05.05.23
Coty Inc.’s board of directors has authorized the company’s management to explore a listing on the Paris Stock Exchange (PAR), company officials announced today.
If the company initiates a listing process, Coty Inc. would become a dual listed company on the New York Stock Exchange (NYSE) and on the Paris Stock Exchange (PAR), further strengthening Coty’s presence in Europe and providing an additional vehicle to reach untapped investors in the market. The structure aligns with Coty’s 100+year heritage in France and its substantial business footprint in Europe.
If the company initiates a listing process, Coty Inc. would become a dual listed company on the New York Stock Exchange (NYSE) and on the Paris Stock Exchange (PAR), further strengthening Coty’s presence in Europe and providing an additional vehicle to reach untapped investors in the market. The structure aligns with Coty’s 100+year heritage in France and its substantial business footprint in Europe.
Under the leadership of Sue Y. Nabi, Coty has made significant progress against its strategic objectives since they were announced in November 2021, reclaiming the company’s status as a global beauty powerhouse.
“Paris is the historic home of beauty, and the industry still holds a special attraction for investors there. The board’s interest in exploring a potential listing on the Paris Stock Exchange has been made possible thanks to the progress Coty has made under Sue’s leadership”, said Peter Harf, Coty’s chairman. “We have seen consistent growth over the last 10 quarters, in line with or ahead of market expectations, underpinned by targeted investment, disciplined cost controls and a clear debt reduction program. The strength of this performance is testament to Sue’s reputation as one of the beauty industry’s most innovative and talented figures, and the leadership team she has built at Coty.”
This progress is evidenced by 10 consecutive quarters of strong growth and results in line with or ahead of expectations; returning Coty’s heritage consumer beauty brands CoverGirl, Bourjois, Max Factor, and Rimmel, to growth; the highly successful launches of fragrances for Burberry, Hugo Boss, Marc Jacobs, Gucci, and Chloé; solidifying Coty’s position across the three core beauty categories by dramatically accelerating in skin care; and building momentum in China through the success of Gucci beauty, Burberry beauty and Lancaster. As a result of the effective implementation of this strategy, Coty is now financially stronger, with projected free cash flow of over $400 million in FY23 and on track to achieve leverage towards three times exiting CY23, officials said. Recognition of this progress has been reflected in the quadrupling of Coty’s market capitalization since Sue Y. Nabi’s appointment in September 2020.
Board Extends Long-Term Partnership with CEO
The board has also extended its long-term partnership with Nabi, Coty’s CEO. Nabi’s renewed compensation agreement is anchored on a long-term equity program which runs through 2030. The agreement includes a significant portion of performance related shares alongside a performance related bonus, further aligning all stakeholders’ interests.
“As a long-term shareholder in the company, I am grateful to the board for their continued support and trust, and delighted to have the opportunity of leading Coty through this next chapter of growth and value creation,” said Nabi. “We are committed to driving sustainable innovation across fragrance, color cosmetics and skincare as we rise to meet the consumer needs of the future, while simultaneously campaigning to change outdated definitions of beauty through the #undefinebeauty campaign.”