Coty has reported net income attributable to its common stockholders of $0.5m for the third quarter (Q3) of fiscal year 2024 (FY24), a decrease on a reported basis from $105.1m in Q3 FY23. 

For the quarter that ended on 31 March 2024, the company’s reported basic and diluted earnings per share (EPS) stood at $0 versus $0.12 in Q3 FY23. 

Adjusted net income in Q3 FY24 came in at $43.8m, a decrease of 74% from $168.1m reported in Q3 FY24.

Coty has attributed this decline in its reported and adjusted net income to mark-to-market gains secured through forward repurchase deals finalised in the prior period, as against mark-to-market losses in the current period. 

Net revenues increased 8% year-on-year (YoY) to $1.3bn on a reported basis in Q3 FY24 from $1.2bn in Q3 FY23. 

On a like-for-like (LFL) basis, net revenues increased 10%, driven by a 13% rise in the prestige segment and a 6% increase in consumer beauty net revenues.  

Adjusted operating income for Q3 FY24 improved by 17% to $143.9m, with an adjusted operating margin of 10.4% and a margin expansion of 90 basis points. 

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the reported quarter grew 10% to $199.9m from $181.9m in Q3 FY23, driven by higher sales and gross profit. 

The adjusted EBITDA margin increased 30 basis points to 14.4%.  

Coty's reported gross margin improved by 190 basis points YoY to 64.8%, while free cash flow for Q3 FY24 was negative $234.3m, a decrease from the negative $178.5m in Q3 FY23. 

The company's year-to-date (YTD) reported net income fell to $176.4m from $465.4m in Q3 FY23. 

Coty's net revenues in the YTD rose 13% on both reported and LFL basis to $4.7bn, while adjusted EBITDA increased by 15% to $926.6m. 

Coty CEO Sue Nabi said: “In both Q3 and fiscal year-to-date, we delivered strong growth in both prestige and consumer beauty businesses in each of our three regions, and in our core categories of fragrances, colour cosmetics, skincare and body care, all supported by a broad range of our leading brands.”