Coty’s QQ1 2025 results show a modest top-line expansion coupled with clear margin resilience. Revenue reached $1,671.5 million, up 1.83% year over year and 22.60% quarter over quarter, underscoring seasonality and improving product mix within the brand portfolio. Gross profit of $1,094.6 million yielded a gross margin near 65.5%, while operating income of $237.8 million produced an operating margin of ~14.2% and EBITDA of $297.7 million (margin ~17.8%). Net income was $82.9 million with earnings per share of $0.0917 (diluted $0.0909), illustrating meaningful operating leverage supported by disciplined SG&A spend of $808.0 million and favorable product mix in prestige and luxury tiers.
From a cash flow and balance sheet perspective, Coty generated $67.4 million of operating cash flow, spent $77.3 million on capital expenditures, and delivered free cash flow of −$9.9 million. The company ended the period with cash and cash equivalents of $283.6 million and total debt of $4,224.2 million, yielding net debt of $3,940.6 million. Total assets stood at $12.516 billion and total stockholders’ equity at $4.188 billion. The current and quick ratios were modest at 0.847x and 0.550x respectively, highlighting ongoing leverage as a structural characteristic of the business. With a dividend payout of approximately 3.98% of earnings and a relatively high valuation (P/E around 24.6x and P/S near 4.9x), investors should monitor deleveraging progress, working capital dynamics, and the margin trajectory as catalysts for sustained cash generation and earnings growth.
Overall, the QQ1 2025 print suggests Coty is stabilizing after a difficult period, with improving profitability but a need to advance deleveraging and optimize capital allocation amid a competitive, FX-sensitive consumer landscape.