Coty has announced the next phase of its “All-in to Win” transformation program, targeting approximately US$130 million in additional fixed cost savings over the next two years, alongside US$240 million in ongoing productivity savings. The company expects cumulative savings from the program, first launched in FY21, to reach approximately US$1.2 billion.
The initiative aims to create a more scaled, agile operating model, reduce complexity across functions and markets, and sharpen Coty’s focus on top innovation and market priorities. CEO Sue Nabi said the company is building a stronger, more resilient Coty positioned for long-term sustainable growth.
“When we first announced our All-in to Win Program in FY20, at the peak of COVID disruptions, our goal was to boost our margin profile and brand reinvestment firepower through a significantly lower fixed cost structure, supply chain simplification, procurement savings and strategic revenue management initiatives,” said Nabi. “The successful implementation of our plans despite the very challenged macro backdrop generated over US$700M of savings between FY21-FY24, with over 400 basis points of gross margin expansion, over 400 basis point of A&CP investment expansion, and 130 basis points of EBITDA margin expansion, all while delivering a very strong revenue CAGR of 13% LFL.”
Nabi noted that further transformation is essential given recent structural changes in the beauty industry, including the rise of e-commerce, retail consolidation, and shifts in consumer brand discovery. “This next phase of our transformation program will further strengthen our operating model and simplify our fixed cost structure. We fully anticipate these changes will strongly position Coty to outperform the beauty market in the coming years, cementing our global leadership position in fragrances while expanding into certain growing and profitable beauty categories, all while steadily expanding our gross margins and EBITDA margins,” she said.
Key pillars of the strategy include streamlining Coty’s market structures to enhance operational efficiency, consolidating support functions enabled by AI-driven systems, focusing innovation efforts on high-impact launches, and optimising general and administrative spending.
The program is expected to deliver annual fixed cost savings of approximately US$130 million before taxes, including US$80 million in FY26 and US$50 million in FY27. The changes are anticipated to impact approximately 700 roles globally, as Coty aligns its organisation with a faster, more focused way of working.
Coty’s ongoing productivity program also remains on track, with US$120 million in savings expected in FY25 and similar targets for FY26 and beyond. In total, the combined initiatives are expected to deliver close to US$500 million of savings between FY25 and FY27.
Coty recently announced it was concluding its partnership with Kim Kardashian’s SKKN by Kim brand, selling its 20% stake to SKIMS. The move will see SKIMS consolidate its beauty and lifestyle ventures under one brand. Anna von Bayern, CEO of Kylie Cosmetics and head of Kim Kardashian’s beauty business at Coty, thanked Kim for the partnership and reaffirmed Coty’s focus on growing Kylie Cosmetics, which has expanded 1.5 times over the past two years.
Founded in Paris in 1904, Coty is one of the world’s largest beauty companies, with a portfolio spanning fragrance, colour cosmetics, and skin and body care, covering both mass and prestige markets. Its well-known brands include Kylie Cosmetics, as well as CoverGirl, Rimmel and Gucci.
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