Coty Russia
Coty, the global beauty company, announced its decision to exit the Russian market in April 2022[2][3]. The company began winding down its operations in Russia immediately following the announcement[4]. This decision came in response to Russia’s invasion of Ukraine in February 2022[3].
Prior to the exit, Russia accounted for approximately 3% of Coty’s sales and contributed a mid-single digit percentage to its adjusted EBITDA[2][4]. Despite this, Coty did not expect the decision to impact its fiscal 2022 revenue and profit targets[3].
As of January 2025, Coty has completed its exit from Russia. The company’s financial results for fiscal year 2024 (FY24) showed strong performance globally, with total net revenues growing 10% on a reported basis and 11% on a like-for-like (LFL) basis[5]. This growth outpaced the global beauty market, which grew approximately 9%[5].
Impact and Aftermath
The exit from Russia had some negative impact on Coty’s performance:
- In the first half of 2023, Coty’s sales declined 1% as reported, while LFL sales grew 6%, including approximately 300 basis points of negative impact from the Russia exit[1].
- The company had to lay off its entire staff in Russia as part of the exit process[7].
Despite these challenges, Coty has continued to perform well in other markets. The company has seen strong growth in its e-commerce channel, with reported net revenues growing by over 20% in FY24[5]. Coty has also maintained momentum in growth engine markets and high-growth channels, particularly in Travel Retail and markets such as Brazil, Latin America, Southeast Asia, and Africa[5].
Citations: [1] https://leave-russia.org/coty [2] https://fashionunited.uk/news/business/beauty-giant-coty-to-exit-russia/2022043062852 [3] https://www.beautypackaging.com/contents/view_breaking-news/2022-04-28/coty-pulls-out-of-russia/ [4] https://www.retaildive.com/news/the-weekly-closeout-coty-winds-down-russian-operations-and-the-north-face/622913/ [5] https://www.coty.com/news/coty-reports-double-digit-growth-in-fy24-outpacing-beauty-market [6] https://www.reuters.com/business/retail-consumer/covergirl-owner-coty-wind-down-russia-operations-2022-04-27/ [7] https://misstweed.com/articles/coty-sacks-entire-staff-in-russia-kylie-cosmetics-underperforms- [8] https://www.happi.com/breaking-news/coty-will-exit-russia/
History
Coty was founded in Paris in 1904 by François Coty, a “visionary” in the perfume industry. Portfolio of widely known brands in fragrance, color cosmetics, skin and body care supports net revenues of $4.6 billion for the fiscal year ended June 30, 2013. Portfolio in Russia includes such brands as Adidas, Balenciaga, Bottega Veneta, Calvin Klein, Chloe, Davidoff, Lancaster, Lady Gaga, Marc Jacobs, OPI, Playboy, Rimmel, Roberto Cavalli, Sally Hansen, etc. With offices in more than 30 countries and strong presence in 130 markets. Coty Inc. has 10,000 employees worldwide. The headquarters of the Company are located in New York, USA.
President
- Alexandr Terekhov (2015)
See also
Image credits will be appear here if included
