07.01.21
New York
www.coty.com
Sales: $4.7 billion
Key Personnel
Peter Harf, executive chairman; Sue Y. Nabi, chief executive officer; Laurent Mercier, chief financial officer; Kristin Blazewicz, chief legal officer and general counsel; Gordon von Bretten, chief transformation officer; Anna von Bayern, chief corporate affairs officer
Major Products
Fragrance, color and skin care products. Coty Luxury: Alexander McQueen, Bottega Veneta, Burberry, Calvin Klein, Chloé, Davidoff, Gucci, Hugo Boss, Kylie Skin, Marc Jacobs, Miu Miu and Tiffany & Co, Lancaster and Philosophy. Coty Consumer: CoverGirl, Max Factor, Rimmel, Sally Hansen, Adidas and Nautica
New Products
CoverGirl Lash Blast clean mascara; Sally Hansen Good.Kind.Pure color cosmetics and Miracle Gel Top Coat; Kim Kardashian SKNN, Calvin Klein Eternity Summer for Women, Daisy Marc Jacobs Eau So Intense, Escada Summer Festival, Boss Bottled United Eau de Parfum
Comments: Sales fell 25% for the year ended June 30, 2021. The company blamed the pandemic, pointing to a 60% decline in continuing operations. In an effort to lower Coty’s leverage and strengthen its balance sheet, in the midst of the pandemic Coty secured a $1 billion direct investment from KKR and entered into an agreement to sell 60% of Wella for $2.5 billion. Also in June, the company hired Sue Y. Nabi, a long-time beauty industry executive.
“We firmly believe she has the ideal prerequisites to become CEO of Coty,” said Executive Chairman Peter Harf. “I am even more convinced the new Coty today is set up for strategic optionality and has more potential than ever before to unlock and create value.”
Not long after that announcement, Coty said it will sell many of its manufacturing facilities and outsource production in an effort to become “asset light,” in the words of Harf. In fiscal 2020, Coty manufactured nearly 80% of its products at facilities in countries including the US, Brazil and China.
“Cosmetics is a complex business, so if we play it like Estée Lauder or L’Oréal, we are dead,” he told reporters.
Not dead, but certainly not healthy. In FY20, sales in Europe, Middle East and Africa, fell nearly 21% to $2.3 billion. Results in The Americas fell 21.3% to nearly $1.8 billion and sales in Asia-Pacific fell 24.4% to $582 million.
By region, EMEA accounted for 49% of sales, followed by the Americas (38%) and Asia-Pacific (12%). Coty did slash net losses by more than two-thirds to “just” $1.0 billion, after posting a net loss of nearly $3.8 billion in fiscal 2019.
Coty also slashed a portion of its hair care business, agreeing to sell 60% of Wella, Clairol, OPI and ghd brands to KKR. At the time of the transaction, the business was valued at $4.3 billion and had sales of $2.02 billion.
In fiscal 2021, Coty continued to strategize a recovery. In fiscal Q3, ended March 31, 2021, sales fell 3% to just over $1 billion. For the nine months, sales fell 14.2% to about $3.5 billion.
“Our Q3 marked another strong milestone in our journey to rejuvenate Coty’s position as a global beauty powerhouse,” said CEO Sue Nabi. “In less than a year, the leadership team and the broader organization have successfully mapped out our strategy, activated our brand and category plans, while generating operational improvements, and strengthening our financial position.”
For the nine months, sales fell 14% to $3.5 billion. Fragrance accounted for 59.1% of sales, followed by color cosmetics, 27.9% and body care and others, 13.0%.
In a move intended to revitalize CoverGirl, Coty is reducing the cosmetics brand’s SKUs to focus on clean beauty. At the same time, Coty is rolling out SKKN, Kim Kardashian’s skin care line.
In June, Coty won a record six awards from The Fragrance Foundation. Here are some more numbers that matter: Coty is the No. 1 player in the global fragrance market and No. 2 in color cosmetics.
To stay there, yet keep moving forward, the company has a six-point plan to accelerate sales and profit growth:
www.coty.com
Sales: $4.7 billion
Key Personnel
Peter Harf, executive chairman; Sue Y. Nabi, chief executive officer; Laurent Mercier, chief financial officer; Kristin Blazewicz, chief legal officer and general counsel; Gordon von Bretten, chief transformation officer; Anna von Bayern, chief corporate affairs officer
Major Products
Fragrance, color and skin care products. Coty Luxury: Alexander McQueen, Bottega Veneta, Burberry, Calvin Klein, Chloé, Davidoff, Gucci, Hugo Boss, Kylie Skin, Marc Jacobs, Miu Miu and Tiffany & Co, Lancaster and Philosophy. Coty Consumer: CoverGirl, Max Factor, Rimmel, Sally Hansen, Adidas and Nautica
New Products
CoverGirl Lash Blast clean mascara; Sally Hansen Good.Kind.Pure color cosmetics and Miracle Gel Top Coat; Kim Kardashian SKNN, Calvin Klein Eternity Summer for Women, Daisy Marc Jacobs Eau So Intense, Escada Summer Festival, Boss Bottled United Eau de Parfum
Comments: Sales fell 25% for the year ended June 30, 2021. The company blamed the pandemic, pointing to a 60% decline in continuing operations. In an effort to lower Coty’s leverage and strengthen its balance sheet, in the midst of the pandemic Coty secured a $1 billion direct investment from KKR and entered into an agreement to sell 60% of Wella for $2.5 billion. Also in June, the company hired Sue Y. Nabi, a long-time beauty industry executive.
“We firmly believe she has the ideal prerequisites to become CEO of Coty,” said Executive Chairman Peter Harf. “I am even more convinced the new Coty today is set up for strategic optionality and has more potential than ever before to unlock and create value.”
Not long after that announcement, Coty said it will sell many of its manufacturing facilities and outsource production in an effort to become “asset light,” in the words of Harf. In fiscal 2020, Coty manufactured nearly 80% of its products at facilities in countries including the US, Brazil and China.
“Cosmetics is a complex business, so if we play it like Estée Lauder or L’Oréal, we are dead,” he told reporters.
Not dead, but certainly not healthy. In FY20, sales in Europe, Middle East and Africa, fell nearly 21% to $2.3 billion. Results in The Americas fell 21.3% to nearly $1.8 billion and sales in Asia-Pacific fell 24.4% to $582 million.
By region, EMEA accounted for 49% of sales, followed by the Americas (38%) and Asia-Pacific (12%). Coty did slash net losses by more than two-thirds to “just” $1.0 billion, after posting a net loss of nearly $3.8 billion in fiscal 2019.
Coty also slashed a portion of its hair care business, agreeing to sell 60% of Wella, Clairol, OPI and ghd brands to KKR. At the time of the transaction, the business was valued at $4.3 billion and had sales of $2.02 billion.
In fiscal 2021, Coty continued to strategize a recovery. In fiscal Q3, ended March 31, 2021, sales fell 3% to just over $1 billion. For the nine months, sales fell 14.2% to about $3.5 billion.
“Our Q3 marked another strong milestone in our journey to rejuvenate Coty’s position as a global beauty powerhouse,” said CEO Sue Nabi. “In less than a year, the leadership team and the broader organization have successfully mapped out our strategy, activated our brand and category plans, while generating operational improvements, and strengthening our financial position.”
For the nine months, sales fell 14% to $3.5 billion. Fragrance accounted for 59.1% of sales, followed by color cosmetics, 27.9% and body care and others, 13.0%.
In a move intended to revitalize CoverGirl, Coty is reducing the cosmetics brand’s SKUs to focus on clean beauty. At the same time, Coty is rolling out SKKN, Kim Kardashian’s skin care line.
In June, Coty won a record six awards from The Fragrance Foundation. Here are some more numbers that matter: Coty is the No. 1 player in the global fragrance market and No. 2 in color cosmetics.
To stay there, yet keep moving forward, the company has a six-point plan to accelerate sales and profit growth:
- Stabilize consumer beauty makeup brands and mass fragrances;
- Accelerate luxury fragrances and establish Coty as a key player in prestige makeup;
- Build a skin care portfolio across prestige and mass channels;
- Enhance e-commerce and direct-to-consumer (DTC) capabilities;
- Expand in China through prestige and select consumer beauty brands; and
- Establish Coty as an industry leader in sustainability.