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.”