Coty’s First Quarter Revenues Rise 1%

Coty Inc. posted financial results for the first quarter of fiscal year 2015, ended Sept. 30, 2014. Net revenues increased 1% to $1.2 billion. According to chairman and interim CEO Bart Becht, it was a quarter of good strategic progress but mixed financial results.

“Our strategy of focusing on our power brands showed signs of progress, as power brands’ revenues grew mid-single digits due to exciting innovations like Sally Hansen Miracle Gel or Marc Jacobs Daisy Dream as well as higher support levels,” he explained.

“While power brands, accounting for over 70% of revenues, showed strong growth, total company growth was just 1% on a like-for-like basis due to revenue declines on the balance of our portfolio. While adjusted operating profits for the quarter were lower primarily due to higher power brand support levels, adjusted EPS was flat due to a lower tax rate compared to the prior year and the benefits from our share repurchase program.”

Becht explained that going forward, management is determined return Coty to profitable growth.

“To that end we will remain firmly focused on growing our power brands around the world behind innovation, strong support levels and improving market execution. This, combined with our $200 million global efficiency plan, should help us make progress against the target over time,” said Becht.