The New York-based beauty products firm, Coty, revealed on Tuesday, September 30th, that it is initiating a strategic assessment of its consumer beauty sector.
“To unlock its utmost capabilities, Coty has commenced an extensive strategic evaluation of its Consumer Beauty operations,” the company stated in an official statement.
The firm finalized its fiscal year 2024/2025, concluding at the close of June, with a deficit of US$381 million. However, they anticipate a recovery in the current year.
The evaluation will specifically target Coty’s US$1.2 billion revenue mass market makeup segment, “encompassing labels like CoverGirl, Rimmel, Sally Hansen, and Max Factor, as well as its separate Brazil business, which includes regional Brazilian trademarks yielding approximately US$400 million in revenue.”
Multiple strategic paths are under consideration, featuring alliances, disposals, and separations. Coty communicated that announcements will be shared in the future, following approval of choices by the board.
Over ten years prior, Coty invested US$12.5 billion in acquiring some of these labels through an agreement with Procter & Gamble.
The corporation anticipates that a renewed emphasis on scents—through combining the “prestige” and “consumer” sectors—will enable it to direct investments to “maximize growth opportunities and cooperation.” The company’s numerous fragrance ventures—spanning both high-end and general retail—already constitute 69% of its earnings.
