3f4d71cdd5fb21e8915b941f4f2b888a64149b9375d881d20acb8f8a2c121b9e

1a5ddbb2bb5691594221beeb767afc21c5cb5b1d0ca5fb2582f8844d5a28e719

24f646df53579e5dfadf8b8dd4422fd5d6c2723691cf2f7e7eca37cedababbd6

Number of countries where Coty sells products (countries)

Price and mix impact on net revenues for total Coty (percentage)

Unit volume change for total Coty (percentage)

Price and mix impact on net revenues for Prestige segment (percentage)

Unit volume change for Prestige segment (percentage)

Price and mix impact on net revenues for Consumer Beauty segment (percentage)

Unit volume change for Consumer Beauty segment (percentage)

4e78894867b78f3d5a4873af062a0a5e5eaf91bc341ea48a34968796f6fc0a3a

Net Revenues (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Amortization Expense (USD, millions)

Restructuring Costs (USD, millions)

Operating Income (USD, millions)

Interest Expense, Net (USD, millions)

Other Expense (Income), Net (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income (USD, millions)

Net Income Attributable to Noncontrolling Interests (USD, millions)

Net Income Attributable to Redeemable Noncontrolling Interests (USD, millions)

Net Income Attributable to Coty Inc. (USD, millions)

Convertible Series B Preferred Stock Dividends (USD, millions)

Net Income Attributable to Common Stockholders (USD, millions)

Earnings per Common Share - Basic (USD)

Earnings per Common Share - Diluted (USD)

Weighted-average Common Shares Outstanding - Basic (Millions)

Weighted-average Common Shares Outstanding - Diluted (Millions)

05ba47c59c191aae3995ac2ec0599f6f1529d058a8cdfe2906ef46e9800325d6

8c9d426f2382a0f9abe83679ac449b3f4858c45646e3926c57d151584800bf51

The drastic decline in short-term debt in Q3 2024 was driven primarily by a refinancing of existing credit facilities, where Coty replaced older facilities with the 2023 Coty Revolving Credit Facility, thereby extending debt maturities and reducing near-term obligations. Additionally, the company executed cash tender offers on its 2026 Dollar Notes and 2026 Dollar Senior Secured Notes, which significantly reduced its outstanding debt obligations.  **[0001024305-24-000023_coty-20240331.htm:18]** **[0001024305-24-000007_coty-20231231.htm:15]** 

What drove the drastic decline in short-term debt in Q3 2024?

Coty’s cash and cash equivalents rose in Q4 2024 mainly due to a substantial boost in operating cash flow and a reduction in restricted cash. The company generated **$614.6 million** from operating activities during FY 2024, which significantly bolstered its cash position. Additionally, the decline in restricted cash—from **$36.9 million** in 2023 to **$19.8 million** in 2024—helped free up more liquidity for general use, despite the impact of capital expenditures and cash outflows from financing and investing activities.  **[0001024305-24-000035_coty-20240630.htm:152]** **[0001024305-24-000034_exhibit991-earningsrelease.htm:40]** 

Why did cash and cash equivalents rise in Q4 2024?

The drop in long-term debt was primarily driven by **debt redemptions and refinancing actions**. Specifically, Coty completed cash tender offers that resulted in the redemption of **$150.0 million of the 2026 Dollar Notes** and **$250.0 million of the 2026 Dollar Senior Secured Notes**. Additionally, the company executed a **refinancing amendment** to its 2018 Coty Credit Agreement, which replaced existing revolving credit commitments with new tranches maturing in July 2028, along with the issuance of new notes. These strategic financial moves contributed to the overall reduction in long-term debt in Q3 2024.  **[0001024305-24-000023_coty-20240331.htm:18]** 

What factors contributed to the drop in long-term debt in Q3 2024?

In FY 2024, Coty's total liabilities decreased from **$8,428.3 million** to **$7,834.8 million** due to several factors. The reduction was primarily driven by a lower long-term debt, which decreased from **$4,178.2 million** to **$3,841.8 million**. In addition, there was a decrease in current liabilities, notably with the short-term debt and current portion of long-term debt dropping from **$57.9 million** to **$3.0 million** and income and other taxes payable reducing from **$126.6 million** to **$68.1 million**. Furthermore, other noncurrent liabilities were reduced from **$1,265.8 million** to **$1,172.5 million**. These collective improvements contributed to the overall decrease in total liabilities.  **[0001024305-24-000034_exhibit991-earningsrelease.htm:40]** **[0001024305-24-000035_coty-20240630.htm:152]** 

How did total liabilities decrease in FY 2024?

289072b8de3c66807261bfab4fb3be42ea02b56ebf75140c56e21f47a184e5b5

The drastic drop in **Income Before Income Taxes**—from **$141.6 million** in Q3 2023 to **$3.4 million** in Q3 2024—resulted from several factors. First, the swing in **Other Income, Net** was significant, moving from a loss of **$156.9 million** in Q3 2023 to a positive **$14.0 million** in Q3 2024. Second, **Interest Expense** increased modestly from **$58.8 million** to **$60.4 million** (a 3% rise). Finally, even though **Operating Income** increased by 79% (from **$43.5 million** to **$77.8 million**), these factors combined contributed to the overall decline of about **98%** in income before income taxes in Q3 2024.  **[0001024305-24-000021_exhibit991-earningsrelease.htm:30]** **[0001024305-24-000021_exhibit991-earningsrelease.htm:28]** **[0001024305-24-000023_coty-20240331.htm:61]** 

Why did Income Before Income Taxes drop so drastically in Q3 2024?

The swing to a negative **Income Before Income Taxes** in Q4 2024 is primarily attributed to three factors: **significantly higher Other Expense (Income), Net**, which swung from a **$(22.0) million gain** in Q4 2023 to an **$80.4 million expense** in Q4 2024; **lower Operating Income** driven by a marked reduction from **$129.0 million** in Q4 2023 to **$34.7 million** in Q4 2024, largely due to increased **Selling, General, and Administrative (SG&A) expenses**; and the contribution of **consistent Interest Expense**, which, although relatively stable, added to the overall decline.  **[0001024305-24-000034_exhibit991-earningsrelease.htm:28]** 

What caused the swing to a negative Income Before Income Taxes in Q4 2024?

Coty’s **net income** in Q3 2024 is so low because the company did not benefit from the **$173.7 million gain** on forward repurchase contracts that drove much of the higher net income in Q3 2023, and it also experienced **mark-to-market losses** on these contracts in Q3 2024. These factors, despite higher operating income, led to a significant decline in net income in Q3 2024 compared to previous periods.  **[0001024305-24-000023_coty-20240331.htm:65]** **[0001024305-24-000021_exhibit991-earningsrelease.htm:2]** 

Why is Net Income so low in Q3 2024 compared to previous periods?

In **Q4 2024**, EPS turned negative primarily due to a **sharp decline in net income** (reported at **$(100.2) million**), a **significant increase in the effective tax rate** to **46.5%**—up from **25.8%** in fiscal 2023—and a **73% drop in operating income** year-over-year. In addition, the impact of an **equity swap**, which excluded certain benefits that would have otherwise bolstered earnings, also played a role.  **[0001024305-24-000034_exhibit991-earningsrelease.htm:8]** **[0001024305-24-000035_coty-20240630.htm:186]** **[COTY_3399781_1]** 

What drove the EPS to turn negative in Q4 2024?

The documents show that overall net income fell from **$186.0 million** in Q1 2024 to **$30.6 million** in Q1 2025.  **[0001024305-24-000007_coty-20231231.htm:1]** **[0001024305-25-000007_coty-20241231.htm:1]**  However, the only explanations provided relate to a different measure—**net income attributable to Coty Inc.**—which actually improved in Q1 2025 due to **higher operating income** and **lower net losses from forward repurchase contracts**.  **[0001024305-24-000070_exhibit991-earningsrelease.htm:2]** **[0001024305-24-000071_coty-20240930.htm:56]**  No details are provided in the documents that explain why the overall net income declined sharply.

Why did Net Income fall sharply in Q1 2025 compared to Q1 2024?

f88d0d1563be17d43a145a352fa0c0483a54ccdfdf3f8491eed09a6d7ea707d4

Prestige

- Fragrance

- Cosmetics

Consumer Beauty

- Color Cosmetics

- Body Care & Other

- Skincare

Total Revenue

8e28e18ff6aea808444794f657b555ce325690beb23aa29cba35d39d46af40db

United States

Brazil

Germany

China

Travel Retail

Americas

- United States

EMEA

Asia Pacific

Other

North America

Europe

ALMEA

893add14a3d9cd5a0947ba0849d94b0045ef1736dc1410787b9d98db54f4523b

Coty Inc (COTY)

Financials