In May, Retail Beauty reported that Coty was seeking a dual listing on the Paris Stock Exchange in addition to its New York listing. A move that’s still in the preliminary stage.
Last week, the multinational held its first investor conference in the French capital at the historic Hotel du Louvre. Following 10 quarters of consistent growth, Coty also announced it has raised its fiscal guidance for its fourth quarter and full fiscal year 2023.
The multinational is now looking at 12 per cent to 15 per cent like-for-like sales growth for its fourth quarter ended June 30th and a 10 per cent to 11 per cent like-for-like sales uplift for the full fiscal year compared to its previous outlook of 9 per cent to 10 per cent.
Coty has also increased its expectation for fiscal 2023 for the third time this year. The multinational now expects to attain an adjusted EBITDA of US$965 million to US$970 million compared to its preceding guidance of US$955 million to US$965 million.
The company’s Q3 results set the scene for the buoyant mood. Net revenues for the period increased 9 per cent to US$1.288 billion. Prestige cosmetics and fragrance – 62 per cent of Coty’s sales – rose 10 per cent and 16 per cent like-for-like. While the Consumer Beauty division, including power makeup brands Covergirl, Rimmel London and Max Factor, saw double digit growth of 12 per cent and travel retail enjoyed a 30 per cent surge to account for 8 per cent of total sales.
Coty has a firm eye on future growth and recently unveiled several plans for key strategies in the luxury space as part of its long term growth plans over the past few months. According to a recent report by McKinsey, the global management consulting firm, the luxury and ultra-luxury beauty market has the potential to double from US$20 billion to US$40 billion by 2027.
In May, the company unveiled its “Coty Protopia” concept in Cannes. Billed as a new approach to power beauty through cutting edge innovation and science, Coty showcased its new serum – Orveda OmniPotent Concentrate serum. The Orveda brand was co-founded in 2014 by Coty CEO Sue Y. Nabi and Nicolas Vu and became part of Coty’s stable through a licensing accord in 2021.
Coty also previewed its upcoming Infiniment Coty Paris fragrance project, an ultra-premium collection of 14 perfumes slated to roll out next year. The company claims that the collection will be its first fragrances with patents pending for both formulations and packaging.
Coty also has big ambitions in China, especially for its Lancaster brand which became the second most popular exclusive skincare brand in Sephora China last year. To double-down on the fast growth, Coty launched a new Lancaster flagship store in Hangzhou in March and debuted its ultra-premium Ligne Princiere line, whose heritage is linked to the preferred skincare products of Princess Grace of Monaco.
Adidas became number one in the male shower category in China last year and Max Factor has also been re-launched to appeal to Gen Z Chinese consumers. Travel retail is another area earmarked for continuing growth across many of Coty’s brands.
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