(AOF) – Coty recorded operating profit of $129 million in the fourth quarter of 2022/2023, with growth of 61% in adjusted operating profit to $105.1 million and growth of 25% in adjusted EBITDA at $165.4 million. For fiscal year 2022/2023, reported operating income more than doubled to $543.7 million, adjusted operating income increased 20% to $738.8 million. Year-on-year, adjusted EBITDA increased 7% to $972.8 million.
The strong adjusted EBITDA performance exceeded the group’s recently raised guidance of $965 million to $970 million, despite the negative foreign exchange impact of more than $70 million in fiscal 2023.
In the fourth quarter, Coty’s net revenue increased 16% year-on-year to $1.35 billion.
For the 2023/2024 fiscal year, the American multinational beauty and personal care products company aims to increase the adjusted EBITDA margin by 10 to 30 basis points, with a similar performance in the first half and the second half.
He then expects adjusted EBITDA of $1.065 billion to $1.075 billion based on current exchange rates and taking into account the negative effect on profits of the sale of the Lacoste license.
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Market boom for several more years
According to Bain & Company, the global luxury market (fashion, cars, hotels, wines and spirits, cruises, etc.) will have recorded a 21% jump in sales in 2022, to 1,384 billion euros. The luxury personal products segment (jewellery, clothing, watches, leather goods, etc.) should grow by 22% and again grow by 3% to 8% in 2023 despite the expected economic slowdown. Growth should continue in the following years, with an increase that should reach 60% by 2030! According to Bain, spending by Americans in Europe has more than doubled between 2019 and 2022. This development is largely explained by a strong dollar. The Chinese market, on the other hand, is at half mast due to the “zero Covid” policy and strict confinements.