Coty reported mixed second-quarter results, with lower earnings offset by sharply reduced debt following strong cash generation and its final Wella divestment.
For the three months to 31 December 2025, the beauty group recorded net revenue of $1.67bn, a 1% rise year-on-year on a reported basis but a 3% decline like-for-like (LFL).
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Reported operating income fell 45% to $148.2m while shareholders faced a net loss of $126.9m versus net income of $20.4m a year earlier, producing a 7.6% loss margin.
Adjusted EBITDA slid 15% to $330.2m, although adjusted diluted earnings per share improved to $0.14.
Across the first half, revenue dropped 3% reported to $3.25bn.
Operating income fell 34% to $333.2m, and the group posted a $62.3m net loss versus net income of $100m in the prior year.
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By GlobalDataAdjusted EBITDA declined 17% to $626.3m, with EPS unchanged at $0.26.
Quarterly operating cash flow reached $559.7m, lifting year-to-date inflows to $624.9m.
Free cash flow totalled $513.1m for the quarter and $524.3m for the half.
At quarter-end, total debt was $3.04bn, down from $4.06bn on 30 September 2025, while financial net debt was $2.60bn, compared with $3.20bn at the end of September 2025.
Coty confirmed that Markus Strobel became executive chairman and interim CEO on 1 January 2026 after a long career at Procter & Gamble.
The group also completed the sale of its remaining 25.8% Wella holding to KKR for $750m upfront, with most proceeds directed to long-term debt reduction.
By segment, Prestige delivered a quarterly revenue growth of 2% and a 2% LFL decline while consumer beauty sales fell bt 2% to $545m.
Regionally, the Americas and Asia Pacific posted revenue drops while EMEA rose on a reported basis but declined LFL.
The company withdrew full-year EBITDA and free-cash-flow guidance, instead projecting mid-single-digit LFL revenue falls in the third quarter and adjusted EBITDA of $100m–$110m.
Coty executive chairman and interim CEO Markus Strobel said: “In my first month in the role, having visited our largest markets and key sites, it is very clear to me that Coty has many top-notch assets and competitive advantages: highly attractive brands, best-in-class fragrance innovation capabilities, a vertically integrated business model, and a creative, entrepreneurial organisation.”
