Coty Inc earns highest revenues to-date

12 Sep '08

3 min read

Coty Inc, a global beauty leader and the world's largest fragrance company, announced record-breaking revenues for the sixth consecutive fiscal year with net sales totaling $4 billion for the fiscal year ending June 30, 2008, up 23 percent from 2007.

"Coty's talent in identifying and interpreting the latest consumer trends is the engine of our success," said Bernd Beetz, CEO of Coty Inc.

"With innovation at the heart of our business, we are focused on creating dynamic new brands and expanding our fragrance, skin care and color cosmetics portfolios to deliver the highest quality products for our consumers."

The Coty Prestige division ended the fiscal year with net sales reaching $2.1 billion, 16 percent ahead of the prior fiscal year.

Steady growth in existing markets and robust growth in emerging markets, including the Middle East, Russia, China and Southeast Asia, were prime growth drivers for Coty Prestige.

Daisy Marc Jacobs enjoyed global success, holding the number one prestige fragrance position for four consecutive months in Japan, and it was named Fragrance of the Year in the Women's Luxe category at the Fragrance Foundation's 36th annual FiFi Awards in May 2008.

Success behind the houses of Calvin Klein, Vera Wang, Chloe, Joop!, Lancaster and Davidoff accelerated growth for Coty Prestige as well.

Ending the fiscal year with net sales of over $1.9 billion, a 33 percent increase from fiscal year 2007, the Coty Beauty division's success was primarily driven by new launches including Kate by Kate Moss, Kylie Minogue Sweet Darling and Showtime, and David Beckham Intimately Night, as well as the continued strength and growth of the adidas and Rimmel brands and the acquisition of Del Laboratories Inc.

The acquisition of Del Laboratories Inc, a move that integrated popular skin care and color cosmetics brands Sally Hansen, N.Y.C. New York Color and La Cross into the Coty Beauty portfolio, bolstered Coty's presence in the color cosmetics and nail care market share.

With a steady sales foothold in Western Europe and the United States (54 percent and 32 percent of company's worldwide sales, respectively), Coty intensified its expansion into emerging markets like Asia and Australia (seven percent of worldwide sales).

The expansion in Asia is attributed to the strong performances from the adidas, Rimmel, Calvin Klein, Marc Jacobs, Sarah Jessica Parker, Chloe, Kate Moss, and David Beckham fragrances, as well as a new joint venture in China.

"By investing in and growing our existing brands and alternatively through strategic acquisitions, Coty will continue to achieve and exceed its goals, strengthening the company's presence as a global beauty leader," added Beetz.

Building on the success of the past seven years, Coty will focus the coming financial year on continuing business growth, creating a sizeable skin care business, leveraging Coty'sglobal scale and investing in organizational capabilities.

Coty is represented by many of the best-known brands in the beauty industry and delivers its innovative products to consumers in 90 markets.

Coty Inc

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