Coty: Rimmel and Max Factor owner slumps to £53m UK&I loss
The UK and Ireland arm of Coty, the global beauty and cosmetics giant behind the likes of Rimmel and Max Factor, slumped to a loss of more than £50m during its latest financial year.
The Kent-headquartered division has posted a pre-tax loss of £53.4m for the 12 months to 30 June, 2024, according to newly-filed accounts with Companies House. Coty said the loss was due to an internal reorganisation of legal entities.
The loss comes after Coty posted a pre-tax profit of £9.9m for its prior financial year.
The last time Coty’s UK and Ireland division reported a pre-tax loss was the £774.8m in recorded in 2020 as a result of an impairment review of its investment holdings.
The new accounts also show that Coty’s turnover increased from £323.1m to £335.3m over its most recent financial year.
A statement signed off by the board said: “The beauty market in the UK has seen a substantial growth in value in the year and Coty’s sales remain positive and strong.”
Coty has headquarters in the US and the Netherlands and can trace its roots back to 1904 when it was founded in France.
It owns around 40 brands develops, manufactures, markets and distributes fragrances, cosmetics, skin care, and nail care as well as professional and retail hair care products.
For the same financial year its parent company, which has listings in New York and Paris, reported a net revenue of $6.11bn, up from $5.55bn.
Its operating income also increased from $543.7m to $546.7m.
For the first quarter of its new financial year, Coty Inc revealed its net revenue had increased by two per cent to $1.67bn while its operating income jumped by 20 per cent to $237.8m.
At the time, chief executive Sue Nabi said: “As we enter FY25, the macroeconomic environment remains as complex as ever and the outsized growth of the last few years is now entering the normalisation phase.
“Nevertheless, one thing is very clear: consumers continue to prioritise beauty in their spending routines, even as they pull back on many other consumer segments.
“And within the broader beauty backdrop, fragrances remain a top performing category.
“As a beauty leader, and increasingly as a beauty trendsetter, Coty remains at the forefront of fuelling consumer desire and driving category growth through disruptive launches, new and improved formulations, and engaging activations and campaigns.”