Very Strong Sales Growth in Both Divisions in Q4 and FY23, Ahead of Expectations Continued Gross and Operating Margin Expansion FY24 Sales Growth Outlook At Top of Mid Term Target Range, Coupled with Margin Expansion Continues to Target Leverage Towards 3x Exiting CY23 and ~2.5x Exiting CY24 Fully on Track With Medium Term Growth Algorithm
NEW YORK--(BUSINESS WIRE)-- Coty Inc. (NYSE: COTY) ("Coty" or "the Company") today announced its results for the fourth quarter of fiscal year 2023, ended June 30, 2023. The Company delivered its twelfth consecutive quarter of results in-line to ahead of expectations, while consistently executing across its strategic growth pillars.
Coty's strong Q4 performance, with double digit growth in both sales and profits, came in ahead of expectations and recently raised guidance. Q4 reported sales increased 16% or 17% on a LFL basis, ahead of its recently raised guidance of 12-15% LFL growth in Q4. This concluded a very strong year for the Company, with FY23 reported sales growth of 5%, which includes approximately 2% of negative impact from the Russia business exit, and core LFL sales growth of 12%. This strong FY23 core LFL growth exceeded its recent target of 9-10% core LFL sales growth and is well ahead of the underlying beauty market, putting Coty amongst the best in its competitive set.
Coty's sales were driven by consistent momentum in both divisions, supported by strong global beauty demand across categories, geographies and channels. Importantly, core LFL growth for both Q4 and FY23 included low single digit volume growth and approximately 10% benefit from price & mix.
Prestige segment led during the quarter, with both reported and LFL sales growth of 21% versus the prior year. For FY23, the Prestige segment grew 5% as reported while core LFL revenues grew a robust 13%. The momentum in the fragrance category remained in full effect, with the prestige fragrance market growing over 10% in both Q4 and for the full year. Coty's prestige fragrance revenues outperformed the market, growing over 20% in Q4 and a low teens percentage in FY23 on a core LFL basis. Importantly, this strong performance in Coty's fragrance portfolio remained broad-based, with all its top brands growing double digits LFL in FY23. Coty once again delivered industry-leading innovations during the year, including Burberry Hero EDP and Burberry Her Elixir, Hugo Boss Parfum and Gucci Flora Gorgeous Jasmine, while the Chloe Atelier des Fleurs line continued to excel in the ultra- premium fragrance segment in Asia. The Company continued to strengthen the foundation of its fragrance portfolio during FY23, through the extension of the Hugo Boss, Davidoff and Jil Sander licenses, together with the expansion and extension of the Marc Jacobs license, which now includes plans to launch a prestige cosmetics line.
In spring 2023 Coty kicked off its prestige skincare acceleration strategy, with new launches and strong in-market activations behind Lancaster and philosophy. These initiatives saw very positive early results, with revenues for both Lancaster and philosophy up double digit percentages in Q4. Revenues for Coty's prestige cosmetics were pressured in the early part of the year by the Chinese lockdowns, but rebounded strongly in Q4 with over 25% LFL growth.
Consumer Beauty revenue rose 9% as reported in Q4, with core LFL growth of 10%, driven by strong growth across all categories. For FY23, Consumer Beauty grew 5% as reported, while core LFL revenues grew 11%, including high single digit to double digit LFL growth across the majority of Coty's leading brands. In FY23, Coty continued to lean into the market-leading trends of clean beauty with the launches of CoverGirl's Clean Fresh Yummy Gloss, adidas' Active Skin & Mind range, and Bourjois' Healthy Mix foundation, as well as into skinified beauty with the launches of Max Factor's Miracle Pure foundation and the extension of the CoverGirl Simply Ageless line.
Geographically, all regions contributed to the Company's growth in Q4 and FY23. For the year, Americas grew 9% as reported and 10% LFL, EMEA grew 1% and 13% on a core LFL basis, and Asia Pacific grew 7% as reported and 13% LFL.
Coty continued to deliver on its targeted gross margin expansion, despite the elevated COGS inflation. In Q4, reported gross margins increased by 110 bps YoY to 62.9%, while adjusted gross margin grew 70 bps YoY to 62.8%. For FY23, Coty delivered a reported and adjusted gross margin of 63.9%, reflecting a 40 bps increase YoY on a reported basis and a 20 bps increase on an adjusted basis. Coty's Q4 gross margin improvement was driven by the benefit from pricing and its revenue management efforts, as well as supply chain savings.
Coty's profits grew significantly in both Q4 and FY23. The Company delivered Q4 reported operating income of $129.0 million, with 61% growth in the adjusted operating income to $105.1 million and 25% growth in the adjusted EBITDA to $165.4 million. For FY23, reported operating income more than doubled to $543.7 million, adjusted operating income grew 20% to $738.8 million, and adjusted EBITDA grew 7% to $972.8 million. The strong adjusted EBITDA performance exceeded the Company's recently raised adjusted EBITDA guidance of $965-970M and EBITDA guidance at the start of the year, despite incurring over $70 million of negative FX impact on adjusted EBITDA in FY23. Coty's reported FY23 EPS of $0.57 grew by 7x YoY and the adjusted EPS nearly doubled to $0.53, driven by a non-operating EPS benefit of $0.15 from the mark-to-market on the equity swap and a $0.10 underlying EPS expansion, primarily reflecting operational improvements.
Financial Net Debt at the end of Q4 remained relatively stable at $4.0 billion sequentially and improved by $0.3B versus the prior year through Coty's active deleveraging efforts, including free cash flow generation of $402.9 million. As a result, Coty's Q4 financial leverage ratio of 4.1x improved significantly from 4.7x at the end of FY22 and 4.4x at the end of Q3. During the year, Coty received multiple upgrades from the leading rating agencies, reflecting its strong progress in strengthening its balance sheet. At the end of Q4, the value of Coty's retained 25.9% Wella stake totaled $1.06 billion. As part of Coty's expectation to divest its Wella stake by end of CY25, in July 2023 the Company entered a binding Letter of Intent to sell 3.6% of its Wella stake to IGF Wealth Management for $150 million, subject to customary closing conditions including consent by KKR.
Commenting on the operating results, Sue Y. Nabi, Coty's CEO, said:
"Today's FY23 results mark the third consecutive year that Coty has delivered strong financial, operational and strategic performance, and the twelfth consecutive quarter of results inline to ahead of expectations. We are incredibly proud of the focus and agility that we see across the whole Coty organization as we continue to amplify our strengths, adjust to evolving market conditions, and capture new opportunities, all of which has enabled us to deliver results which are again amongst the best in our competitive set.
In the midst of on-going macroeconomic uncertainty, beauty demand remains resilient across our key categories and geographies, with no signs of tradedown, while the 'fragrance index' we have been discussing for over a year shows no sign of slowing. In fact, the beauty category continues to be a standout in key markets like the U.S., as the only category amongst all CPG and general merchandise categories to grow volumes in the last six months, speaking to the beauty industry's ability to meet consumers' emotional needs.
Against this favorable backdrop, the white space opportunities in front of Coty are immense. In our core prestige fragrance business, we have historically been the leader in the male fragrance category, but have ample room to improve our position in the much bigger female fragrance category which is roughly double the size of male fragrances and where we are currently in the Top 3.
A key milestone in this strategic ambition is our newly launched Burberry Goddess female fragrance, which is now appearing across global distribution. We believe the combination of the unique and sophisticated scent of vanilla accords, the strong momentum of the Burberry fashion brand, the beautiful and refillable packaging, and the associated story of female empowerment, position Burberry Goddess to be a blockbuster launch this year, further advancing Coty's position in female fragrances. The early results for this launch are spectacular, with Burberry Goddess already a Top 3 fragrance at leading global airports, with sell-out significantly higher than our recent blockbuster fragrance launches.
At the same time, we are actively strengthening our positioning in the smaller but rapidly growing ultra-premium fragrance category. Whether it's through our Chloe Atelier des Fleurs collection whose sales have grown by 5x versus two years ago and are on track to accelerate further as we rapidly expand our global distribution, or through the upcoming launch of our internally developed Infiniment Coty Paris fragrance brand, we are seizing this white space opportunity.
Underpinning the strong foundations of our fragrance business is the extension of our license portfolio, with the average remaining duration of our Top 7 prestige brands now averaging 13 years. The renewal and extension this past year of multiple key licenses, including Hugo Boss, Marc Jacobs, Davidoff, and Jil Sander, reaffirms Coty’s position as a go-to partner for global fashion houses. I am particularly excited about the expansion of our partnership with Marc Jacobs to include the creation of a new makeup line, as I believe the brand is perfectly positioned between couture and indie, and will become a great and differentiated addition to our Prestige Cosmetics portfolio.
In parallel, we have recently embarked on our third strategic pillar, accelerating our skincare portfolio, led by our prestige skincare brands. With Lancaster and philosophy leading this effort, through a combination of new launches, revamped in-store and online merchandising, and new brand communications, I am very encouraged to see that revenues for both brands increased by a double digit percentage in Q4. As we pursue our ambition to double our skincare revenues in the next few years, we will continue to strengthen our organizational capabilities, including step-changing our R&D investments in this area.
In Consumer Beauty, having repositioned our key brands, established meaningful and on-brand communications, and revamped the innovation pipeline for each, the next phase of our strategy is to fully capitalize on the Gen Z opportunity. We have successfully begun to harness the power of social media influencers and natural advocacy, with launches such as CoverGirl Clean Fresh Yummy Gloss and Rimmel Kind & Free going viral on TikTok. As we enter FY24, we will further embrace the full power and reach of social media to drive our brands and build stronger community engagement, fully keeping in step with the evolution of the market and with Gen Z habits. The strength of our Consumer Beauty portfolio was further reinforced by our recently announced strengthened and long-standing partnership with adidas, which is perfectly positioned to capitalize on the new well-being and athleisure trend in beauty.
Finally, on sustainability, in addition to receiving external validation for our climate targets from the Science Based Target Initiative, FY23 included a number of industry firsts for Coty; such as, integrating carbon-captured ethanol into a growing percentage of our fragrance portfolio, introducing gender neutral parental leave, and reaching gender pay equity as of October 2022. We aim to build on these achievements with further advances in FY24 and beyond.
Beyond our core portfolio, we are progressing on our broader financial strategy. The agreement to sell a portion of our retained Wella stake is a concrete step in our commitment to both fully divest our retained Wella stake and reach leverage towards 3x exiting CY23 and approximately 2x exiting CY25. Our continuous focus on identifying further productivity opportunities is now fueling over a $10 million increase in our FY24 savings target to over $100 million, which will support both organizational reinvestment and profit growth.
In sum, Coty is successfully executing on the strategy we laid out 3 years ago. We are delivering a best in class medium term growth algorithm, including a mid-20s % EPS CAGR, active deleveraging, and targeted capital returns, as we propel our growth story and strengthen our position as a beauty powerhouse."
*Adjusted financial metrics used in this release are non-GAAP. See reconciliations of GAAP results to Adjusted results in the accompanying tables.
Highlights
Outlook
Entering FY24, the beauty market remains a strong and outperforming category, with ongoing premiumization trends. Coty is continuing to benefit from these positive trends, with momentum across its core categories, a strong innovation pipeline, and early wins in key white spaces. The combination of these factors are fueling the Company's expectations for FY24 for the core business to grow at the top of Coty's medium term target range of 6-8% LFL. Reported FY24 revenues are expected to include neutral to 2% benefit from FX, primarily in first half of FY24, and a 1-2% scope headwind from the divestiture of the Lacoste license, concentrated in the second half of FY24.
Coty is targeting FY24 adjusted EBITDA margin expansion of 10-30bps, with similar performance in 1H24 and 2H24, implying FY24 adjusted EBITDA of $1,065-1,075M based on current FX rates and inclusive of the profit headwind from the divestiture of the Lacoste license. Within this outlook, Coty expects modest FY24 gross margin expansion year on year, with some negative phasing impacts in 1H24, followed by strong improvement in 2H24. Coty targets total FY24 adjusted EPS, excluding equity swap, of $0.44-0.47, implying strong +16-25% YoY growth.
Finally, the Company continues to target further reduction in leverage toward ~3x exiting CY23, ~2.5x exiting CY24 and ~2x exiting CY25.
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:
Fourth Quarter Business Review by Segment
Prestige In 4Q23, Prestige net revenues of $799.6 million or 59% of Coty sales, increased by 21% on a reported basis versus the prior year. On a LFL basis, Prestige net revenues delivered robust growth of 21%, driven by strong double-digit growth in nearly all markets, with particular strength across Asia Pacific, Travel Retail and Europe. For FY23, Prestige net revenues of $3,420.5 million rose 5% as reported from the prior year and increased 13% on a core LFL basis. The full year negative impact on the Prestige business from the Russia exit was approximately 260 bps.
During Q4, the Prestige fragrance category continued to see strong growth across North America and Europe, with nearly all major markets generating double-digit growth. Coty's Prestige fragrance revenue grew over 20% in Q4, maintaining momentum driven by strong demand and ongoing premiumization. Global Travel Retail trends were very robust across all regions with growth of over 30% LFL in Q4 and FY23, supported by the continued recovery of international travel and Coty's expansion in the channel. At the same time, Coty's service levels continued to improve during the quarter driven by successful progress around qualifying additional suppliers and additional industry capacity coming online, which contributed to our very strong growth in the quarter. Importantly, Coty's recent innovations of Burberry Hero and Her, Gucci Flora Gorgeous Jasmine and Gorgeous Gardenia, Boss Bottled Parfum and Chloe Atelier des Fleurs continued to deliver very strong performances in FY23, reaching top ranks across key markets. The Prestige makeup category grew 25% in Q4 with China's reopening and impactful activations by Burberry and Gucci fueling momentum. Prestige skincare brands, Lancaster and philosophy, grew over 10% in Q4 after their recent successful launches.
The Prestige segment generated a reported operating income of $46.4 million in 4Q23, compared to $9.7 million in the prior year. The 4Q23 adjusted operating income was $85.1 million, up from an adjusted operating income of $47.9 million in the prior year, driven by gross margin improvement, partially offset by higher A&CP expenses. Adjusted EBITDA for the Prestige segment rose to $112.7 million from $78.9 million in the prior year, with a margin of 14.1%. FY23 reported operating income of $483.7 million compared to $367.2 million in the prior year, while the adjusted operating income increased to $635.1 million from $530.1 million, with a 235 bps increase in the adjusted operating margin to 18.6%. The FY23 adjusted EBITDA rose 11% to $745.6 million with a margin of 21.8%.
Consumer Beauty In 4Q23, Consumer Beauty net revenues of $552.0 million, or 41% of Coty sales, increased by 9% as reported versus the prior year, which includes a 1.0% negative FX impact. On a core LFL basis, Consumer Beauty net revenues rose 10% led by very strong growth across all categories. Importantly, all regions generated LFL growth in the quarter, with particularly strong growth momentum in Brazil and Latin America. For FY23, Consumer Beauty sales of $2,133.6 million increased 5% and rose 11% on a core LFL basis. The full year negative impact on the Consumer Beauty business from the Russia exit was approximately 150 bps.
In Q4, revenues grew in the high single-digits to double-digits across cosmetics, body care and mass fragrances. Coty saw strong momentum in Q4 and FY23 in most of its key brands, with double-digit LFL revenue growth across Rimmel, Bourjois, Risque, Monange, Bozzano and Paixao, driven primarily by impactful innovations and strong pricing execution across all markets.
The Consumer Beauty business reported operating income was $10.0 million in 4Q23, up from reported operating loss of $24.8 million in the prior year. The 4Q23 adjusted operating income of $20.0 million increased from $17.2 million in the prior year. During the quarter, adjusted EBITDA declined slightly to $52.7 million from $53.5 million in the prior year, with a margin of 9.5%. FY23 reported operating income of $63.3 million compared to $9.5 million in the prior year, while adjusted operating income increased to $103.7 million from $85.4 million, with an approximately 70 bps increase in the adjusted operating margin to 4.9%. FY23 adjusted EBITDA decreased 4% to $227.2 million, with a margin of 10.6%.
Fourth Quarter Fiscal 2023 Business Review by Region
Americas
EMEA
Asia Pacific
Noteworthy Company Developments
Other noteworthy company developments include:
Conference Call
Coty Inc. will issue pre-recorded remarks at approximately 7:20 AM (ET) today, August 22, 2023 and will hold a live question and answer session beginning at 8:15 AM (ET). The pre-recorded remarks and live question and answer session will be available at http://investors.coty.com. The dial-in number for the live question and answer session is (800) 343-4136 in the U.S. or (203) 518-9765 internationally (conference passcode number: COTY4Q23).
About Coty Inc.
Founded in Paris in 1904, Coty is one of the world’s largest beauty companies with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care. Coty serves consumers around the world, selling prestige and mass market products in over 125 countries and territories. Coty and our brands empower people to express themselves freely, creating their own visions of beauty; and we are committed to protecting the planet. Learn more at coty.com or on LinkedIn and Instagram.
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, strategic planning, targets and outlook for future reporting periods (including the extent and timing of revenue, expense and profit trends and changes in operating cash flows and cash flows from operating activities and investing activities), the wind down of the Company’s operations in Russia (including timing and expected impact), 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, expectations of the impact of inflationary pressures and the timing, magnitude and impact of pricing actions to offset inflationary costs, strategic transactions (including their expected timing and impact), expectations and/or plans with respect to joint ventures (including Wella Company and the timing and size of any related divestiture, distribution or return of capital), 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) and expectations for stock repurchases, 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, future cash flows, liquidity and borrowing capacity (including any refinancing or deleveraging activities), timing and size of cash outflows and debt deleveraging, the timing and extent of any future impairments, and synergies, savings, impact, cost, timing and implementation of the Company’s ongoing transformation agenda (including operational execution and simplification initiatives, fixed cost reductions and supply chain changes), expected impact, cost, timing and implementation of e-commerce and digital initiatives, expected impact, cost, timing and implementation of sustainability initiatives (including progress, plans and goals), the impact of COVID-19, the expected impact of geopolitical risks including the ongoing war in Ukraine on our business operations, sales outlook and strategy, the expected impact of global supply chain challenges and/or inflationary pressures (including as a result of COVID-19 and/or the war in Ukraine), and expectations regarding future service levels, the timing and impact of the application for dual-listing of the Company's Class A Common Stock on Euronext Paris 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, 2023 and annual report on Form 10-K for the year ended June 30, 2023 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
To supplement the financial measures prepared in accordance with GAAP, we use non-GAAP financial measures for continuing operations and Coty Inc. including Adjusted operating income (loss), Adjusted EBITDA, Adjusted net income (loss), and Adjusted net income (loss) attributable to Coty Inc. to common stockholders (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.
Despite the limitations of these non-GAAP financial measures, our management uses the Adjusted Performance Measures as key metrics in the evaluation of our performance and annual budgets and to benchmark performance of our business against our competitors. The following are examples of how these Adjusted Performance Measures are utilized by our management:
In addition, our financial covenant compliance calculations under our debt agreements are substantially derived from these Adjusted Performance Measures.
Our management believes that Adjusted Performance Measures are useful to investors in their assessment of our operating performance and the valuation of the Company. In addition, these non-GAAP financial measures address questions we routinely receive from analysts and investors and, in order to ensure that all investors have access to the same data, our management has determined that it is appropriate to make this data available to all investors. The Adjusted Performance Measures exclude the impact of certain items (as further described below) and provide supplemental information regarding our operating performance. By disclosing these non-GAAP financial measures, our management intends to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as such measures allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. We provide disclosure of the effects of these non-GAAP financial measures by presenting the corresponding measure prepared in conformity with GAAP in our financial statements, and by providing a reconciliation to the corresponding GAAP measure so that investors may understand the adjustments made in arriving at the non-GAAP financial measures and use the information to perform their own analyses.
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, stock-based compensation, and asset impairment charges and other adjustments as described below. For adjusted EBITDA, in addition to the preceding, we exclude adjusted depreciation as defined below. 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 items and preferred stock deemed dividends, 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, 2023 | Year Ended June 30, 2023 | ||||||||||||||
(in millions, except per share data) |
|
|
| Change YoY |
|
| Change YoY | ||||||||||
CONTINUING OPERATIONS |
|
|
| Reported Basis |
| (LFL) |
|
| Reported Basis |
| (LFL) | ||||||
Net revenues |
| $ | 1,351.6 |
| 16 | % |
| 17 | % | $ | 5,554.1 |
| 5 | % |
| 10 | % |
Operating income - reported |
|
| 129.0 |
| >100 | % |
|
|
| 543.7 |
| >100 | % |
|
| ||
Operating income - adjusted* |
|
| 105.1 |
| 61 | % |
|
|
| 738.8 |
| 20 | % |
|
| ||
EBITDA - adjusted |
|
| 165.4 |
| 25 | % |
|
|
| 972.8 |
| 7 | % |
|
| ||
Net income (loss) attributable to common shareholders - reported** |
|
| 29.6 |
| >100 | % |
|
|
| 495.0 |
| >100 | % |
|
| ||
Net income (loss) attributable to common shareholders - adjusted* ** |
|
| 5.2 |
| >100 | % |
|
|
| 457.9 |
| 97 | % |
|
| ||
EPS attributable to common shareholders (diluted) - reported |
| $ | 0.03 |
| >100 | % |
|
| $ | 0.57 |
| >100 | % |
|
| ||
EPS attributable to common shareholders (diluted) - adjusted* |
| $ | 0.01 |
| >100 | % |
|
| $ | 0.53 |
| 89 | % |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
COTY, INC. |
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) attributable to common shareholders - reported ** |
|
| 29.6 |
| >100 |
|
|
| 495.0 |
| >100 | % |
|
| |||
Net income (loss) attributable to common shareholders - adjusted* ** |
|
| 5.2 |
| >100 | % |
|
|
| 457.9 |
| 97 | % |
|
| ||
EPS attributable to common shareholders (diluted) - reported |
| $ | 0.03 |
| >100 | % |
|
| $ | 0.57 |
| >100 | % |
|
| ||
EPS attributable to common shareholders (diluted) - adjusted* |
| $ | 0.01 |
| >100 | % |
|
| $ | 0.53 |
| 89 | % |
|
| ||
* 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. Reconciliations from reported to adjusted results can be found at the end of this release. ** Net income 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 | ||||||||||||||||||||||||
(in millions) |
| 2023 |
| 2022 |
| Reported Basis |
| LFL |
| 2023 |
| Change |
| Margin |
| 2023 |
| Change |
| Margin | |||||||||||
Prestige |
| $ | 799.6 |
| $ | 662.8 |
| 21 | % |
| 21 | % |
| $ | 46.4 |
| >100 | % |
| 6 | % |
| $ | 85.1 |
| 78 | % |
| 11 | % | |
Consumer Beauty |
|
| 552.0 |
|
| 505.5 |
| 9 | % |
| 10 | % |
|
| 10.0 |
| >100 | % |
| 2 | % |
|
| 20.0 |
| 16 | % |
| 4 | % | |
Corporate |
|
| — |
|
| — |
| N/A |
|
| N/A |
|
|
| 72.6 |
| >100 | % |
| N/A |
|
|
| — |
| N/A |
|
| N/A |
| |
Total |
| $ | 1,351.6 |
| $ | 1,168.3 |
| 16 | % |
| 17 | % |
| $ | 129.0 |
| >100 | % |
| 10 | % |
| $ | 105.1 |
| 61 | % |
| 8 | % |
|
| Year Ended June 30, |
|
| |||||||||||||||||||||||||||
|
| Net Revenues |
| Change | Reported Operating Income (Loss) |
| Adjusted Operating Income | ||||||||||||||||||||||||
(in millions) |
| 2023 |
| 2022 |
| Reported Basis |
| LFL |
| 2023 |
| Change |
| Margin |
| 2023 |
| Change |
| Margin | |||||||||||
Prestige |
| $ | 3,420.5 |
| $ | 3,267.9 |
| 5 | % |
| 11 | % |
| $ | 483.7 |
|
| 32 | % |
| 14 | % |
| $ | 635.1 |
| 20 | % |
| 19 | % |
Consumer Beauty |
|
| 2,133.6 |
|
| 2,036.5 |
| 5 | % |
| 10 | % |
|
| 63.3 |
|
| >100 | % |
| 3 | % |
|
| 103.7 |
| 21 | % |
| 5 | % |
Corporate |
|
| — |
|
| — |
| 0 | % |
| 0 | % |
|
| (3.3 | ) |
| 98 | % |
| N/A |
|
|
| — |
| N/A |
|
| N/A |
|
Total |
| $ | 5,554.1 |
| $ | 5,304.4 |
| 5 | % |
| 10 | % |
| $ | 543.7 |
|
| >100 | % |
| 10 | % |
| $ | 738.8 |
| 20 | % |
| 13 | % |
|
| Adjusted EBITDA | ||||||||||
|
| Three Months Ended June 30, |
| Year Ended June 30, | ||||||||
(in millions) |
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
Prestige |
| $ | 112.7 |
| $ | 78.9 |
| $ | 745.6 |
| $ | 668.8 |
Consumer Beauty |
|
| 52.7 |
|
| 53.5 |
|
| 227.2 |
|
| 236.5 |
Corporate |
|
| — |
|
| — |
|
| — |
|
| — |
Total |
| $ | 165.4 |
| $ | 132.4 |
| $ | 972.8 |
| $ | 905.3 |
FOURTH QUARTER FISCAL 2023 BY REGION
Continuing Operations
|
| Three Months Ended June 30, |
| Year Ended June 30, | ||||||||||||||||||||
|
| Net Revenues |
| Change |
| Net Revenues |
| Change | ||||||||||||||||
(in millions) |
| 2023 |
| 2022 |
| Reported Basis |
| LFL |
| 2023 |
| 2022 |
| Reported Basis |
| LFL | ||||||||
Americas |
| $ | 567.9 |
| $ | 509.5 |
| 11 | % |
| 13 | % |
| $ | 2,343.7 |
| $ | 2,158.0 |
| 9 | % |
| 10 | % |
EMEA |
|
| 594.2 |
|
| 517.7 |
| 15 | % |
| 13 | % |
|
| 2,504.5 |
|
| 2,488.1 |
| 1 | % |
| 10 | % |
Asia Pacific |
|
| 189.5 |
|
| 141.1 |
| 34 | % |
| 40 | % |
|
| 705.9 |
|
| 658.3 |
| 7 | % |
| 13 | % |
Total |
| $ | 1,351.6 |
| $ | 1,168.3 |
| 16 | % |
| 17 | % |
| $ | 5,554.1 |
| $ | 5,304.4 |
| 5 | % |
| 10 | % |
COTY INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||
(in millions, except per share data) | 2023 |
| 2022 | 2023 |
| 2022 | ||||||||
Net revenues | $ | 1,351.6 |
|
| $ | 1,168.3 |
| $ | 5,554.1 |
|
| $ | 5,304.4 |
|
Cost of sales |
| 502.1 |
|
|
| 446.2 |
|
| 2,006.8 |
|
|
| 1,935.2 |
|
as % of Net revenues |
| 37.1 | % |
|
| 38.2 | % |
| 36.1 | % |
|
| 36.5 | % |
Gross profit |
| 849.5 |
|
|
| 722.1 |
|
| 3,547.3 |
|
|
| 3,369.2 |
|
Gross margin |
| 62.9 | % |
|
| 61.8 | % |
| 63.9 | % |
|
| 63.5 | % |
|
|
|
|
|
|
| ||||||||
Selling, general and administrative expenses |
| 672.9 |
|
|
| 726.8 |
|
| 2,818.3 |
|
|
| 2,881.3 |
|
as % of Net revenues |
| 49.8 | % |
|
| 62.2 | % |
| 50.7 | % |
|
| 54.3 | % |
Amortization expense |
| 48.7 |
|
|
| 48.8 |
|
| 191.8 |
|
|
| 207.4 |
|
Restructuring costs |
| (1.1 | ) |
|
| (8.0 | ) |
| (6.5 | ) |
|
| (6.5 | ) |
Acquisition-and divestiture- related costs |
| — |
|
|
| 0.5 |
|
| — |
|
|
| 14.7 |
|
Asset impairment charges |
| — |
|
|
| 31.4 |
|
| — |
|
|
| 31.4 |
|
Operating income (loss) |
| 129.0 |
|
|
| (77.4 | ) |
| 543.7 |
|
|
| 240.9 |
|
as % of Net revenues |
| 9.5 | % |
|
| (6.6 | %) |
| 9.8 | % |
|
| 4.5 | % |
Interest expense, net |
| 72.2 |
|
|
| 40.4 |
|
| 257.9 |
|
|
| 224.0 |
|
Other income, net |
| (22.0 | ) |
|
| 163.0 |
|
| (419.0 | ) |
|
| (409.9 | ) |
Income (loss) from continuing operations before income taxes |
| 78.8 |
|
|
| (280.8 | ) |
| 704.8 |
|
|
| 426.8 |
|
as % of Net revenues |
| 5.8 | % |
|
| (24.0 | %) |
| 12.7 | % |
|
| 8.0 | % |
Provision (benefit) for income taxes on continuing operations |
| 43.3 |
|
|
| 0.3 |
|
| 181.6 |
|
|
| 164.8 |
|
Net income (loss) from continuing operations |
| 35.5 |
|
|
| (281.1 | ) |
| 523.2 |
|
|
| 262.0 |
|
as % of Net revenues |
| 2.6 | % |
|
| (24.1 | %) |
| 9.4 | % |
|
| 4.9 | % |
Net income (loss) from discontinued operations |
| — |
|
|
| 1.2 |
|
| — |
|
|
| 5.7 |
|
Net income (loss) |
| 35.5 |
|
|
| (279.9 | ) |
| 523.2 |
|
|
| 267.7 |
|
Net (loss) income attributable to noncontrolling interests |
| (1.4 | ) |
|
| (2.8 | ) |
| (1.8 | ) |
|
| (5.1 | ) |
Net income attributable to redeemable noncontrolling interests |
| 4.0 |
|
|
| 4.4 |
|
| 16.8 |
|
|
| 13.3 |
|
Net income (loss) attributable to Coty Inc. | $ | 32.9 |
|
| $ | (281.5 | ) | $ | 508.2 |
|
| $ | 259.5 |
|
Amounts attributable to Coty Inc. |
|
|
|
|
|
| ||||||||
Net income (loss) from continuing operations | $ | 32.9 |
|
| $ | (282.7 | ) | $ | 508.2 |
|
| $ | 253.8 |
|
Convertible Series B Preferred Stock dividends |
| (3.3 | ) |
|
| (3.3 | ) |
| (13.2 | ) |
|
| (198.3 | ) |
Net income (loss) from continuing operations attributable to common stockholders | $ | 29.6 |
|
| $ | (286.0 | ) | $ | 495.0 |
|
| $ | 55.5 |
|
Net income from discontinued operations |
| — |
|
|
| 1.2 |
|
| — |
|
|
| 5.7 |
|
Net income (loss) attributable to common stockholders | $ | 29.6 |
|
| $ | (284.8 | ) | $ | 495.0 |
|
| $ | 61.2 |
|
|
|
|
|
|
|
| ||||||||
Earnings per common share: |
|
|
|
|
|
| ||||||||
Basic for Continuing Operations | $ | 0.03 |
|
| $ | (0.34 | ) | $ | 0.58 |
|
| $ | 0.07 |
|
Diluted for Continuing Operations(a)(b)(c) | $ | 0.03 |
|
| $ | (0.34 | ) | $ | 0.57 |
|
| $ | 0.07 |
|
Basic for Coty Inc. | $ | 0.03 |
|
| $ | (0.34 | ) | $ | 0.58 |
|
| $ | 0.08 |
|
Diluted for Coty Inc.(a)(b)(c) | $ | 0.03 |
|
| $ | (0.34 | ) | $ | 0.57 |
|
| $ | 0.08 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
| ||||||||
Basic |
| 852.0 |
|
|
| 838.4 |
|
| 849.0 |
|
|
| 820.6 |
|
Diluted(a)(b) |
| 864.7 |
|
|
| 838.4 |
|
| 886.5 |
|
|
| 834.1 |
|
|
|
|
|
|
|
| ||||||||
Depreciation - Continuing Operations | $ | 60.3 |
|
| $ | 78.1 |
| $ | 235.0 |
|
| $ | 309.0 |
(a) | Diluted EPS is adjusted by the effect of dilutive securities, including awards under the Company's equity compensation plans, the convertible Series B Preferred Stock and the Forward Repurchase Contracts. When calculating any potential dilutive effect of stock options, Series A Preferred Stock, restricted stock, PRSUs and RSUs, the Company uses the treasury method and the if-converted method for the Convertible Series B Preferred Stock and the Forward Repurchase Contracts. The treasury method typically does not adjust the net income attributable to Coty Inc., while the if-converted method requires an adjustment to reverse the impact of the preferred stock dividends and the impact of fair market value (gains)/losses for contracts with the option to settle in shares or cash, if dilutive, on net income applicable to common stockholders during the period. | |
(b) | For the three months ended June 30, 2023, 23.7 million dilutive shares of Convertible Series B Preferred Stock were excluded in the computation of adjusted weighted-average diluted shares because their effect would be anti-dilutive. For the three months ended June 30, 2022, dilutive shares of RSUs and Convertible Series B Preferred Stock were excluded from the computation of diluted EPS to the net loss incurred during the period. | |
(c) | For the twelve months ended June 30, 2022, 65.4 million dilutive shares of 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 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, 2023 | ||||||||||
| CONTINUING OPERATIONS | ||||||||||
(in millions) | Reported (GAAP) |
| Adjustments(a) |
| Adjusted (Non-GAAP) | ||||||
Net revenues | $ | 1,351.6 |
|
| $ | — |
|
| $ | 1,351.6 |
|
Gross profit |
| 849.5 |
|
|
| (0.1 | ) |
|
| 849.4 |
|
Gross margin |
| 62.9 | % |
|
|
|
| 62.8 | % | ||
Operating income |
| 129.0 |
|
|
| (23.9 | ) |
|
| 105.1 |
|
as % of Net revenues |
| 9.5 | % |
|
|
|
| 7.8 | % | ||
Net income |
| 29.6 |
|
|
| (24.4 | ) |
|
| 5.2 |
|
as % of Net revenues |
| 2.2 | % |
|
|
|
| 0.4 | % | ||
Adjusted EBITDA |
|
|
|
|
| 165.4 |
| ||||
as % of Net revenues |
|
|
|
|
| 12.2 | % | ||||
| COTY INC. | ||||||||||
Net income attributable to Coty Inc. |
| 29.6 |
|
|
| (24.4 | ) |
|
| 5.2 |
|
|
|
|
|
|
| ||||||
EPS (diluted) | $ | 0.03 |
|
|
|
| $ | 0.01 |
| ||
|
|
|
|
|
| ||||||
| Three Months Ended June 30, 2022 | ||||||||||
| CONTINUING OPERATIONS | ||||||||||
(in millions) | Reported (GAAP) |
| Adjustments(a) |
| Adjusted (Non-GAAP) | ||||||
Net revenues | $ | 1,168.3 |
|
| $ | — |
|
| $ | 1,168.3 |
|
Gross profit |
| 722.1 |
|
|
| 3.6 |
|
|
| 725.7 |
|
Gross margin |
| 61.8 | % |
|
|
|
| 62.1 | % | ||
Operating (loss) income |
| (77.4 | ) |
|
| 142.5 |
|
|
| 65.1 |
|
as % of Net revenues |
| (6.6 | %) |
|
|
|
| 5.6 | % | ||
Net (loss) income |
| (286.0 | ) |
|
| 280.3 |
|
|
| (5.7 | ) |
as % of Net revenues |
| (24.5 | %) |
|
|
|
| (0.5 | %) | ||
Adjusted EBITDA |
|
|
|
|
| 132.4 |
| ||||
as % of Net revenues |
|
|
|
|
| 11.3 | % | ||||
| COTY INC. | ||||||||||
Net (loss) attributable to Coty Inc. |
| (284.8 | ) |
|
| 279.1 |
|
|
| (5.7 | ) |
|
|
|
|
|
| ||||||
EPS (diluted) | $ | (0.34 | ) |
|
|
| $ | (0.01 | ) |
(a) | See “Reconciliation of Reported Operating Income (Loss) to Adjusted Operated Income” and “Reconciliation of Reported Net (Loss) Income to Adjusted Net Income” for a detailed description of adjusted items | |
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.
| Year Ended June 30, 2023 | ||||||||||
| CONTINUING OPERATIONS | ||||||||||
(in millions) | Reported (GAAP) |
| Adjustments(a) |
| Adjusted (Non-GAAP) | ||||||
Net revenues | $ | 5,554.1 |
|
| $ | — |
|
| $ | 5,554.1 |
|
Gross profit |
| 3,547.3 |
|
|
| 1.9 |
|
|
| 3,549.2 |
|
Gross margin |
| 63.9 | % |
|
|
|
| 63.9 | % | ||
Operating income |
| 543.7 |
|
|
| 195.1 |
|
|
| 738.8 |
|
as % of Net revenues |
| 9.8 | % |
|
|
|
| 13.3 | % | ||
Net income |
| 495.0 |
|
|
| (37.1 | ) |
|
| 457.9 |
|
as % of Net revenues |
| 8.9 | % |
|
|
|
| 8.2 | % | ||
Adjusted EBITDA |
|
|
|
|
| 972.8 |
| ||||
as % of Net revenues |
|
|
|
|
| 17.5 | % | ||||
| COTY INC. | ||||||||||
Net income attributable to Coty Inc. | $ | 495.0 |
|
|
| (37.1 | ) |
|
| 457.9 |
|
|
|
|
|
|
| ||||||
EPS (diluted) | $ | 0.57 |
|
|
|
| $ | 0.53 |
| ||
|
|
|
|
|
| ||||||
| Year Ended June 30, 2022 | ||||||||||
| CONTINUING OPERATIONS | ||||||||||
(in millions) | Reported (GAAP) |
| Adjustments(a) |
| Adjusted (Non-GAAP) | ||||||
Net revenues | $ | 5,304.4 |
|
| $ | — |
|
| $ | 5,304.4 |
|
Gross profit |
| 3,369.2 |
|
|
| 12.0 |
|
|
| 3,381.2 |
|
Gross margin |
| 63.5 | % |
|
|
|
| 63.7 | % | ||
Operating income |
| 240.9 |
|
|
| 374.6 |
|
|
| 615.5 |
|
as % of Net revenues |
| 4.5 | % |
|
|
|
| 11.6 | % | ||
Net income |
| 55.5 |
|
|
| 176.6 |
|
|
| 232.1 |
|
as % of Net revenues |
| 1.0 | % |
|
|
|
| 4.4 | % | ||
Adjusted EBITDA |
|
|
|
|
| 905.3 |
| ||||
as % of Net revenues |
|
|
|
|
| 17.1 | % | ||||
| COTY INC. | ||||||||||
Net income attributable to Coty Inc. |
| 61.2 |
|
|
| 170.9 |
|
|
| 232.1 |
|
|
|
|
|
|
| ||||||
EPS (diluted) | $ | 0.08 |
|
|
|
| $ | 0.28 |
|
(a) | See “Reconciliation of Reported Operating Income (Loss) to Adjusted Operated Income” and “Reconciliation of Reported Net (Loss) Income to Adjusted Net Income” for a detailed description of adjusted items. | |
RECONCILIATION OF REPORTED OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA
CONTINUING OPERATIONS |
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||||||
(in millions) |
|
| 2023 |
|
|
| 2022 |
|
| Change |
| 2023 |
|
|
| 2022 |
|
| Change | ||
Reported Operating income (loss) |
| $ | 129.0 |
|
| $ | (77.4 | ) |
| >100 | % | $ | 543.7 |
|
| $ | 240.9 |
|
| >100 | % |
% of Net revenues |
|
| 9.5 | % |
|
| (6.6 | %) |
|
|
| 9.8 | % |
|
| 4.5 | % |
|
| ||
Asset impairment charges |
|
| — |
|
|
| 31.4 |
|
| (100 | %) |
| — |
|
|
| 31.4 |
|
| (100 | %) |
Amortization expense (a) |
|
| 48.7 |
|
|
| 48.8 |
|
| 0 | % |
| 191.8 |
|
|
| 207.4 |
|
| (8 | %) |
Restructuring and other business realignment costs (b) |
|
| (1.3 | ) |
|
| (4.9 | ) |
| 73 | % |
| (6.3 | ) |
|
| 4.7 |
|
|