Coty Publishes Its Outstanding Results For Q1 2021: Is It A Good Pick?

The cosmetics manufacturer Coty is demonstrating a great result today in the stock market. Earlier, Coty said that it plans to sell a 4.7% investment in professional cosmetics company Wella to KKR & Co Inc for $215.7 million. Further, Coty will own a 25.9% share in Wella as a result of the deal. In a month, the stock price of Coty is gained as well, from a low of $7.48 to a peak of over $9.29 by composing 24% growth. It can be seen that the price is still trying to create another high, while the market cap totaled 7 billion dollars.
Despite that, Coty has published progress in its financial results for the first quarter of the fiscal year 2022. The revenues have expanded by more than 22% during the quarter, which gave an outstanding result for Q1. Coty’s Prestige business delivered an excellent 35% reported and 34% LFL growth in the quarter. Also, if you look at other sales of prestigious fragrances, in that case, you’ll notice that they’ve improved significantly across virtually all brands, with Gucci, Burberry, Hugo Boss, Marc Jacobs, Calvin Klein, and Chloe performing particularly well. Finally, in 1Q22, adjusted EBITDA expanded by 67 % to $278.5 million, with an adjusted EBITDA margin of 20.3%, demonstrating approximately 500 bps of margin expansion.

April Sanchez

Business and Tech Reporter