Rimmel and CoverGirl owner wants close to $1bn in profits by 2025
Coty has laid out new plans to reclaim its beauty ‘powerhouse’ status.
The owner of Rimmel London and CoverGirl held its Investor Day this week, during which bosses outlined their objectives for the business’ future, focusing on six key areas.
Among its targets, the company aims to stabilise its Consumer Beauty business; accelerate its luxury fragrance category; build a skin care portfolio across its Prestige and Consumer Beauty divisions; and enhance its DTC capabilities.
Bosses are also looking to China for more growth opportunities and want to establish Coty as an industry leader in sustainability.
These targets, Coty hopes, will take the business’ annual profit growth to almost US$1bn in CY22.
Net revenues are anticipated to increase 6-8% annually through FY25 and beyond, which Coty has said will outperform the beauty market’s annual growth of 3-5%.
“Coty has reclaimed its position as a true beauty powerhouse,” said CEO Sue Nabi.
“We expect to outperform the beauty market through FY25 and beyond. I am very proud of the significant progress our teams have made, delivering against each of our strategic pillars.
“I am more confident than ever in Coty’s future and our ability to deliver significant value for our stakeholders.”
The outlooks are a far cry from Coty’s performance in the years ahead of the pandemic, where it set about cutting costs of $700m, which saw Coty sell its professional portfolio, encompassing Wella, Clairol, OPI and ghd in a $4.3bn deal.
Covid-19 also hindered Coty’s turnaround plan, forcing the business to predict a 20% decline in revenues for 2020’s Q3.
Read more about Coty’s bounceback and the strategies set out by the business below.