(AOF) – Estée Lauder fell 2.76% to 157.61 dollars after publishing disappointing annual results in 2022/2023 on Friday. The cosmetics group reported net profit of $1.01 billion, compared with net profit of $2.39 billion a year earlier. The group posted net revenue of $15.91 billion for its fiscal year ended June 30, 2023, down 10% from $17.74 billion a year ago. Diluted net earnings per common share were $2.79, compared to $6.55 a year earlier.
The reported and adjusted declines include an unfavorable impact of 5% and 4%, respectively, from certain foreign currency transactions at major international travel retail sites.
Full-year organic net revenue decreased 6%, primarily due to Asia travel retail in Hainan and Korea, partially offset by growth in nearly all markets in Asia/Pacific and Europe, Middle East and Africa (“EMEA”).
In contrast, the company’s total annual net organic sales in emerging markets and in the fragrance sector grew by double digits.
In the fourth quarter of fiscal year 2022/2023, net sales increased by 1% on a reported basis and by 4% on an organic basis, reflecting the growth of the “makeup”, “fragrances” and “care” businesses. capillaries,” as well as double-digit growth in the company’s emerging markets globally.
The “Makeup” business improved sequentially to achieve double-digit growth in the fourth quarter as more markets entered the post-pandemic era.
In the last quarter, the drop in net sales of the “skincare” activity mainly reflects the persistent difficulties of the company’s travel products retail activity in Asia.
Net sales increased during the fourth quarter in nearly all markets in Asia/Pacific and EMEA, which continued to recover from the COVID-19 pandemic. They have benefited from the company’s strategic investments in advertising and promotional activities, innovation and targeted expansion of consumer access.
For 2023/2024, Estée Lauder estimates that reported net sales are expected to increase 5-7% from the prior year. Diluted net earnings per common share are expected to be between $3.43 and $3.70.
However, in the first quarter of 2023/2024, the group indicates that its reported and organic net sales are expected to decrease by 12 to 10% compared to the period of the previous year.
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