Coty has reported its financial results for the second quarter of fiscal 2017. The newly amalgamated US beauty giant saw revenues fall 4 percent at constant currency to US$3,376.9 million for the first six months of the year, down 4 percent in the second quarter to US$2,296.7 million.
In a statement, CEO Camillo Pane revealed that the last quarter had proved ‘challenging’, with the business impacted by higher-than-anticipated inventory levels on the acquired P&G Beauty Business, strong competition in the consumer beauty division and the diversion of resources necessary to bed in the new brand portfolio.
Pane was keen to point out that 2017 was a ‘transitional’ year and the company was acting on a four-point plan to achieve its US$750 million synergy target by fiscal 2020.
“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. 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,” commented Pane.