Coty Inc (COTY)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 64.84% | 64.39% | 63.87% | 63.52% | 59.79% |
| Operating profit margin | 9.00% | 8.94% | 9.79% | 13.02% | 4.27% |
| Pretax margin | -5.85% | 3.34% | 12.69% | 8.05% | -5.18% |
| Net profit margin | -6.24% | 1.46% | 9.15% | 4.89% | -1.46% |
The profitability ratios for Coty Inc. over the period from June 2021 to June 2025 reveal a variable performance pattern with some notable upward trends interspersed with periods of decline.
Gross Profit Margin demonstrates consistent improvement, rising from 59.79% in June 2021 to 64.84% in June 2025. This indicates a steady increase in the company's ability to maintain higher profit margins on its sales, suggesting improved cost management or better pricing strategies. The incremental growth suggests a gradual strengthening of core profitability at the gross level.
Operating Profit Margin shows a significant increase from 4.27% in June 2021 to a peak of 13.02% in June 2022. However, after this peak, it declines to 9.79% in June 2023 and further to 8.94% in June 2024 before slightly increasing again to 9.00% in June 2025. The initial improvement indicates enhanced operational efficiency or growth in operating income relative to sales, but the subsequent decline hints at increased operating expenses or pricing pressures that impacted operating profitability.
Pre-Tax Margin reflects a more volatile trend. It starts from a negative figure of -5.18% in June 2021, turns positive at 8.05% in June 2022, and reaches a high of 12.69% in June 2023. However, it declines sharply by June 2024 to 3.34%, turning negative again to -5.85% in June 2025. This volatility suggests fluctuations in pre-tax earnings, potentially driven by non-operating factors, interest expenses, or extraordinary items impacting earnings before taxes.
Net Profit Margin follows a similar pattern to the pre-tax margin, beginning at -1.46% in June 2021, improving significantly to 4.89% in June 2022, and reaching 9.15% in June 2023. After this peak, it declines markedly to 1.46% in June 2024 before falling into negative territory at -6.24% in June 2025. The overall trend indicates that despite periods of profitability, Coty’s net earnings have faced considerable fluctuations, culminating in a reported loss in the most recent period analyzed.
In summary, Coty Inc.’s profitability ratios display an overall trend of improvement in gross margins, signaling better control over cost of goods sold, but the operating, pre-tax, and net profit margins exhibit volatility and periods of decline, including negative profitability. These fluctuations highlight challenges in maintaining consistent profitability margins at operational and net levels, possibly reflecting market pressures, cost management issues, or external factors affecting earnings.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.46% | 4.52% | 4.29% | 5.70% | 1.44% |
| Return on assets (ROA) | -3.09% | 0.74% | 4.01% | 2.14% | -0.50% |
| Return on total capital | 0.00% | 11.18% | 13.61% | 10.31% | 0.47% |
| Return on equity (ROE) | -9.98% | 2.34% | 12.85% | 7.87% | -1.74% |
The analysis of Coty Inc.'s profitability ratios over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations in its financial performance.
Starting with the Operating Return on Assets (Operating ROA), the metric demonstrated a significant increase from 1.44% in 2021 to a peak of 5.70% in 2022. Subsequently, it declined slightly to 4.29% in 2023 and marginally increased again to 4.52% in 2024 before slightly decreasing to 4.46% in 2025. This trend suggests improved operating efficiency in 2022, followed by a stabilization phase with modest variations.
In contrast, the broader Return on Assets (ROA) exhibited more volatility. It was negative at -0.50% in 2021 but improved considerably to 2.14% in 2022, reaching 4.01% in 2023. Afterward, it declined sharply to 0.74% in 2024 and turned negative again at -3.09% in 2025, indicating periods of both operational strength and challenges in asset efficiency over the period.
The Return on Total Capital showed a marked upward trend from a mere 0.47% in 2021 to a peak of 13.61% in 2023, reflecting improved overall profitability from the capital invested. The figure then declined to 11.18% in 2024 and sharply dropped to zero in 2025, implying diminished effectiveness in generating returns on total capital employed by the company.
Regarding the Return on Equity (ROE), there was a notable recovery from a negative -1.74% in 2021 to a positive 7.87% in 2022 and a further rise to 12.85% in 2023, indicating an improving shareholders’ Return. However, this ratio declined significantly in 2024 to 2.34% and turned negative at -9.98% in 2025, highlighting a deterioration in profitability attributable to equity holders.
Overall, Coty Inc. experienced a period of substantial improvement in profitability metrics in 2022 and 2023, followed by noticeable declines in the subsequent years. The fluctuations suggest variability in operational efficiency, asset utilization, and return generation from both shareholders and total capital, with recent years indicating challenges in sustaining previous levels of profitability.