Coty (COTY) 2024 Deutsche Bank dbAccess Global Consumer Conference summary

Strategic overview and market positioning

• Celebrating 120 years, the company emphasizes its legacy as a beauty pioneer with a diversified portfolio across price points and regions, operating two profitable divisions: Prestige (64% of sales) and Consumer Beauty (36%).

• Geographic revenue split: North America 30%, Western Europe 25%, with strong positions in emerging markets and expansion in China and Asia Pacific.

• Outperformed the beauty market for 11 consecutive quarters, being the fastest-growing global beauty company in 9 of the last 11 quarters.

• Strong R&D and patent portfolio underpin innovation in fragrances, color cosmetics, and skincare, with over 80 research programs.

• Six-pillar strategy: grow consumer beauty, accelerate luxury fragrance, build skincare, enhance digital/R&D, expand in Travel Retail/China, and lead in sustainability.

Brand and licensing strategy

• Portfolio balanced between owned and licensed brands, with ~85% of sales from owned or long-term licensed brands; over half of sales from effectively perpetual licenses.

• Actively adding new long-term licenses (e.g., Marni, Etro) and expanding cosmetics under Marc Jacobs.

• No single brand exceeds 10% of net revenues, supporting risk diversification.

• Proactively renewing licenses, signing new long-term agreements, and focusing on derisking the portfolio.

Growth categories and market expansion

• Second globally in prestige fragrances ($40B market, mid- to high-single digit growth expected); strong in consumer beauty makeup.

• Expanding into prestige skincare, ultra-premium niche fragrances, and lifestyle/wellness segments.

• Recent launches in niche fragrances (Infiniment Coty Paris) and expansion of brands like Chloé and Burberry into new segments.

• Leveraging lifestyle brands to capture share in the $36B lifestyle fragrance and wellness market.

• E-commerce, travel retail, skincare, and prestige cosmetics all posted double-digit LFL growth FYTD, with growth engine markets now 18% of sales.