, reflecting 120bps margin expansion. Prestige EBITDA margin reached 23.2% (+140bps).
Consumer Beauty revenues fell -8% to US$2.07 billion, with operating loss widening to US$127.4 million versus a profit of US$89.3 million last year. Adjusted EBITDA decreased to US$197.1 million, with margin contracting to 9.5% (-160bps).
The prestige fragrance category continued mid-single-digit growth in FY2025, with Coty gaining or holding share across Europe, Middle East, Asia Pacific, Brazil, South Africa and travel retail.
Outlook
Coty said it remains focused on advancing profitability through FY2026, underpinned by gross margin initiatives, ongoing portfolio optimisation and e-commerce expansion.
Coty anticipates a like-for-like sales decline of -6% to -8% in the first quarter of FY2026 and a like-for-like decline of -3% to -5% in Q2 with a return to like-for-like growth in the second half.
Coty said that the gradual improvements in sales trends in both Prestige and Consumer Beauty are underpinned by several major launches in both divisions, geographic and channel expansion, coupled with easier comparisons in the second half of the year.
Gross margins will face pressure in the first-half from tariffs and lower sales, with improvement anticipated in the second half as mitigation measures take effect. ✈
