Having closed its P&G
Specialty Beauty Business merger on Oct.1, Coty’s pre-merger sales fell 3% to $1.08 billion. The company blamed an 8% decline in the underlying business, as it shifted resources to support the closing of the P&G Specialty Beauty Business merger. According to chairman Bart Becht, the extensive work during the past 15 months on closing the transaction and merging the two businesses came at a cost. The resulting distraction as well as the recent change in management teams in Coty’s headquarters, regions and countries, all contributed to a decline in Coty
stand-alone revenues and profits in Q1.
Becht said that while Coty is anticipating similar revenues in Q2, the company is committed not only to real improvement in the trend in the second half, excluding divestitures, but also to achieving further improvement for the combined company in the following fiscal years. By sector, fragrance sales fell 9%, color cosmetics declined 7% and skin and body care sales fell 5%. An acquisition in Brazil added 6%.
With the close of the merger, Coty says it has paid $11.6 billion, including $1.9 billion in assumed debt, a savings of $1 billion from the announced July 2015 acquisition price.