Coty outlines growth strategy, ups revenue guidance for Q4

Beauty and cosmetics giant Coty has revealed an update to its financial outlook for Q4 FY23 as part of what was its first-ever investor event in Paris where it further outlined details of its growth strategy.

The company, which owns the likes of Rimmel, Philosophy and Kylie Cosmetics, said that it was anticipating a 12 to 15 percent like-for-like revenue growth for Q4, up from its previously expected 10 percent growth.

The decision to bump up its forecasts came down to how the group is leveraging its European heritage and end-to-end capabilities to achieve such growth, a strategy that was outlined in its investor conference by CEO Sue Nabi.

An increase in revenue is also being fuelled by “strong momentum” in its Prestige brand category, as well as the recovery of the Chinese market, the company added.

Coty is now also expecting FY23 core LFL revenue growth of 10 to 11 percent, ahead of its previous 9 to 10 percent outlook, and has further raised its forecasted EBITDA to be between 956 and 970 million dollars.

‘We are realising significant untapped potential…’

During the investor meeting, Nabi, alongside other Coty executives, detailed how the group was succeeding in whitespace categories and geographies, as well as plans to move into the next phase of digital transformation in China.

In a statement, Nabi said: “I am incredibly proud to showcase our differentiated business model of an innovative Prestige as well as rejuvenated, focused and increasingly strong Consumer Beauty portfolio, global reach in developed and emerging countries, strategically located centres of R&D excellence, award-winning IP, and leading end-to-end capabilities that position Coty as the partner of choice for global fashion houses.

“By combining our robust operational and financial performance and diverse team of beauty experts, we are accelerating our position as a global leader in fragrances and cosmetics.

“Together, we are realising significant untapped potential in areas such as ultra-premium skincare, ultra premium scenting, China, Brazil, and Travel Retail. Uniting our beauty heritage, rooted in Paris, with cutting edge innovation and science, we will continue to create long-term value for our stakeholders.”