According to the latest McKinsey report, the beauty sector could see significant growth by 2027, with a doubling of its revenue estimated at $40 billion. The Coty group anticipates this increase and forecasts a revenue growth of 12% to 15% for the fourth quarter of 2023.
According to McKinsey's latest consulting report, the premium and ultra-premium segments could double by 2027. The current revenue of the sector, which is around $20 billion, could reach $40 billion. Coty, the American multinational beauty products company founded in Paris, is well positioned to capitalize on this opportunity.
During the Coty group's investor conference on July 6, several strategies related to the premium and ultra-premium segments of perfumes and cosmetic skincare were discussed, including the travel retail market and the development of promising markets such as Brazil and China. This conference followed the announcement of a potential dual listing of the company on the stock exchange in Paris and New York, a project still in the "exploratory phase," as stated by the CEO of the group, Sue Nabi.
It is worth mentioning that Coty's revenue growth forecast for the fourth quarter of 2023, ending on June 30, is on the rise. The sales figure is now expected to be between +12% and +15%, compared to the previously announced +10%. For the year 2023, the group aims for an operating profit before provisions and amortization (EBITDA) between $965 million and $970 million.
Coty's prestige division plays a key role in these results, accounting for 63% of the group's total revenue. This percentage could be further strengthened by the promising sales performance of the Lancaster brand in China and investments made in ultra-luxury brands such as the gender-neutral Orveda.
To celebrate its 120th anniversary next year, Coty plans to launch "Infiniment Coty Paris," a unique collection of fourteen luxury perfumes, in 2024. This project is described as the company's "most ambitious and high-end to date" in the perfume category. Exclusive patents are pending approval for the fragrance formulas and packaging.
Geographically, Coty is present in 125 countries worldwide. During the conference, investors considered further development of the Chinese market, which currently represents 12% of the global beauty market and 4% of Coty's sales. Latin America is also an interesting market. In Brazil, for example, strong local brands such as Monange, Risqué, Paixão, and Bozzano are part of Coty's portfolio, and the company aims to accelerate their growth by increasing the number of points of sale.
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