While some personal care makers disengage from key emerging markets, Coty's far-flung empire has grown a bit further afield in recent weeks, what with the sealing of a deal in the Middle East, the acquisition of a key distributor in Europe and the opening of an office in South Africa. All those moves, insists one observer, should help the fragrance maker's share price, which has been languishing since its initial public offering last year. Coty debuted on the stock exchange in June at $17.50 a share. But the stock didn't receive a customary first-day bump, even though it was the second largest US-listed consumer product IPO since 1995. Currently, the stock is trading at $15.10 a share.
But according to Chris Katje, all the new deals give Coty a better grip on its brands and its distribution in emerging markets thanks to the Dec. 23 JV (called Coty Distribution Emirates) with Chalhoub Group and Jashanmal.