Coty(COTY)2024-08-20 23:05Financial Data and Key Metrics Changes - Coty Inc. reported a strong fiscal year 2024 with an 11% like-for-like revenue growth, outperforming the beauty market which grew approximately 9% [6][8] - Adjusted EBITDA for fiscal 2024 grew 12% year-over-year to 0.48, reflecting a 26% year-over-year increase, driven by higher EBITDA and a discrete tax benefit [11] Business Line Data and Key Metrics Changes - The adjusted operating margin in the Prestige division reached 19%, up 40 basis points year-on-year, while Consumer Beauty's adjusted operating margin increased to 5.7%, up 80 basis points [10] - Coty achieved double-digit growth in like-for-like sales, adjusted EBITDA, and adjusted EPS for the third consecutive year [5] Market Data and Key Metrics Changes - Sales in growth engine markets, including Brazil and Mexico, accounted for 22% of total sales, growing approximately 17% like-for-like in fiscal 2024 [20][34] - E-commerce sales grew by approximately 20%, increasing its penetration to about 20% of overall business [29] Company Strategy and Development Direction - Coty aims to maintain high levels of investment in marketing, targeting 6% to 8% like-for-like revenue growth and 9% to 11% adjusted EBITDA growth in fiscal 2025 [5][13] - The company is focusing on a balanced growth model, capturing demand across various price points and markets, while leveraging its fragrance expertise [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Coty's ability to grow and outperform despite macroeconomic challenges, supported by a strong innovation pipeline and robust commercial plans [35][37] - The outlook for fiscal 2025 includes expectations for continued gross margin expansion and double-digit revenue growth in growth engine markets [36] Other Important Information - Coty ended fiscal 2024 with net debt of approximately $3.6 billion, down from previous years, and aims to reduce leverage further [12] - The transition to SAP S/4HANA was completed successfully, enhancing operational efficiency [12] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating the end of the Q&A session without detailed interactions [37]