Coty posts fiscal 2013 results

NEW YORK — Coty Inc. reported on Tuesday a boost in fiscal 2013 new revenues, thanks in part to growth in its fragrance and color cosmetics segments.

Net revenues for fiscal 2013 totaled $4.6 billion, up 2% like-for-like and 1% as reported from the prior-year period. The like-for-like growth was driven, in part, by strong performances of its Rimmel, Marc Jacobs, Chloe and Playboy brands.

Net income increased to a gain of $168 million from a loss of $324.4 million in the year-ago period. Adjusted net income increased to $323.2 million from $300.7 million.

“Coty delivered another year of positive financial performance. Our increase in net revenues was driven by growth in our fragrances and color cosmetics segments as well as positive developments across all regions, particularly in emerging markets,” stated Michele Scannavini, CO of Coty. “Operating and net income grew faster than revenues, contributing to margin expansion and demonstrating our ongoing focus on operational efficiency. We continue to show strong ability to convert earnings into cash, enabling us to keep investing to support our growth. We remain committed to our long term strategy to grow revenues in line or faster than the markets and segments where we compete, and to grow earnings faster than sales, driving continuous margin expansion.”

In fragrance, operating income rose 9% to $369.7 million, resulting in 14.8% operating income margin, an improvement of 90 basis points versus fiscal 2012.

In color cosmetics, segment growth was driven primarily by the development of the Rimmel brand, gaining market share in the United States and Europe. N.Y.C. New York Color and Manhattan, the company’s entry price level brands, also contributed to growth of the segment. Meanwhile, nail care brands OPI and Sally Hansen remained stable versus last year, the company stated. Operating income in color cosmetics rose 4% to $208.8 million, resulting in 14.2% operating income margin, an improvement of 20 basis points compared with fiscal 2012.

For the fourth quarter, net revenues totaled $1.06 billion, up 4% like-for-like and 3% as reported. Adjusted net income totaled $9.9 million compared with a loss of $2.3 million in the year-ago period.

Looking ahead, however, Coty estimates net revenues in the first quarter to marginally decline versus the year-ago period because of a deceleration of market growth in the United States and Europe. This has triggered “significant trade de-stocking activity, particularly by U.S. mass retailers,” Coty stated.

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