Coty quarterly profit beats as acquisitions pay off

U.S. beauty products maker Coty Inc reported a better-than-expected quarterly profit on Thursday, driven by strong demand for Tiffany & Co and Gucci Bloom fragrances, as well as recently-acquired makeup brands.

In the past year Coty has bought several brands from Procter & Gamble Co, the personal care and beauty business of Brazil’s Hypermarcas SA and also a hair styling appliance brand, GHD.

Coty’s consumer beauty unit, which is a key revenue contributor and houses CoverGirl and Clairol, reported a 13.7 percent rise in sales.

Results of the consumer beauty unit largely reflects the 11.1 percent contribution by Younique, the online cosmetic retailer in which Coty acquired a 60 percent stake last year..

Net income attributable to the company more than doubled to $109.2 million, or 15 cents per share, in the second quarter ended Dec. 31, from $46.8 million, or 6 cents per share, a year earlier.

Excluding items, the company earned 32 cents per share. Net revenue rose to $2.64 billion from $2.30 billion.

Analysts on average had expected the company to earn 23 cents on a revenue of $2.48 billion, according to Thomson Reuters I/B/E/S.

The company’s shares rose 1 percent to $17.65 in premarket trading.