Coty Inc Stock Price, News & Analysis

Coty Inc. (NYSE: COTY) reported a strong third quarter for FY22, with net revenues rising 15% to $1.19 billion, driven by robust growth in its Prestige segment, which surged 21%. Adjusted EBITDA reached $182.5 million, and adjusted EPS improved to $0.03. Gross margins expanded significantly, reflecting effective pricing strategies and product mix, despite inflationary pressures. The company reaffirmed its revenue and profit guidance for FY22, raising adjusted EPS projections to $0.23-0.27. Coty is progressing on debt reduction, with financial net debt decreasing by over $200 million to $4.24 billion.

Coty Inc. (NYSE: COTY) will announce its Q3 fiscal 2022 financial results on May 9, 2022. Key activities include:

• Earnings release at approx. 6:30 am EST
• Pre-recorded management remarks and slides at approx. 7:20 am EST
• Live Q&A session with CEO Sue Y. Nabi and CFO Laurent Mercier at 8:15 am EST

For more details, visit Coty's investor relations page.

Coty Inc. (NYSE: COTY) announced an expected shareholder distribution of $250 million from its equity stake in Wella, up from a prior estimate of $175 million. This increase follows Wella's refinancing plans. Coty intends to use these proceeds to fully redeem its EUR 550M 2023 unsecured bonds, accelerating its path toward a leverage target of approximately 4x by the end of fiscal year 2022. The company's net debt was $4.45B at the end of fiscal year 2021, with an adjusted EBITDA target of $1B for the current year.

Coty Inc. (NYSE: COTY) has launched a cutting-edge virtual try-on tool for Sally Hansen nail polish, utilizing Perfect Corp.’s AgileHand® Technology. This innovative application allows consumers to virtually experiment with a wide range of nail colors on their own hands via mobile devices, enhancing the shopping experience by making it hygienic and interactive. The tool will first be available in the U.S. and is part of Coty’s strategy to enhance digital engagement across its beauty brands, reflecting a commitment to incorporating advanced AI and AR technologies into consumer experiences.

Coty Inc. (COTY) reported robust financial growth in Q2 FY22, with sales up by 12% year-over-year, driven by successful product launches like Gucci Flora and Burberry Hero. The Consumer Beauty segment gained market share for the first time in five years, reflecting strong demand and effective brand strategies. Gross margins expanded significantly, reaching 64.4%, aided by cost reductions and favorable pricing. The company anticipates FY22 sales at the upper end of guidance, raising adjusted EPS expectations to $0.22-0.26, while financial net debt improved by about $500 million.

Coty Inc. (NYSE: COTY) has initiated production of the world's first globally distributed fragrances made with carbon-captured ethanol, developed in partnership with LanzaTech. This manufacturing at the Granollers facility in Spain began ahead of schedule in mid-January 2023, with the first products set to hit the market soon. Coty aims to integrate sustainable ethanol into the majority of its fragrance portfolio by the end of 2023, significantly reducing environmental impact by minimizing water consumption and agricultural land use.

Coty Inc. (NYSE: COTY) announced the pricing of $500 million of 4.750% senior secured notes due 2029. The offering is expected to close on November 30, 2021, subject to customary conditions. Proceeds will be used to repay euro-denominated loans under its senior secured credit facilities. The notes will be guaranteed by Coty’s subsidiaries and secured by first priority liens. This offering targets qualified institutional buyers and complies with Rule 144A and Regulation S under the Securities Act.

Coty Inc. (NYSE: COTY) plans to offer up to $500 million in senior secured notes through a private transaction, involving its subsidiaries, HFC Prestige Products, Inc. and HFC Prestige International U.S. LLC. The notes will be secured by first priority liens on collateral that also secures existing credit facilities. Proceeds from the offering will be used to repay euro-denominated loans and a portion of the senior secured revolving credit facility due in April 2023. The offering is aimed at qualified institutional buyers and will not be registered under the Securities Act.