January 11, 2019 / 4:07 PM / 9 months ago

CORRECTED-Coty makes changes to top management amid supply chain issues

(Corrects share movement and stock price in paragraph 4)

Jan 11 (Reuters) - Coty Inc announced its biggest management shakeup on Friday since appointing a new chief executive officer two months ago as it grapples with supply chain issues that are weighing on sales and profits.

The company appointed Luc Volatier to head its global supply chain and named Pierre-André Terisse new chief financial officer on Friday.

Coty warned in November that its full-year performance would be hit due to supply chain disruptions from trucker strike in Brazil, hurricanes in the Unites States and a warehousing issue in Germany.

The warning weighed on the company’s stock in 2018, resulting in a 67 percent decline in the year. Shares were trading up nearly 2 percent at $7.35 in early trading on Friday.

Coty said on Friday it also appointed Gianni Pieraccioni as chief operating officer of its consumer beauty division, which includes brands acquired from Procter & Gamble in 2016. The unit has been struggling to boost sales amid intense competition for shelf space in beauty aisles at retailers.

The management shakeup comes just eight weeks after Coty abruptly changed its chief executive officer - handing the reins to JAB Holding Co executive Pierre Laubies who replaced Camillo Pane.

JAB, a consumer goods to coffee conglomerate, is the biggest shareholder in Coty.

Terisse replaces Patrice de Talhouët, who quit last year, while Volatier replaces Mario Reis.

Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli

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