Coty has announced its Q3 2022 results which showed net revenue was $1,186.2 million, an increase of 15% year-over-year. Nine months ending March 31 showed net revenues were $4,136.1 million, an increase of 16% year-over-year.
Reported net income for Q3 was $49.6 million, improved from a net loss of $1.2 million in the previous year.
Reported operating income for Q3 was $57.1 million, compared to a reported operating loss of $1.4 million in the previous year. Year-to-date reported operating income from continuing operations of $318.3 million increased from a reported operating loss of $50.4 million.
Net income for Q3 was $49.6 million, improved from a net loss of $1.2 million in the previous year. Year-to-date reported net income was $341.5 million, compared to net income of $54.8 million in the previous year.
Prestige net revenues in Q3 were $726.4 million, or 61% of Coty sales, an increase of 21% compared to the previous year.
Net revenues for nine months ended March 31 were $2,605 million, compared to $2,149 million in the previous year.
The prestige segment generated a reported operating income of $83.8 million in Q3, compared to $30.9 million in the previous year.
Prestige cosmetics sales nearly doubled during the quarter and year-to-date, driven by strong performances of Gucci makeup, Kylie Cosmetics and Burberry makeup.
In skin care, Lancaster had its best month ever during February 2022 in Hainan, generating its highest level of sales and outperforming key competitors, driven by particularly strong momentum of its 365 Skin Repair Serum.
Consumer Beauty Segment
Consumer Beauty net revenues in Q3 were $459.8 million, or 39% of Coty sales, an increase of 8% compared to the previous year.
Net revenues for nine months ended March 31 were $1,531 million, compared to $1,418 million in the previous
The segment's reported operating loss was $20.4 million in Q3, an increase from $9.1 million in the previous year.
Coty consumer beauty business continued to gain market share globally, driven by particularly strong performance of color cosmetics, which increased share by close to 100 bps over the last five consecutive months.CEO Sue Nabi said in an earnings call, "Ladies and gentlemen with the completion of the first half of fiscal '22, it's clear that we are delivering on our short-term objectives while simultaneously strengthening the foundations to achieve the medium-term objectives we outlined during our November Investor Day. As you recall, our objective is to make Coty into a true beauty powerhouse, which includes sustainably growing our sales ahead of the beauty markets, growing our profits ahead of sales and steadily deleveraging our balance sheet."
Nabi added, "The results of the last six months has confirmed that we are well on track with these ambitions as we enter the virtuous cycle with strong revenue growth combined with gross."