Coty launches strategic review of Consumer Beauty business

Coty (COTY) announced it will more closely integrate its Prestige Beauty and Mass Fragrance businesses, thereby refocusing the company on its heritage and core strengths, to drive sustainable profitable growth and accelerate value creation. In addition, Coty has launched a comprehensive strategic review of its Consumer Beauty business to unleash its full potential. Coty is a global leader in prestige and mass fragrance. To maximize growth prospects and synergies, Coty will initiate organizational changes to drive much closer integration and coordination between Prestige & Consumer Beauty fragrances, which account for 69% of Coty’s sales. Under this new structure, Coty will fully leverage its scale across R&D, consumer insights, manufacturing, and distribution to strengthen the company’s revenue and profit engine. The strategic review will focus on Coty’s $1.2B revenue mass color cosmetics business, including brands such as CoverGirl, Rimmel, Sally Hansen, and Max Factor, and its distinct Brazil business comprised of local Brazilian brands that generate close to $400M revenue. The review will assess a full range of alternatives including partnerships, divestitures, spin-offs, and other potential strategic actions, with the objective of maximizing long-term value and strengthening the balance sheet. The company will provide updates when appropriate, including when specific actions are approved by the Board. As part of this organizational redesign, Stefano Curti, Chief Brands Officer of Consumer Beauty, and Alexis Vaganay, Chief Commercial Officer of Consumer Beauty, will step down from their roles.