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Jun 30, 2020
Coty Q4 2020 Earnings Report
Results severely impacted by COVID-19 pandemic, free cash flow inline with guidance, and KKR investment bolstered liquidity. Significant improvement expected in Q1, with positive adjusted operating income.
Key Takeaways
Coty Inc. reported a significant decrease in net revenues for Q4 2020 due to the COVID-19 pandemic, but expects to return to profitability in Q1 FY21. The company's free cash flow was in line with guidance, and a $1 billion KKR investment has bolstered liquidity. Coty has seen gradual sales trend improvement from April through June, with significant improvements in July and August across the portfolio
FY20 Total Coty net revenues decreased 22% reflecting the impact of the COVID-19 health crisis, with a Q4 LFL decline of (53%) for Total Coty and (60%) for Continuing Operations, which exclude the revenues and directly attributable costs of the to-be-divested Wella business
Coty has seen gradual sales trend improvement from April through June, with significant improvements in July and August across the portfolio
Coty expects to return to profitability in Q1 FY21 on an adjusted operating income basis for Continuing Operations
Q4 free cash outflow of $316.4 million was inline with guidance of outflow of $300-500 million
Coty
Coty
Coty Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Coty expects to return to profitability in Q1 FY21 on an adjusted operating income basis for Continuing Operations
Positive Outlook
- Coty expects to return to profitability in Q1 FY21 on an adjusted operating income basis for Continuing Operations
Revenue & Expenses
Visualization of income flow from segment revenue to net income