NYSE$COTY

Coty Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Coty's financial performance improved significantly, with topline and profit exceeding expectations.

Coty Inc. reported a strong recovery in Q4 2021, with revenues increasing by 89.6% and demonstrating progress across its strategic plan. The company exceeded its FY21 revenue guidance and anticipates low teens sales growth in FY22.

  • Q4 net revenues increased by 89.6% as reported and 80.7% LFL.
  • Reported operating income was $1.8 million, a significant improvement from the prior year.
  • Adjusted EBITDA increased significantly to $127.3 million.
  • Cost reductions totaled approximately $70 million in the quarter.

Headline financials

Total Revenue

$1.06B

Previous: $560M+89.5%
EPS (adj)

-$0.09

Previous: -$0.46+80.4%
Free Cash Flow

$2.1M

Previous: -$316M+100.7%
Net Debt

$5.23B

No prior period
Net Income

-$221M

Previous: -$773M+71.4%
Operating Income

$1.8M

Previous: -$921M+100.2%
Gross Profit

$641M

Previous: $224M+186.0%
Cash & Equivalents

$254M

Previous: $308M-17.8%
Total Assets

$13.7B

Previous: $16.7B-18.2%
Stock-Based Comp

$1M

Previous: $11.7M-91.5%

Revenue & EPS history

Coty · Revenue · Quarterly

$1.06B

Q4 2021+89.5%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Coty · $570M total across 1 segment · Q4 2021

  • Prestige
    $570M

Forward guidance

Coty expects 1Q22 LFL sales growth in the high teens percentage and is targeting FY22 LFL sales growth in the low teens coupled with adjusted EBITDA of ~$900 million on a constant currency basis.

Tailwinds

  • Strong fragrance demand across the U.S. and China.
  • Early signs of recovery in Europe and Travel Retail.
  • Improving cosmetics trends.
  • Strong launch calendar.
  • Very strong double digit growth in July and August to date.

Headwinds

  • Base year comparisons getting more difficult in subsequent quarters.
  • Some uncertainty in market conditions due to the Delta variant of COVID.
  • Potential impact of COVID-19 on market conditions.
  • Uncertainty related to the future
  • No other negatives were found

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 2021

Historical avgQ4 2021

+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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