The British and Irish division of global beauty conglomerate Coty has staged a dramatic financial turnaround, posting a profit as it contemplates the potential sale of iconic brands including Rimmel and Max Factor.
From Heavy Losses to Solid Profit
Newly filed accounts with Companies House reveal that Coty UK & Ireland achieved a pre-tax profit of £9 million for the year ending 30 June 2025. This marks a significant recovery from the prior year, when the division recorded a substantial pre-tax loss of £53.4 million.
This financial rebound occurred even as the company's turnover experienced a slight decline, dipping from £335.3 million to £326.3 million over the same period. The previous year's heavy losses were attributed primarily to a £135 million impairment charge against investments, following a strategic review of its UK operations.
Strategic Review Puts Major Brands on the Block
The return to profitability comes against the backdrop of a major strategic shift for the New York-listed parent company. In late September 2025, Coty announced it was evaluating options for its entire consumer beauty division, which generates approximately £900 million in annual revenue.
While a final decision is pending, this review could lead to the sale of several household names. Rimmel, Max Factor, CoverGirl, and Sally Hansen are all potentially up for sale as Coty considers streamlining its portfolio. The company noted that the consumer beauty business had "experienced a slowdown in retail demand," contributing to the falling turnover.
Focusing on Fragrance and Future Growth
Discussing the strategic review in September, Coty's chief executive Sue Nabi framed the move as a quest for "clarity and focus." The plan involves more closely integrating the company's fragrance and scenting brands to leverage its scale in a high-performing category.
"The fragrance category continues to outperform the global beauty market and already drives the majority of our revenues and profits," Nabi stated. She highlighted Coty's strength across price points, from $5 to $500, and its progress in the burgeoning $7 billion body mist market.
Founded in France in 1904 and now headquartered in the US and the Netherlands, Coty's portfolio spans roughly 40 brands across fragrances, cosmetics, skincare, nail care, and hair care products. The potential divestment of its consumer beauty assets represents a pivotal moment in the company's long history, as it seeks to sharpen its strategic focus on its most profitable segments.
