Coty Inc (COTY)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 64.84% | 64.44% | 64.60% | 64.15% | 63.61% | 64.09% | 63.67% | 63.74% | 63.87% | 63.68% | 64.01% | 63.71% | 63.52% | 63.26% | 62.72% | 61.01% | 59.79% | 56.96% | 56.74% | 59.02% |
| Operating profit margin | 4.06% | 4.36% | 10.18% | 9.58% | 8.96% | 10.50% | 12.68% | 14.88% | 16.84% | 13.57% | 12.22% | 10.33% | 5.62% | 7.26% | 5.19% | 0.71% | -1.05% | -23.52% | -26.54% | -21.77% |
| Pretax margin | -5.85% | -6.31% | 1.40% | 4.65% | 3.34% | 6.40% | 8.80% | 9.50% | 12.69% | 6.43% | 4.90% | 5.40% | 8.05% | 12.29% | 11.81% | 4.63% | -5.18% | -27.46% | -31.92% | -26.17% |
| Net profit margin | -6.24% | -6.60% | 0.22% | 2.78% | 1.46% | 3.59% | 5.39% | 6.57% | 9.15% | 3.61% | 2.64% | 3.05% | 4.89% | 6.83% | 6.29% | -4.03% | -4.35% | -18.93% | -23.09% | -15.07% |
An analysis of Coty Inc's profitability ratios over the period examined reveals several key trends and insights into the company's financial performance.
Gross Profit Margin: The gross profit margin demonstrates a consistent upward trajectory from approximately 59.02% on September 30, 2020, to approximately 64.84% by June 30, 2025. This steady increase suggests that Coty has been effective in managing its production costs and enhancing product profitability. The incremental improvement indicates operational efficiencies and pricing strategies that sustain a high gross profit rate, reflecting positively on the company's core manufacturing and sales activities.
Operating Profit Margin: The operating profit margin exhibits significant fluctuations, transitioning from negative figures in 2020 (-21.77% in September and -26.54% in December) to positive margins starting in the latter half of 2021, with a peak of approximately 16.84% in June 2023. This progression signifies improving operational efficiency, likely due to cost control measures, strategic restructuring, or market expansion initiatives. The temporary dips in some quarters could correspond to investments or transitional costs, but overall, the trend indicates a strengthening in operational profitability.
Pretax Margin: Similar to the operating margin, the pretax margin began in negative territory in 2020 (-26.17% in September, -31.92% in December) and recovered to positive values through 2021 and 2022, reaching a high of approximately 12.69% in June 2023. Recent quarters show a decline to around 4% and negative values, possibly reflecting increased tax expenses or other one-time costs impacting pretax profitability. The overall movement suggests a trajectory of improving pre-tax earnings relative to revenues until recent fluctuations.
Net Profit Margin: The net profit margin mirrors the patterns observed in gross and operating margins. It was negative in 2020, rooted in substantial operational and pretax losses. From late 2021 onwards, net margins turned positive, peaking at approximately 9.15% in June 2023. However, the margins have since declined, approaching near zero or negative territory in the most recent quarters, implying challenges in maintaining profitability after accounting for all expenses, including taxes and non-operational items.
Summary: Overall, Coty Inc has shown significant improvement in profitability ratios from the low or negative levels observed in 2020, with sustained growth in gross margins and recovery of operating and net margins by mid-2022 through mid-2023. Nonetheless, recent periods indicate a potential moderation in profitability, possibly due to increased costs, market pressures, or strategic investments. The consistent gross margin expansion coupled with fluctuating operating and net margins suggests that while core product profitability remains strong, overall net profitability is more sensitive to operational expenses, taxes, and other external factors.
In conclusion, Coty Inc's profitability profile has strengthened considerably over the analyzed period, reflecting successful initiatives to improve operational efficiency and cost management, although recent fluctuations imply ongoing challenges that could impact future profitability growth.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.01% | 2.28% | 5.29% | 4.70% | 4.54% | 5.20% | 5.86% | 6.85% | 7.39% | 5.74% | 5.17% | 4.60% | 2.46% | 2.84% | 1.95% | 0.25% | -0.35% | -7.13% | -8.67% | -6.80% |
| Return on assets (ROA) | -3.09% | -3.45% | 0.12% | 1.36% | 0.74% | 1.78% | 2.49% | 3.02% | 4.01% | 1.53% | 1.12% | 1.36% | 2.14% | 2.68% | 2.36% | -1.40% | -1.47% | -5.74% | -7.55% | -4.71% |
| Return on total capital | -2.15% | -3.62% | 8.71% | 10.90% | 12.74% | 16.25% | 13.96% | 15.34% | 13.61% | 4.22% | 4.86% | 7.36% | 3.05% | 8.42% | 7.53% | 6.16% | 3.22% | -16.28% | -23.18% | -30.38% |
| Return on equity (ROE) | -9.98% | -10.89% | 0.36% | 4.08% | 2.34% | 5.30% | 7.09% | 9.87% | 12.85% | 4.99% | 3.78% | 5.07% | 7.87% | 9.49% | 8.77% | -5.32% | -5.17% | -19.55% | -26.20% | -20.04% |
The analysis of Coty Inc’s profitability ratios over the specified period reveals a notable trend of initial losses followed by periods of gradual improvement and subsequent fluctuations.
Operating Return on Assets (Operating ROA):
During the fiscal year ending September 30, 2020, Coty exhibited negative Operating ROA values, indicating that the company's core operations were not generating sufficient income relative to its assets. The losses persisted through December 2020 and March 2021, with the worst point reaching -8.67% and -7.13%, respectively. Starting in June 2021, a positive trend emerged, with Operating ROA turning marginally positive at 0.25% and continuing upward through December 2021, reaching nearly 2%. The upward momentum persisted into 2022, peaking at 7.39% in June 2023, suggesting improved operational efficiency and profitability. However, from late 2023 onward, the ratio declined, settling around 4.54% to 4.70% in mid-2024, and further decreasing to approximately 2% in mid-2025, indicating a reduction in operational performance relative to assets.
Return on Assets (ROA):
The ROA mirrors a similar recovery trajectory. Initially negative, with values reaching -7.55% at the end of 2020, the ratio improved significantly by December 2021, turning positive (2.36%) after being negative in previous periods. This trend continued into early 2022, with ROA stabilizing above 1%, before gradually declining again to near zero in mid-2024. The latest data indicates a negative ROA of approximately -3.45% in March 2025, reflecting a decline in overall asset efficiency in generating earnings.
Return on Total Capital:
This ratio experienced the most pronounced initial negative values, with -30.38% at the end of September 2020, indicating significant challenges in generating returns from total capital employed. A substantial turnaround occurred in June 2021, where the ratio became positive at 3.22%. Throughout 2021 and into mid-2022, ROTC displayed a consistent upward trend, reaching a peak of about 15.34% in September 2023. However, subsequent periods show a declining trend, with the ratio decreasing to around 8.71% by the end of 2024, and turning negative again in the first half of 2025, suggesting deteriorations in the company’s capacity to generate returns from its capital.
Return on Equity (ROE):
Coty’s ROE highlights periods of substantial volatility. Early in the period, the company experienced significant negative ROE, with -26.20% at the end of 2020 and -19.55% at the end of March 2021. A turning point occurred in late 2021, with ROE becoming positive and reaching 8.77% by year-end, reflecting improved profitability attributable to shareholders. This positive trend persisted into 2022 and 2023, with ROE peaking at approximately 12.85% in June 2023. However, from the latter part of 2023 onward, the ratio declined sharply, culminating in negative ROE of about -10.89% in March 2025. This sharp decline indicates a deterioration in shareholder returns, likely influenced by reduced profitability or increased losses.
Overall Summary:
Coty Inc’s profitability ratios show a trajectory from significant losses pre-2021 toward periods of improved operational and overall profitability through 2022 and early 2023, driven by better operational efficiencies and capital management. The attainment of positive ratios in late 2021 and 2022 marks a period of recovery. Nevertheless, recent trends suggest a reversal, with profitability ratios declining or turning negative by 2024 and into 2025, indicating renewed challenges in generating earnings and returns on assets, capital, and equity. This persistence of volatility underscores the importance of strategic operational improvements and potential structural or market-related issues affecting profitability.