# Coty Inc. (COTY) Q4 FY25 Financial Results Summary
NEW YORK – August 20, 2025 — Coty Inc. (NYSE: COTY) (Paris: COTY) announced its results for the full fiscal year 2025 and the fourth quarter, ended June 30, 2025. Despite facing several challenges, the company reported Q4 results that were in line with expectations, achieving gross margin expansion and preparing for future growth.
## Key Financial Metrics
### Fourth Quarter Highlights (Three Months Ended June 30, 2025)
– **Net revenues:** $1,252.4 million, a decrease of **8%** reported YoY and **9%** on a like-for-like (LFL) basis.
– **Operating income (reported):** $15.5 million, down **55%** YoY.
– **Net loss attributable to common shareholders:** $72.1 million, improved from a loss of **$100.2 million** last year.
– **Adjusted operating income:** $67.7 million, a decline of **37%** YoY.
– **Adjusted EBITDA:** $126.7 million, down **23%** YoY, with an adjusted EBITDA margin of **10.1%**, a decrease of **200 basis points**.
– **EPS attributable to common shareholders (reported):** $(0.08), improved from $(0.12) YoY.
– **EPS attributable to common shareholders (adjusted):** $(0.05), decreased from $(0.03) YoY.
### Full Fiscal Year Highlights (Year Ended June 30, 2025)
– **Net revenue:** $5,892.9 million, a decrease of **4%** YoY and a **2%** decline on an LFL basis.
– **Gross margin:** 64.8%, improved by **40 basis points** from the prior year.
– **Operating income (reported):** $241.1 million, a decrease of **56%**.
– **Net loss:** $381.1 million, compared to a net income of **$76.2 million** in FY24.
– **Adjusted EPS:** $0.22, decreased from **$0.37** in the previous year.
## Operational Insights
– **Adjusted EBITDA for FY25:** $1,081.7 million, down **1%** YoY, reflecting an adjusted EBITDA margin of **18.4%** which grew by **60 basis points** over the previous year.
– **Free cash flow for FY25:** Approximately **$280 million**, compared to **$369.4 million** last year.
– **Cash flow from operating activities:** $492.6 million for FY25, down from **$614.6 million** the year before.
## Segment Performance
– **Prestige segment:**
– Q4 net revenue was $760.6 million, down **5%** YoY (reported) and **7%** (LFL).
– Contributed to a significant portion of total company sales.
– **Consumer Beauty segment:**
– Q4 net revenue was $491.8 million, a decline of **12%** YoY on both reported and LFL basis.
## Strategic Developments
– Coty is focused on improving operational efficiencies while repositioning for consistent growth, with productivity savings of **$140 million** in FY25.
– E-commerce revenue reached **$1 billion** in FY25.
– The company is targeting a multi-brand launch strategy within the fragrance mists category expected to yield positive results in the upcoming year.
## Financial Strength and Future Outlook
– Coty is determined to reduce financial leverage, with net debt of **$3,751.3 million** as of June 30, 2025.
– The management anticipates that Q1 FY26 will reflect continued challenges but expects gradual improvements with LFL sales declining between **6% to 8%** in Q1 and a decline of **3% to 5%** in Q2, ultimately returning to growth in Q2 FY26.
– **In terms of dividends:** There was no mention of a quarterly dividend or share repurchase activity in the report.
Overall, Coty Inc. demonstrated a strong focus on strategic growth initiatives while facing challenges in the consumer beauty segment due to shifts in market conditions and consumer behavior. The company aims to leverage its strengths in fragrance and digital sales in the coming fiscal year.
### 1) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions)
| Three Months Ended | Year Ended | |
|---|---|---|
| June 30, 2025 | June 30, 2024 | |
| Net revenues | $1,252.4 | $5,892.9 |
| Cost of sales | 472.7 | 2,072.0 |
| as % of Net revenues | 37.7% | 35.2% |
| Gross profit | 779.7 | 3,820.9 |
| Gross margin | 62.3% | 64.8% |
| Selling, general and administrative expenses | 720.6 | 3,103.4 |
| as % of Net revenues | 57.5% | 52.7% |
| Amortization expense | 45.6 | 186.9 |
| Restructuring costs | -2.0 | 76.7 |
| Asset impairment charges | — | 212.8 |
| Operating income | 15.5 | 241.1 |
| as % of Net revenues | 1.2% | 4.1% |
| Interest expense, net | 50.1 | 214.2 |
| Other expense, net | 38.9 | 371.7 |
| (Loss) income before income taxes | -73.5 | -344.8 |
| as % of Net revenues | (5.9%) | (5.9%) |
| (Benefit) provision for income taxes | -4.2 | 5.4 |
| Net (loss) income | -69.3 | -350.2 |
| as % of Net revenues | (5.5%) | (5.9%) |
| Net income attributable to noncontrolling interests | -0.4 | 5.3 |
| Net (loss) income attributable to Coty Inc. | -68.8 | -367.9 |
| Earnings per common share: Basic for Coty Inc. | -0.08 | -0.44 |
| Earnings per common share: Diluted for Coty Inc. (a)(b) | -0.08 | -0.44 |
| Weighted-average common shares outstanding: Basic | 872.3 | 870.9 |
| Weighted-average common shares outstanding: Diluted (a)(b) | 872.3 | 870.9 |
| Depreciation – Coty Inc. | 59.0 | 233.1 |
### 2) CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)
| ASSETS | June 30, 2025 | June 30, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $257.1 | $300.8 |
| Restricted cash | 13.3 | 19.8 |
| Trade receivables, net | 526.4 | 441.6 |
| Inventories | 794.5 | 764.1 |
| Prepaid expenses and other current assets | 362.0 | 437.2 |
| Total current assets | 1,953.3 | 1,963.5 |
| Property and equipment, net | 709.2 | 718.9 |
| Goodwill | 4,062.2 | 3,905.7 |
| Other intangible assets, net | 3,214.8 | 3,565.6 |
| Equity investments | 1,002.0 | 1,090.6 |
| Operating lease right-of-use assets | 265.7 | 255.3 |
| Other noncurrent assets | 700.5 | 582.9 |
| TOTAL ASSETS | $11,907.7 | $12,082.5 |
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $1,890.0 | $1,997.6 |
| Short-term debt and current portion of long-term debt | 3.5 | 3.0 |
| Other current liabilities | 644.8 | 601.2 |
| Total current liabilities | 2,538.3 | 2,601.8 |
| Long-term debt, net | 3,955.5 | 3,841.8 |
| Long-term operating lease liabilities | 221.8 | 218.7 |
| Other noncurrent liabilities | 1,236.5 | 1,172.5 |
| TOTAL LIABILITIES | 7,952.1 | 7,834.8 |
| CONVERTIBLE SERIES B PREFERRED STOCK | 142.4 | 142.4 |
| REDEEMABLE NONCONTROLLING INTERESTS | 94.2 | 93.6 |
| Total Coty Inc. stockholders’ equity | 3,542.7 | 3,827.1 |
| Noncontrolling interests | 176.3 | 184.6 |
| Total equity | 3,719.0 | 4,011.7 |
| TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | $11,907.7 | $12,082.5 |
