Coty Inc.’s recent acquisition spree is boosting its sales and profits.
The beauty business posted $109.2 million in net income in fiscal second quarter, up more than 100 percent from the prior-year period because of recent acquisitions. Net sales were up 15 percent to $2.6 billion. Even without the acquisitions of Younique, Burberry and Ghd, Coty’s organic sales were up 2.8 percent in constant-currency, the company said.
Coty’s Luxury division posted $951.2 million in sales, a 14 percent year-over-year increase. Consumer Beauty sales were also up 14 percent from the prior-year period, to $1.1 billion, and Professional Beauty segment sales were up 19 percent to $547.8 million.
In Luxury, sales were boosted by Gucci Bloom, the debut of a Tiffany & Co. fragrance, growth in Chloe and a 1 percent contribution from Burberry.
Growth in the Consumer Beauty segment is mostly attributable to Younique, which drove 11.1 percent of growth. The rest of the business posted a 1.3 percent decline mostly in the U.S., while strong sales from Wella Retail, Max Factor and Monage offset some of those declines.
In professional, growth came from an 11.6 percent contribution from Ghd, while OPI — not a newly-acquired brand for Coty — contributed 2 percent.
“Our recent acquisitions continue to have strong performance,” said chief executive officer Camillo Pane. “Across each of our three businesses we continue to see improving results with our strong performance in Q2 directly linked to our growth strategy. Recent innovations are working well, e-commerce is performing ahead of the market and we are working to implement better in-store execution.”
Pane added Coty is projecting “modest net revenue growth” for the duration of the fiscal year.