Recent COTY transcripts
Associated COTY filings
Olga Levinzon | executive |
Sue Nabi | executive |
Laurent Mercier | executive |
Hello, everyone. This is Olga Levinzon, Coty's Senior Vice President of Investor Relations. Thank you for joining us today for the prepared remarks portion of Coty's First Quarter Fiscal 2025 Earnings. On Thursday, November 7, 2024, at approximately 10:30 a.m. Eastern Time or 4:30 p.m. will which separate our you website. we on Q&A Investor Time, results our can European hold live a session Relations Central access via
me Coty's Sue Coty's Joining presentation Laurent CFO. and Mercier, Nabi, our for CEO; are
that with I company Coty's would to cause I from the earnings could the today release remind to statements. lists forward-looking filed of like may many and hand contain to the the that Please results Before the differ over forward-looking comments these Sue, factors SEC, call where you refer actual reports to materially statements.
except the measures specified where in In of Coty's addition, as expectations financial non-GAAP release. noted, section financial Coty's results and the adjustments the of certain reflect company's discussion
to our CEO, I you. Thank Sue over will now it Nabi. hand
Welcome, Olga. you, everyone. Thank
enter one the as segments. prioritize continue very last pull consumer few to remains as fiscal even as other the growth the we back entering thing their beauty But now they on in environment 'XX, normalization of many complex outsized macroeconomic phase. is years the spending and routines ever, consumers As clear, is
broader the backdrop, Within category. a fragrances top-performing beauty remain
As consumer through beauty and and of remains forefront at category leader fueling and trendsetter, campaigns. as and and the beauty a a growth improved new disruptive Coty activations launches, driving formulations desire increasingly engaging
the messages me you we key X Let with summarize want to today. leave
sales like-for-like deliver growth. we sustained to First, continue
leading global are on record players. building our outperforming we beauty further the fact, track In multiyear of
market more formats. variety and fragrance the with of consumers a often fragrances Second, robust with using more exploring the entering remains and category concentrations
dynamic growth. brands also beauty future lead market the for categories market adapt full these company ability the play growth our to of deliver our tomorrow, ever-more opportunities and are to will finally, close target in bringing EBITDA step-changing environment. of outperformance. the but our of 'XX efforts and Third, to range beyond, our will we savings fiscal are to across and to fiscal the in adjusted support And enable Coty additional efforts sustained Not in they supporting only XX% we 'XX to continue capture success
to growth Despite QX, moderately leading Coty global companies. outperform lower-than-expected beauty in continued
X in ahead peers Estée like Cosmetics LVMH growth, Perfumes global delivered last like-for-like Lauder, out XX Now, of division. is quarters, of Shiseido have L'Oréal, which we and the and
Our develop shown is each consistent continued Coty's In execution of peers to complex outperformance confirms clear in environment, our strong vision, outperformance ability the that our of beauty our clear is trends growth on slide and here. our result our on core and macroeconomic categories. of strategic seize a a
market beauty slide, a compete. healthy moderated The across little continues remains the robust categories Prestige in we XX% fragrance North this fiscal to 'XX in QX. Both entering and allow it America to the can fragrance to years. market This drivers, the to by and in ahead which underlying view be line of to and points. a market in percentage Prestige quarters continue Europe supported structural by will exiting grow growth fiscal pace, in Prestige while, September, the that particularly QX the couple of a category our category which combined at approximately even moderated beauty reinforces coming 'XX, as growth you continues grow grew as the has see, On fragrances in
impacted comparisons elevated of both in growth our is fragrance sell-out by Coty, very Burberry perform the of particularly the year, prior included and the strongly, sell-in Prestige the EMEA, to For Goddess. in while, blockbuster our continues which portfolio launch U.S.,
single digits. we consistent in strongly care and Within has are fiscal fragrances high the global side, see single-digit which body this with levels. in the Beauty continues growing outperformance pace 'XX levels, low market Consumer backdrop, the both slowed grow at On months, categories, to but from a in recent pre-COVID the mass
color At flattish weakness slightly in has performance same negative to time, the the cosmetics U.S. the mass concentrated to with moderated
flattish in continue factors play at cosmetics mass main market. X to see We the
the growth consumer has demand following as unit surge. remains First, positive, but post-COVID low single-digit moderated a normalizes demand to level
is building last the positive block no of years. longer the pricing Second, strong few
to It's mass sales that e-com channel. remains in the share to we in channel continue and highlight this important cosmetics growth critical gain robust,
a sales, capital. Against U.S. channel behavior with this we overall In XX% market significant shifts though door net market retailers management. than been inventory Consumer business, seen working continued have by little broadly have Beauty areas. drugstores and and much actively and cautious of backdrop the normalizing clearly embarking accounts our managing certain healthy on sheet their in further was with retailers which the closures beauty growth, our more This in by for orders, more exacerbated risk-averse balance
a As revenue Consumer QX trends our sell-out. in Beauty were U.S. below our significantly result, the
It's contextualize for accounting low of small, important to U.S. channel exposure the a Coty's to mid-single-digit that drugstore fairly is annual sales. our to percentage
below which by percentage these and low regulations working at of Travel well the a of and to in net time, Australia, a our in for to The headwind factors each further At a remained side, of sell-in of extend Asia for retailer. dynamics new in sell-out percentage our the On same and single-digit as Prestige accounts a points account enacted of the same Asia was in retailers business the result corridor. couple QX. sales China Retail, retail sell-in orders adjusted Prestige tracked sales, shipments which low were demand of capital we percentage expect were into also our sluggish, impacted key QX, our substantial single-digit also reduction travel
slightly altogether, of beauty driving sets, shipment our with QX some which earlier be QX, dynamics market this for growth Combining outlook sales positive. like-for-like the to benefited gift is fragrance and the in normalization sell-in/sell-out
further inventory cuts, reduction with However, between a sell-in second sell-out half. this inventory further entering suggesting to limited gap and we expect impact abate runway the for
with growing the benefit growth in fueled first like-for-like earlier shipments like-for-like X.X% the dynamics. from the we of of gift quarter quarter Prestige was like-for-like overall in Our quarter fragrances market in growth reported reflective X% sets. at Prestige, In some by X% the strongly
Our in estimated and delivered volumes, expansion Prestige estimated mix. division price
we slightly flat slower In Consumer volumes Beauty, by market in our inventory U.S. result negative impacted experienced in travel the high as which in mass the growth growth region, the channel. Americas, ongoing growth pressure decline retail of regional the as we by a reductions EMEA, well was mid-single-digit as China APAC, the And channel. mid-single-digit in single-digit a saw in was and
including in Asia, including the by in were Argentina. Africa tight Our hyperinflationary XX% which approximately engine these roughly the in of markets X% contribution from grew strongly Brazil, growth Mexico, sales, our engine X% our and Middle QX, driven of accounts And challenged of environment Travel and sales altogether, X% for LatAm, like-for-like growth addition and these at Americas China, markets, the QX East, to like-for-like India, EMEA, QX management Retail markets, growth in our Southeast by by account grew growth QX, rest XX% engine approximately while Asia inventory local results Retail Travel our channel, retailers. in in for
Our in mature markets grew X% weighed the in described sell-in/sell-out in sales like-for-like, Australia. earlier and the down U.S. by dynamics
Laurent guidance. through the hand me now our over Let to financial and to you results take call
Sue. you, Thank
skincare. solid first growth quarter Our revenue is in as growth like-for-like, supported XX% strong comes mass last the like-for-like commendable This on the top incredibly prestige growth in mid-single-digit fragrance net and of first it quarter X.X% percentage by year. of mass fragrance, grew
expansion strong delivered gross in also very We QX. margin
Our chain actions, adjusted benefit XX.X%, margin basis productivity. continued gross pricing obsolescence XXX QX grew the to driven inflation, excess from points supply and by by premiumization, and negligible reduction
XX behind we marketing our unwavering We prior support our XX% points approximately basis investments icons represented as brands. innovations. increasing strong to and also by and sales, continue maintained the QX, A&CP invest year, behind from In of
level high sales in in investments fiscal year to continue percentage We our of expect XXs to A&CP be the 'XX.
EBITDA in QX, license. combination year-over-year lower-than-anticipated driven roughly strategic adjusted impact $XXX divestiture at the was continued QX expenses certain Lacoste from our the of in by million, initiatives, the operating Our the investment of patterns of second of the profit order our timing flat and the half
in EPS, noncash of tax year. diluted This discrete was swap, last impact the growth excluding $X.XX a onetime adjusted growing XX% Our equity reflected year-over-year. $X.XX QX,
As a of EPS certain our fiscal drivers reminder, adjusted 'XX. we expect in
in we to depreciation expect million be level. the to low $XXX First, mid
expense to be $XXX net mid million. we to Second, low interest year the the anticipate in for
the rate to anticipate be 'XX in range. the fiscal effective we XX% XX% to for Third, adjusted tax
million share count, on Finally, fiscal year our XXX share by remain 'XX. we towards count committed to reducing
we While remains future levels swaps in equity place key a organic share cash for have our our towards X buybacks, targeted for flow generation. priority deleveraging
activity, flexibility more our for of Of buyback in share will amplified flow eventual active reach term by our course, the target will be we medium once leverage. generation ongoing further which the cash Wella provide divestiture
earlier last of and over free in flow year. the and, therefore, was tight In at in orders the as several quarter cash of the flow highlighted resulting higher year-on-year reflects as payables. our the in $XXX retailers well million inventory slightly phasing to generation by of QX receivables quarter, cash compared in call, markets, This the end management free the order negative as of placed
from of of approximately X.X first the a approximately with end of down leverage Wella at ago. stake slightly net billion. up we quarter exclude turns year As result, and ended billion, significant our debt leverage the the X.Xx, a $X.X $X.X but leverage a fiscal from These levels 'XX, valued
Coty's the new environment, and In we Coty's capture better this market changes are and to solidify beauty beauty market very the position over as more leader a long in future-proofing agility organization with to dynamic processes respond opportunities, term.
around to of over 'XX were accelerating Through And while our now increase continue target. already million program, underway of delivered fiscal projects and efforts, of fiscal million, In life of already To an of versus as date, should $XXX line which we these newly over we to these streams deliver the part combination others in work Some savings of are $XX 'XX savings beyond. delivery. time million initial savings and importantly, $XXX Win of simply these anticipate All the initiated, are has our
plans a pillars. Let we accelerate me action our as X the to under fall minute and which the organization future-proof concrete agility, take review
excellence establishing The key for first pillar processes. centers is of
standardized are solution a our X we X consolidating global planning As in planning global conjunction, are an data multi-category example, hubs hub implementing supported demand across we state-of-the-art In into business. planning Barcelona. by
to for external business functions. use various vendors We process are support continuing up ramp the of
opportunities assessing further functional streamline centers capabilities also to other of excellence. into are We
world. the omnichannel adapting The to focuses our organization second commercial on increasingly pillar
world, to multi-price offline around needed. and of are centralization, our we landscape are offerings channel assessing multi-category the the structure shifting and the point blurring online, including and With the that retailer changes
categories. launch our to initiatives at time to on core The agile our to market. a aimed speed approach the is organization. each to on third effort of this pillar for earnings discussed applicable call an of matter Agile We certain is fully reducing of Such for last centered we when alluded multifunctional market Beauty the months our
maximizing and is pillar the benefits fourth tech of The emerging AI.
As to summer, we our earnings we last successfully no which to the the over the was completed migration and business. executed discussed seamlessly call, interruption on SXHANA, with
and complete, savings SXHANA automation, controls efficient now support migration and drive to we the With better standardization, processes. expect through better efficiency global more
deploying process automation robotics Additionally, and we marketing are number of and testing, content also for procurement the to in a of and iteration including are of creation AI which process functions, invoices, functions, all contributing across efficiencies. vendor
is regional final our we resources opportunities The capabilities least where profitable focus we most the from biggest attractive continue opportunities. and redesign most allocating pillar our on end-to-end the fifth markets a growth to with the fine-tune have for and as the channels to footprint and assess and
in $XX approximately All QX with second in of are half and these plans million the delivered beyond. and year of further underway of step-up action and expected savings QX already
continue coming on key quarters. these will months and transformation the in more details to We share pillars
context for our share Let outlook and some on beyond. first the me now half
several with recent around of low mass growth remains Asia, the last single the backdrop, significant performance digits has to solid QX are in maintained below on tracking growing slower continuing the category has market is XX%. U.S. beauty beauty we into double-digit with months, channel outperforming the in the from over orders last years. discussed, Sue an category. in this Prestige in levels growth Mass cosmetics end now moderated sellout. growth well momentum few beauty with mass outsized though sell-in As the fragrance flattish and and shifts Within weigh demand category
set half of in sales As continued and to we of gap X% sell-out in QX a expect like-for-like QX the and between phasing result shipments 'XX, the of like-for-like growth X% moderate first of and gift these to fiscal X%, X% the growth between with reflecting sell-in of fragrance factors, QX.
EBITDA is accelerated tight the and reflecting Xx, revenue in including calendar reported inflow to to the close to growth represent a in inventory of With remain leverage basis, divestiture in calendar of mid-single-digit savings adding mid-single-digit EPS ForEx timing, 'XX mid-teens leverage X%. we headwind year year be retailers QX. management low margin expansion first and Lacoste expected growth The than track should growth. we continued $X.XX a percentage cash exit the by gross On target and to level to continue expected each 'XX. variability with is fuel slight combination $X.XX, to the half, less on to some a to exiting on X.Xx below low
one Looking comparisons the the and factor U.S. the half, reorders. At hand including with growth influencing other second continued anticipate on half prestige the the to critical present, the demand at consistent travel half, period to pressure remains retail the second pace reflecting approximately performance for retailer of the China, year in we and easier levels and during fragrance X%, and inventory pace X% hand. like-for-like first relatively category of the on prior the Asia solid in central cosmetics consumer outlook growth and mass be to half second holiday
delivery the acceleration 'XX to of This in second should in support is in expected QX steady We sales year-on-year translates expect versus savings year EPS to X%. ago. flattish of gross margin, gross sustained, X $X.XX combination $X.XX. healthy sales significant support to to over translate off growth, of last the to year of reflecting and this fiscal strong EBITDA elevated A&CP Altogether, like-for-like to half years level XXX margins expansion points and basis growth X% growth QX. quite The and be
adjusted Through of grow combination near year expect we maintaining sales of guidance XXs and in 'XX growth, lower fiscal savings continued continuous our margin gross X% for 'XX the A&CP high and increased expansion beyond, EBITDA of stronger with the XXX basis EBITDA growth, XX% prior continued expansion revenue while adjusted cost end the fiscal points margin reflects to EBITDA percentage, following adjusted fiscal XX to the fiscal of more moderate in expansion points year-on-year. even 'XX. year target, 'XX year conjunction in This adjusted margin EBITDA to growth basis though an close in year
growth We expect of mid-teens be prior equity of low fiscal to the our reflecting end year percentage 'XX from $X.XX, $X.XX excluding to the adjusted last guidance swap, EPS, range at year.
continue fiscal not lower by fiscal deleveraging fiscal year towards recognized mid the year taxes cash will which 'XX the We profit year we and cash cash partially amplifying free benefits beyond, to continue flow we strong and target to 'XX combination by million, $XXX deliver free offset reoccur. in driven will in low certain trajectory. growth of higher cash in And this flow 'XX as to deploy cash further shareholder Coty's returns, and
now momentum ahead. to back significant opportunities our it continued strategic Sue turn to growth me Let and discuss
Thanks, Laurent.
unlocking. as strategic into take growth deeper seeing a me to well we we Let the continued delve our in few momentum are initiatives as the minutes new are opportunities
There are X key to takeaways I share. would like
we fragrances, industry leadership as are fragrance points. in cementing price leader all across an First, our
momentum and now to social strong cosmetics through continuing strategy. brand media in are agile complemented by beginning our be our innovation we Second, fuel to advocacy
continuing channels opportunities we attaining of setting growth ESG categories, and, our capture in a milestones leader goal as And and are course, becoming are geographies. finally, of to pursue we sustainability. we across new Third, in
same reinforce at time, spectrum ranging across now the we expertise and to masstige trends its as point, with opportunities all industry, in and way the while, unlocking continue the to fragrances. prestige Coty the Starting up setting full ultra-premium in first fragrances niche fragrance leadership mass fragrances best-in-class leverages our price the more end-to-end and from the
Intense original growing the franchise first year a cementing Parfum, are Goddess franchise. after quality launch Burberry, is de into like-for-like overall Goddess trend of blockbuster exclusive Burberry lasting sales now boosting industry the the fragrance the and of our and kickstarting Intense Through Burberry marketing activations fragrances, vanilla-based last Starting quarter. Goddess with of with the we of in combined XX% Eau the Goddess Goddess the launch
female and on Her in iconic Importantly, growing brand other in the Burberry side Hero on continuing double male the also quarter. Burberry side their the are momentum, the digits our franchises resulting like
off overall Flora ranking Flora the as well fourth is to build to we Gucci in Not a XX propel the lasting Orchid top installment Orchid but key launch only is fuel strategic great in Gucci franchise of fragrance Expanding to on universe, globally the itself, to franchises, performing imperative to the as the Gucci helping is the Flora continued Orchid continue growth. start.
markets. Next, female which been a in we've on Wild was has the U.S. the launch Germany. become Wild, launched additional in it launch when U.K. X Daisy Marc last the into fragrance we launch top and months, few spring, Jacobs top the in in the And both expanding Daisy
build franchise. grew fall's of to BOSS continue at Bottled Boss total BOSS this brand the launch Hugo also in Bottled out We a pace double-digit successful Absolu, QX. iconic the With sales
collections recently had Signatures opened the while experience Coty's Garden which as hope Paris Chloe our this opportunity, grew portfolio, Fleurs, newly of boutiques Alchemist fragrance are total, ultra-premium Paris, fragrance you've Gucci relatively I business our Infiniment Coty niche the Atelier Manhattan. our to is des And in our chance In fragrance total launched multibillion-dollar in XX% a represents small In QX. market, ultra-premium Burberry in by a percentage brand, complemented which like and and resonating. still
as fragrances mass Of and across and more as shop extends and price well, continue also capitalizing we to particularly leadership are points, formats. course, channels price this masstige our to consumers points, in fragrances opportunity on
fragrances XX% our fiscal by sales for growing by percentage quarter. mid- have in mass XX% over this a past to boom, of Coty, to account and For high continued single-digit and 'XX
a contributing expansion part Consumer is the of to the the operating business nicely this margin. of Importantly, Beauty accretive
in business new driven for by core beyond, fragrance a 'XX mass profitable the and us and but key both this fueling be additions. Further portfolio also strong is our fiscal will and objective
launch fragrance the positive. our adidas a and Sales already adidas ago for on online. collection are driving fragrance Vibes X.Xx signals early higher than strong business adidas business are a in halo the year Our
past new signed In this we German agreement television brands, spring, presenter with Gercke. of terms a and model, license Lena
The the amazing below price point summer has X.X% fragrance fragrance the market SKU fragrance quickly SKU mass happy distinctive on #X juice, become EUR the that launched share of just first market, a an this LeGer, reaching with over I'm a the and bottle for fragrance, very share XX. German alone. to
launched Chanson many The for portfolio final the has fragrance consumers our recently under our name. dormant price years. of Coty been across example The collection in reaching is brand fragrance points d'Eau
aim fragrance we in at accessible in less as launched consumers chain. and X female collection #X see like However, than bring developed the and points to a the fragrance we of South with Spain into fragrances have the emerging brand, Africa, become has the leading category, these where markets in like $XX, both price of a we resonating brand under markets pharmacy
as and Moving competitive X EMV to which social including marketing brands brand continued stable quarters remaining and U.K. linked brand's Eye the our this Coty's in momentum XX% advocacy our than Rimmel's in brand our is done #X influencers' past EMV/VIT for cosmetics phase Millennials perform playbook #X completely stable been to share in it's Rimmel's leading as we've activity an of across media CoverGirl's social with XX% consumers, XD CoverGirl's on-trend the brands higher and Z an in EMV strategy consumer major consistent the second been Gen the mascara remained not mascara the and activity step-changing legacy influencers' our is innovations, Than content advocacy, omnichannel work on the Better a Filters in the environment. our Consumer to linked efforts, the omnichannel quarter. with market and and dedicated resulted on to earned is Plumper, have This including making Extreme CoverGirl strength studios this resonate of foundation, focus And U.S. of while innovation, value market resonating reigniting grew of media and to Thrill influencers' continues discussing the and is which the important Seeker Similarly, even very media rank value for supported has fueling The brands. quarter-over-quarter, of year, indeed last rank coupled the highlight that important point, maintained media acceleration the paying Rimmel's Gen strongly now in off. amongst markets, quarter-over-quarter. has And in Beauty creator differentiation in agile Gloss terms share. year-over-year, several through been with Yummy best includes mass the our most now, Enhancers plan U.S. as earned innovations, as CoverGirl, cosmetics point
market playbook next innovations viral strategy under The on exciting this for Consumer frame our Beauty time them second have to traditional beauty much innovation the shorter of Thrill R&D. capitalizing half real strips, Rimmel our launches time and is and We've aimed step launched the mascara Hansen bringing and our Seeker model than growth agile trends slated across a at categories, several several nail Sally including in for year.
Beauty. to capture Of addition Prestige and e-com and for and Marc core also CoverGirl, market and initiatives, in our now divisions our course, mid-XXs% both with momentum and XX% Burberry accounts Prestige Consumer to Beauty. Adidas opportunities channels, markets. in in Hansen, across Jacobs continue Consumer and categories to in in of double-digit Nautica gain penetration we continue growth in low E-commerce additional business share we in around Rimmel, with And share percentage particular market importantly, Sally across categories
region, ago. double set, across strength Xx skincare Golden in ranks September, EMV increase growing particular we've fruit bearing Europe, line, media the also Lancaster at the seen Shifting including year ranking by which on are our which X signs, its versus in growing the the spot the in The social is spots, brand now skin the range. strong of digits which our and behind and activations to care #X early brand's sagging. photoaging a the relaunch core as competitive with year-on-year And we wrinkles skincare amongst an are X signs with QX relaunched is sales reverses brand's the Lift dark Europe, in Lancaster core business, new
Shifting individuals through resonating to variety doors has with consumers. brand have resulted XX% sales to Orveda, net in QX, high at a we the confirming fuel worth in This activations. among growing awareness is continued brand close of to existing
luxurious expand step, And allow further opened expanding district, be which our Side in COS year As build to brand will and next we Maison this Manhattan's enter U.S. Nordstrom us a the awareness spa elevate help as we first consumer reach in BAR East and environment. in Orveda September, Orveda's equity through brand's distinct Upper to will the distribution and this we with audience. this target the
Finally, growth China in the markets the in from you grew standpoint, market, of highlighting regional XX% this despite sales performance account markets can very remains see. a in regional balanced our and achieved XX% diversification continued quarter. and our engine the strategy. our strong, momentum as approach sluggishness We for These
have of to reached. Finally, milestones some highlight be we ambition of as in key part our a the sustainability, me leader ESG now let
incredibly of 'XX know, you report last fiscal issued progress we over year. we proud and our the I'm may earlier As the sustainability week, this made
can we several this of many of see them. slide, highlighted like I to you this year, a reached While on which milestones highlight few would
freight Scope are Scope X XXXX Beginning Planet emissions with reduction emissions compared ahead in to air X reduction on XXXX. achieved and targets, also of plan X significant a pillar, our XX% our and we
In we to target established reduce water new XX% withdrawal addition, by a by XXXX.
also packaging MacArthur network sustainable Foundation while as the We Ellen new targets ambitious rejoining for a also member. established
and our target commitment. we of women. gender XX% Directors XXXX pillar, our in leadership leadership People Executive of achieved our balance half our ahead our are of Board of wider Committee and Within
Our last these more. contains report and updates
you that towards our As advancing goals progress can further sustainability fiscal our in framework. Lasts Coty 'XX, see, Beauty made ESG strong
want targets fiscal 'XX years. few When frame I our out last first Coty's we the trajectory of our some to X to laid Before I for 'XX surpassed years our midterm met detailed minutes in few later, financial fall each a with fiscal the years conclude, in Three or we have coming the results, questioned ability our strategy years to within and progress ago broader meet targets. these our goals. take and XXXX, of
fiscal 'XX in market. we broadly taking EBITDA exit from time Lacoste those and the the and in significantly and account targets revenues at with of into when targets Russian set than line divestiture the our our Our higher are
time, by points In has have over the our reinvested fiscal future leverage basis fact, has expanded same than At and engines. by by have and, from XX% in our X our at expanded gross EBITDA EPS what had time, same is expanded targeted, we as same over basis profitability margins fiscal the both period. and margin approximately growth 'XX 'XX approximately over we XXX the points, our turns higher XXX levels declined
but rating Our progress very, a rating strong the much execution. from within since than financial This financial agencies XXXX, X notch and our to of very we to consecutive by stronger beauty us agencies been anticipated, due have has XX due initially in recognized our market upgrades sheet also balance an investment-grade rating. we P&L putting underlying as achieved outperformance partially is strong
with year, estimated growth which This normalizing several level, growth. what steadier consistent to of to a years ago is beauty the market growth is mid-single-digit we broadly low had
a beauty players is in this be whom this on several is exacerbated other many poised to year year we outperforming, for the as us, pockets are by transition markets, growth normalizing for we However, of which call. disruption as described
China pressuring this global and to and market grows level. as store X% which anticipate retail, travel and and and Coty market in both a stiffer the we long significantly on as long China line store closures as the and range disruptions competition side closures beauty caution Asia the on with X% are performing mass in by prestige is U.S. among retailers, by side consumer the drug disrupted As department
our near-term impacting across increasing category growth our fragrance and our in many cosmetics; and categories in offering usage dislocations a key strongly Coty's where price skin ultra-premium results, points; percentage coming fragrances; to business markets led under-indexed the these penetration in which we our first, in fragrances are with spanning growing such confident drivers: expanding account and both third, currently XXs several remain business engine second, industry of from the already mass and low a prestige as While robust years, we are and sales. ability care for markets, beauty by growth expanding to Coty in outperform fourth, very
in So, tomorrow at beauty sum, market channel we engines, algorithm growth into and to expect return market category, and fiscal in and the win to the we mid-single-digit to as we succeed 'XX growth. our growth company in a beyond organize and lean above or as healthy of
to are to peak normalizing X% growth for are growing this sum and delivering To our progress. a and consistent levels beauty and up, like-for-like deleveraging healthy expectations growth, a year category, growth. medium-term if framework, outperform the even market expansion we global another of more our in Within sustainable we recent to now peers with confident remains in are years range, beauty continuing margin X% saw
powerhouse, with also but As of our in beauty as we the of, position a one Coty creating opportunities tomorrow, remains strengthen brands, the compelling our beauty agility if investment today trends global smaller and industry. acting the not of most,
much. very you Thank
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