FY21 Results Above High End of Guidance Accelerating Progress Across Each Pillar of Strategic Plan Strong Momentum Into FY22, with Low Teens Sales Growth Expected at Current FX Levels
NEW YORK--(BUSINESS WIRE)-- Coty Inc. (NYSE: COTY) ("Coty" or "the Company") today announced another quarter of improvement in its financial results and demonstrated recovery across its operations for the fourth quarter of fiscal year 2021, ended June 30, 2021.
In Q4, revenues increased 89.6%, or 80.7% LFL, lapping the peak of COVID impact in the prior year, even as COVID-related restrictions continued in many markets. As a result, Coty ended the year with revenues of $4.63 billion, above the high end of its $4.5-4.6 billion guidance range. While all regions returned to YoY growth in Q4, the U.S. and China markets were standouts. The Americas region grew 67% in Q4 and 6% in FY21, with the full year performance driven by double-digit growth in U.S. prestige products, and growth in Brazil and Canada. Asia Pacific grew 59% in Q4, with China growing double digits on a quarterly and full-year basis both year-on-year and versus FY19. EMEA sales more than doubled in Q4, even as many markets remained under restrictions through most of the quarter, with the consumer beauty brands recording stable market share for the first time in over 5 years. Underpinning the global momentum was the continued strength in e-commerce, which grew nearly 19% in Q4 and 34% in FY21, resulting in a high-teens e-commerce penetration for the year.
Coty's prestige brands sales more than doubled in Q4 and were nearly flat LFL in FY21, even as the Company continued to reduce sales in low quality channels, which represented a low teens negative impact to prestige brand sales in Q4 and a high single digit negative impact in FY21, relative to FY19. Nearly all prestige brands were up double- to triple-digits, with standout performance from Gucci, Marc Jacobs, Burberry, Calvin Klein, and Chloe, supplemented with expansion in Coty's new growth engines, prestige cosmetics and skincare.
In the mass channel, Coty continued to strengthen its consumer beauty brands, reaching a key milestone with CoverGirl gaining market share for three consecutive months, a first for the brand in 5 years. Building on this momentum, Coty launched the new brand repositioning for Rimmel in June, followed by Max Factor in late July. Coty's mass beauty revenues increased 37.9% LFL in Q4, with growth across each region.
Over the course of the year, Coty also advanced on its strategic pillar to become a beauty leader in sustainability. The Company announced its partnership with Lanzatech, becoming the first company in the fragrance industry to introduce sustainable ethanol, created using carbon-capture technology, into its fragrance products with the goal of having the majority of its fragrance portfolio using carbon-captured ethanol by 2023. On the cosmetics side, Coty has been leading with clean, vegan and cruelty-free formulations across brands such as CoverGirl, Sally Hansen, and Kylie Cosmetics. This has solidified Coty as the #2 player in clean cosmetics, as tracked by U.S. Nielsen.
During the quarter, Coty continued to reduce its cost base, with savings totaling approximately $70 million in the quarter. This brought the FY21 savings to over $330 million, exceeding the Company's initial plan for the year by over $100 million. Coty remains on track to generate ~$600 million of savings by FY23, and is identifying additional savings opportunities beyond FY23. At the same time, Coty now expects one-time cash costs associated with the cost savings program to come in approximately $100 million below the original target, aided by the strong cash focus of the Company. The company's efforts to drive gross margin expansion through a combination of product and channel mix, COGS savings and improved excess & obsolescence resulted in a reported and adjusted gross margin of ~60% for the year, up ~200bps YoY and in line with FY19 levels on a Continuing Operations basis, despite a lower sales base. The combination of gross margin expansion and accelerated cost savings allowed Coty to deliver profitability above expectations, while simultaneously reinvesting in the business. Specifically, in Q4 working media investments increased triple-digits versus last year and up over 30% versus 4Q19. At the same time, Coty delivered FY21 reported operating loss of $48.6 million and an adjusted EBITDA $760.4 million, exceeding guidance of ~$750 million and reflecting an adjusted EBITDA margin of 16.4%, delivering over 300 bps of margin expansion versus FY19. Q4 EPS totaled $(0.27) as reported and $(0.09) adjusted. The adjusted EPS is impacted by non-operational items including deferred financing fee write-offs, annual catch-up of tax expenses, and the impact of the convertible preferred shares on the diluted EPS calculation.
At the end of Q4, Financial Net Debt totaled approximately $5.2 billion. With an increase in the value of Coty's retained Wella stake to approximately $1.26 billion1 at quarter-end, the Company's Economic Net Debt totaled approximately $4.0 billion. During the quarter, Coty successfully raised $900 million in secured notes in April and €700 million in secured notes in June 2021, significantly improving the maturity profile of its debt.
Commenting on the operating results, Sue Y. Nabi, Coty's CEO, said:
"Today marks the completion of transformational year for Coty, as we advance on our journey in strengthening Coty's position as a global beauty powerhouse. Over the last 12 months, we have built a leadership team of beauty and transformation experts, unveiled and began executing on our multi-year strategy, completed the divestiture Wella, significantly improved our leverage profile, and over-delivered on our savings, revenue, and profit objectives.
We have ended the year on a high note, with Q4 sales nearly doubling YoY. Sales in the Americas expanded in FY21, and we saw particular strength in the U.S. and China. This a true testament not only to the strength of our prestige brand portfolio, but also to our innovation capabilities, with Marc Jacobs Perfect the best performing U.S. fragrance launch in the industry over the last 3 years, Gucci Guilty Pour Homme and Burberry Her driving market share gains for the beauty brands, and Chloe Atelier des Fleurs solidifying its position as a leading ultra premium artisanal fragrance collection.
At the same time, we made great strides on our objectives of becoming a key player in prestige cosmetics and strengthening our skincare portfolio. Gucci and Burberry makeup are already amongst the Top 25 makeup brands in China overall only a couple of years post launch, and Gucci makeup now ranks in the Top 10 within the U.S. and Europe doors where it is present. We intend to capitalize on this momentum in FY22, significantly expanding both our distribution and assortment. On skincare, Lancaster is elevating its visibility with Chinese consumers, with 3 branded counters opening in Hainan in the last few months, while philosophy is capitalizing on its Top 10 skincare position in the U.S. by leaning into cleaner formulations and expanded distribution.
Finally, in our consumer beauty brands, we are clearly seeing CoverGirl's transformation take hold with consumers, as the brand gained market share for three consecutive months, for the first time in 5 years. We are excited about the path ahead for Rimmel and Max Factor, as the new brand positioning, communication and visuals are being introduced now across European markets.
This operational and strategic progress was achieved without sacrificing our financial delivery, with FY21 gross margins of 60% back to FY19 levels and adjusted EBITDA margin of 16% up over 300 bps vs. FY19, setting the baseline for further expansion in the coming years.
Importantly, with two months into the new FY22 year, I am extremely encouraged by the momentum we are seeing across the business. In the market, we are seeing strong fragrance demand across the U.S. and China, some early signs of recovery in Europe and Travel Retail, and improving cosmetics trends. And we are capitalizing on this more favorable demand backdrop with a line-up of strong launches in each core area of the business. In fragrances we are already seeing very strong market reception for our launches including Gucci Flora Gorgeous Gardenia with Miley Cyrus, Burberry Hero with Adam Driver, Calvin Klein Defy with Richard Madden, and Tiffany Rose Gold. And in cosmetics, the newly relaunched Kylie cosmetics line is seeing great momentum on- and off-line in the U.S. and across Europe, while Sally Hansen is once again disrupting the nail market with its new concept, It Takes Two.
As we continue to make tangible progress in each of our focus areas, I am more confident than ever in the growth and value creation path in front of Coty."
*Adjusted financial metrics used in this release are non-GAAP. See reconciliations of GAAP results to Adjusted results in the accompanying tables. |
1Based on fair market value, reflecting the final Wella capital structure |
Highlights
Outlook
Entering 1Q22, Coty continues to see fragrance market momentum in U.S. and China, with some signs of recovery in EMEA and in broader color cosmetics. The combination of this market backdrop and Coty's strong launch calendar are fueling strong sales momentum in 1Q22, with very strong double digit growth in July and August to date. As a result, Coty expects 1Q22 LFL sales growth in the high teens percentage.
With the base year comparisons getting more difficult in subsequent quarters and some uncertainty in market conditions due to the Delta variant of COVID, Coty is targeting FY22 LFL sales growth in the low teens coupled with adjusted EBITDA of ~$900 million on a constant currency basis, reflecting strong EBITDA margin expansion YoY. The Company continues to target leverage moving towards 5x exiting CY21, and a further reduction in leverage to approximately 4x exiting CY22.
Additional Updates
Considering the dynamism of the beauty market, Coty is always on the lookout for opportunities to leverage its assets to create value and fuel growth.
In order to support the growth of the Brazil business and Coty’s personal care brands, Coty confirms that it is pursuing a partial IPO of its Brazil business. Earlier today, Coty completed its first filing at CVM - the Securities Commission which regulates capital markets - in Brazil to commence this partial IPO process. If the offering is successful, this will also help advance Coty’s deleveraging agenda.
Coty intends to remain a controlling shareholder of the Brazil affiliate.
Due to local Brazilian regulations, following its first filing Coty cannot offer further details at this time but will provide updates in due course. Additional information about the partial IPO of the Brazil business can be accessed on the CVM website.
Financial Results
Refer to “Non-GAAP Financial Measures” for discussion of the non-GAAP financial measures used in this release; reconciliations from reported to adjusted results can be found at the end of this release.
Revenues:
Gross Margin:
Operating Income and EBITDA:
Net Income:
Earnings Per Share (EPS) - diluted:
Operating Cash Flow:
Financial Net Debt:
Immediate Liquidity:
Fourth Quarter Business Review by Segment
Americas
In 4Q21, Americas net revenues of $447.2 million or 42% of Coty sales, increased by 68.9% versus the prior year. On a LFL basis, Americas net revenues increased by 67.2%. Prestige brand sales generated very strong growth, increasing in the triple-digits with robust performance across fragrances, cosmetics, and skincare. Meanwhile, mass beauty product sales also delivered solid growth, up strong double-digits, as color cosmetics began to show improvement during the quarter. For FY21, Americas net revenues of $1,866.9 million rose 5.4% versus the prior year and increased 5.5% LFL.
During 4Q21, Coty's U.S. prestige fragrance brands continued to generate very robust sell-out growth. Performance was particularly strong at Marc Jacobs, Gucci, Hugo Boss, and Burberry. Marc Jacobs continued to deliver very strong sell-out growth, up triple-digits versus last year in June, making it the fastest growing top 10 luxury fragrance brand, which was driven by continued strength of Marc Jacobs Perfect. Encouragingly, Marc Jacobs Perfect is the #1 launch in the U.S. market in the past 3 years* and the best Coty launch since 2005. Meanwhile, Burberry Her continued to excel during the quarter, with triple-digit sell-out growth. Similar to recent quarters, Gucci fragrance and cosmetic sell-out continues to be very strong. Within fragrances, the performance was led by Gucci Guilty Pour Homme, which is now the #5 male fragrance in the market. For cosmetics, Gucci delivered another quarter of triple-digit sell-out growth.
Within mass beauty brands, cosmetics and fragrances started to show improvement during 4Q21, though both categories remained below 2019 levels. However, the Company had encouraging results in its strategy of stabilizing the performance of its mass brands. In particular, CoverGirl gained nearly 1 point of share during the quarter. This performance was supported by the recent Lash Blast Clean launch, which delivered very strong sell-out in the quarter, outperforming the overall clean market and becoming the #11 mascara in the total U.S. market. In addition, Simply Ageless has also generated strong sell-out performance, with all top customers seeing double-digit growth for 3 consecutive months. Meanwhile, Sally Hansen also continued to gain market share in the U.S., with sell-out also remaining solidly up versus 2019 levels.
E-commerce sales increased 36% in Q4, despite lapping a difficult comparison last year. For FY21, e-commerce growth remained over 60% fiscal year-to-date. Fiscal year-to-date, e-commerce penetration is in the low double-digits, up a mid-single-digit percent from last year.
The Americas segment generated a reported operating loss of $18.8 million in 4Q21, compared to a reported operating loss of $128.5 million in the prior year. The 4Q21 adjusted operating income was $8.0 million, increased from an adjusted operating loss of $102.9 million in the prior year, driven by gross margin improvement and strong fixed cost reduction. The 4Q21 reported operating margin was (4.2%) and the adjusted operating margin was 1.8% versus (38.9)% in the prior year. Adjusted EBITDA for the Americas segment increased to $47.6 from $(58.8) in the prior year, with a margin of 10.6%. FY21 reported operating income of $36.5 million compared to a reporting operating loss of $164.8 million in the prior year. The FY21 adjusted operating income was $141.5 million versus $(89.5) million in the prior year. Adjusted EBITDA in FY21 was $301.1 million compared to $56.1 million in the prior year.
*Source: The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market, Fragrance Brand Launch Sales, July-June 2018, 2019, 2020 |
EMEA
In 4Q21, EMEA net revenues of $471.4 million, or 44% of Coty sales, increased by 123.4% versus the prior year. On a LFL basis, EMEA net revenues increased 106.3%. Despite COVID-related restrictions impacting many markets during the quarter, sales trends for both prestige and mass brands showed strong improvement, up triple-digits and double-digits, respectively. For FY21, EMEA net revenues of $2,183.7 million declined 5.4% reported from the prior year and 10.1% LFL.
EMEA prestige sales performance was led by Hugo Boss Bottled, Marc Jacobs Perfect. Meanwhile, Gucci Beauty continued its strong performance in the quarter, and remains in the top 5 makeup brands in the stores where its present in many key markets including France, Italy, and Russia. In the mass beauty channel, sell-out trends meaningfully improved during the quarter. Encouragingly, Coty commenced the repositioning of Rimmel towards the end of the quarter in June, with the brand holding its #1 position in the UK makeup market and achieving its highest market share in 10 consecutive months. More recently, Coty began the re-positioning of Max Factor earlier this month.
4Q21 EMEA e-commerce sales grew over 20% in 4Q. FY21 e-commerce penetration as a percentage of sales was in the high-teens percentage level, with strong growth in both prestige and mass.
Reported operating income was $0.1 million in 4Q21 versus reported operating loss of $318.0 million in the prior year. The 4Q21 adjusted operating income of $29.4 million increased from an adjusted operating loss of $182.4 million in the prior year, driven by a higher gross margin, and solid fixed cost reductions. For 4Q21, the reported operating margin was neutral and the adjusted operating margin increased to 6.2% from (86.4)% in the prior year. During the quarter, adjusted EBITDA increased to $63.8 million from $(150.7) million in the prior year, with a margin of 13.5%. For FY21, reported operating income increased to $129.8 million from a reported operating loss of $(248.4) million in the prior year. The FY21 adjusted operating income of $251.9 million increased from an adjusted operating loss of $(18.0) million in the prior year. For the year, adjusted EBITDA increased to $400.2 million from $124.2 million in the prior year.
Asia Pacific
4Q21 Asia Pacific net revenues of $143.8 million, or 14% of Coty sales, increased 70.0% on a reported basis and rose 58.7% LFL. The robust LFL performance was largely fueled by strong trends within Coty's prestige brands, including triple-digit prestige growth in China. For FY21, Asia Pacific net revenues of $579.3 million declined 0.6% as reported and 5.4% LFL from the prior year.
In China, Coty continued to see very strong, near triple-digit, sell-out performance of its prestige beauty brands in both the brick & mortar and e-commerce channels. During 4Q21, Coty outperformed the prestige beauty market in China, and gained 1 rank to become the #9 prestige beauty company. Similar to recent quarters, Burberry and Gucci have delivered particularly strong performance, double- to triple-digit-sell-out growth in the quarter. Moreover, both brands continue to see very strong momentum within their prestige cosmetics products, both of which are in the top 25 prestige make-up brands in China.
E-commerce generated very strong growth, increasing at a triple-digit rate during 4Q21, with FY21 penetration in the low-teens.
Reported operating loss in 4Q21 of $2.3 million increased from a reported operating loss of $56.7 million in the prior year. The 4Q21 adjusted operating income of $3.3 million increased from an adjusted operating loss of $50.4 million in the prior year, driven by a higher gross margin coupled with reduced fixed costs. The 4Q21 reported operating margin was (1.6%) and the adjusted operating margin of 2.3% increased from (59.6)% in the prior year. For 4Q21, adjusted EBITDA improved to $15.9 from $(37.1) in the prior year, with a margin of 11.1%. For FY21, reported operating loss of $13.2 million improved from a reported operating loss of $74.0 million in the prior year. The adjusted operating income for FY21 was $10.9 million as compared to an adjusted operating loss of $49.0 million in the prior year. The FY21 adjusted EBITDA increased to $59.1 million from $(6.5) million in the prior year.
Fourth Quarter Fiscal 2021 Business Review by Channel
Prestige
Mass
Noteworthy Company Developments
Other noteworthy company developments include:
Conference Call
Coty Inc. will host a conference call at 8:00 a.m. (ET) today, August 26, 2021 to discuss its results. The dial-in number for the call is (800) 895-3361 in the U.S. or (785) 424-1062 internationally (conference passcode number: COTY4Q21). The live audio webcast and presentation slides will be available at http://investors.coty.com. The conference call will be available for replay.
About Coty Inc.
Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, and skin and body care. Coty is the global leader in fragrance, and number three in color cosmetics. Coty’s products are sold in over 130 countries around the world. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment. For additional information about Coty Inc., please visit www.coty.com.
Forward Looking Statements
Certain statements in this Earnings Release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current views with respect to, among other things, the impact of COVID-19 and potential recovery scenarios, strategic planning, targets, segment reporting and outlook for future reporting periods (including the extent, timing and concentration of revenue, expense and profit trends and changes in operating cash flows and cash flows from operating activities and investing activities, and expected drivers of sales and profitability in future periods), the impact of the sale of the Wella Business and the related transition services (the “Wella TSA”), the Company’s future operations and strategy (including the expected implementation and related impact of its strategic priorities), ongoing and future cost efficiency, optimization and restructuring initiatives and programs, strategic transactions (including their expected timing and impact), plans with respect to opportunities to leverage assets including through public offerings, the Company’s capital allocation strategy and payment of dividends (including suspension of dividend payments and the duration thereof and any plans to resume cash dividends on common stock or to continue to pay dividends in cash on preferred stock), investments, licenses and portfolio changes, product launches, relaunches or rebranding (including the expected timing or impact thereof) synergies, savings, performance, cost, timing and integration of acquisitions and investments, including the strategic partnership with Kylie Jenner and the strategic partnership with Kim Kardashian West, future cash flows, liquidity and borrowing capacity, timing and size of cash outflows and debt deleveraging, future debt covenant compliance, the timing and extent of any future impairments, and synergies, savings, impact, cost, timing and implementation of the Company’s comprehensive transformation agenda (the "Transformation Plan"), including operational and organizational structure changes, operational execution and simplification initiatives, cost reductions, supply chain changes, e-commerce and digital initiatives, and the priorities of senior management. These forward-looking statements are generally identified by words or phrases, such as “anticipate”, “are going to”, “estimate”, “plan”, “project”, “expect”, “believe”, “intend”, “foresee”, “forecast”, “will”, “may”, “should”, “outlook”, “continue”, “temporary”, “target”, “aim”, “potential”, “goal” and similar words or phrases. These statements are based on certain assumptions and estimates that we consider reasonable, but are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual events or results (including our financial condition, results of operations, cash flows and prospects) to differ materially from such statements, including risks and uncertainties relating to:
When used herein, the term “includes” and “including” means, unless the context otherwise indicates, “including without limitation”. More information about potential risks and uncertainties that could affect the Company’s business and financial results is included under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2021 and annual report on Form 10-K for the year ended June 30, 2021 and other periodic reports the Company has filed and may file with the SEC from time to time.
All forward-looking statements made in this release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this release, and the Company does not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance unless expressed as such, and should only be viewed as historical data.
Non-GAAP Financial Measures
The Company operates on a global basis, with the majority of net revenues generated outside of the U.S. Accordingly, fluctuations in foreign currency exchange rates can affect results of operations. Therefore, to supplement financial results presented in accordance with GAAP, certain financial information is presented excluding the impact of foreign currency exchange translations to provide a framework for assessing how the underlying businesses performed excluding the impact of foreign currency exchange translations (“constant currency”). Constant currency information compares results between periods as if exchange rates had remained constant period-over-period, with the current period’s results calculated at the prior-year period’s rates. The Company calculates constant currency information by translating current and prior-period results for entities reporting in currencies other than U.S. dollars into U.S. dollars using constant foreign currency exchange rates. The constant currency calculations do not adjust for the impact of revaluing specific transactions denominated in a currency that is different to the functional currency of that entity when exchange rates fluctuate. The constant currency information presented may not be comparable to similarly titled measures reported by other companies. The Company discloses the following constant currency financial measures: net revenues, like-for-like (LFL) net revenues, adjusted gross profit and adjusted operating income.
The Company presents period-over-period comparisons of net revenues on a constant currency basis as well as on an (LFL) basis. The Company believes that (LFL) better enables management and investors to analyze and compare the Company's net revenues performance from period to period. For the periods described in this release, the term “like-for-like” describes the Company's core operating performance, excluding the financial impact of (i) acquired brands or businesses in the current year period until we have twelve months of comparable financial results, (ii) the divested brands or businesses or early terminated brands, generally, in the prior year non-comparable periods, to maintain comparable financial results with the current fiscal year period and (iii) foreign currency exchange translations to the extent applicable. For a reconciliation of (LFL) period-over-period, see the table entitled “Reconciliation of Reported Net Revenues to Like-For-Like Net Revenues”.
The Company presents operating income, operating income margin, gross profit, gross margin, effective tax rate, net income, net income margin, net revenues, EBITDA, and EPS (diluted) on a non-GAAP basis and specifies that these measures are non-GAAP by using the term “adjusted” (collectively the Adjusted Performance Measures). The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for or superior to, financial measures reported in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies, including companies in the beauty industry, may calculate similarly titled non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.
Adjusted operating income/Adjusted EBITDA from continuing operations excludes restructuring costs and business structure realignment programs, amortization, acquisition- and divestiture-related costs and acquisition accounting impacts, asset impairment charges and other adjustments as described below. For adjusted EBITDA, in addition to the preceding, we adjust for non-cash stock-based compensation expense and depreciation. We do not consider these items to be reflective of our core operating performance due to the variability of such items from period-to-period in terms of size, nature and significance. They are primarily incurred to realign our operating structure and integrate new acquisitions, and implement divestitures of components of our business, and fluctuate based on specific facts and circumstances. Additionally, Adjusted net income attributable to Coty Inc. and Adjusted net income attributable to Coty Inc. per common share are adjusted for certain interest and other (income) expense as described below and the related tax effects of each of the items used to derive Adjusted net income as such charges are not used by our management in assessing our operating performance period-to-period.
Adjusted Performance Measures reflect adjustments based on the following items:
The Company has provided a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP. For a reconciliation of adjusted gross profit to gross profit, adjusted EPS (diluted) to EPS (diluted), and adjusted net revenues to net revenues, see the table entitled “Reconciliation of Reported to Adjusted Results for the Consolidated Statements of Operations.” For a reconciliation of adjusted operating income to operating income and adjusted operating income margin to operating income margin, see the tables entitled “Reconciliation of Reported Operating Income (Loss) to Adjusted Operating Income” and "Reconciliation of Reported Operating Income (Loss) to Adjusted Operating Income by Segment." For a reconciliation of adjusted effective tax rate to effective tax rate, see the table entitled “Reconciliation of Reported Income (Loss) Before Income Taxes and Effective Tax Rates to Adjusted Income Before Income Taxes and Adjusted Effective Tax Rates.” For a reconciliation of adjusted net income and adjusted net income margin to net income (loss), see the table entitled “Reconciliation of Reported Net Income (Loss) to Adjusted Net Income.”
The Company also presents free cash flow, adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"), immediate liquidity, Financial Net Debt and Economic Net Debt. Management believes that these measures are useful for investors because it provides them with an important perspective on the cash available for debt repayment and other strategic measures and provides them with the same measures that management uses as the basis for making resource allocation decisions. Free cash flow is defined as net cash provided by operating activities less capital expenditures; adjusted EBITDA is defined as adjusted operating income, excluding adjusted depreciation and non-cash stock-based compensation. Net debt or Financial Net Debt (which the Company referred to as "net debt" in prior reporting periods) is defined as total debt less cash and cash equivalents, and Economic Net Debt is defined as total debt less cash and cash equivalents less the value of the Wella Stake. For a reconciliation of Free Cash Flow, see the table entitled “Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow,” for adjusted EBITDA, see the table entitled “Reconciliation of Adjusted Operating Income to Adjusted EBITDA” and for Financial Net Debt and Economic Net Debt, see the tables entitled “Reconciliation of Total Debt to Financial Net Debt and Economic Net Debt.” Further, our immediate liquidity is defined as the sum of available cash and cash equivalents and available borrowings under our Revolving Credit Facility (please see table "Immediate Liquidity").
These non-GAAP measures should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
To the extent that the Company provides guidance, it does so only on a non-GAAP basis and does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for restructuring, integration and acquisition-related expenses, amortization expenses, non-cash stock-based compensation, adjustments to inventory, and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
- Tables Follow -
COTY INC. | |||||||||||||||||||
SUPPLEMENTAL SCHEDULES INCLUDING NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
RESULTS AT A GLANCE | |||||||||||||||||||
|
| Three Months Ended June 30, 2021 | Year Ended June 30, 2021 | ||||||||||||||||
(in millions, except per share data) |
|
|
| Change YoY |
|
| Change YoY | ||||||||||||
CONTINUING OPERATIONS |
|
|
| Reported Basis |
| (LFL) |
|
| Reported Basis |
| (LFL) | ||||||||
Net revenues |
| $ | 1,062.4 |
|
| 90 | % |
| 81 | % | $ | 4,629.9 |
|
| (2 | %) |
| (4 | %) |
Operating income (loss) - reported |
| 1.8 |
|
| >100 | % |
|
| (48.6 | ) |
| 96 | % |
|
| ||||
Operating income - adjusted* |
| 44.3 |
|
| >100 | % |
|
| 409.4 |
|
| >100 | % |
|
| ||||
EBITDA - adjusted |
| 127.3 |
|
| >100 | % |
|
| 760.4 |
|
| >100 | % |
|
| ||||
Net (loss) attributable to common shareholders - reported** |
| (221.1 | ) |
| 68 | % |
|
| (166.3 | ) |
| 85 | % |
|
| ||||
Net income (loss) attributable to common shareholders - adjusted* ** |
| (67.2 | ) |
| 81 | % |
|
| 9.6 |
|
| >100 | % |
|
| ||||
EPS attributable to common shareholders (diluted) - reported |
| $ | (0.29 | ) |
| 68 | % |
|
| $ | (0.22 | ) |
| 85 | % |
|
| ||
EPS attributable to common shareholders (diluted) - adjusted* |
| $ | (0.09 | ) |
| 80 | % |
|
| $ | 0.01 |
|
| >100 | % |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
COTY, INC. |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net (loss) attributable to common shareholders - reported ** |
| (210.2 | ) |
| 73 | % |
|
| (303.6 | ) |
| 70 | % |
|
| ||||
Net (loss) income attributable to common shareholders - adjusted* ** |
| (67.2 | ) |
| 83 | % |
|
| 152.6 |
|
| >100 | % |
|
| ||||
EPS attributable to common shareholders (diluted) - reported |
| $ | (0.27 | ) |
| 73 | % |
|
| $ | (0.40 | ) |
| 70 | % |
|
| ||
EPS attributable to common shareholders (diluted) - adjusted* |
| $ | (0.09 | ) |
| 82 | % |
|
| $ | 0.20 |
|
| >100 | % |
|
| ||
* These measures, as well as “free cash flow,” “adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA),” "immediate liquidity," “financial net debt,” and "economic net debt" are Non-GAAP Financial Measures. Refer to “Non-GAAP Financial Measures” for discussion of these measures. Net income (loss) represents Net income (loss) Attributable to Coty Inc. Reconciliations from reported to adjusted results can be found at the end of this release. | |||||||||||||||||||
** Net income (loss) for Continuing Operations and Coty Inc. are net of the Convertible Series B Preferred Stock dividends. |
FOURTH QUARTER BY SEGMENT (CONTINUING OPERATIONS)
|
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
|
| Net Revenues |
| Change | Reported Operating Income (Loss) |
| Adjusted Operating Income (Loss) | |||||||||||||||||||||||||||
(in millions) |
| 2021 |
| 2020 |
| Reported Basis |
| LFL |
| 2021 |
| Change |
| Margin |
| 2021 |
| Change |
| Margin | ||||||||||||||
Americas |
| $ | 447.2 |
|
| $ | 264.8 |
|
| 69 | % |
| 67 | % |
| $ | (18.8 | ) |
| 85 | % |
| (4.2 | %) |
| $ | 8.0 |
|
| >100 | % |
| 1.8 | % |
EMEA |
| 471.4 |
|
| 211.0 |
|
| >100 | % |
| >100 | % |
| 0.1 |
|
| >100 | % |
| 0.0 | % |
| 29.4 |
|
| >100 | % |
| 6.2 | % | ||||
Asia Pacific |
| 143.8 |
|
| 84.6 |
|
| 70 | % |
| 59 | % |
| (2.3 | ) |
| 96 | % |
| (1.6 | %) |
| 3.3 |
|
| >100 | % |
| 2.3 | % | ||||
Other |
| — |
|
| — |
|
| — | % |
| — | % |
| — |
|
| N/A |
|
| N/A |
|
| — |
|
| N/A |
|
| N/A |
| ||||
Corporate |
| — |
|
| — |
|
| — | % |
| — | % |
| 22.8 |
|
| >100 | % |
| N/A |
|
| 3.6 |
|
| >100 | % |
| N/A |
| ||||
Total |
| $ | 1,062.4 |
|
| $ | 560.4 |
|
| 90 | % |
| 81 | % |
| $ | 1.8 |
|
| >100 | % |
| 0.2 | % |
| $ | 44.3 |
|
| >100 | % |
| 4.2 | % |
|
| Year Ended June 30, | ||||||||||||||||||||||||||||||||
|
| Net Revenues |
| Change |
| Reported Operating Income (Loss) |
| Adjusted Operating Income (Loss) | ||||||||||||||||||||||||||
(in millions) |
| 2021 |
| 2020 |
| Reported Basis |
| LFL |
| 2021 |
| Change |
| Margin |
| 2021 |
| Change |
| Margin | ||||||||||||||
Americas |
| $ | 1,866.9 |
|
| $ | 1,771.0 |
|
| 5 | % |
| 6 | % |
| $ | 36.5 |
|
| >100 | % |
| 2.0 | % |
| $ | 141.5 |
|
| >100 | % |
| 7.6 | % |
EMEA |
| 2,183.7 |
|
| 2,308.6 |
|
| (5 | %) |
| (10 | %) |
| 129.8 |
|
| >100 | % |
| 5.9 | % |
| 251.9 |
|
| >100 | % |
| 11.5 | % | ||||
Asia Pacific |
| 579.3 |
|
| 582.7 |
|
| (1 | %) |
| (5 | %) |
| (13.2 | ) |
| 82 | % |
| (2.3 | %) |
| 10.9 |
|
| >100 | % |
| 1.9 | % | ||||
Other |
| — |
|
| 55.5 |
|
| (100 | %) |
| 0 | % |
| — |
|
| 100 | % |
| N/A |
|
| — |
|
| 100 | % |
| N/A |
| ||||
Corporate |
| — |
|
| — |
|
| — |
|
| — |
|
| (201.7 | ) |
| 73 | % |
| N/A |
|
| 5.1 |
|
| >100 | % |
| N/A |
| ||||
Total |
| $ | 4,629.9 |
|
| $ | 4,717.8 |
|
| (2 | %) |
| (4 | %) |
| $ | (48.6 | ) |
| 96 | % |
| (1.0 | %) |
| $ | 409.4 |
|
| >100 | % |
| 8.8 | % |
|
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||||
|
| Three Months Ended June 30, |
| Year Ended June 30, | ||||||||||||||||||||||||||||||||
(in millions) |
| 2021 |
| 2020 |
| 2021 |
| 2020 | ||||||||||||||||||||||||||||
Americas |
| $ | 47.6 |
|
| $ | (58.8 | ) |
| $ | 301.1 |
|
| $ | 56.1 |
| ||||||||||||||||||||
EMEA |
| 63.8 |
|
| (150.7 | ) |
| 400.2 |
|
| 124.2 |
| ||||||||||||||||||||||||
Asia Pacific |
| 15.9 |
|
| (37.1 | ) |
| 59.1 |
|
| (6.5 | ) | ||||||||||||||||||||||||
Other |
| — |
|
| — |
|
| — |
|
| 0.8 |
| ||||||||||||||||||||||||
Total |
| $ | 127.3 |
|
| $ | (246.6 | ) |
| $ | 760.4 |
|
| $ | 174.6 |
| ||||||||||||||||||||
FOURTH QUARTER FISCAL 2021 BY CHANNEL
Continuing Operations
|
| Three Months Ended June 30, |
| Year Ended June 30, | ||||||||||||||||||||||||
|
| Net Revenues |
| Change |
| Net Revenues |
| Change | ||||||||||||||||||||
(in millions) |
| 2021 |
| 2020 |
| Reported Basis |
| (LFL) |
| 2021 |
| 2020 |
| Reported Basis |
| (LFL) | ||||||||||||
Prestige |
| $ | 570.2 |
|
| $ | 219.4 |
|
| 160 | % |
| 147 | % |
| $ | 2,718.6 |
|
| $ | 2,606.4 |
|
| 4 | % |
| (1 | )% |
Mass |
| 492.0 |
|
| 340.7 |
|
| 44 | % |
| 38 | % |
| 1,910.7 |
|
| 2,111.0 |
|
| (10 | )% |
| (7 | )% | ||||
Corporate |
| 0.2 |
|
| 0.3 |
|
| N/M |
|
| N/M |
|
| 0.6 |
|
| 0.4 |
|
| N/M |
|
| N/M |
| ||||
Total |
| $ | 1,062.4 |
|
| $ | 560.4 |
|
| 90 | % |
| 81 | % |
| $ | 4,629.9 |
|
| $ | 4,717.8 |
|
| (2 | )% |
| (4 | )% |
COTY INC. & SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended June 30, |
| Year Ended June 30, | |||||||||||||
(in millions, except per share data) | 2021 |
| 2020 |
| 2021 |
| 2020 | |||||||||
Net revenues | $ | 1,062.4 |
|
| $ | 560.4 |
|
| $ | 4,629.9 |
|
| $ | 4,717.8 |
| |
Cost of sales | 421.1 |
|
| 336.2 |
|
| 1,861.7 |
|
| 1,991.2 |
| |||||
as % of Net revenues | 39.6 | % |
| 60.0 | % |
| 40.2 | % |
| 42.2 | % | |||||
Gross profit | 641.3 |
|
| 224.2 |
|
| 2,768.2 |
|
| 2,726.6 |
| |||||
Gross margin | 60.4 | % |
| 40.0 | % |
| 59.8 | % |
| 57.8 | % | |||||
|
|
|
|
|
|
|
| |||||||||
Selling, general and administrative expenses | 592.7 |
|
| 638.9 |
|
| 2,363.2 |
|
| 3,120.0 |
| |||||
as % of Net revenues | 55.8 | % |
| 114.0 | % |
| 51.0 | % |
| 66.1 | % | |||||
Amortization expense | 61.8 |
|
| 62.5 |
|
| 251.2 |
|
| 233.1 |
| |||||
Restructuring costs | (26.1 | ) |
| 4.7 |
|
| 63.6 |
|
| 130.2 |
| |||||
Acquisition-and divestiture- related costs | 11.1 |
|
| 72.0 |
|
| 138.8 |
|
| 157.3 |
| |||||
Asset impairment charges | — |
|
| 393.6 |
|
| — |
|
| 434.0 |
| |||||
Loss (gain) on divestitures | — |
|
| (27.0 | ) |
| — |
|
| (111.5 | ) | |||||
Operating income (loss) | 1.8 |
|
| (920.5 | ) |
| (48.6 | ) |
| (1,236.5 | ) | |||||
as % of Net revenues | 0.2 | % |
| (164.3 | %) |
| (1.0 | %) |
| (26.2 | %) | |||||
Interest expense, net | 63.5 |
|
| 57.4 |
|
| 235.1 |
|
| 242.7 |
| |||||
Other ( income) expense, net | 6.8 |
|
| (15.6 | ) |
| (43.9 | ) |
| (11.6 | ) | |||||
Loss from continuing operations before income taxes | (68.5 | ) |
| (962.3 | ) |
| (239.8 | ) |
| (1,467.6 | ) | |||||
as % of Net revenues | (6.4 | %) |
| (171.7 | %) |
| (5.2 | %) |
| (31.1 | %) | |||||
Provision (benefit) for income taxes on continuing operations | 132.9 |
|
| (260.7 | ) |
| (172.0 | ) |
| (377.7 | ) | |||||
Net loss from continuing operations | (201.4 | ) |
| (701.6 | ) |
| (67.8 | ) |
| (1,089.9 | ) | |||||
as % of Net revenues | (19.0 | %) |
| (125.2 | %) |
| (1.5 | %) |
| (23.1 | %) | |||||
Net income (loss) from discontinued operations | 10.9 |
|
| (76.6 | ) |
| (137.3 | ) |
| 87.2 |
| |||||
Net loss | (190.5 | ) |
| (778.2 | ) |
| (205.1 | ) |
| (1,002.7 | ) | |||||
Net (loss) income attributable to noncontrolling interests | (4.6 | ) |
| (4.8 | ) |
| (16.1 | ) |
| 4.7 |
| |||||
Net income (loss) attributable to redeemable noncontrolling interests | 0.1 |
|
| (7.1 | ) |
| 12.3 |
|
| (0.7 | ) | |||||
Net loss attributable to Coty Inc. | $ | (186.0 | ) |
| $ | (766.3 | ) |
| $ | (201.3 | ) |
| $ | (1,006.7 | ) | |
Amounts attributable to Coty Inc. |
|
|
|
|
|
|
| |||||||||
Net loss from continuing operations | $ | (196.9 | ) |
| $ | (689.7 | ) |
| $ | (64.0 | ) |
| $ | (1,093.9 | ) | |
Convertible Series B Preferred Stock dividends | (24.2 | ) |
| (6.5 | ) |
| (102.3 | ) |
| (6.5 | ) | |||||
Net loss from continuing operations attributable to common stockholders | $ | (221.1 | ) |
| $ | (696.2 | ) |
| $ | (166.3 | ) |
| $ | (1,100.4 | ) | |
Net income (loss) from discontinued operations | 10.9 |
|
| (76.6 | ) |
| (137.3 | ) |
| 87.2 |
| |||||
Net loss attributable to common stockholders | $ | (210.2 | ) |
| $ | (772.8 | ) |
| $ | (303.6 | ) |
| $ | (1,013.2 | ) | |
|
|
|
|
|
|
|
| |||||||||
Net loss attributable to Coty Inc. per common share: |
|
|
|
|
|
|
| |||||||||
Basic for Continuing Operations | $ | (0.29 | ) |
| $ | (0.91 | ) |
| $ | (0.22 | ) |
| $ | (1.45 | ) | |
Diluted for Continuing Operations(a) | $ | (0.29 | ) |
| $ | (0.91 | ) |
| $ | (0.22 | ) |
| $ | (1.45 | ) | |
Basic for Coty Inc | $ | (0.27 | ) |
| $ | (1.01 | ) |
| $ | (0.40 | ) |
| $ | (1.33 | ) | |
Diluted for Coty Inc.(a) | $ | (0.27 | ) |
| $ | (1.01 | ) |
| $ | (0.40 | ) |
| $ | (1.33 | ) | |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
| |||||||||
Basic | 765.4 |
|
| 763.3 |
|
| 764.8 |
|
| 759.1 |
| |||||
Diluted(a) | 765.4 |
|
| 763.3 |
|
| 764.8 |
|
| 759.1 |
| |||||
|
|
|
|
|
|
|
| |||||||||
Depreciation - Continuing Operations | $ | 87.4 |
|
| $ | 82.9 |
|
| $ | 334.1 |
|
| $ | 351.7 |
|
(a) | Diluted EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plans and the convertible Series B Preferred Stock. We use the if-converted method for calculating any potential dilutive effect of the convertible Series B Preferred Stock, which requires an adjustment to reverse the impact of the preferred stock dividends, including deemed dividends, of $24.2 million and $102.3 million on income applicable to common stockholders during three and twelve months ended June 30, 2021. |
|
RECONCILIATION OF REPORTED TO ADJUSTED RESULTS FOR THE CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
These supplemental schedules provide adjusted Non-GAAP financial information and a quantitative reconciliation of the difference between the Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. | ||||||||||||||||||||||
| Three Months Ended June 30, 2021 |
|
| |||||||||||||||||||
| CONTINUING OPERATIONS |
|
| |||||||||||||||||||
(in millions) | Reported (GAAP) |
| Adjustments(a) |
| Adjusted (Non-GAAP) |
|
| |||||||||||||||
Net revenues | $ | 1,062.4 |
|
| $ | — |
|
| $ | 1,062.4 |
|
|
| |||||||||
Gross profit | 641.3 |
|
| 5.2 |
|
| 646.5 |
|
|
| ||||||||||||
Gross margin | 60.4 | % |
|
|
| 60.9 | % |
|
| |||||||||||||
Operating (loss) income | 1.8 |
|
| 42.5 |
|
| 44.3 |
|
|
| ||||||||||||
as % of Net revenues | 0.2 | % |
|
|
| 4.2 | % |
|
| |||||||||||||
Net (loss) income | (221.1 | ) |
| 153.9 |
|
| (67.2 | ) |
|
| ||||||||||||
as % of Net revenues | (20.8 | %) |
|
|
| (6.3 | %) |
|
| |||||||||||||
Adjusted EBITDA |
|
|
|
| 127.3 |
|
|
| ||||||||||||||
as % of Net revenues |
|
|
|
| 12.0 | % |
|
| ||||||||||||||
| COTY INC. |
|
| |||||||||||||||||||
Net income (loss) attributable to Coty Inc. | (210.2 | ) |
| 143.0 |
|
| (67.2 | ) |
|
| ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
EPS (diluted) | $ | (0.27 | ) |
|
|
| $ | (0.09 | ) |
|
| |||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
| Three Months Ended June 30, 2020 | |||||||||||||||||||||
(in millions) | Reported (GAAP) |
| Adjustments(a) |
| Adjusted (Non-GAAP) |
| Discontinued Operations Adjusted (Non-GAAP) | |||||||||||||||
Net revenues | $ | 560.4 |
|
| $ | — |
|
| $ | 560.4 |
|
| $ | 361.7 |
| |||||||
Gross profit | 224.2 |
|
| 3.3 |
|
| 227.5 |
|
| 231.8 |
| |||||||||||
Gross margin | 40.0 | % |
|
|
| 40.6 | % |
| 64.1 | % | ||||||||||||
Operating (loss) income | (920.5 | ) |
| 585.2 |
|
| (335.3 | ) |
| 16.9 |
| |||||||||||
as % of Net revenues | 100 | % | ||||||||||||||||||||
Adjusted depreciation (g) |
| 82.2 |
|
| 82.5 |
|
| 0 | % |
| 325.8 |
|
| 334.3 |
|
| (3 | %) | ||||
Adjusted EBITDA |
| $ | 127.3 |
|
| $ | (246.6 | ) |
| >100 | % |
| $ | 760.4 |
|
| $ | 174.6 |
|
| >100 | % |
% of Revenues |
| 12.0 | % |
| (44.0 | %) |
|
|
| 16.4 | % |
| 3.7 | % |
|
| ||||||
(a) | In the three months ended June 30, 2021, we did not incur any asset impairment charges. In the three months ended June 30, 2020, we incurred asset impairment charges of $393.6 primarily due to other indefinite-lived intangible assets in Corporate, and goodwill in the EMEA segment. |
| In fiscal 2021, we did not incur any asset impairment charges. In fiscal 2020, we incurred asset impairment charges of $434.0 primarily due to other indefinite-lived intangible assets in Corporate, and goodwill in the EMEA segment. |
(b) | In the three months ended June 30, 2021, amortization expense of $26.8, $29.3 and $5.7 was reported in the Americas, EMEA and Asia Pacific segments, respectively. In the three months ended June 30, 2020, amortization expense of $25.6, $30.6 and $6.3 was reported in the Americas, EMEA and Asia Pacific segments, respectively. |
| In fiscal 2021, amortization expense of $105.0, $122.1 and $24.1 was reported in the Americas, EMEA and Asia Pacific segments, respectively. In fiscal 2020, amortization expense of $75.3, $125.4, $25.0, and $7.4 was reported in the Americas, EMEA, Asia Pacific and Other segments, respectively. |
(c) | In the three months ended June 30, 2021, we incurred restructuring and other business structure realignment costs of $(30.4). We incurred restructuring costs of $(26.1) primarily related to the Transformation Plan, included in the Condensed Consolidated Statements of Operations; and business structure realignment costs of $(4.3) primarily related to the Transformation Plan and certain other programs. This amount includes $(9.5) reported in selling, general and administrative expenses, and $5.2 reported in cost of sales in the Condensed Consolidated Statement of Operations. In the three months ended June 30, 2020, we incurred restructuring and other business structure realignment costs of $84.1. We incurred restructuring costs of $4.7 primarily related to the Transformation Plan, included in the Condensed Consolidated Statements of Operations; and business structure realignment costs of $79.4 primarily related to the Global Integration Activities and our Transformation Plan. This amount includes $76.1 reported in selling, general and administrative expenses, and $3.3 reported in cost of sales in the Condensed Consolidated Statement of Operations. |
| In fiscal 2021, we incurred restructuring and other business structure realignment costs of $68.0. We incurred restructuring costs of $63.6 primarily for charges related to the Transformation Plan, included in the Condensed Consolidated Statements of Operations; and business structure realignment costs of $4.4 primarily related to the Transformation Plan and certain other programs. This amount includes $(3.9) reported in selling, general and administrative expenses, and $8.3 reported in cost of sales in the Condensed Consolidated Statement of Operations. In fiscal 2020, we incurred restructuring and other business structure realignment costs of $361.9. We incurred restructuring costs of $130.2 primarily related to the Transformation Plan, included in the Condensed Consolidated Statements of Operations; and business structure realignment costs of $231.7 primarily related to our Global Integration Activities and Transformation Plan. This amount includes $217.2 reported in selling, general and administrative expenses, and $14.5 reported in cost of sales in the Condensed Consolidated Statement of Operations. |
(d) | In the three months ended June 30, 2021, we incurred acquisition and divestiture related costs of $11.1. These costs were principally associated with the Wella Transaction. In the three months ended June 30, 2020, we incurred acquisition and divestiture related costs of $72.0. |
| In fiscal 2021, we incurred acquisition and divestiture related costs of $138.8. These costs were principally associated with the Wella Transaction. In fiscal 2020, we incurred acquisition and divestiture related costs of $157.3. |
(e) | In the three months ended June 30, 2021, there were no gains on divestitures. In the three months ended June 30, 2020, as a result of the divestiture of Younique in the first quarter, we recorded income of $27.0 included in Gain on sale of business in the Condensed Consolidated Statements of Operations. |
| In fiscal 2021, there were no gains on divestitures. In fiscal 2020, we completed the divestiture of Younique resulting in income of $111.5 included in Gain on sale of business in the Condensed Consolidated Statements of Operations. |
(f) | In the three months ended June 30, 2021, non-cash stock-based compensation of $0.3, $0.4 and $0.1 was reported in the Americas, EMEA and Asia Pacific segments, respectively. In the three months ended June 30, 2020, non-cash stock-based compensation of $2.9, $2.3 and $1.0 was reported in the Americas, EMEA and Asia Pacific segments, respectively. |
| In fiscal 2021, non-cash stock-based compensation of $10.2, $11.9 and $3.1 was reported in the Americas, EMEA and Asia Pacific segments, respectively. In fiscal 2020, non-cash stock-based compensation of $0.8, $1.0 and $0.2 was reported in the Americas, EMEA and Asia Pacific segments, respectively. |
(g) | In the three months ended June 30, 2021, adjusted depreciation expense of $37.8, $32.4 and $12.0 was reported in the Americas, EMEA and Asia Pacific segments, respectively. In the three months ended June 30, 2020, adjusted depreciation expense of $41.0, $29.3 and $12.2 was reported in the Americas, EMEA and Asia Pacific segments, respectively. |
| In fiscal 2021, adjusted depreciation expense of $147.3, $134.0 and $44.5 was reported in the Americas, EMEA and Asia Pacific segments, respectively. In fiscal 2020, adjusted depreciation expense of $145.5, $142.0, $42.5 and $4.3 was reported in the Americas, EMEA, Asia Pacific and Other segments, respectively. |
RECONCILIATION OF REPORTED INCOME (LOSS) BEFORE INCOME TAXES AND EFFECTIVE TAX RATES TO ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES AND ADJUSTED EFFECTIVE TAX RATES FOR CONTINUING OPERATIONS | ||||||||||||||||||||||
|
| Three Months Ended June 30, 2021 |
| Three Months Ended June 30, 2020 | ||||||||||||||||||
(in millions) |
| (Loss) income before income taxes |
| (Benefit) Provision for income taxes |
| Effective tax rate |
| (Loss) income before income taxes |
| (Benefit) provision for income taxes |
| Effective tax rate | ||||||||||
Reported Income (Loss) before income taxes - Continuing Operations |
| $ | (68.5 | ) |
| $ | 132.9 |
|
| (194.0 | )% |
| $ | (962.3 | ) |
| $ | (260.7 | ) |
| 27.1 | % |
Adjustments to Reported Operating Income (a)(b) |
| 42.5 |
|
| (12.9 | ) |
|
|
| 585.2 |
|
| 224.8 |
|
|
| ||||||
Change in fair value of investment in Wella Business (b) (e) |
| (10.0 | ) |
| 4.7 |
|
|
|
| — |
|
| — |
|
|
| ||||||
Post Divestiture Restructuring (c) |
| — |
|
| (130.0 | ) |
|
|
| — |
|
| — |
|
|
| ||||||
Tax impact from intra-entity transfer of assets (d) |
| — |
|
| 13.9 |
|
|
|
| — |
|
| — |
|
|
| ||||||
Other adjustments(b) (f) |
| 1.4 |
|
| 0.4 |
|
|
|
| (16.3 | ) |
| (3.1 | ) |
|
| ||||||
Adjusted Income (Loss) before income taxes - Continuing Operations |
| $ | (34.6 | ) |
| $ | 9.0 |
|
| (26.0 | %) |
| $ | (393.4 | ) |
| $ | (39.0 | ) |
| 9.9 | % |
The adjusted effective tax rate was (26.0%) for the three months ended June 30, 2021 compared to 9.9% for the three months ended June 30, 2020. The difference was primarily due to the jurisdictional mix of income. | ||||||||||||||||||||||
|
| Year Ended June 30, 2021 |
| Year Ended June 30, 2020 | ||||||||||||||||||
(in millions) |
| (Loss) income before income taxes |
| (Benefit) Provision for income taxes |
| Effective tax rate |
| (Loss) income before income taxes |
| (Benefit) provision for income taxes |
| Effective tax rate | ||||||||||
Reported (Loss) before income taxes - Continuing Operations |
| $ | (239.8 | ) |
| $ | (172.0 | ) |
| 71.7 | % |
| $ | (1,467.6 | ) |
| $ | (377.7 | ) |
| 25.7 | % |
Adjustments to Reported Operating income(a)(b) |
| 458.0 |
|
| 109.3 |
|
|
|
| 1,186.3 |
|
| 210.3 |
|
|
| ||||||
Gain on divestitures (a)(b) |
| — |
|
| — |
|
|
|
| (111.5 | ) |
| 110.5 |
|
|
| ||||||
Post Divestiture Restructuring (c) |
| — |
|
| (130.0 | ) |
|
|
|
|
|
|
|
| ||||||||
Tax impact from intra-entity transfer of assets (d) |
| — |
|
| 234.4 |
|
|
|
| — |
|
| — |
|
|
| ||||||
Change in fair value of investment in Wella Business (b) (e) |
| (73.5 | ) |
| (11.2 | ) |
|
|
| — |
|
| — |
|
|
| ||||||
Other adjustments(b) (f) |
| 7.2 |
|
| 2.0 |
|
|
|
| (16.3 | ) |
| (3.1 | ) |
|
| ||||||
Adjusted Income (Loss) before income taxes - Continuing Operations |
| $ | 151.9 |
|
| $ | 32.5 |
|
| 21.4 | % |
| $ | (409.1 | ) |
| $ | (60.0 | ) |
| 14.7 | % |
(a) | See a description of adjustments under “Adjusted Operating (Loss) Income for Continuing Operations.” |
(b) | The tax effects of each of the items included in adjusted income are calculated in a manner that results in a corresponding income tax benefit/provision for adjusted income. In preparing the calculation, each adjustment to reported income is first analyzed to determine if the adjustment has an income tax consequence. The provision for taxes is then calculated based on the jurisdiction in which the adjusted items are incurred, multiplied by the respective statutory rates and offset by the increase or reversal of any valuation allowances commensurate with the non-GAAP measure of profitability. |
(c) | Tax expense relates to an internal restructuring following the Wella divestiture, primarily intended to create a more efficient structure to hold its remaining 40% equity investment in Wella. |
(d) | Tax benefit of $234.4 is the result of a tax rate differential on the deferred taxes recognized on the transfer of assets and liabilities, following the relocation of our main principal location from Geneva to Amsterdam in first fiscal quarter. The overall value of the assets and liabilities transferred was negotiated with both the Swiss and Dutch Tax Authorities and per terms of the agreements, will be reevaluated after three years. |
(e) | The amount represents the unrealized (gain) loss recognized for the change in the fair value of the investment in Wella. |
(f) | For the three months ended June 30, 2021, this primarily represents adjustments for pension curtailment gains. For the year ended June 30, 2021, this primarily represents the write-off of deferred financing fees related to the Wella sale and adjustments for pension curtailment gains. |
|
RECONCILIATION OF REPORTED NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) FOR CONTINUING OPERATIONS | ||||||||||||||||||||||
| Three Months Ended June 30, |
| Year Ended June 30, | |||||||||||||||||||
(in millions) | 2021 |
| 2020 |
| Change |
| 2021 |
| 2020 |
| Change | |||||||||||
Net income (loss) from Continuing Operations, net of noncontrolling interests | $ | (196.9 | ) |
| $ | (689.7 | ) |
| 71 | % |
| $ | (64.0 | ) |
| $ | (1,093.9 | ) |
| 94 | % | |
Convertible Series B Preferred Stock dividends (c) | (24.2 | ) |
| (6.5 | ) |
| 100 | % | ||||||||||||||
% of Net revenues | (6.3 | %) |
| (63.1 | %) |
|
|
| 0.2 | % |
| (7.7 | %) |
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Per Share Data |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Adjusted weighted-average common shares |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Basic | 765.4 |
|
| 763.3 |
|
|
|
| 764.8 |
|
| 759.1 |
|
|
| |||||||
Diluted (c) (f) | 765.4 |
|
| 763.3 |
|
|
|
| 764.8 |
|
| 759.1 |
|
|
| |||||||
Adjusted Net income (loss) attributable to Continuing Operations per Common Share |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Basic | $ | (0.09 | ) |
| $ | (0.46 | ) |
|
|
| $ | 0.01 |
|
| $ | (0.48 | ) |
|
| |||
Diluted (c) | $ | (0.09 | ) |
| $ | (0.46 | ) |
|
|
| $ | 0.01 |
|
| $ | (0.48 | ) |
|
|
(a) | See a description of adjustments under “Adjusted Operating Income (loss) for Continuing Operations.” |
(b) | The amounts represent the after-tax impact of the non-GAAP adjustments included in Net income attributable to noncontrolling interest based on the relevant noncontrolling interest percentage in the Condensed Consolidated Statements of Operations. |
(c) | Diluted EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plans and the convertible Series B Preferred Stock. We use the if-converted method for calculating any potential dilutive effect of the convertible Series B Preferred Stock, which requires an adjustment to reverse the impact of the preferred stock dividends, including deemed dividends, of $24.2 million and $102.3 million for the three and twelve months ended June 30, 2021 on income applicable to common stockholders during the period. |
(d) | The amount represents the unrealized (gain) loss recognized for the change in the fair value of the investment in Wella. |
(e) | For the three months ended June 30, 2021, this primarily represents adjustments for pension curtailment gains. For the year ended June 30, 2021, this primarily represents the write-off of deferred financing fees related to the Wella sale and adjustments for pension curtailment gains. |
(f) | As of June 30 2021, 171.1 million shares of outstanding stock options and Series A/A-1 Preferred Stock with purchase or conversion rights to purchase shares of Common Stock, RSUs and Convertible Series B Preferred Stock were excluded in the computation of adjusted weighted-average diluted shares because their effect would be anti-dilutive. |
|
RECONCILIATION OF REPORTED NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) FOR COTY INC. | |||||||||||||||||||||||||||||||||
| Three Months Ended June 30, |
| Year Ended June 30, | ||||||||||||||||||||||||||||||
(in millions) | 2021 |
| 2020 |
| Change |
| 2021 |
| 2020 |
| Change | ||||||||||||||||||||||
Net income (loss) from Coty Inc. net of noncontrolling interests | $ | (186.0 | ) |
| $ | (766.3 | ) |
| 76 | % |
| $ | (201.3 | ) |
| $ | (1,006.7 | ) |
| 80 | % | ||||||||||||
Convertible Series B Preferred Stock dividends (c) | (24.2 | ) |
| (6.5 | ) |
| 100 | % | |||||||||||||||||||||||||
Adjustments to noncontrolling interest expense (b) | (3.9 | ) |
| (4.7 | ) |
| 17 | % |
| (11.3 | ) |
| (4.6 | ) |
| 100 | % |
| (170.0 | ) |
| (338.3 | ) |
| 50 | % | |||||||
Adjusted Net income (loss) attributable to Coty Inc. | $ | (67.2 | ) |
| $ | (386.7 | ) |
| 83 | % |
| $ | 152.6 |
|
| $ | (192.7 | ) |
| >100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
Per Share Data |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
Adjusted weighted-average common shares |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
Basic | 765.4 |
|
| 763.3 |
|
|
|
| 764.8 |
|
| 759.1 |
|
|
| ||||||||||||||||||
Diluted (c) (f) | 765.4 |
|
| 763.3 |
|
|
|
| 764.8 |
|
| 759.1 |
|
|
| ||||||||||||||||||
Adjusted Net income (loss) attributable to Coty Inc. per Common Share |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
Basic | $ | (0.09 | ) |
| $ | (0.51 | ) |
|
|
| $ | 0.20 |
|
| $ | (0.25 | ) |
|
| ||||||||||||||
Diluted (c) | $ | (0.09 | ) |
| $ | (0.51 | ) |
|
|
| $ | 0.20 |
|
| $ | (0.25 | ) |
|
|
(a) | See a description of adjustments under “Adjusted Operating Income (loss) for Coty Inc.” |
(b) | The amounts represent the after-tax impact of the non-GAAP adjustments included in Net income attributable to noncontrolling interest based on the relevant noncontrolling interest percentage in the Condensed Consolidated Statements of Operations. |
(c) | Diluted EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plans and the convertible Series B Preferred Stock. We use the if-converted method for calculating any potential dilutive effect of the convertible Series B Preferred Stock, which requires an adjustment to reverse the impact of the preferred stock dividends, including deemed dividends, of $24.2 million and $102.3 million for the three and twelve months ended June 30, 2021, respectively, on income applicable to common stockholders during the period. |
(d) | The amount represents the unrealized (gain) loss recognized for the change in the fair value of the investment in Wella. |
(e) | For the three months ended June 30, 2021, this primarily represents adjustments for pension curtailment gains. For the year ended June 30, 2021, this primarily represents the write-off of deferred financing fees related to the Wella sale and adjustments for pension curtailment gains. |
(f) | As of June 30 2021, 171.1 million shares of outstanding stock options and Series A/A-1 Preferred Stock with purchase or conversion rights to purchase shares of Common Stock, RSUs and Convertible Series B Preferred Stock were excluded in the computation of adjusted weighted-average diluted shares because their effect would be anti-dilutive. |
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | ||||||||||||||||
COTY INC. |
| Three Months Ended June 30, |
| Year Ended June 30, | ||||||||||||
(in millions) |
| 2021 |
| 2020 |
| 2021 |
| 2020 | ||||||||
Net cash (used in) provided by operating activities |
| $ | 32.3 |
|
| $ | (255.4 | ) |
| $ | 318.7 |
|
| $ | (50.9 | ) |
Capital expenditures |
| (30.2 | ) |
| (61.0 | ) |
| (173.9 | ) |
| (267.4 | ) | ||||
Free cash flow |
| $ | 2.1 |
|
| $ | (316.4 | ) |
| $ | 144.8 |
|
| $ | (318.3 | ) |
RECONCILIATION OF TOTAL DEBT TO ECONOMIC NET DEBT | ||||
COTY INC. |
| As of | ||
(in millions) |
| June 30, 2021 | ||
Total debt |
| $ | 5,481.5 |
|
Less: Cash and cash equivalents |
| 253.5 |
| |
Financial Net debt |
| $ | 5,228.0 |
|
Less: Value of Wella stake |
| 1,260.0 |
| |
Economic Net debt |
| $ | 3,968.0 |
|
IMMEDIATE LIQUIDITY | ||||
COTY INC. |
| As of | ||
(in millions) |
| June 30, 2021 | ||
Cash and cash equivalents |
| $ | 253.5 |
|
Unutilized revolving credit facility |
| 2,069.7 |
| |
Immediate Liquidity |
| $ | 2,323.2 |
|
RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) TO ADJUSTED EBITDA | ||||
|
| Twelve Months Ended | ||
June 30, 2021 | ||||
|
| CONTINUING | ||
(in millions) | OPERATIONS | |||
Adjusted operating income (loss) (a) |
| $ | 409.4 |
|
Add: Adjusted depreciation(b) |
| 325.8 |
| |
Add: Non-cash stock-based compensation |
| 25.2 |
| |
Adjusted EBITDA |
| $ | 760.4 |
|
(a) | For a reconciliation of adjusted operating income (loss) to operating income (loss) for each of those periods, see the tables entitled “Reconciliation of Reported Operating Income (loss) to Adjusted Operating Income (loss)” and "Reconciliation of Reported Operating Income (loss) to Adjusted Operating Income (loss) by Segment" for each of those periods. |
(b) | Adjusted depreciation for the twelve months ended June 30, 2021 represents depreciation expense for continuing operations for the period, excluding accelerated depreciation. |
|
FINANCIAL NET DEBT/ADJUSTED EBITDA | ||||
(in millions) |
| June 30, 2021 | ||
Financial Net Debt - Coty Inc. |
| $ | 5,228.0 |
|
Adjusted EBITDA - Continuing operations |
| 760.4 |
| |
Financial Net Debt/Adjusted EBITDA |
| 6.88 |
| |
RECONCILIATION OF REPORTED NET REVENUES TO LIKE-FOR-LIKE NET REVENUES | ||||||||||||
|
| Three Months Ended June 30, 2021 vs. Three Months Ended June 30, 2020Net Revenue Change | ||||||||||
Net Revenues Change YoY |
| Reported Basis |
| Constant Currency |
| Impact from Acquisitions and Divestitures |
| LFL | ||||
Americas |
| 69 | % |
| 67 | % |
| — | % |
| 67 | % |
EMEA |
| >100 | % |
| >100 | % |
| — | % |
| >100 | % |
Asia Pacific |
| 70 | % |
| 59 | % |
| — | % |
| 59 | % |
Other |
| — | % |
| — | % |
| — | % |
| — | % |
Total Continuing Operations |
| 90 | % |
| 81 | % |
| — | % |
| 81 | % |
|
| Year Ended June 30, 2021 vs. Year Ended June 30, 2020Net Revenue Change | ||||||||||
Net Revenues Change YoY |
| Reported Basis |
| Constant Currency |
| Impact from Acquisitions and Divestitures1 |
| LFL | ||||
Americas |
| 5 | % |
| 8 | % |
| 2 | % |
| 6 | % |
EMEA |
| (5 | )% |
| (10 | )% |
| — | % |
| (10 | )% |
Asia Pacific |
| (1 | )% |
| (5 | )% |
| — | % |
| (5 | )% |
Other |
| (100 | )% |
| (100 | )% |
| (100 | )% |
| — | % |
Total Continuing Operations |
| (2 | )% |
| (4 | )% |
| — | % |
| (4 | )% |
1 Like for Like (LFL) impact excludes the net revenue contribution from King Kylie for the first and second quarters of fiscal 2021 (due to the acquisition of King Kylie during the third quarter of fiscal 2020), and the net revenues of Younique for the twelve months ended June 30, 2020 (due to the divestiture of Younique the first quarter of fiscal 2020). | ||||||||||||
|
COTY INC. & SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in millions) |
| June 30, 2021 |
| June 30, 2020 | ||||
ASSETS |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 253.5 |
|
| $ | 308.3 |
|
Restricted cash |
| 56.9 |
|
| 43.7 |
| ||
Trade receivables, net |
| 348.0 |
|
| 440.1 |
| ||
Inventories |
| 650.8 |
|
| 678.2 |
| ||
Prepaid expenses and other current assets |
| 473.9 |
|
| 411.6 |
| ||
Current assets held for sale |
| — |
|
| 4,613.1 |
| ||
Total current assets |
| 1,783.1 |
|
| 6,495.0 |
| ||
Property and equipment, net |
| 918.1 |
|
| 1,081.6 |
| ||
Goodwill |
| 4,118.1 |
|
| 3,973.9 |
| ||
Other intangible assets, net |
| 4,463.0 |
|
| 4,372.1 |
| ||
Equity investments |
| 1,276.2 |
|
| — |
| ||
Operating lease right-of-use assets |
| 318.5 |
|
| 371.4 |
| ||
Other noncurrent assets |
| 814.4 |
|
| 434.8 |
| ||
TOTAL ASSETS |
| $ | 13,691.4 |
|
| $ | 16,728.8 |
|
|
|
|
|
| ||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY |
|
|
|
| ||||
Current liabilities: |
|
|
|
| ||||
Accounts payable |
| $ | 1,166.1 |
|
| $ | 1,190.3 |
|
Short-term debt and current portion of long-term debt |
| 24.2 |
|
| 188.3 |
| ||
Other current liabilities |
| 1,225.1 |
|
| 1,250.4 |
| ||
Current liabilities held for sale |
| — |
|
| 956.7 |
| ||
Total current liabilities |
| 2,415.4 |
|
| 3,585.7 |
| ||
Long-term debt, net |
| 5,401.0 |
|
| 7,892.1 |
| ||
Long-term operating lease liabilities |
| 269.3 |
|
| 317.4 |
| ||
Other noncurrent liabilities |
| 1,423.1 |
|
| 909.9 |
| ||
TOTAL LIABILITIES |
| 9,508.8 |
|
| 12,705.1 |
| ||
|
|
|
|
| ||||
CONVERTIBLE SERIES B PREFERRED STOCK |
| 1,036.3 |
|
| 715.8 |
| ||
REDEEMABLE NONCONTROLLING INTERESTS |
| 84.1 |
|
| 79.1 |
| ||
Total Coty Inc. stockholders’ equity |
| 2,860.7 |
|
| 3,004.6 |
| ||
Noncontrolling interests |
| 201.5 |
|
| 224.2 |
| ||
Total equity |
| 3,062.2 |
|
| 3,228.8 |
| ||
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY |
| $ | 13,691.4 |
|
| $ | 16,728.8 |
|
COTY INC. & SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Year Ended June 30, | |||||||
(in millions) | 2021 |
| 2020 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
| |||||
Net income | $ | (205.1 | ) |
| (1,002.7 | ) | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
| |||||
Depreciation and amortization | 585.3 |
|
| 716.5 |
| |||
Deferred income taxes | (218.1 | ) |
| (342.7 | ) | |||
Share-based compensation | 29.9 |
|
| 29.8 |
| |||
Gain on divestiture | — |
|
| (111.5 | ) | |||
Loss on sale of business in discontinued operations | 246.4 |
|
| — |
| |||
Asset impairment charges | — |
|
| 434.0 |
| |||
Unrealized gains from equity investments, net | (70.3 | ) |
| — |
| |||
Other | 182.5 |
|
| 270.5 |
| |||
Change in operating assets and liabilities, net of effects from purchase of acquired companies: |
|
|
| |||||
Trade receivables | 10.5 |
|
| 424.5 |
| |||
Inventories | 81.2 |
|
| 124.4 |
| |||
Prepaid expenses and other current assets | (136.5 | ) |
| 25.9 |
| |||
Accounts payable | (49.7 | ) |
| (373.5 | ) | |||
Accrued expenses and other current liabilities | (45.8 | ) |
| (36.3 | ) | |||
Operating lease liabilities | (125.3 | ) |
| (106.6 | ) | |||
Other assets and liabilities, net | 33.7 |
|
| (103.2 | ) | |||
Net cash provided by (used in) operating activities | 318.7 |
|
| (50.9 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
| |||||
Capital expenditures | (173.9 | ) |
| (267.4 | ) | |||
Proceeds from sale of discontinued business, net of cash disposed | 2,374.1 |
|
| — |
| |||
Payments for business combinations and asset acquisitions, net of cash acquired | — |
|
| (592.2 | ) | |||
Return of capital from equity investments | 448.0 |
|
| — |
| |||
Proceeds from sale of business, net of cash disposed | 27.0 |
|
| 25.6 |
| |||
Payment for equity investment and related asset acquisition | (200.0 | ) |
| — |
| |||
Termination of currency swaps designated as net investment hedges | (37.6 | ) |
| — |
| |||
Other investing activities | 4.3 |
|
| 0.6 |
| |||
Net cash provided by (used in) investing activities | 2,441.9 |
|
| (833.4 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
| |||||
(Repayments) proceeds from debt, net | (2,979.2 | ) |
| 446.2 |
| |||
Dividend payment on Class A Common Stock | (1.5 | ) |
| (196.9 | ) | |||
Dividend payment on Convertible Series B Preferred Stock | (24.2 | ) |
| — |
| |||
Proceeds from issuance of Convertible Series B Preferred Stock | 227.2 |
|
| 724.5 |
| |||
Purchase of remaining mandatorily redeemable noncontrolling interest | — |
|
| (45.0 | ) | |||
Other financing activities | (17.4 | ) |
| (51.5 | ) | |||
Net cash (used in) provided by financing activities | (2,795.1 | ) |
| 877.3 |
| |||
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (7.1 | ) |
| (21.4 | ) | |||
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (41.6 | ) |
| (28.4 | ) | |||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 352.0 |
|
| 380.4 |
| |||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | $ | 310.4 |
|
| $ | 352.0 |
| |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210826005250/en/
Investor Relations Olga Levinzon, +1 212 389-7733 olga_levinzon@cotyinc.com
Media Antonia Werther, +31 621 394495 / Antonia_Werther@cotyinc.com
Source: Coty Inc.