- Coty Inc. (COTY, Financial) reports a 6% decline in Q3 2025 net revenue, impacted by FX headwinds and market challenges.
- Company unveils a strategic plan to enhance growth in FY26, focusing on innovation, cost savings, and distribution expansion.
- Adjusted EBITDA rises 2% year-over-year, with a robust pipeline of launches planned for the upcoming fiscal year.
Coty Inc. (COTY) has announced a net revenue of $1,299.1 million for the third quarter of fiscal year 2025, marking a 6% decline year-over-year, partially due to a 3% headwind from foreign exchange rates. Despite the challenging market conditions, notably in the U.S. fragrance sector, Coty is reinforcing its strategic, operational, and financial fundamentals aimed at sustaining long-term growth.
For the nine-month period ended March 31, 2025, Coty reported net revenues of $4,640.5 million, down 2% year-over-year. The beauty giant's consumer beauty sales suffered a 7% drop, while prestige product sales remained relatively flat, impacted by FX fluctuations. Improved operational efficiencies led to a reported gross margin increase to 65.5%, with a year-to-date adjusted EBITDA of $955.0 million, reflecting a 3% increase.
Coty is executing a comprehensive "All-in to Win" transformation program, targeting agility, operational scale, and $370 million in cost savings over the fiscal years 2026 and 2027. This initiative, combined with a strong brand portfolio and growth-focused pipeline, aims to counteract current headwinds and enhance financial resilience.
Looking forward, Coty has set plans for blockbuster product launches in both the first and second halves of FY26, with extensions into new markets and products, such as ultra-premium fragrances and innovative mass fragrance items. This strategy is poised to revitalize sales and position Coty for a gradual rebound in financial performance over the coming fiscal year.
