Cosmetics maker Coty’s quarterly EMEA revenue surges 16% to record $548M

Coty said that its third-quarter revenue from Europe, the Middle East and Africa (EMEA) region surged 16% on a reported basis to $548.2 million, from $473 million for the same period a year earlier. However, the growth in quarterly revenue was 23% on a like-for-like (LFL) basis, and the region accounted for 46% of the company’s sales revenue.

The cosmetic maker’s total net revenues increased 15% on a reported basis and 19% on an LFL basis to a record $1.2 billion in the quarter ended March 31, 2022, the French company said in its latest financial report Monday, led by a 25% climb in Prestige and a 10% increase in Consumer Beauty revenues.

EMEA results

Like last year, the EMEA region recorded the highest in net revenues and had the second-highest increase on a reported basis after the Americas with 17%. This was driven by double-digit growth in Prestige and Consumer Beauty “as markets cycled COVID-related restrictions in the prior-year period.”

The company’s Prestige division, which houses skincare and fragrances from the Chloe, Gucci, and Burberry brands, rose 21% to $726.4 million, or 61% of Coty sales, for the third quarter. “On an LFL basis, Prestige net revenues delivered robust growth of 25%, driven by strength across all regions including continued recovery in most EMEA markets, Travel Retail, and the US,” Coty added in the statement. As for Consumer Beauty, net revenues of $459.8 million showed an increase of 8% compared to the prior year and 10% on an LFL basis due to strong performance across mass fragrances, color cosmetics, and body care.

“At the same time, Coty portfolio continued to perform strongly fueled by market share gains in Gucci Beauty, Burberry and Hugo Boss in Prestige, and Rimmel and Max Factor in Consumer Beauty,” added the statement. Max Factor’s market share continued to grow, including in the UK, where it hit its highest market share of the last two years.

Key background

Coty was founded in1904 in Paris. It is now considered one of the world’s largest beauty companies, selling fragrances, color cosmetics, and skin and body care brands, including Max Factor, Rimmel, Hugo Boss, Marc Jacobs, and Miu Miu, in more than 130 countries and territories.

Sisters Kylie Jenner and Kim Kardashian sold stakes in their respective makeup businesses to the fragrance and cosmetic company. In 2020, Kardashian sold a 20% stake in her cosmetics company KKW Beauty to Coty for $200 million in cash. That same year, her half-sister sold 51% of her Kylie Cosmetics to the publicly-traded firm in a deal that valued her makeup brand at $1.2 billion, Forbes estimates.