(AOF) – In the second quarter of its 2024 fiscal year, Coty posted a net profit of $117.6 million after $235 million a year earlier in the same period. The cosmetics group’s operating income increased by 19% to reach $236.7 million compared to the previous year, driven by an increase in gross margin. Over this period, adjusted Ebitda increased by 15% to $366.4 million with an adjusted Ebitda margin of 21.2%. Its reported net revenues stood at $1.727 billion, an increase of 13% year-on-year.
The cosmetics and perfumes group is still targeting like-for-like growth in its turnover of between 9 and 11% for the 2024 financial year and 6 to 8% for the second half of this financial year.
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Contrasting performances in beauty
Penalized by the Chinese market, Estée Lauder suffered a drop in sales of 10% to $15.9 billion for its 2022-2023 annual financial year, which ended at the end of June. The American group’s net profit even fell by 58% over one year to $1.01 billion. In a dynamic global beauty market, the group is therefore showing poor performance, while its rival, Coty, has published very good results. For the year 2022-2023, closed at the end of June, its sales jumped 12%, to 5.55 billion euros, exceeding analysts’ forecasts. Its operating profit more than doubled and its adjusted profit rose 20%. The group intends to continue its move upmarket to exceed 6 billion euros in turnover by 2026. As for L’Oréal, the group recorded a turnover of 20.6 billion euros in first half, up 12% year-on-year. Its net profit increased by 4% to 3.35 billion euros. However, in the third quarter, the growth in activity of the global cosmetics giant slowed down (+4.5% year-on-year), penalized by its sales in China. These players benefit from a beauty market which is expected to grow annually by 6% on average by 2028 according to McKinsey,