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Coty Chips Away At Post-Merger Brand Challenges, With Investors Getting Restless

 
• By Ryan Nelson

CoverGirl, Max Factor and other pickups from P&G through the firms’ recently closed merger were “neglected” for two to three years as the deal was coming together and being executed, doing no favors for Coty’s newly combined Consumer Beauty business. However, Coty has dispensed with organizational work and is focused on driving growth, management says, projecting improvements in the back half of the year.

Maintaining that fiscal 2017 is a transitional year for Coty, Inc., company leadership is optimistic about momentum in its professional and luxury units while cautioning investors that consumer beauty is more of a work in progress.

The New York-based beauty firm reported FY 2017 first-quarter net revenue of roughly $1.1bn for its standalone business, representing a decline of 3%, reported, or 2% in constant currency terms.

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More from Deals

US Beauty Deals: Kim Kardashian Buys Back Beauty Brand Rights From Coty, L’Oréal’s NYX Professional Makeup Teams With Warner Bros.

 
• By Eileen Francis

Kim Kardashian lifestyle company SKIMS buys back rights to SKKN by Kim from Coty, Inc., which had purchased a 20% interest in the brand in 2020 for $200m. Separately, NYX Professional Makeup partners with Warner Bros. to launch the “A Minecraft Movie” collection.

L’Oréal Sells ‘Pioneering’ Carol’s Daughter Hair Brand After 20-Year Ownership

 
• By Eileen Francis

L’Oréal USA has sold multi-cultural hair care brand Carol’s Daughter to an independent beauty entrepreneur with a ‘proven track record’ of acquiring and growing beauty brands, while it remains under the leadership of its founder and new President, Lisa Price.

Hungary’s Egis Picks Up Skin-Care Portfolio From Teva

 
• By Tom Gallen

Egis is the beneficiary as Teva again trims its OTC portfolio with the sale of Hungarian skin-care brand Neogranormon.

Alberto V05, Zest Among Iconic Brands Providing Platform For New Owner’s US Debut

 
• By Eileen Francis

Italian personal care and beauty manufacturer Sodalis Group will acquire Alberto V05, Zest soap, Sure deodorants and other personal care brands in a transaction with current owner Tengram Capital Partners expected to close by the end of October. Recent years have seen high private equity activity in cosmetics and personal care.

More from Business

‘Made In The USA’ Claims May Be Popular In Time Of Tariffs, But Mistakes Are Costly – NAD

 
• By Eileen Francis

The National Advertising Division expects cases involving ‘Made in the USA’ claims to increase given US tariffs, says NAD VP Phyllis Marcus. The topic was also addressed by BBB National Programs’ Mary Engle during IBA’s Cosmetics Convergence Virtual Spring Conference 14-15 May.

Beauty Industry Not Taking Advantage Of CBP’s Duty Drawback – IBA Conference

 
• By Eileen Francis

US Customs and Border Protection’s program allowing companies to recoup fees for imported goods that were destroyed or exported is applicable in the case of most of President Trump’s reciprocal tariffs. However, most cosmetic companies don’t make use of it.

Estee Lauder Taps Iconic Creative Director For MAC, Indian Personal Care Firm Appoints Chief Commercial Officer For Hair Care; Beauty News

 
• By Eileen Francis

MAC Cosmetics Appoints ‘Iconic’ Creative Director Nicola Formichetti as global creative director, while Revlon Consumer Products LLC partners with four-time GRAMMY-nominated artist, Ice Spice, in a “major step” in the revitalization of Revlon’s fragrance business.