Coty on track to build “healthy platform” to achieve goals

Published: 4-Feb-2016

Bart Becht says Coty made great progress both in M&A and Coty business in Q2

Coty is on track to create a “healthy platform” in order to become a global leader and challenger in the beauty industry, Chairman and Interim CEO Bart Becht said today as the company released its fiscal Q2 2016 results.

Becht explained Coty made great progress in the second quarter both in terms of M&A and the underlying Coty business. Coty recently signed a fragrance agreement with jeweller Tiffany & Co, while Becht said the company had made “good progress” with its Bourjois acquisition, which it bought last year.

Meanwhile, he cited the closure of Coty’s deal to take over the Brazilian consumer goods company Hypermarcas as especially poignant for Coty in terms of strengthening its presence in the region. He confirmed that Coty is “making excellent progress” to close the P&G deal in the second half of 2016; Coty has now received antitrust approval from the US.

In Q2, net revenues dipped 1% like-for-like to total $1,210.5m, while adjusted operating income increased 7% to $214.6m. For the first six months of fiscal 2016, Coty’s net revenues declined 1% like-for-like or 5% as reported, to $2,322.8m. Adjusted operating income increased 5% to $388m.

He concluded: “In summary, we believe we are well on track to build a very healthy platform for Coty to become a global leader and challenger in the beauty industry and provide the right basis to drive profitable growth and deliver shareholder value over time going forward."

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