THE WHAT? Coty has announced its financial goals through 2025 and beyond and reported on its progress to date in transforming the company into a profitable cosmetics company fit for this new era of beauty.
THE DETAILS The All-in to Win program, as its new long-term strategy has been dubbed, encompasses cost saving and capital deployment initiatives that have ‘ignited the full potential of Coty’, with an additional US$75 million of savings identified for FY24.
The US beauty behemoth is also planning to accelerate its skin care business, including a licensing agreement with Orveda and the recently announced CoverGirl Clean Fresh Skincare line.
Coty has set the following financial targets through FY25 and beyond: net revenues to grow 6 percent to 8 percent annually (LFL), gross margin to reach mid-60 percent by FY25 and adjusted operating margin expansion of 50 to 70 bps annually through FY25 and beyond.
THE WHY? Coty is expecting to benefit from an improving beauty market including a stronger US and Chinese market, a robust rebound in travel retail and steady improvement across Europe. Sue Y. Nabi, Chief Executive Officer of Coty, said, “Coty has reclaimed its position as a true beauty powerhouse. We expect to outperform the beauty market through FY25 and beyond. I am very proud of the significant progress our teams have made, delivering against each of our strategic pillars. I am more confident than ever in Coty’s future and our ability to deliver significant value for all of our stakeholders.
“Coty’s unique and beautiful portfolio of brands, our talented team, and our single-minded focus on delivering sustainable, profitable growth, coupled with targeted reinvestment, are enabling us to evolve. We continue to capitalize on the tremendous growth opportunities in prestige fragrances, skin care, China, clean beauty and e-commerce.”