Coty has reported a strong start to the 2024 financial year, as surging demand for fragrances delivered a double-digit boost.
Revenues increased by 18% to US$1.64bn for Q1 2024, with operating income also rising by 15% to $197.5m.
As a result, Coty has raised its full-year revenue outlook to be between 9 and 11%, an increase from the 8 to 10% it previously anticipated.
The Covergirl owner’s performance was bolstered by a 23% rise in prestige sales, which benefited from the success of its Burberry Goddess edp launched earlier this year.
Coty said the Goddess perfume, created by Amandine Clerc-Marie of Firmenich, has contributed to Burberry’s fragrance division almost doubling year-on-year revenue growth.
Overall prestige fragrance sales grew by 10% in Q1, driven by consistent demand for its core perfume lines and hero products including Burbery Her and Gucci Flora.
“The exceptional performance of our recent fragrance launches, and in particular Burberry Goddess which has become the [number one] female fragrance launch in key markets, reaffirms Coty's position as a leading fragrance expert,” said Coty CEO Sue Nabi.
Coty's prestige make-up business saw a more constrained performance during the quarter, and was impacted by the slower-than-anticipated recovery from China.
Despite this, Asia Pacific sales grew 16% as reported and 19% on a like-for-like basis, with improved sales across the broader Asia trading region and its travel retail division.
“Coty continues to deliver on our balanced growth agenda, with strong LFL growth across both divisions and all regions, with growth contribution from volumes and premiumized mix, complemented by targeted pricing, and from our key categories including fragrances, cosmetics and skincare,” added Nabi.
Consumer Beauty revenues increased by 10% to $576.7m, with strong sales across colour, mass fragrances and skin and body care.
Rimmel, Sally Hansen, Monange, Risque and Nautica were highlighted as key performers, and contributed to a 25% sales increase for Coty’s e-commerce arm.
“While the external environment remains complex and consumers are being considered in their spending, the beauty category remains advantaged, at the nexus of affordable luxury, self-care, and confidence boosting,” said Nabi.