Coty cancels Brazilian IPO

Coty, the multinational beauty company that holds the fragrance licenses for global fashion brands including Boss, Burberry, Chloé, Dolce & Gabbana, and Alexander McQueen, has cancelled its Brazilian IPO. In August 2021, Coty had planned the IPO to pay down debt and grow their business. Adverse market conditions in South America were cited as the reason for withdrawing the IPO.

“In light of the current economic volatility and adverse financial market conditions in Brazil, we have decided to withdraw from the IPO registration application process for the time being,” said Laurent Mercier, Coty’s chief financial officer, on a call with analysts.

The company is interested in pursuing a Brazilian IPO at a later date, so they will continue monitoring market conditions in South America. Brazil’s economy has been weakened by high inflation and unemployment. Steep interest rates are also hurting the country’s growth.

On the other hand, Coty reported a strong second quarter for fiscal year 2022, ending December 31, 2021. Coty saw sales increase, following strong sales growth during Q1 as Coty shopped key launches including Gucci Flora Gorgeous Gardenia, Burberry Hero, and the relaunch of the full Kylie Cosmetics range.