Coty Inc (COTY)

Net profit margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	89,400	508,200	259,500	-201,300	-1,006,700
Revenue	US$ in thousands	6,119,900	5,281,400	5,118,600	4,115,500	4,449,400
Net profit margin		1.46%	9.62%	5.07%	-4.89%	-22.63%

June 30, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $89,400K ÷ $6,119,900K
= 1.46%

The net profit margin of Coty Inc has shown significant fluctuations over the past five years. In June 2020, the company recorded a negative net profit margin of -22.63%, indicating that it incurred a loss during that period. However, there has been a notable improvement in profitability since then, with the net profit margin steadily increasing to 1.46% in June 2024.

The sharp increase in net profit margin from June 2020 to June 2021, where it improved from -22.63% to -4.89%, suggests that Coty Inc implemented measures to control costs and enhance operational efficiency. Subsequently, the company continued to enhance its profitability, achieving a net profit margin of 5.07% in June 2022 and further improvement to 9.62% in June 2023.

Although the net profit margin has shown positive growth trends in recent years, stakeholders should monitor Coty Inc's ability to sustain and potentially continue to enhance its profitability, considering the volatility evident in the company's historic financial performance.