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Michele Scannavini: “Both Chalhoub and Jashanmal have proven to be exceptional partners to Coty in the Middle East and through our new joint venture, we look forward to further growing our business in this important market.” |
UAE. Coty and luxury goods distributors Chalhoub Group and Jashanmal have announced the formation of Coty Distribution Emirates LLC, a new joint venture established to strengthen Coty’s business in the United Arab Emirates.
The joint venture was developed in connection with Coty’s long-standing partnership with the Chalhoub Group. It will allow Coty to expand its go-to market capabilities in the UAE and provide consumers in the region with even greater access to Coty’s brand portfolio. The new entity will also allow Coty to consolidate the distribution of its products and ensure a cohesive marketing strategy throughout this key region.
“The United Arab Emirates has enjoyed steady growth over the past decade and is a key emerging market for Coty and the beauty industry,” said Coty CEO Michele Scannavini. “Both Chalhoub and Jashanmal have proven to be exceptional partners to Coty in the Middle East and through our new joint venture, we look forward to further growing our business in this important market.”
“We are very pleased to extend our long term relationship with Coty, a partnership which has benefited both of our businesses greatly,” noted Chalhoub Group CEO Patrick Chalhoub. “We are confident that through this joint venture we will reinforce our collaboration while answering to the market and consumer needs in the region.”
“We have experienced a successful partnership with several of the Coty-owned brands over the years and are now pleased and honoured to be part of this joint venture with the parent company,” added Jashanmal Executive Director Tony Jashanmal. “We wish this partnership much success.”
In November Coty reported adjusted net income of US$108.3 million (-8%) for the first quarter of fiscal 2014, ended 30 September 2013. Net revenue declined -2.9% on a reported basis, to US$1.18 billion.
Performance was affected by a significant market slowdown in the fragrance and nail categories, particularly in the US, although Scannavini praised the group’s growth in the prestige channel and in emerging markets, which had been targeted for accelerated development.
He commented: “While our business is facing challenges in the first half of the fiscal year, we are targeting the return to sustained top-line growth in the second half, fuelled by strong initiative plans on our power brands, particularly in the colour cosmetics segment, and further acceleration of our business in the emerging markets.”
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