Coty Q4 results miss estimates; CFO to leave | Progresiv
Coty Inc reported weaker-than-expected results for its fiscal fourth quarter, hurt by the ongoing integration of brands from Procter & Gamble. The results sent shares in the cosmetics giant down 7%. 
For the quarter, revenue was up 3% to 2.3 billion dollars but it grew just +0.3% on an organic basis, while reported net loss narrowed to 181.3 million dollars (from 304.8 million dollars last year). The results meant full-year sales were up 23% to 9.4 billion dollars (+0.4 organic basis), with a net loss of 168.8 million dollars.
For the year, the Luxury division saw revenues jump up 25% to 3.2 billion dollars (+6% organic), helped by gains in all regions and in Travel Retail. Meanwhile, the Consumer Beauty division saw revenue grow by 15.7% to 4.3 billion dollars but it declined by 4% on an organic basis, hurt by a “longer than expected” recovery in Europe and North America. And finally, the Professional Beauty division saw revenues grow by 37.5% to $1.9bn (+1.7% organic), driven by demand for its hair brands and the OPI nail brand.
The figures fell short of analysts’ estimates, underlying the continuing impact of the 2015 acquisition on Coty’s results. CEO Camillo Pane tried to play down concerns, noting: “Transformation after an immensely complex merger takes time”, adding: “We are building and streamlining back-office processes, upgrading systems, optimizing our manufacturing and logistics, and overall, simplifying our operations”. Pane expects the overhaul to be mostly completed by the end of fiscal 2019.
The company also announced that Chief Financial Officer Patrice de Talhouët is leaving the company in order to “pursue other opportunities”. Coty said that Ayesha Zafar, its group controller, will serve as interim CFO until a permanent successor is named. (www.kamcity.com)
