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Targeting ~$130M of Fixed Cost Savings in Addition to ~$240M of Ongoing Productivity Savings Over Next 2 Years

Cumulative Savings Expected to Reach ~$1.2B Since Program Initiation in FY21

NEW YORK, April 24, 2025--(BUSINESS WIRE)--Regulatory News:

Coty, Inc. (NYSE: COTY) (Paris: COTY), one of the world’s largest beauty companies with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care, today launched the next phase of its transformative "All-in to Win" program. The strategic initiative will establish a simplified and scaled operating model, reduce complexity across functions and markets, and sharpen its focus on top innovation and market priorities.

Sue Nabi, CEO of Coty, said: "We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth. When we first announced our All-in to Win Program in FY20, at the peak of COVID disruptions, our goal was to boost our margin profile and brand reinvestment firepower through a significantly lower fixed cost structure, supply chain simplification, procurement savings and strategic revenue management initiatives.

The successful implementation of our plans despite the very challenged macro backdrop generated over $700M of savings between FY21-FY24, with over 400 basis points of gross margin expansion, over 400 basis point of A&CP investment expansion, and 130 basis points of EBITDA margin expansion, all while delivering a very strong revenue CAGR of 13% LFL.

With the cyclical and structural changes in the beauty industry and the global economy in recent years, including the rapid acceleration of e-commerce, the consolidation of retail channels and customers, and the new ways of consumer brand discovery, Coty must once again adapt and evolve.

This next phase of our transformation program will further strengthen our operating model and simplify our fixed cost structure. We fully anticipate these changes will strongly position Coty to outperform the beauty market in the coming years, cementing our global leadership position in fragrances while expanding into certain growing and profitable beauty categories, all while steadily expanding our gross margins and EBITDA margins."

Key Pillars of the Next Phase of Transformation:

• Scaled Markets and Regions: Coty will be streamlining the organizational structure across key markets to unlock operational efficiencies, reduce duplication and better align with the consolidation in the local and regional retail landscape. These market organizations will be part of a more scaled and agile regional set-up, with the regional leaders empowered to accelerate decision-making and faster execution, in keeping with the rapid evolution in today’s global beauty markets.

• Streamlined Support Functions: Consolidate and centralize support function activities, better aligning with the new regional structures. Coty has already started consolidating demand planning into a single hub, enabled by a state-of-the-art AI-driven demand planning system.

• Boost Innovation Impact: Step-change innovation impact by identifying key launch priorities early in the process, and focus organizational efforts and resources into fewer and more impactful initiatives. These will be supplemented by smaller agile innovations to capture short-term opportunities.

• Optimize General & Administrative Spending: Structurally reduce non-people fixed costs across all areas of spend.