Rimmel owner Coty not as slick as profits slip to losses
Coty today reported that it had swung to a loss-making position for its three months ended March 2016.
The cosmetics giant, which owns Rimmel and Sally Hansen as well as a number of designer fragrance brands, reported a net loss for its third quarter of $26.8m (£18.3m), down from a net profit of $75.5m the year before.
The company revealed that a modest performance in its colour cosmetics products had been offset by a decline in fragrance, skin and body care.
Coty also reported net revenue for the quarter of $950.7m, an increase of two per cent on a reported basis compared with the year before.
For the company's nine months to date, Coty reported net revenues of $3.3bn, down three per cent on a reported basis, and net income of $187.9m, down from $211.5m in the prior year.
Calling the results "consistent" with expectations, Bart Becht, chairman and interim chief executive, said: "We believe we are well on track to build a healthy platform for Coty to become a global leader and challenger in the beauty industry and provide the right basis to drive profitable growth and deliver shareholder value over time."
Becht also remarked that the integration of the Bourjois brand, which Coty acquired last April, and the beauty business, which Coty acquired from Hypermarcas last November, was going well and that the company remains "confident regarding the financial benefits of both transactions".