Coty Announces Plans to Bolster Its Leading Position in Fragrance and Launches a Strategic Review of Its Consumer Beauty Business

Maximizes Growth Potential Through Closer Integration of Prestige and Mass Fragrances to Establish a Fragrance and Scenting Powerhouse with Consumer Reach from $5 to $500

Gordon von Bretten Appointed President of Consumer Beauty

NEW YORK--(BUSINESS WIRE)-- Regulatory News:

Coty Inc. (NYSE: COTY) (Paris: COTY) (“Coty” or “the Company”) today announced it will more closely integrate its Prestige Beauty and Mass Fragrance businesses, thereby refocusing the Company on its heritage and core strengths, to drive sustainable profitable growth and accelerate value creation. In addition, Coty has launched a comprehensive strategic review of its Consumer Beauty business to unleash its full potential.

Coty is a global leader in prestige and mass fragrance. To maximize growth prospects and synergies, Coty will initiate organizational changes to drive much closer integration and coordination between Prestige & Consumer Beauty fragrances, which account for 69% of Coty’s sales. Under this new structure, Coty will fully leverage its scale across R&D, consumer insights, manufacturing, and distribution to strengthen the Company’s revenue and profit engine.

“This next phase of our transformation is about clarity and focus,” said Sue Nabi, CEO of Coty. “By more closely integrating all our fragrance and scenting brands, we unlock the full power of our scale. The fragrance category continues to outperform the global beauty market and already drives the majority of our revenues and profits. Coty has a proven right to win at all price points of scenting, from $5 to $500, and is already making strong headway in the exciting new $7 billion mist market.”

Coty’s Prestige division will continue to steadily grow its cosmetics and skincare businesses. With an extensive IP portfolio and advanced formulations, Coty will increase its presence in these categories with strong margin potential and significant runway for global growth. Coty remains fully committed to growing its prestige portfolio through blockbuster launches and brand elevation.

Sue Nabi added: “This new structure will also drive renewed momentum and sharper focus for Consumer Beauty, positioning it to compete more effectively in the evolving beauty landscape. We have asked Gordon von Bretten, Coty Board member and former Chief Transformation Officer, to lead Consumer Beauty as President, reporting to me. Mr. von Bretten will have end-to-end responsibility for delivering the full potential of our strong brands in the mass cosmetics, mass skin, and personal care businesses. He will also lead the strategic review and join Coty’s Executive Committee.”

The strategic review will focus on Coty’s $1.2 billion revenue mass color cosmetics business, including brands such as CoverGirl, Rimmel, Sally Hansen, and Max Factor, and its distinct Brazil business comprised of local Brazilian brands that generate close to $400 million revenue. The review will assess a full range of alternatives including partnerships, divestitures, spin-offs, and other potential strategic actions, with the objective of maximizing long-term value and strengthening the balance sheet. The Company will provide updates when appropriate, including when specific actions are approved by the Board.

“We are taking decisive steps on Consumer Beauty and I am honored to lead this next phase of value creation together with Ms. Nabi,” said Mr. von Bretten. “Our agenda is clear: realize the full potential of our market-leading brands by focusing the portfolio, elevating product excellence, and driving productivity with discipline so that performance is visible in growth, margin expansion, and cash generation.”

As part of this organizational redesign, Stefano Curti, Chief Brands Officer of Consumer Beauty, and Alexis Vaganay, Chief Commercial Officer of Consumer Beauty, will step down from their roles.

Ms. Nabi added, “I wish to thank Stefano and Alexis for their contributions and commitment to our Consumer Beauty transformation over the last 5 years.”

Coty has retained Citi to advise on the comprehensive strategic review.

About Coty Inc.

Founded in Paris in 1904, Coty is one of the world’s largest beauty companies with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care. Coty serves consumers around the world, selling prestige and mass market products in over 120 countries and territories. Coty and our brands empower people to express themselves freely, creating their own visions of beauty; and we are committed to protecting the planet. Learn more at coty.com or on LinkedIn and Instagram.

Forward Looking Statements

Certain statements contained in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include Coty’s current views with respect to, among other things, the strategic review of Coty’s consumer beauty business, including its mass color cosmetics business and associated brands and its distinct Brazil business comprised of local Brazilian brands, and any transactions related thereto, use of proceeds from any transaction and the timing and outcome of the strategic review. These forward-looking statements are generally identified by words or phrases, such as “anticipate”, “are going to”, “estimate”, “plan”, “project”, “expect”, “believe”, “intend”, “foresee”, “forecast”, “will”, “may”, “should”, “outlook”, “continue”, “temporary”, “target”, “aim”, “potential”, “goal” , “realize” and similar words or phrases. These statements are based on certain assumptions and estimates that Coty considers reasonable and are not guarantees of Coty’s future performance, but subject to a number of risks and uncertainties, many of which are beyond Coty’s control, which could cause actual events or results to differ materially from such statements, including risks and uncertainties relating to the results of the strategic review of Coty’s consumer beauty business, associated brands and Brazilian operations and whether such strategic review will result in any transactions and the amount of proceeds from any such transactions.

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Source: Coty