Coty Inc. has reported Q2 fiscal 2024 net revenues of $1,727.6 million, an increase of 13% year-over-year; first half reported sales totaled $3,369.0 million, a gain of 16% year-over-year in reported terms (14% like-for-like).
Prestige beauty net revenues in Q2 totaled $1,122.6 million, a gain of 17% on a reported basis and 15% in like-for-like terms.
Key prestige drivers included double-digit percentage growth in all regions, with particularly strong performance in the Americas, APAC and travel retail.
Consumer beauty net revenues for Q2 totaled $605.0 million, a gain of 7% as reported and 5% like-for-like. Key drivers included color cosmetics, mass fragrances and mass skin care, as well as results in EMEA (particularly the Middle East) and the Americas (particularly Latin America/Brazil).
Looking ahead, Coty is forecasting full-year like-for-like revenue growth of 9-11%, including 6-8% like-for-like revenue growth in second half of the fiscal year.
Of the results, Sue Nabi, Coty's CEO, said:
The strength of our Q2 and first half results reinforce several of our convictions, including the attractiveness of the beauty market, the continuing momentum of the fragrance index, the power of our brands, Coty's transformed and industry-leading capabilities, our new ability to create blockbuster fragrance launches, and our disciplined financial execution.
First, the momentum of the global beauty market in the midst of geopolitical and macroeconomic disruptions confirms that consumers continue to gravitate to and prioritize beauty as a fundamental pillar of their well-being. Worldwide, consumers continue to purchase fragrances, cosmetics, skin and body care both as affordable luxuries and forms of self-expression. This is particularly true for mid to higher income consumers, resulting in the continued outperformance of luxury beauty. And they continue to engage with beauty both in-store and online, emphasizing the key role both channels play in the consumer journey.
Our amazing brands and industry-leading capabilities are enabling Coty to bring exceptional innovations to the market, further strengthening consumers' desire for beauty. While we had expected Burberry Goddess to be a major blockbuster, the launch results are exceeding all our expectations and setting new records, fueled by a winning juice and disruptive market activations across all touchpoints. Burberry Goddess is the biggest launch in Coty's history, becoming the #1 fragrance launch in many markets and resonating with consumers across all regions.
Importantly, strong momentum across our other key fragrance launches including Boss Bottled Elixir, Gucci Flora Gorgeous Magnolia, and additions to the Chloé Atelier des Fleurs collection, drove each of our Top 7 fragrance brands to grow at a double-digit percentage in the first half FY24.
We are seeing outstanding results in our cosmetics innovations as well, including CoverGirl Yummy Gloss and Rimmel Thrill Seeker mascara, which supported solid revenue growth in our Consumer Beauty business, in-line with the underlying mass beauty market. And we are starting Q3 on strong footing, as our disruptive innovation, CoverGirl Simply Ageless Essence foundation, activated by a large and multi-tier influencer campaign, is already seeing great momentum in the first month of the launch including being named the #1 makeup release on Amazon.
All together, we are continuing to deliver on our balanced growth agenda, with LFL growth in both Prestige and Consumer Beauty, in each of our regions, in each of our categories of fragrances, cosmetics, skin care and body care, and across volumes, price and mix. As a result, we are once again outperforming the beauty market.
Importantly, this growth is accompanied by strong and disciplined financial delivery, as we generate robust profit growth, operating and EBITDA margin expansion, and deleveraging progress. Our All In To Win Savings program has been a key driver of our financial and operational improvement in the last few years, having delivered over $660 million of savings life-to-date, which have gone to fuel both the reinvestment in our growth engines and our profit delivery. With the transformation now largely complete and as we enter the next phase of our sustainable growth agenda, our Chief Transformation Officer, Gordon von Bretten, will be joining Coty’s controlling shareholder, JAB, as partner and will also be joining Coty's Board of Directors. We are extremely grateful to Gordon for his leadership in driving this extremely successful transformation over the last 4 years.
Coty's leadership team is further strengthened by this week's announcement that Jean Holtzmann has been promoted to Chief Brands Officer, Prestige. Jean has been with Coty for seven years and has been instrumental in driving the momentum we are seeing in Hugo Boss as well as our ultra-premium fragrance collections. He is the right leader to drive the next phase of growth in our Prestige business.
As we continue to advance our six pillar strategy, we are further strengthening our portfolio. We are excited to further enhance our Prestige fragrance portfolio through our new license agreement with Marni, an Italian brand renowned for its artistic collections and strong brand appeal with young consumers across Asia and Europe. And in the past week, we've announced long term extensions of two of our key Consumer Beauty licenses, bruno banani and Mexx, as we continue to expand these leading European lifestyle fragrance brands.
In sum, as we celebrate the 120th anniversary of Coty as a beauty pioneer, we are proud of the progress we have made and are energized by the many opportunities in front of us.
