NYSE$COTY

Coty Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Results severely impacted by COVID-19 pandemic, free cash flow inline with guidance, and KKR investment bolstered liquidity. Significant improvement expected in Q1, with positive adjusted operating income.

Coty Inc. reported a significant decrease in net revenues for Q4 2020 due to the COVID-19 pandemic, but expects to return to profitability in Q1 FY21. The company's free cash flow was in line with guidance, and a $1 billion KKR investment has bolstered liquidity. Coty has seen gradual sales trend improvement from April through June, with significant improvements in July and August across the portfolio

  • FY20 Total Coty net revenues decreased 22% reflecting the impact of the COVID-19 health crisis, with a Q4 LFL decline of (53%) for Total Coty and (60%) for Continuing Operations, which exclude the revenues and directly attributable costs of the to-be-divested Wella business
  • Coty has seen gradual sales trend improvement from April through June, with significant improvements in July and August across the portfolio
  • Coty expects to return to profitability in Q1 FY21 on an adjusted operating income basis for Continuing Operations
  • Q4 free cash outflow of $316.4 million was inline with guidance of outflow of $300-500 million

Headline financials

Total Revenue

$560M

Previous: $2.12B-73.5%
EPS (adj)

-$0.46

Previous: $0.16-387.5%
Free Cash Flow

-$316M

No prior period
Net Income

-$773M

Previous: -$2.8B+72.4%
Operating Income

-$921M

Previous: -$2.73B+66.3%
Gross Profit

$224M

Previous: $1.32B-83.0%
Cash & Equivalents

$308M

Previous: $340M-9.4%
Total Assets

$16.7B

Previous: $17.7B-5.5%
Stock-Based Comp

$11.7M

Previous: $7M+67.1%

Revenue & EPS history

Coty · Revenue · Quarterly

$560M

Q4 2020-73.5%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Coty · $1.64B total across 2 segments · Q1 2024

  • Prestige
    $1.06B+23.3%
  • Consumer Beauty
    $577M+9.5%

Forward guidance

Coty expects to return to profitability in Q1 FY21 on an adjusted operating income basis for Continuing Operations

Tailwinds

  • Coty expects to return to profitability in Q1 FY21 on an adjusted operating income basis for Continuing Operations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

44%

23 / 52 earnings

Positive

+36.8%

Q2 2019

Best reaction

-25.8%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.9%-9.4%-23.4%
Q2 2026-14.5%-19.7%-24.8%
Q1 2026-0.8%-5.6%-8.7%
Q3 2025-11.6%-3.1%-2.9%
Q2 2025-9.3%-17.6%-19.8%
Q1 2025-3.8%-2.4%+0.9%
Q4 2024+6.1%+4.3%-1.7%
Q3 2024-4.3%-3.7%-12.8%
Q2 2024-3.2%-3.6%+3.7%
Q1 2024+1.8%-0.6%+18.4%
Q4 2023+2.6%+0.5%+11.9%
Q3 2023-3.7%-7.3%-2.6%
Q2 2023-0.2%+7.9%+3.6%
Q1 2023-5.2%+11.2%+14.9%
Q4 2022+7.4%+5.7%-0.1%
Q3 2022-13.3%-9.6%-1.1%
Q2 2022+12.2%+8.6%-5.6%
Q1 2022+16.4%+16.4%+10.5%
Q4 2021+15.6%+18.7%-2.7%
Q3 2021-10.9%-13.4%-14.9%
Q2 2021-17.3%-14.6%+11.5%
Q1 2021+33.2%+38.6%+132.0%
Q4 2020-3.6%-6.8%-29.9%
Q3 2020-16.7%-36.7%-0.8%
Q2 2020+13.6%+12.5%-19.2%
Q1 2020+13.4%+8.4%+3.6%
Q4 2019+6.2%+8.5%+19.7%
Q3 2019-5.6%-4.2%+10.4%
Q2 2019+36.8%+58.2%+55.8%
Q1 2019-25.8%-22.6%-32.9%
Q4 2018-5.5%-3.4%+4.9%
Q3 2018-8.8%-11.0%-12.6%
Q2 2018+13.6%+17.6%+11.0%
Q1 2018+10.5%+14.8%+20.5%
Q4 2017-14.4%-16.1%-18.2%
Q3 2017+9.9%+7.5%+5.1%
Q2 2017-8.8%-3.8%-4.7%
Q1 2017-15.3%-16.7%-12.5%
Q4 2016-6.9%-3.6%-18.2%
Q3 2016-12.2%
Q2 2016+14.0%
Q1 2016-4.8%
Q4 2015+3.1%
Q3 2015-1.4%
Q2 2015+15.6%
Q1 2015+6.6%
Q4 2012-4.6%
Q4 2014-4.6%
Q3 2014+3.4%
Q2 2014+3.4%
Q1 2014-2.7%
Q4 2013+0.8%
Q3 2013
Q2 2013
Q1 2013
Q3 2012
Q2 2012
Q1 2012
Q4 2011

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