Coty to Integrate Fragrance Businesses and Review Consumer Beauty Division

Coty Inc. (NYSE:COTY) is one of the cheap stocks to buy for the next 5 years. On September 30, Coty announced a plan to strengthen its position in the fragrance market by closely integrating its Prestige Beauty and Mass Fragrance businesses and creating a “Fragrance and Scenting Powerhouse.” Fragrances and scenting brands already account for 69% of Coty’s sales.

The company now intends to fully use its scale across R&D, consumer insights, manufacturing, and distribution to capture growth across all price points, ranging from $5 to $500, while also capitalizing on the new $7 billion mist market. Simultaneously, Coty initiated a review of its Consumer Beauty business to fully unleash its potential.

Coty to Integrate Fragrance Businesses and Review Consumer Beauty Division

The review will focus on the mass color cosmetics business, which generates $1.2 billion in revenue. It will assess a full range of alternatives, including partnerships, divestitures, spin-offs, and other potential strategic actions, to maximize long-term value and strengthen the balance sheet. Coty has retained Citi to advise on this review.

Coty Inc. (NYSE:COTY) manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty.

While we acknowledge the potential of COTY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COTY and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.