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Coty Inc. Class A (COTY+1.58%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a net revenue decrease of 3% to $1,669.9 million from $1,727.6 million in the same quarter the previous year, primarily due to declines in color cosmetics and mass body care sales.
Cost of sales decreased by 8% to $555.7 million, representing 33.3% of sales, compared to 34.9% in the previous year. This was attributed to improved manufacturing efficiencies and material cost optimization.
Operating income for the quarter was $268.2 million, up from $236.7 million in the previous year, with the increase driven by lower cost of goods sold and reduced restructuring costs.
Net income for the quarter was $30.6 million, down from $186.0 million in the previous year, affected by higher losses on forward repurchase contracts and equity investments.
The company reported a gross profit of $1,114.2 million, slightly down from $1,124.1 million in the previous year, with a gross margin increase of 160 basis points.
Selling, general, and administrative expenses decreased to $797.3 million from $833.4 million, primarily due to favorable foreign currency impacts and reduced stock-based compensation.
Interest expense for the quarter was $54.4 million, compared to $60.1 million in the previous year, reflecting lower debt balances and interest rates.
Coty's effective tax rate for the quarter was 45.9%, up from 27.7% the previous year, influenced by losses on forward repurchase contracts and fair value losses on investments.
The filing also details Coty's ongoing strategic transformation agenda, focusing on stabilizing consumer beauty brands, expanding the prestige fragrance business, and building a skincare portfolio.
Coty continues to focus on deleveraging its balance sheet and improving the maturity mix of its debt, with a strategy that includes refinancing or repayment of debt.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Coty Inc. Class A quarterly 10-Q report dated February 10, 2025. To report an error, please email earnings@qz.com.