Coty has backtracked on its plans to list an initial public offering (IPO) in Brazil.
The CoverGirl maker announced in August last year that the financial plans would help deleverage and expand its business.
Coty blamed South America’s poor financial market for the decision.
“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. We will continue to monitor market conditions, evaluating future possibility to proceed with the partial IPO in Brazil in a new opportune window.” Coty shared in a statement with Cosmetics Business.
Covid-19 exposed Brazil’s economy to unprecedented difficulties, and contributed to a 4.1% GDP decline in 2020, reported financial institution World Bank.
While a rebound in GDP is expected in 2021, high inflation, unemployment and an impending presidential election in 2022 could slow recovery.
Coty’s sales, however, have been keeping pace with expectations.
Overall sales for Q2 were up 12%, thanks to launches from key brands Gucci, Burberry and Kylie Cosmetics.
Coty’s Consumer Beauty Business also increased its market share – a first in five years.
