Chris Terry's questions to Coty Inc (COTY) leadership • Q4 2025
Question
Chris Terry from Wells Fargo inquired about cash flow commitments over the next several years, including swaps and debt refinancing. He also asked about the profitability aspirations for the Consumer Beauty division and the company's tolerance for potential revenue impacts to achieve those goals.
Answer
CFO Laurent Mercier emphasized that deleveraging remains the top priority, with FY26 cash flow expected to increase. He mentioned a new forecasting tool will improve inventory management and confirmed they are actively working to refinance the 2026 debt maturity. Regarding Consumer Beauty, Mercier stated that improving its low profitability is a key mandate. This involves a full review of the value chain and may require making trade-offs that could impact net revenue to prioritize profit.