Beauty conglomerate Coty, founded in Paris in 1904, is exploring a dual listing. The business already trades on the New York Stock Exchange and is eyeing a listing on the Paris Stock Exchange. If the company initiates a listing process, it would further strengthen Coty’s presence in Europe and provide an additional vehicle to reach untapped investors in the market. The structure aligns with Coty’s 100-plus-year heritage in France and its substantial business footprint in Europe.
The company also announced it is extending the long-term partnership with Sue Y. Nabi, Coty Chief Executive Officer, since September 1, 2020. The renewed compensation agreement is based on an equity program that runs through 2030.
Under the leadership of Nabi, Coty has made significant progress against the strategic objectives announced in November 2021. This progress is evidenced by ten consecutive quarters of strong growth and results in line with or ahead of expectations. Coty is now financially stronger, with projected Free Cash Flow of over $400M in FY23, and on track to achieve leverage towards 3x exiting CY23. Recognition of this progress has been reflected in the quadrupling of Coty’s market capitalization since Nabi’s appointment in September 2020.
“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,” said Peter Harf, Coty’s Chairman. “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.”
Nabi added, “As a long-term shareholder in the company, I am grateful to the Board for their continued support and trust and delighted to have the opportunity of leading Coty through this next chapter of growth and value creation. We are committed to driving sustainable innovation across fragrance, color cosmetics, and skincare as we rise to meet the consumer needs of the future, while simultaneously campaigning to change outdated definitions of beauty through the #undefinebeauty campaign.”
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