Coty has announced a Turnaround Plan aimed at driving ‘substantial’ improvement in its Consumer Beauty unit as well as optimizing its Luxury and Professional Beauty divisions.
The plan centers on three strategic pillars: Rediscover Growth by focusing investment on priority brand-country combinations; Regain Operational Leadership by reducing complexity, simplifying ranges and lowering inventory and ushering in a new organizational structure; and Build a Culture of Pride and Performance, balancing discipline and creativity and fostering team spirit and engagement including the creation of a new centralized management headquarters in Amsterdam. The new organization design is expected to be in effect by January 1, 2020 and the restructure complete by July 1, 2010.
To that end, the company announced a series of changes to its Executive Committee, with Edgar Huber appointed President of Americas & Asia Pacific, Gianni Pieraccioni named President of EMEA, Fiona Hughes announced as President of Consumer Beauty Brands; and Simona Cattaneo taking on the role of President of Luxury Brands.
“Over the past few months, we have focused on both stabilizing our operations and identifying a path towards turning around the company. Our Turnaround Plan will enable us to build a better business in the coming four years, while we gradually prepare for growth,” said Pierre Laubies, Coty’s CEO. “We are fortunate to have a strong brand portfolio and talented and engaged people around the world, and we will provide the right framework to enable their success. We will focus our strategic effort and investments on fewer brands globally while simplifying our operations and organization. At the same time, we will make our cultural transformation agenda a key building block of our plan.
“Our financial priorities are clear as well – to improve profitability and deleverage – and we are intent on setting realistic targets and delivering them. Today starts our new agenda – we will progress it as a team, with the right balance of discipline and creativity.”