Coty explores sale of professional beauty unit

Coty explores sale of professional beauty unit

22.10.2019

Coty explores sale of professional beauty unit

The cosmetics company has felt pressure to make a change after $3bn writedown of some mass-market brands

London — Coty, under pressure to turn its business around, is considering a sale of its professional hair and nail products unit that includes the brands Wella, Clairol and OPI. The shares surged the most in more than five months.

Coty has been formulating a comeback plan after a difficult few years. In July, CEO Pierre Laubies laid out the first steps of a turnaround plan intended to revive margins, reduce leverage and better keep up with its rivals. He said at the time some brands could be on the chopping block.

Proceeds from any potential transaction will be used to pay down debt and return excess cash directly to shareholders. JAB Holding, the company’s biggest shareholder, said in the statement that it supports the move.

Shares of Coty climbed as much as 13% to $11.46 in New York, the biggest intraday gain since May. While they had already climbed 54% in 2019 through Friday’s close, they are well below their high of more than $32 in mid-2015.

Meanwhile, rival cosmetics companies have been rapidly acquiring hot new brands as they search for the next big hit, often picking labels that attract younger, trendier shoppers. In July, it said it will take a separate $3bn writedown as its ageing mass-market brands face new competition.

Read more: Business Day

Market data - October 21 2019Market data including bonds, unit trusts and fuel prices

Disposals push Tiso Blackstar to R548m lossRevenues from continuing operations fall by 22.8% after sale of media interests

THE LEX COLUMN: Sweet-talking the rich fattens Nestlé salesSwiss consumer products group posts healthy organic sales growth

Victoria Beckham gets lippy with new beauty launchBeckham launched Victoria Beckham Beauty last month, on the same day as the London Fashion Week catwalk presentation for her Victoria Beckham Spring/Summer 2020 ready-to-wear line.

Africa needs busy engineers not just busy lawyers | IOL NewsIt's hard for a country to progress when its busiest professionals are lawyers and politicians, not engineers. SA have way to many politicians, lawyers and spokespersons.

Stolen sheep found stuffed inside boot of Mercedes-BenzMeanwhile, an operation by the Mthatha stock theft unit and Sulenkama visible policing led to the recovery of a herd of 20 sheep and 19 lambs. When the ancestors want a sheep they want it...they dont care if it's a jaguar...Merc or Maserati🤣🤣🤣 On route to a CT beach braai maybe? Bloody thieves have no respect for others 😟

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

22 October 2019, Tuesday News

Previous news

MyNews24: Why we won't return to SA any time soon

Next news

Africa must embrace new technologies to meet rising energy needs