Coty Inc. has introduced a “Turnaround Plan” to drive improvement in Consumer Beauty and optimize its Luxury and Professional Beauty businesses. The four-year plan focuses on three pillars: rediscovering growth such as an innovation pipeline; regaining operational leadership mostly through improving cost of goods and combining responsibilities and building a culture of pride and performance by balancing discipline and creativity. These are designed to steadily improve gross and operating margins, sync with Coty’s peer group, drive free cash flow and reduce leverage.
“Over the past few months, we have focused on both stabilizing our operations and identifying a path towards turning around the company,” said Pierre Laubies, Coty’s CEO. “Our Turnaround Plan will enable us to build a better business in the coming four years, while we gradually prepare for growth.”
“We are fortunate to have a strong brand portfolio and talented and engaged people around the world, and we will provide the right framework to enable their success. We will focus our strategic effort and investments on fewer brands globally while simplifying our operations and organization. At the same time, we will make our cultural transformation agenda a key building block of our plan.”
Coty plans to reorganize into regional commercial teams into Europe, Middle East & Africa (EMEA), Americas & Asia Pacific, and create brand marketing units for Luxury and Consumer Beauty. Professional Beauty is expected to remain a separate business unit due to its salon channel focus. Coty also intends to move its management headquarters to Amsterdam where the executive team and corporate functions will be based. This is expected to be completed by July 1, 2020.
Changes to Coty’s Executive Committee, effective by January 1, 2020, include:
- Edgar Huber, President of Americas & Asia Pacific;
- Gianni Pieraccioni, President of EMEA;
- Fiona Hughes, President of Consumer Beauty Brands; and
- Simona Cattaneo, President of Luxury Brands.