The American cosmetics group Coty Inc. had to accept an unexpected decline in sales in the second quarter of the 2024/25 financial year. This was not least due to the declining demand in China and North America.
According to a message published on Monday evening, the group turnover in the three months before December 31 was $ 1.67 billion ($ 1.62 billion). In doing so, he missed the level of the previous year’s quarter by three percent. On a comparable basis, the proceeds decreased by one percent.
In America, the quarterly turnover due to negative currency effects and losses in the mass cosmetics segment fell by seven percent to $ 638.6 million, in Asian-pacifier space it even shrank by eleven percent to $ 191.5 million. The company attributed this to losses in China and in the travel retail in Asia. On the other hand, it went up in the EMEA region, which includes Europe, the Middle East and Africa. There, the proceeds rose by two percent to $ 839.8 million.
The group sees itself on course in its savings program
Thanks to lower costs along the supply chain, austerity measures and changes in price policy, the operational result reached an amount of $ 268.2 million and thus exceeded the corresponding level of previous year by 13 percent. Adjusted for special effects, the operating result grew by eight percent. Due to the re-evaluation of financial instruments, the net profit, which is due to the shareholder, slipped by 88.5 percent to $ 20.4 million (19.8 million euros).
The company warned that the current demand for demand in Asia and America, especially in the affordable cosmetic segment, should last in the coming months. For the second half of the 2024/25 financial year, the management now expects one to two percent and other negative currency effects with a decline in sales on a comparable basis. Due to the implemented measures to improve the margins, the company continues to expect an increase in the operating result in the current year.