Global beauty giant Coty has vowed to “realize its full potential” after a disappointing second quarter of the financial year.

The company’s operating income for the three months ending December 31 was $148.2 million, falling from $268.2 million in the previous year. Its adjusted gross margin of 64.2 per cent showed a decrease of 260 basis points year-over-year.

But Markus Strobel, executive chairman and interim CEO, said it’s time for change.

“I’m truly excited and energized to join Coty at this pivotal moment,” Strobel said.

“In my first month in the role, having visited our largest markets and key sites, it’s very clear to me that Coty has many top-notch assets and competitive advantages: Highly attractive brands, best-in-class fragrance innovation capabilities, a vertically integrated business model, and a creative, entrepreneurial organization.”

In October last year, Coty launched a strategic review of its consumer beauty unit amid persistent sales declines.

Strobel added: “Our financial performance over the past year and a half has been disappointing, and our current share price reflects that reality. Both things are true: Coty has outstanding assets and capabilities, yet we have not been delivering at the level we should.”

The company will now begin its ‘Coty Curated’ strategy. Strobel said this will bring more focused investments, improved execution, and support for core brands.

He said: “In parallel, we are continuing our portfolio review to identify opportunities to unlock shareholder value in both the near and long term, complemented by other value-driving opportunities, such as the recent divestiture of our remaining stake in Wella at the end of 2025, delivering on our commitment.

“With greater focus and discipline, I believe Coty is well positioned to deliver consistent, profitable growth and realize its full potential.”