Coty Inc (NYSE:COTY) reported fourth-quarter FY21 revenue growth of 89.6% year-on-year, to $1.06 billion, beating the analyst consensus of $1.02 billion. Net revenues 80.7% LFL.
Sales in the Americas region grew 68.9% Y/Y, Asia Pacific increased 70% in Q4, and EMEA sales surged 123.4%.
The cosmetics firm also noted E-commerce sales climbed nearly 19%, resulting in a high-teens e-commerce penetration for the year.
The gross margin for the quarter expanded 2040 basis points to 60.4%. Adjusted operating margin was 4.2%, with adjusted operating income of $44.3 million against $(335.3) million in Q4 FY20.
The company held $253.5 million in cash and equivalents as of June 30, 2021. Net cash provided by operating activities totaled $32.3 million with a free cash flow of $2.1 million.
Net Debt equaled $5.2 billion as of June 30, 2021. Adjusted EBITDA was $127.3 million versus $(246.6) million last year. The adjusted EBITDA margin was 12%.
Adjusted EPS of $(0.09) missed the analyst consensus of $(0.05). Coty confirms that it is pursuing a partial IPO of its Brazil business.
Coty expects 1Q22 LFL sales growth in the high-teens percentage.
Coty's prestige brands sales more than doubled in Q4 and were nearly flat LFL in FY21, even as the Company continued to reduce sales in low quality channels, which represented a low teens negative impact to prestige brand sales in Q4 and a high single digit negative impact in FY21, relative to FY19.
For FY22, Coty targets LFL sales growth in the low teens coupled with adjusted EBITDA of ~$900 million on a constant currency basis.
COTY shares traded higher by $1.14, or 3.9%, at $9.37.
