This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEI170T6_L.jpg
The company had announced https://www.reuters.com/business/retail-consumer/coty-files-ipo-brazilian-unit-help-deleverage-2021-08-26 plans to publicly list the unit in August, aiming to use the proceeds to pay down debt and expand its business.
“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,” said Laurent Mercier, Coty’s chief financial officer, on a call with analysts.
Mercier said the company would monitor market conditions to potentially pursue an IPO at a later date.
The Brazilian economy, weakened by high inflation and unemployment, is in danger of sinking deeper into recession this year ahead of October’s presidential election, as anxiety over the vote and steep interest rate rises continue to hurt growth, a Reuters poll showed in January.
Separately, Coty raised its profit expectations for the year, benefiting from its focus on high-margin skincare products.
