SALES: $9.3 billion
Sales: $9.3 billion.
Key Personnel: Pierre Laubies, chief executive officer; Gianni Pieraccioni, chief operating officer, consumer beauty; Sylvie Moreau, president, professional beauty; Edgar Huber, president, Coty Luxury; Daniel Ramos, chief scientific officer; Pierre-André Terisse, chief financial officer.
Major Products: Beauty, hair care, skin care and fragrance. Luxury—Bottega Veneta, Burberry, Calvin Klein, Chloé, Gucci, Hugo Boss, Tiffany & Co, Marc Jacobs, Miu Miu; Professional—Wella, OPI, ghd, System Professional, Nioxin, Sassoon, Sebastian, Clairol. Consumer—CoverGirl, Clairol, Rimmel, Adidas, Bourjois, Sally Hansen, Max Factor, Wella, Monage, Risqué, Bruno Banani, Katy Perry, James Bond 007, Mexx, Nautica Fragrances, Biocolor, Bozzano, Cenoura & Bronze, Paixão.
New Products: Fragrances & Beauty—Obsessed by Calvin Klein, Tiffany & Co, Gucci Bloom, Burberry Beauty (license), OPI ProHealth GelColor System; Hair Care—Nice n Easy hair color (relaunch), WellaPlex and Wella Professional Smart Mirror.
Comments: Coty bit off more than it could chew last year and the $12.5 billion acquisition of dozens of P&G beauty brands has left a bad taste in investors’ mouths. No wonder the company will unveil its turnaround plan this month. Prior to that, last year Coty divested or terminated 14 brands including CLC, Celine Dion, Cutex, Esprit, Guess, Halle Berry, JLo, Lady Gaga, Love2Love, Playboy, Summer and Tim McGraw within consumer beauty, and Cerruti and Chopard, which were reported in the luxury segment.
Fiscal 2018 sales rose 23% last year, primarily due to acquisitions. Luxury segment sales rose 25% thanks to successful fragrance launches like Obsessed by Calvin Klein and good gains in China and the Middle East. Consumer beauty segment sales increased 16% as a result of the acquisitions of P&G beauty and ghd. Professional beauty sales surged 38% due to the impact of acquisitions and the successful launch of products like OPI ProHealth GelColor System and WellaPlex.
By region, North America sales increased 18% to nearly $3 billion; sales in Europe rose 26% to $4.2 billion and ALMEA sales were up 23% to $2.2 billion.
Coty’s got problems, but that didn’t stop JAB Holding Company from boosting its stake in the beleaguered cosmetic maker. In April, JAB regained majority control of the company when it increased its stake to 60%, up from 40%. JAB, which also owns Keurig, Dr. Pepper and Pret A Manger, is determined to lift Coty’s sagging fortunes. It’s still got a ways to go.Through nine months, sales fell nearly 9% to $6.5 billion. The luxury products division reported a 3% increase in sales, but that was more than offset by a 5% decline in professional product sales and an 18% plunge in consumer beauty sales.
Still, CEO Pierre Laubies remained upbeat, noting that Q3 supply issues have been resolved and a new management team has coalesced and is in place. Of course, he also noted that the consumer beauty division’s woes must be addressed, specifically, shelf productivity, product range simplification and brand investment at scale.
“These are the main priorities of the strategic plan that we are completing and which we will start deploying as soon as fiscal 2020,” he explained.
In February, Coty hired Gianni Pieraccioni as its chief operating officer, consumer beauty. He had been president, Revlon Consumer Division and served as COO of Revlon Inc. until 2017. He brings more than 30 years of international business experience with consumer goods companies including J&J, PepsiCo and P&G.
Also, Pierre-André Terisse joined the company as chief financial officer. Terisse spent the majority of his career at Danone, most notably as group CFO of Danone for seven years.
In May, Fiona Hughes joined Coty as chief marketing officer, Coty Consumer Beauty. Prior to this appointment, she served as CMO at Jacobs Douwe Egberts.