Q4 2025 Coty Inc Pre-recorded Earnings Call Transcript
Key Points
- Coty Inc (COTY) has achieved a strong transformation over the past five years, consistently outperforming global peers in the Prestige segment.
- The Prestige fragrance business has grown to a $3.5 billion segment with a robust CAGR of 10% from fiscal '21 to fiscal '25.
- Coty Inc (COTY) has successfully revitalized its Consumer Beauty segment, achieving a 2% CAGR from fiscal '21 to fiscal '25 after years of decline.
- The company has significantly improved its financial profile, with EBITDA growing at a CAGR of 9% and a reduction in leverage ratio from 6.8 times to 3.5 times.
- Coty Inc (COTY) has received 12 consecutive debt rating upgrades, reflecting its strengthened balance sheet and disciplined financial strategy.
- Coty Inc (COTY) faced challenges in fiscal year '25, including weaknesses in US execution and retailer inventory buildup.
- The US market was a major headwind, with Coty Inc (COTY) losing market share in both Prestige and Mass segments.
- Fiscal year '25 net revenues declined 2% like-for-like, with Q4 revenues declining 9% like-for-like.
- The company experienced a decline in adjusted EBITDA by 23% in Q4, primarily due to lower sales and gross margin.
- Coty Inc (COTY) anticipates continued near-term headwinds, including tariff impacts and a more promotional market environment.
Hello, everyone. (technical difficulty) Vice President of Investor Relations. Thank you for joining us today for the prepared remarks portion of Coty's fourth-quarter fiscal 2025 earnings. On Thursday, August 21, 2025, at approximately 8:00 AM Eastern time, or 2:00 PM Central European time, we will hold a separate live Q&A session on our results, which you can access via our Investor Relations website.
Joining me for our presentation are Sue Nabi, Coty's CEO; and Laurent Mercier. Coty's CFO.
Before I hand the call over to Sue, I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty's earnings release and the reports filed with the SEC, where the company list factors that could cause actual results to differ materially from these forward-looking statements.
In addition, except where noted, the discussion of Coty's financial results and Coty's expectations reflect certain adjustments as specified in the non-GAAP financial measures section of the
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