Coty reports 2% decline in Q3 FY25 revenue
The performance was primarily driven by foreign exchange headwinds, a slowing fragrance market, and elevated retailer inventory levels
USA – Coty, an American multinational beauty brand, has reported financial results for the Q3 ending March 31, 2025, with a 2%decrease in revenue to USD 4,640.5 million.
The companies’ adjusted EBITDA rose 3% year-over-year to USD 955.0 million in Q3 2025, with the margin improving by 110 basis points to 20.6%.
The reported gross margin rose to 65.5% while the adjusted gross margin reached 65.6%, marking a 120 basis point increase.
Sue Nabi, Coty’s CEO, stated, “We are much more strongly positioned to navigate the current complex dynamics including tariffs and broader macroeconomic uncertainty, supported by the strategic, operational and financial fundamentals which we’ve significantly strengthened over the last four years, even in the context of the highly constrained P&L.”
The prestige segment accounted for 66% of the company’s total sales, generating USD 3.06 billion in revenue and marking a 2% like-for-like growth.
Consumer Beauty segment reported net revenue of USD 1.58 billion in Q3 2025, making up 34% of total sales, with a 7% decline on a reported basis and a 3% drop on a like-for-like basis.
The reported operating income fell 56% to USD 225.6 million with a 4.9% margin; however, adjusted operating income rose 4% to USD 785.2 million, with the margin expanding 100 basis points to 16.9%.
Coty reported a net loss of USD 309.0 million in Q3 2025, reversing from a net income of USD 176.4 million a the previous year.
Recently, Coty launched the next phase of its transformative “All-in to Win” program, aimed at enhancing agility, scalability, and operational efficiency.
The program is designed to adapt to the evolving beauty industry landscape, characterized by the rise of e-commerce, retail consolidation, and new consumer behaviours.
This phase builds on the success of earlier efforts, which delivered over USD 700 million in savings between FY21 and FY24, alongside significant improvements in gross margins, brand reinvestment, and EBITDA margins.
The “All-in to Win” program focuses on streamlining operations, centralizing support functions, prioritizing impactful innovations, and optimizing costs to drive efficiency and growth.
This phase is expected to generate approximately USD 130 million in annual fixed cost savings over the next two years, with cumulative savings from the program projected to reach USD 1.2 billion since its inception.
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