(RTTNews) - Coty Inc. (COTY) unveiled its long-term strategy. It rejuvenates globally-renowned beauty brands, including CoverGirl, Rimmel and Max Factor. It unveiled major new campaign for CoverGirl Simply Ageless - anti-aging foundation in the U.S. The company is on track to reach near term revenue, adjusted EBITDA and deleveraging targets.
In a presentation to investors, Coty Chief Executive Officer, Sue Nabi, said the company expects to strengthen CoverGirl's appeal to a broader U.S. consumer base.
Coty plans to build its skincare portfolio across Mass and Prestige. Coty currently has three skincare brands, with a fourth brand, SKKN by Kim, launching in Fiscal Year 2022. Coty now sees an opportunity to extend several of its designer brands and consumer beauty brands into the skincare portfolio.
Coty intends to enhance the performance of its luxury business, by accelerating its core Prestige fragrance business and capturing new opportunities in Prestige cosmetics and skincare.
By Fiscal Year 2025, Coty targets: skincare to increase from approximately 6% to over 10% of the revenue mix; Prestige cosmetics to increase from approximately 3% to a high-single digit percent of the revenue mix; and, lastly, China's contribution to triple to over 10% of the revenue mix.
The company will also confirm that it has no major Luxury licenses expiring based on their terms over the next five years. Additionally, many of Coty's licensing agreements with luxury brands enable the potential for extension into additional beauty categories, such as cosmetics and skincare.
Coty plans to accelerate its e-commerce and Direct To Consumer (DTC) growth, through a transformed approach to its digital strategy.
Coty anticipates an adjusted EBITDA of about $750 million for fiscal year 2021, and remains on-track to end the financial year with net revenues of between $4.5 billion to $4.6 billion.
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