Top Companies Report

8. Coty

July 1, 2015

New York, NY

Sales: $4.5 billion, for the year ended June 30, 2014.

Key Personnel: Bart Becht, chairman and interim chief executive officer; Patrice de Talhouët, executive vice president and chief financial officer; Mario Reis, executive vice president, supply chain; Jean Mortier, president, global markets; Ralph Macchio, senior vice president, global R&D and chief scientific officer.

Major Products: Fragrances, skin care, color cosmetics. Brands include Adidas, Calvin Klein, Chloe, Davidoff, Marc Jacobs, OPI, Philosophy, Playboy, Rimmel and Sally Hansen.

New Products: Fragrances—Katy Perry Killer Queen, Ultrasense White by Jil Sander, Marc Jacobs Mod Noir, Philosophy Live Joyously, Reveal Calvin Klein, Daisy Marc Jacobs Sorbet, Roberto Cavali Oud al Qasr, Jeremy Scott for Adidas, Bottega Veneta pour home Extrême, Daisy Dream, Vespa for Her and for Him; Color Cosmetics—Sally Hansen Miracle Gel Top Coat and Insta-Dri nail colors, OPI Aloha Hawaii Collection, Bourjois color cosmetics (acquisition); Skin Care—Philosophy Renewed Hope in a Jar. To be launched: Marc Jacobs Decadence fragrance (October).

Comments: As this issue went to press, the industry was waiting for the official word that Coty was the big winner in the Procter & Gamble Sell-Off Sweepstakes. Although neither party would confirm it at press time, Coty reportedly agreed to pay $12 billion for Max Factor, Cover Girl and Wella.

There was other news coming from Coty’s corporate office as this issue went to press; Elio Leoni Sceti, who had been ready to take over as CEO, decided to not take on the role he was scheduled to start in July. Sceti was hired in April to replace Michele Scannavini who resigned in September for personal reasons.

Bart Becht—who is now interim CEO as well as chairman—has been steering Coty through an efficiency program in an effort to improve the bottom line. But these things take time. Through nine months March 31, 2015, sales fell 4% to $3.3 billion. But Becht seems undeterred, noting that Q3 was just the second quarter of Coty’s new strategy.

“We have made excellent progress in driving profit growth behind efficiency programs, as shown by the 24% growth in Q3 adjusted operating profits,” Becht enthused. “As our success in this area is very good, we will be looking to increase the $200 million target for our Global Efficiency Plan.”

In fiscal 2014, sales fell 2% to $4.5 billion. Unit volume fell 3%, but was partially offset by positive price and mix. At the end of the fiscal year, Coty eliminated the TJoy brand and the reorganized its mass business in China. New launches represented 15% of net revenue during the year. The contribution from new launches was partially offset by an approximate 16% decline in net revenues from existing products that are later in their life cycles.

Coty calls itself the No. 2 player in the global fragrance market and fragrances accounted for 55% of sales, followed by color cosmetics (30%) and skin care (15%).

In fiscal 2014, Coty manufactured 75% of its fragrances, with Europe, Middle East and Africa accounting for 54% of sales, followed by the Americas (30%) and Asia Pacific (16%). Top fragrance brands by percentage of net revenues are Calvin Klein, Marc Jacobs, Davidoff, Playboy and Chloé.

Coty says it is the No. 2 player in the global nail care segment and “emerging leader” in color cosmetics, ranking No. 5 globally and No. 3 in the North American and European mass market. Its top color cosmetics brands are Rimmel, Sally Hansen and OPI.
On April 1, Coty closed the Bourjois acquisition, noting that the firm’s strength in key European color cosmetics markets is complementary to Coty’s existing color portfolio.

Skin and body care sales, where Coty has three main brands (Adidas, Lancaster and Philosophy), were essentially flat. 
By region, Europe, the Middle East and Africa accounted for 50% of sales last year, followed by the Americas (38%) and Asia Pacific (12%). Sales in the Americas fell 11% due to a decline in sales of Sally Hansen, OPI and fragrances, particularly older fragrances like Playboy, Chloé, Calvin Klein and Davidoff.

EMEA results were better, as sales increased 5%, driven by gains in the UK, Eastern Europe and the Middle East. During the year, Coty formed a joint venture in the UAE and established a South African subsidiary, which is part of the company plan to expand into emerging markets. Better UK sales reflected incremental net revenues from OPI resulting from the acquisition of a UK distributor and from Katy Perry Killer Queen as well as growth from David Beckham and Rimmel.

Sales in Asia Pacific fell less than 1%, but Coty noted that excluding the impact of reorganization of its China business and foreign currency exchange translations, net revenues in increased 7%. 
  • Skin of Color Society Connects Experts

    Skin of Color Society Connects Experts

    Melissa Meisel, Associate Editor||January 16, 2017
    Dermatologists from across the nation share information and ideas.

  • Erasa

    Erasa's New Evangelist(a)

    January 9, 2017
    Impressed by the performance of its hero SKU, supermodel Linda Evangelista joins the company in a hand's on role.

  • Discourse on Disclosure

    Discourse on Disclosure

    Tom Branna, Editorial Director||January 6, 2017
    Transparency impacts the cleaning industry.

  • Hitting the Right Notes

    Hitting the Right Notes

    January 6, 2017
    Agilex Fragrances is the leader in the middle market fragrance category.

  • The Smell of Clean in 2017

    The Smell of Clean in 2017

    January 6, 2017
    Changing consumer lifestyles and demographics are impacting the scents found in the household cleaning category.

  • On the Edge

    On the Edge

    January 6, 2017
    Expanding beauty brands to watch in 2017

  • A New Contender?

    A New Contender?

    January 6, 2017
    Detergent sales are up, innovation continues and Henkel is determined to make it a dogfight in the segment.

  • Engagement 2016

    Engagement 2016

    January 6, 2017
    CSPA convenes in Fort Lauderdale for annual meeting.

  • Slow & Steady

    Slow & Steady

    Tom Branna, Editorial Director||December 1, 2016
    In a tumultuous environment, steady gains posted in the industrial and institutional cleaning sector are welcomed.

  • The World Comes to Orlando

    The World Comes to Orlando

    Tom Branna, Editorial Director||December 1, 2016
    More than 1,600 chemists traveled to Florida for the IFSCC Congress

  • The Plex Phenomenon

    The Plex Phenomenon

    Denise Costrini, Croda North America||December 1, 2016
    Croda details the hair-protecting qualities of bond multipliers and the company’s new bond-building formulation system.

  • New Hair Care Ingredients

    December 1, 2016
    Check out the latest releases from suppliers.

  • Hair & Now

    Hair & Now

    Melissa Meisel, Associate Editor ||December 1, 2016
    The shampoo and conditioner category is expanding with modern takes on these classic formulations.

  • Perform or Perish

    Perform or Perish

    Christine Esposito, Associate Editor||December 1, 2016
    Success in today’s skin care sector begins with active ingredients, formulated in products that address modern-day issues.

  • Aromas Revealed: Fragrance Disclosure

    Aromas Revealed: Fragrance Disclosure

    Daniel Greenberg, Agilex Fragrances||November 2, 2016
    Fragrance disclosure is a potentially dangerous issue.

  • New and Noteworthy:  Fine Fragrance Roundup  for Fall 2016

    New and Noteworthy: Fine Fragrance Roundup for Fall 2016

    Melissa Meisel, Associate Editor||November 2, 2016
    Check out the latest launches in fragrance this season.

  • Soap Opera

    Soap Opera

    Christine Esposito, Associate Editor||November 2, 2016
    FDA’s recent antibacterial ruling has soap sector stakeholders scrambling to keep some ingredients in their formulation kit.

  • New Ingredients for  Household Cleaners

    New Ingredients for Household Cleaners

    Tom Branna, Editorial Director||November 2, 2016
    Here are ingredients introduced by suppliers during the past 12 months.

  • Clean It Up

    Clean It Up

    Tom Branna, Editorial Director||November 2, 2016
    The home care industry takes a hard look at itself and the changing world it competes in.

  • A-Okay!


    Imogen Matthews, For In-Cosmetics||November 2, 2016
    K-Beauty influences cosmetic development around the world.

  • Shine On

    Shine On

    Melissa Meisel, Associate Editor||November 2, 2016
    Oral care products are rising to the task with innovative components.

  • Next Gen  Antiseptics

    Next Gen Antiseptics

    Emily Kalal and Katherine S. Maka, RITA Corporation||November 2, 2016
    RITA researchers detail the benefits of 0.75% chlorhexidine gluconate (CHG) antiseptic handwash

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.

  • Contract Manufacturing / Private Label Directory

    Contract Manufacturing / Private Label Directory

    October 1, 2016
    Our directory is your source to find a manufacturer to get your product to market.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.