Coty Inc · Q1 2021 earnings

Briefing

Coty's financial results significantly improved, driven by better sales trends and stringent cost controls.

Coty Inc. announced significantly improved financial results for the first quarter of fiscal year 2021. Net revenues improved each month, resulting in a 19% LFL decline for Coty's Continuing Operations. Fixed costs savings were approximately $80 million. The operational improvements and stringent cost controls resulted in $81.1 million in adjusted operating income from Continuing Operations, an increase of 24% versus last year. Total Coty adjusted EPS grew 57% to $0.11 for the quarter, while reported EPS was $0.24.

• Improving sales trends across all core regions and channels, driven by innovation product launches and e-commerce momentum
• Strong growth in 1Q21 Continuing Operations adjusted operating income of $81.1 million, up 24%
• Good progress with approximately $80 million fixed cost reductions and very focused marketing investments; on-track to deliver over $200 million of cost savings in FY21
• Financial Net Debt stable at $7,864.5 million. Wella proceeds and residual value of Wella stake to underpin expected Economic Net Debt below $4.0 billion post closing

Headline financials

Revenue & EPS history

Coty is committed to reigniting its mass color cosmetics business and accelerate prestige business growth through makeup, while building further growth engines leveraging the potential of its skincare brands.