Coty sets global strategy to double skincare sales by FY25
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The company will host an investor event today at its Monaco Skincare manufacturing and R&D center of excellence
Plan to reach $500-600 million in skincare sales by FY25 and accelerate growth in FY26 and beyond
unveils new launches and expansion plans for leading skincare brands
Raises 1Q23 revenue and gross margin guidance
Reiterates growth outlook for FY23 and medium term
NEW YORK–(BUSINESS WIRE)–Coty Inc. (NYSE: COTY) (“Coty” or “the Company”), one of the world’s leading beauty companies, will host an investor event today in person at Coty’s Monaco Skincare R&D and Manufacturing Center. Monaco is also the manufacturing center of excellence for Coty’s flagship skincare brand Lancaster. Keynote presentations will be webcast live from approximately 2:00 p.m. CET or 8:00 a.m. EST for approximately 90 minutes.
At the event, Coty will provide a comprehensive update on the company’s Skincare strategy, one of Coty’s six strategic growth pillars, with a focus on its Prestige brands. The company will detail its distinct and superior skincare intellectual property, upcoming operational and portfolio milestones, early evidence of success, and Coty’s financial goals through FY25 and beyond.
Sue Y. Nabi, CEO of Coty, said:Coty’s skincare portfolio is one of the most exciting areas of growth for our business, with revenues on track to double to $500-600 million by FY25. Our strategy is built on globally recognized brands serving key white space opportunities and consumer needs, 75 years of scientific innovation and leadership, superior patents and distinct intellectual property, and a large and growing team of skincare experts across the organization. We started our skincare revolution in Hainan and mainland China, where we are already seeing proof that our brands, formulations and communication can win over consumers. At the same time, our research and development efforts focus on consumer needs and the fastest growing health trends. All of this gives us confidence that we can seize significant opportunities in the $150 billion global skincare market.”
During today’s event, Coty’s Chief Executive Officer, Sue Y. Nabi, will present, along with Dr. Shimei Fan, Chief Scientific Officer of Coty; Constantin Sklavenitis, director of prestige brands at Coty; and Laurent Mercier, Chief Financial Officer of Coty. Coty executives will explain how the company is successfully building a skincare business across its Prestige and Consumer Beauty divisions.
Skin Care Portfolio Update
Coty’s science update will focus on the company’s distinct and superior technologies in five key areas: total light protection, oxygen delivery, retinol vectoring, DNA repair and bio-fermented mixes. Coty’s research in these critical areas of skin care dates back decades, with key patents spanning the next 5-10 years.
Dr. Shimei Fan, Chief Scientific Officer of Coty, said: “The combination of Coty’s deep heritage in skincare and the continued development of innovative intellectual property rooted in the fastest growing consumer health trends, has created a unique position for Coty on the beauty market.Through groundbreaking scientific advancements, Coty helps protect consumers against skin disorders, afflictions resulting from pollution and our changing climate, and aging.
The Coty brand preview and business update will focus on the company’s strong portfolio of prestige skincare brands, including Lancaster, Orveda, Philosophy, Kylie Skin and SKKN by Kim. Coty’s premium skincare brands cover the most promising segments of the skincare market, while offering a unique proposition and clear purpose to today’s consumers.
Constantin Sklavenitis, Director of Prestige Brands at Coty, said: “Our five premium skincare brands each offer their own unique sense of purpose, technology and address a specific market segment that has great potential. The transformation of our skincare portfolio has already started with Lancaster, which last year became one of the fastest growing brands in Hainan among major retailers.This is key confirmation that Coty has the technology, the brands, the clarity strategy and business capabilities to win in skincare in the years to come.
With all key elements of Coty’s strategy now in place, the company expects to double skincare revenue from FY22 through FY25, with further acceleration in FY26 and into -of the. This, coupled with continued momentum across the rest of Coty’s business, reinforces the company’s commitment to its medium-term financial goals set out at Investor Day in November 2021. This includes LFL sales growth of 6 at 8%, adjusted 9-11% EBITDA growth, 20s low EPS CAGR through FY25 and c.2x leverage through CY25.
In the near term, Coty is seeing stronger demand for beauty, leading the company to raise its LFL sales growth outlook for 1QFY23 to +8-9%, from +6-8% previously, taking into account the impact of Russia’s exit. The improving outlook is fueled by both Prestige and Consumer Beauty, and across Europe, the Americas and Global Travel Retail. Strong sales momentum also underpins a stronger gross margin outlook in the first quarter, despite continued inflationary pressures.
This first quarter increase reinforces Coty’s confidence in its previously released FY23 guidance, although current macro uncertainty is a factor in the company’s decision to stick with FY23, including growth in sales of 6 to 8% LFL, taking into account the impact of the exit from Russia; Adjusted EBITDA from $955 to $965 million; mid-teen BPA adjusted growth at $0.32-0.33; and leverage to 4x CY22 output.
The live stream can be accessed on Coty’s Investor Relations website at https://investors.coty.com. The replay of the event and associated presentation materials will also be available in the “Events and Presentations” section once the event is over.
About Coty Inc.
Founded in Paris in 1904, Coty is one of the world’s largest beauty companies with a portfolio of iconic brands in fragrances, color cosmetics, and skin and body care. Coty serves consumers around the world, selling prestige and mass market products in more than 130 countries and territories. Coty and our brands allow people to express themselves freely, creating their own vision of beauty; and we are committed to having a positive impact on the planet. Learn more at coty.com or on LinkedIn and Instagram.
Caution Regarding Forward-Looking Statements
The statements in this press release include certain “forward-looking statements” within the meaning of securities laws. These forward-looking statements reflect Coty’s current beliefs regarding, among other things, its outlook, expected directions, trends and strategic information. These forward-looking statements are generally identified by words or phrases, such as “anticipate”, “will”, “estimate”, “plan”, “project”, “expect”, “believe”, “have the intention to”, “anticipate”, “anticipate”, “will”, “may”, “should”, “outlook”, “continue”, “target”, “aim”, “potential” and similar words or expressions. These statements are based on certain assumptions and estimates that Coty believes are reasonable and are not guarantees of Coty’s future performance, but are subject to a number of risks and uncertainties, many of which are beyond Coty’s control, such which could cause actual events or results to differ. materially from such statements, including the factors identified in the “Risk Factors” included in Coty’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022 and its subsequent Quarterly Reports on Form 10-Q. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this press release, and Coty undertakes no obligation, other than as required by law, to update or revise any forward-looking statements or cautionary statements to reflect changes in assumptions. , the occurrence of events, whether unforeseen or not, or changes in future operating results over time or otherwise.
Coty provides guidance only on a non-GAAP basis and does not provide reconciliations of these non-GAAP forward-looking measures to GAAP due to the inherent difficulty in predicting and quantifying certain amounts necessary for such a reconciliation, including adjustments that may be made for restructuring, integration and acquisition costs, amortization charges, inventory adjustments and other charges reflected in our reconciliation of historical figures, the amount of which, based on historical experience, could be important.
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Source: Coty Inc.