Coty began life in France as a fragrance company over 100 years ago. The multinational is listed on the New York Stock Exchange but is eyeing a dual listing on the Paris Stock Exchange for its next chapter of growth and value creation.
The company’s board of directors has authorised management to explore the transatlantic listing because of continued growth under the leadership of Sue Y. Nabi, who took on the role of CEO in September 2020.
Nabi was the highest paid CEO in the beauty industry in FY2021 because of her generous stock compensation. She has steered Coty through 10 consecutive quarters of growth and last week the company renewed her generous package, underpinned by the equity program, until 2030.
No wonder. Coty’s market capitalisation has increased four-fold since Nabi took on the top job. “We have seen consistent growth over the last 10 quarters, in line or ahead of market expectations”, said Peter Harf, Chairman of Coty. “The strength of this performance is testament to Sue’s reputation as one of the beauty industry’s most innovative and talented figures”.
Nabi’s winning strategy over the three years has been to take Coty beyond its bedrock fragrance business and strengthen its skincare portfolio. Last month, the philosophy brand was rebooted with increased dermatological focus. The company also announced last year that it planned to double skincare revenues to US$500 million to US$600 million by 2025, mainly through its current stable of prestige brands such as Lancaster, Orveda, philosophy, Kylie Skin and SKKN by Kim.
Coty’s fragrance division continues to thrive. Recent successful global launches of juices from Burberry, Marc Jacobs, Gucci and Chloe have cemented its pre-eminence as a powerhouse in the sector.
Makeup sales have soared since the end of Covid-19 restrictions in major markets and Coty’s heritage makeup brands have performed very well. Covergirl, Bourjois, Max Factor and Rimmel London have all returned to global growth. While Gucci Beauty and Burberry Beauty have been major hits in China.
With a Paris listing, Coty’s goal is to increase its already significant presence in Europe and seek out potential investors. “Paris is the historic home of beauty and the industry still holds a special attraction for investors here”, noted Harf.
Coty is also now financially stronger since it implemented its diversification plan, with a projected free cash flow of over US$400 million in FY23. “We are committed to driving sustainable innovation across fragrance, colour cosmetics and skincare to meet the consumer needs of the future, while simultaneously campaigning to change outdated definitions of beauty through the #undefinebeauty campaign”, added Nabi.
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