Nonetheless, Coty CEO Camillo Pane has his eyes on the future: “It is clear to me that Coty has great future potential,” he says in a media release announcing the quarterly numbers, adding that “the combination of our iconic and emerging brands, energized employees, and the comprehensive strategy we are laying out for the new organization will position us well to become a challenger and leader in beauty and drive sustained profitable growth over time.
Dollars and cents
For the quarter ending December 31, 2016, Coty reports net revenue of $2,296.7m. That’s a 90% increase in comparison to the same quarter last year, a time before the P&G deal was completed which the company now refers to as ‘Legacy-Coty.’
When compared to Legacy-Coty plus the acquired P&G beauty business, the quarterly figure represents a 4% decrease in net revenue.
The consumer beauty segment did best for Coty, bringing in $1,001.7m. Luxury beauty accounted for $835.0m. And the remaining $460.0m in net revenue came in via the professional segment.
Problems and challenges
Pane recognizes that Coty has work to do. “This is a long term journey and will require time and effort, as we will need to tackle short term challenges like the ones we faced in the first semester, complete the P&G Beauty Business integration and most importantly implement new programs to drive growth and further strengthen our brand portfolio and management capabilities,” he tells the press. But the company’s concerns extend beyond that.
Few Fortune 500 companies today make the mistake of not having women serve on their board of directors. Coty is, however, one such company.
As Emily Stewart pointed out in her recent item for The Street, Coty does intend to change that this summer. Stewart spoke with Kristy Wallace, president of Ellevate Network who explains that “particularly for companies where women are buying your product, whether a consumer or user, from employee through investor, you want that diverse mindset at the board level that's really going to help direct the company in the right way.”