The New-York headquartered cosmetics and fragrance group Coty announced on Tuesday, September 30, the launch of a strategic review of its consumer beauty division.
“Coty has launched a comprehensive strategic review of its Consumer Beauty business to unleash its full potential,” the group announced in a press release.
The company closed its staggered 2024/2025 fiscal year, which ended at the end of June, with a net loss of US$381 million. Still, it forecasts a rebound this year.
The review will more specifically focus on Coty’s US$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 US$400 million revenue.”
Various strategic options are being considered, including partnerships, divestitures, and spin-offs. Coty stated that announcements will be made in due course, once the decisions have been approved by the board of directors.
More than a decade ago, Coty paid US$12.5 billion for some of these brands as part of a deal with Procter & Gamble.
The group hopes that a refocus on fragrances—with the merger of the "prestige" and "consumer" divisions—will allow it to concentrate investments in order to "optimize growth prospects and synergies." The group’s various perfumery businesses—both prestige and mass-market—already represent 69% of its revenue.
