In luxury, net revenues increased 70% to $764.4 million as reported compared to Legacy-Coty net revenues in the prior-year period reflecting the contribution from the acquired P&G Beauty Business. In consumer beauty, net revenues jumped 82% to $1.04 billion as reported compared to Legacy-Coty net revenues in the prior-year period reflecting the contribution from the acquired P&G Beauty Business and Younique. In professional, net revenues increased > 100% to $430.5 million as reported compared to Legacy-Coty net revenues in the prior-year period reflecting the contribution from the acquired P&G Beauty Business and the ghd acquisition. Net revenues increased 13% on a combined company constant currency basis reflecting a 12% contribution from ghd and continued strength in Wella and System Professional which was partly offset by declines in Clairol Professional.
Coty CEO Camillo Pane commented, “Q1 was a much better quarter. We saw strong growth in Luxury, continued positive momentum in Professional and a reduced net revenue decline in the Consumer Beauty division. While results are likely to be a bit uneven from quarter to quarter going forward, the improving revenue trend gives me confidence that the growth strategy I outlined earlier this year is moving Coty gradually onto a path of full recovery.
“We also delivered significant improvement in profits, driven by better gross margin performance and strong financial discipline on the cost structure. I am pleased to announce that, as of Sept. 1, we have exited our third and final TSA with P&G for the ALMEA region and now have control of processes, systems and data across the new Coty.
“We are also satisfied with the contributions from our other strategic acquisitions, Hypermarcas, ghd and Younique and continue to strengthen our overall portfolio through our strategic partnership with Burberry, an iconic brand that is an exciting addition to our portfolio. We believe we are uniquely positioned to develop and grow this luxury brand to its full potential.
“Looking ahead to the remainder of fiscal 2018, we expect to continue to deliver on our announced synergies, finalize the streamlining of our brand portfolio and relaunch several of our key brands. With these programs, we aim to deliver improved net revenue growth trends for the remainder of the year, with an organic second half top line roughly comparable to prior year, as well as healthy margin improvement over the balance of the year. I am highly confident that all of our efforts will lead to Coty becoming a new global leader and challenger in beauty."