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Coty, a global beauty industry leader led by Algerian-born French tycoon Sue Youcef Nabi, has successfully concluded the initial phase of its share buyback initiative. Announced on June 10, 2022, the program resulted in the repurchase of 27 million shares at an attractive price relative to the prevailing market value.
This strategic move, driven by Coty’s robust balance sheet and strong cash flows, reaffirms the company’s commitment to enhancing shareholder value over time. By reducing its outstanding share count to approximately 800 million shares, Coty aims to follow a deleveraging trajectory, targeting around 2x leverage by the end of 2025. It underscores Coty’s dedication to long-term wealth maximization and its confidence in maintaining financial stability.
Sue Nabi lauds Q2 success, emphasizing market attractiveness and brand power
In its Q2 FY2024 results ending Dec. 31, 2023, Coty Inc. announced a robust 13-percent sales growth, including an 11 percent Like-for-like (LFL) increase. Both Prestige and Consumer Beauty segments saw equal expansion, with Prestige revenue up 17 percent reported and 15 percent LFL. The standout performer was Burberry Goddess, driving substantial sell-out growth.
E-commerce played a pivotal role, contributing to more than 20-percent revenue growth in both segments and boosting overall online penetration. Geographically, all regions experienced double-digit LFL revenue growth, with EMEA, Americas, and Asia Pacific leading the way. Coty achieved notable operating and EBITDA growth, with adjusted EBITDA reaching $366.4 million, a 15 percent rise.
Sue Nabi, CEO of Coty, expressed her satisfaction with the impressive results saying: “The strength of our Q2 and first half results reinforce several of our convictions, including the attractiveness of the beauty market, the continuing momentum of the fragrance index, the power of our brands, Coty’s transformed and industry-leading capabilities, our new ability to create blockbuster fragrance launches, and our disciplined financial execution.”
Sue Nabi’s $380 million bet: Leading Coty into the future of beauty
Founded in 1904 by François Coty, Coty has evolved into a global leader in the fragrance industry, marking its 120th anniversary as a beauty innovator. With a diverse portfolio of subsidiaries focusing on fragrances, cosmetics, skincare, nail care, and professional and retail hair care products, Coty boasts ownership of approximately 77 brands as of 2018.
Sue Nabi, renowned for her leadership roles at L’Oreal and Lancome, as well as for founding the vegan skincare line Orveda, holds a substantial 3.53-percent stake in Coty. This stake amounts to 30,304,786 shares valued at over $380 million, underscoring Nabi’s significant investment and confidence in the company’s continued growth and success.
