02.27.17
Coty finalized the acquisition of a 60% stake in Younique, an online peer-to-peer social selling beauty platform. In this new partnership, Younique’s founders continue to own the remaining 40%.Younique will operate as a separate business within Coty’s Consumer Beauty division. It will continue to be led by its current CEO Derek Maxfield, chief visionary officer Melanie Huscroft and Younique’s management team in partnership with Coty.
Camillo Pane, Coty’s chief executive officer, said, “We are pleased to complete this transaction and partner with Younique to build a leading global e-commerce beauty company. We welcome Younique’s employees, presenters and customers to the Coty family.” The transaction is expected to be immediately accretive to Coty’s top-line growth, EBITDA margin and FY17 earnings.
In other news, Coty reported its financial results for the second quarter of fiscal year 2017, ended Dec. 31, 2016. Net revenues of $2.2 billion increased 90% as reported compared to Legacy-Coty net revenues in the prior-year period and decreased 4% at constant currency compared to combined Legacy-Coty and P&G Beauty Business net revenues in the prior-year period.
Excluding the positive contribution from the acquisition of ghd and the Brazil acquisition, and the short-term negative transitional impacts especially including significant trade inventory build in the first quarter of fiscal 2017 in parts of the P&G business, the combined company’s net revenues declined in the high single digits on a constant currency basis, the firm said.
For the first six months of fiscal 2017, net revenues of $3.37 billion increased 45% as reported compared to Legacy-Coty net revenues in the prior-year period and decreased 4% at constant currency compared to combined Legacy-Coty and P&G Beauty Business net revenues in the prior-year period.
“It is clear to me that Coty has great future potential; the combination of our iconic and emerging brands, energized employees, and the comprehensive strategy we are laying out for the new organization will position us well to become a challenger and leader in beauty and drive sustained profitable growth over time,” said Pane. “This is a long term journey and will require time and effort, as we will need to tackle short-term challenges like the ones we faced in the first semester, complete the P&G Beauty Business integration and, most importantly, implement new programs to drive growth and further strengthen our brand portfolio and management capabilities.”
Camillo Pane, Coty’s chief executive officer, said, “We are pleased to complete this transaction and partner with Younique to build a leading global e-commerce beauty company. We welcome Younique’s employees, presenters and customers to the Coty family.” The transaction is expected to be immediately accretive to Coty’s top-line growth, EBITDA margin and FY17 earnings.
In other news, Coty reported its financial results for the second quarter of fiscal year 2017, ended Dec. 31, 2016. Net revenues of $2.2 billion increased 90% as reported compared to Legacy-Coty net revenues in the prior-year period and decreased 4% at constant currency compared to combined Legacy-Coty and P&G Beauty Business net revenues in the prior-year period.
Excluding the positive contribution from the acquisition of ghd and the Brazil acquisition, and the short-term negative transitional impacts especially including significant trade inventory build in the first quarter of fiscal 2017 in parts of the P&G business, the combined company’s net revenues declined in the high single digits on a constant currency basis, the firm said.
For the first six months of fiscal 2017, net revenues of $3.37 billion increased 45% as reported compared to Legacy-Coty net revenues in the prior-year period and decreased 4% at constant currency compared to combined Legacy-Coty and P&G Beauty Business net revenues in the prior-year period.
“It is clear to me that Coty has great future potential; the combination of our iconic and emerging brands, energized employees, and the comprehensive strategy we are laying out for the new organization will position us well to become a challenger and leader in beauty and drive sustained profitable growth over time,” said Pane. “This is a long term journey and will require time and effort, as we will need to tackle short-term challenges like the ones we faced in the first semester, complete the P&G Beauty Business integration and, most importantly, implement new programs to drive growth and further strengthen our brand portfolio and management capabilities.”
