Coty initiates next phase of its strategic initiative to boost growth
The program ensures the company has long-term sustainability and profitability.
USA – Coty, an American brand, has launched the next phase of its transformative “All-in to Win” program, aimed at enhancing agility, scalability, and operational efficiency.
The program is designed to adapt to the evolving beauty industry landscape, characterized by the rise of e-commerce, retail consolidation, and new consumer behaviours.
This phase builds on the success of earlier efforts, which delivered over $700 million in savings between FY21 and FY24, alongside significant improvements in gross margins, brand reinvestment, and EBITDA margins.
Sue Nabi, CEO of Coty, stated, “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.”
Coty’s “All-in to Win” program focuses on streamlining operations, centralizing support functions, prioritizing impactful innovations, and optimizing costs to drive efficiency and growth.
This phase is expected to generate approximately USD 130 million in annual fixed cost savings over the next two years, with cumulative savings from the program projected to reach USD 1.2 billion since its inception.
Coty also plans to continue its productivity initiatives, targeting USD 120 million in savings for FY25 and similar goals for subsequent years, primarily through supply chain and procurement optimizations.
Meanwhile, Coty recently reported its financial results for Q2 FY25, posting net revenue of USD 1.669 billion, a 3% decline compared to the same period in the previous year.
The operating income reported was USD 268.2 million, with net income dropping to USD 20.4 million from USD 177.6 million last year.
Adjusted net income fell to USD 98.8 million from USD 229.1 million.
The Consumer Beauty segment saw operating income rise to USD 64.1 million, despite an 8% revenue decline driven by foreign exchange impacts and lower sales in colour cosmetics and body care, partially offset by gains in mass fragrance.
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