Coty Inc said on Friday it would explore a listing on the Paris Stock Exchange as the CoverGirl cosmetics maker looks to strengthen its presence in Europe and tap into new investors in the market.
Founded in Paris in 1904, Coty counts Europe as a substantial market, with net revenues from the EMEA region making up about 47% of the company's total sales in its most recent quarter.
Coty, also known for fragrances from the Hugo Boss, Gucci and Burberry brands, had in March maintained its annual profit forecast and projected core like-for-like (LFL) sales growth for the full year at the higher end of its prior guidance of 6-8%.
'Special Attraction For Investors'
Peter Harf, Coty’s chair said, “Paris is the historic home of beauty, and the industry still holds a special attraction for investors there. The board’s interest in exploring a potential listing on the Paris Stock Exchange has been made possible thanks to the progress Coty has made under Sue’s leadership.”
He added, “We have seen consistent growth over the last 10 quarters, in line with or ahead of market expectations, underpinned by targeted investment, disciplined cost controls and a clear debt reduction program. The strength of this performance is testament to Sue’s reputation as one of the beauty industry’s most innovative and talented figures, and the leadership team she has built at Coty.”
The company is set to report its fiscal third quarter earnings next week, following a dismal fiscal 2023 forecast from rival Estée Lauder Cos Inc, earlier this week on slow recovery at duty-free and travel destinations, especially in Asia.
