07.02.14
New York, NY
212.479.4300
www.coty.com
Sales: $4.6 billion. Net income: $201 million, for the year ended June 30, 2013.
Key Personnel: Michele Scannavini, chief executive officer; Sérgio Pedreiro, chief financial officer; Ralph Macchio, senior vice president, global research and development, and chief scientific officer; Darryl McCall, executive vice president, operations; Jean Mortier, president, Coty Prestige; Renato Semerari, president, Coty Beauty; Peter Shaefer, senior vice president, strategic business development.
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: Lady Gaga Fame, Just Cavalli, DOT Marc Jacobs, See by Chloé and Playboy VIP fragrances; Katy Perry (license). Rimmel Scandal’eyes mascara and Rimmel Apocalips cosmetics.
Comments: Sales were up just 1% last year. Growth in color cosmetics and fragrances was partially offset by a decline in skin and body care sales.
By segment, fragrances accounted for 54% of sales; followed by color cosmetics (31%) and skin and body care (15%). Europe, Middle East and Asia represented 47% of sales, trailed by the Americas (41%) and Asia-Pacific (12%).
Coty calls itself the No. 1 player in the global fragrance market and No. 6 in the color cosmetics market. Fragrance sales increased 2% on an 8% gain in unit volume, offset by negative price and mix (-5%) and currency exchange (-1%). Segment growth was primarily driven by net revenues from newly-established brand Lady Gaga Fame, the growing popularity of the Roberto Cavalli franchise and the successful new launches of DOT Marc Jacobs, See by Chloé and Playboy VIP.
Color cosmetics sales increased 3% to more than $1.4 billion on a 4% gain in unit volume that the company attributed to Rimmel. The gain, which was partially offset by foreign currency exchange, was attributed to new product introductions as well as expanded distribution in the US, France and Australia. Growth in N.Y.C. New York Color and Manhattan also contributed to the increase in the color cosmetics segment. OPI sales were flat, as gains in Europe and travel retail were offset by declines in the US.
Skin and body care sales fell 5% to about $690 million, on a 5% volume decline and a 1% decline due to foreign currency exchange translations that were partially offset by a positive price and mix impact of 1%, according to the company.
For the nine months ended March 31, 2014, sales fell 2% to $3.5 billion. Fragrance sales were flat at $2.0 billion, color cosmetics sales fell 9% to $990 million, and skin and body care sales rose 2% to $515 million. By region, sales in the Americas fell 12% to $1.3 billion, but sales in Europe, Middle East and Africa improved 5% to more than $1.7 billion and sales in Asia Pacific were up 3% to $428 million. Coty’s third quarter net revenues rose 2% to $1.0 billion. Fragrance sales rose 6%, thanks to sales of Calvin Klein, Davidoff, Marc Jacobs and Playboy, which Coty calls its power brands.
“Coty returned to revenues growth in the third quarter. The majority of our power brands showed positive development thanks to a competitive innovation program, and growth in the emerging markets accelerated to 15%,” said Michele Scannavini, CEO. “Both prove our strategic focus on these brands and geographies is starting to bear fruit. While market conditions remain challenging in some product segments in parts of the world, we are sticking to our current strategy and targeting for continued growth for the remainder of the calendar year while working to significantly improve the cost profile of the business.”
In May, Coty announced that select fragrances will be marketed and sold through Avon Brazil’s network of 1.5 million independent sales representatives. The deal brings together Avon’s extensive network of representatives in Brazil and Coty’s portfolio of celebrity and lifestyle fragrance brands in an effort to increase both companies’ global fragrance market share, consumer loyalty and brand appeal in Brazil.
“This commercial partnership allows Coty to expand its geographical reach and strengthen our footprint in the emerging markets, with Brazil being a key driver in our growth strategy,” said Renato Semerari, president, Coty Beauty. “Avon’s extensive experience in Brazil makes the company an ideal partner, and we look forward to working together.”
With that move, speculators wondered if Coty would put in another bid for Avon. Coty had made bids for Avon in the past, only to be rebuffed by the direct seller’s management.
212.479.4300
www.coty.com
Sales: $4.6 billion. Net income: $201 million, for the year ended June 30, 2013.
Key Personnel: Michele Scannavini, chief executive officer; Sérgio Pedreiro, chief financial officer; Ralph Macchio, senior vice president, global research and development, and chief scientific officer; Darryl McCall, executive vice president, operations; Jean Mortier, president, Coty Prestige; Renato Semerari, president, Coty Beauty; Peter Shaefer, senior vice president, strategic business development.
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: Lady Gaga Fame, Just Cavalli, DOT Marc Jacobs, See by Chloé and Playboy VIP fragrances; Katy Perry (license). Rimmel Scandal’eyes mascara and Rimmel Apocalips cosmetics.
Comments: Sales were up just 1% last year. Growth in color cosmetics and fragrances was partially offset by a decline in skin and body care sales.
By segment, fragrances accounted for 54% of sales; followed by color cosmetics (31%) and skin and body care (15%). Europe, Middle East and Asia represented 47% of sales, trailed by the Americas (41%) and Asia-Pacific (12%).
Coty calls itself the No. 1 player in the global fragrance market and No. 6 in the color cosmetics market. Fragrance sales increased 2% on an 8% gain in unit volume, offset by negative price and mix (-5%) and currency exchange (-1%). Segment growth was primarily driven by net revenues from newly-established brand Lady Gaga Fame, the growing popularity of the Roberto Cavalli franchise and the successful new launches of DOT Marc Jacobs, See by Chloé and Playboy VIP.
Color cosmetics sales increased 3% to more than $1.4 billion on a 4% gain in unit volume that the company attributed to Rimmel. The gain, which was partially offset by foreign currency exchange, was attributed to new product introductions as well as expanded distribution in the US, France and Australia. Growth in N.Y.C. New York Color and Manhattan also contributed to the increase in the color cosmetics segment. OPI sales were flat, as gains in Europe and travel retail were offset by declines in the US.
Skin and body care sales fell 5% to about $690 million, on a 5% volume decline and a 1% decline due to foreign currency exchange translations that were partially offset by a positive price and mix impact of 1%, according to the company.
For the nine months ended March 31, 2014, sales fell 2% to $3.5 billion. Fragrance sales were flat at $2.0 billion, color cosmetics sales fell 9% to $990 million, and skin and body care sales rose 2% to $515 million. By region, sales in the Americas fell 12% to $1.3 billion, but sales in Europe, Middle East and Africa improved 5% to more than $1.7 billion and sales in Asia Pacific were up 3% to $428 million. Coty’s third quarter net revenues rose 2% to $1.0 billion. Fragrance sales rose 6%, thanks to sales of Calvin Klein, Davidoff, Marc Jacobs and Playboy, which Coty calls its power brands.
“Coty returned to revenues growth in the third quarter. The majority of our power brands showed positive development thanks to a competitive innovation program, and growth in the emerging markets accelerated to 15%,” said Michele Scannavini, CEO. “Both prove our strategic focus on these brands and geographies is starting to bear fruit. While market conditions remain challenging in some product segments in parts of the world, we are sticking to our current strategy and targeting for continued growth for the remainder of the calendar year while working to significantly improve the cost profile of the business.”
In May, Coty announced that select fragrances will be marketed and sold through Avon Brazil’s network of 1.5 million independent sales representatives. The deal brings together Avon’s extensive network of representatives in Brazil and Coty’s portfolio of celebrity and lifestyle fragrance brands in an effort to increase both companies’ global fragrance market share, consumer loyalty and brand appeal in Brazil.
“This commercial partnership allows Coty to expand its geographical reach and strengthen our footprint in the emerging markets, with Brazil being a key driver in our growth strategy,” said Renato Semerari, president, Coty Beauty. “Avon’s extensive experience in Brazil makes the company an ideal partner, and we look forward to working together.”
With that move, speculators wondered if Coty would put in another bid for Avon. Coty had made bids for Avon in the past, only to be rebuffed by the direct seller’s management.
