Coty reports decline in FY25 revenue, sees stronger prestige performance

USA – Coty Inc. reported a decline in its annual revenue for the fiscal year ended June 30, 2025, highlighting a challenging year for the company. 

Coty reported net revenue of USD 1.25 billion, marking an 8% decline on a reported basis compared to the same period last year, with a 1% favourable impact from foreign exchange. 

On a like-for-like basis, net revenue fell 9%. 

The Prestige segment, which accounted for 61% of total sales, saw its revenue decline by 5% reported and 7% like-for-like, despite a modest low single-digit increase in Prestige sell-out during the quarter.

Meanwhile, the Consumer Beauty division, representing 39% of sales, experienced a sharper decline of 12% on both reported and like-for-like bases.

Gross margin decreased by 190 basis points to 62.3%, while operating income dropped to USD 15.5 million from USD 34.7 million a year earlier, resulting in a reduced operating margin of just 1.2%. 

Adjusted operating income fell 37% to USD 67.7 million, with the adjusted operating margin slipping by 250 basis points to 5.4%. 

Coty posted a reported net loss of USD 72.1 million, an improvement from a net loss of USD 100.2 million during the same quarter in the prior year. 

Adjusted EBITDA for the Q4 FY25 declined by 23% to USD 126.7 million, with the margin contracting 200 basis points to 10.1%. 

The company generated USD 83.2 million in cash flow from operating activities and posted free cash flow of USD 34.9 million. 

For the fiscal year’s final quarter, Coty experienced an 8% drop in net revenue to around USD 1.25 billion, mainly driven by the decline in its Consumer Beauty business and a 9% fall in like-for-like sales. 

The quarter reflected ongoing challenges in revenue and profitability, despite some operational cash generation.

 Looking forward, Coty anticipates continued softness in early fiscal 2026, forecasting like-for-like sales to decrease between 6% and 8% in the first quarter.