Coty: Digital Transformation and Optimistic Growth Forecasts

The beauty giant Coty demonstrates strength in an increasingly digital market. Online platforms, including Amazon, are driving the company's growth to unprecedented heights. This is due to the growing connection between Gen Z and young consumers through social media and influencer marketing. Coty's online strategy proves successful with a significant increase in sales from digitalized brands like Rimmel and CoverGirl, which are recording impressive growth rates of 40% and 80%, respectively. For the medium-term future, Coty expects growth of 3% to 5% for the entire beauty sector, with the company likely to exceed this forecast. Particularly in the USA, demand for online purchases is soaring, prompting Coty to restructure its brand portfolio to meet digital transformation. The transition of the current fiscal year 2024 is seen as a key year, while global changes in consumer purchasing behavior are reshaping dynamics. Coty's long-term vision remains stable as new brands and brand licenses are introduced to diversify and strengthen the business. Strategic focuses lie in new geographic markets and the expansion of the skincare and premium fragrance segment, enabling greater flexibility and resilience to market fluctuations. Nonetheless, Coty continues to emphasize the importance of reducing corporate debt and remains committed to significantly reducing its indebtedness by the end of the calendar year 2024. The company is confident in continuing to reward its shareholders with attractive returns while enhancing its operational efficiency through technological advancements and synergies across all distribution channels.