MONACO - Coty Inc . (NYSE: NYSE:COTY)(Paris: COTY), a major player in the global beauty industry, has established its first Scientific Advisory Board, convening for the first time on September 24, 2024. The board comprises internationally recognized scientific experts who will guide the company's skincare research and development.
The Advisory Board's role is to provide insights that will shape Coty's product innovation strategies across its skincare brands. At the inaugural meeting held at Coty's Skincare Research & Innovation Center of Excellence in Monaco, the experts discussed current themes in skin health and repair.
Coty's CEO, Sue Nabi, expressed pride in the assembly of acclaimed scientific minds to define the future of Coty skincare, emphasizing the importance of their insights in driving innovation. The board will meet biannually, focusing on aligning the latest scientific developments with consumer trends.
The members of the newly formed board include Dr. Miriam Merad, Dr. Emma Guttman, Dr. Patrick Bui, Pr. Selim Aractingi, Pr. Wei Liu, Pr. Deng Xingwang, and Dr. Jaci Santana, who are leaders in their respective fields of immunology, dermatology, and plastic surgery.
Coty, which celebrates its 120th anniversary this year, is known for its portfolio of iconic brands in fragrance, color cosmetics, and skin and body care. The company operates in over 125 countries, with a commitment to empowering individual expression and environmental stewardship.
The formation of the Scientific Advisory Board is a strategic move to enhance Coty's leading position in skin science, leveraging the expertise of the board to inform its R&D efforts. This initiative is based on a press release statement from Coty Inc.
In other recent news, Coty Inc. reported a modest revenue increase of 0.9% in its fourth-quarter results, slightly missing the anticipated 1.8% growth. Despite this, the company's like-for-like sales grew by 5%, and adjusted EBITDA reached $164.5 million, slightly surpassing their guidance. However, adjusted earnings per share came in at a loss of $0.03, missing estimates. The beauty company has forecasted a 6-8% growth in like-for-like sales for the first half of fiscal year 2025.
Analyst firms TD Cowen and Canaccord Genuity maintained a Buy rating on Coty, with TD Cowen keeping a steady price target of $13.00 and Canaccord Genuity sticking to its $14.00 price target. Meanwhile, DA Davidson raised their EBITDA growth expectations for Coty in fiscal year 2025 to 10% and increased the price target to $17.00. Stifel maintained a Hold rating but lowered the share target, while Citi reaffirmed its Neutral rating, emphasizing the company's alignment with market expectations. These recent developments reflect the analysts' varied outlooks on Coty's performance in the competitive beauty industry.
InvestingPro Insights
As Coty Inc. (NYSE: COTY) reinforces its commitment to skincare innovation with the establishment of its first Scientific Advisory Board, the company's financial health and market performance provide a backdrop for its strategic initiatives.
InvestingPro data reveals a current market capitalization of $8.11 billion, reflecting the scale of Coty's operations in the beauty industry. Notably, the company's gross profit margin stands at an impressive 64.39% for the last twelve months as of Q4 2024, indicating a strong ability to control costs relative to revenue—a critical factor as it invests in research and development.
While Coty's stock price movements have been quite volatile, with a 6-month total return of -21.14% leading up to the end of 2024, the company's net income is expected to grow this year, according to InvestingPro Tips. This growth projection is significant as it suggests optimism about Coty's profitability amid its ongoing investments into product innovation and scientific research.
Another InvestingPro Tip highlights that the company does not pay a dividend to shareholders. This could imply that Coty is prioritizing reinvestment into the business over immediate shareholder returns, which may support its long-term strategic goals, such as enhancing its R&D capabilities through the insights of the newly formed Scientific Advisory Board.
For readers interested in deeper analysis, InvestingPro offers additional tips on Coty Inc., which can be accessed through the dedicated InvestingPro product page for Coty at https://www.investing.com/pro/COTY.
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