Algerian-born tycoon Sue Nabi leads Coty towards stable growth and debt reduction

Coty, the global beauty industry leader under the leadership of Algerian-born French tycoon Sue Nabi, unveiled its optimistic 2024 outlook at the 2024 Consumer Analyst Group of New York Conference (CAGNY). The company signaled unwavering confidence in its strategic direction, building upon the impressive financial performance in 2023, with net revenues of $5.6 billion.

While addressing the audience at CAGNY, CEO Sue Nabi reiterated Coty’s strategic course and commitment to growth. The global powerhouse, operating in over 120 countries with eight manufacturing plants, is on track to surpass its target of $600 million in travel retail sales by 2025, a year ahead of the initial plan.

Nabi disclosed that Coty, producing over a billion products annually across four continents, anticipates a like-for-like revenue growth between +9 percent and +11 percent. Furthermore, adjusted EBITDA growth is projected to be between +11 percent and +12 percent. This aligns with the company’s medium-term targets, aiming for LFL revenue growth at the upper end of +6 percent to +8 percent, with adjusted EBITDA tracking between +9 percent and +11 percent.

Sue Nabi’s strategic vision: Transforming Coty into a global beauty powerhouse

Founded in 1904, Coty, marking its 120th anniversary, owns around 77 brands. Sue Nabi, holding a 3.53 percent stake valued at over $385 million, expresses strong confidence in the company’s growth. This stake, equivalent to 30,304,786 shares, underscores her dedication to Coty’s future.

Since taking the helm in 2019, Sue Nabi has guided Coty through a transformative phase, focusing on enhancing and elevating its brand portfolio in fragrance, color cosmetics, and skin and body care. This strategic shift, coupled with sound financial management, has led to consistent growth, surpassing the broader beauty market over the last three years.

Nabi highlights Coty’s continual and profitable market outperformance, crediting it to disruptive innovations driving viral demand. The company has secured the top two fragrance ranking in global travel retail and e-commerce, showcasing its strength in science, technology, and marketing.

Coty’s financial strategy: Building resilience for future investments

Coty’s recent accomplishments are attributed to its strong capabilities, leading to an anticipated mid-20s percentage compound annual growth rate (CAGR) for earnings per share (EPS). Nabi and her seasoned executive team express confidence in their ability to achieve ambitious goals, backed by recent performance and ongoing transformation efforts.

The group’s deleveraging progress remains on track, a key element of Nabi’s financial strategy. The company aims to achieve a leverage ratio of approximately 2x by the end of 2025, positioning itself for future investments and strategic opportunities within the competitive beauty industry.