- Coty press release ( NYSE: COTY ): FQ1 Non-GAAP EPS of $0.11 in-line.
- Revenue of $1.39B (+1.5% Y/Y) beats by $10M .
- Outlook: Coty continues to target FY23 adjusted EBITDA of $955-965M based on current FX rates, relatively in-line with its medium term growth target of +9-11%, adjusting for the impact of the Russia exit.
- Coty continues to expect FY23 adjusted EPS growth in the mid-teens to $0.32-0.33 vs. consensus of $0.16. The Company continues to anticipate adjusted EPS growth acceleration in FY24 and beyond fueled by lower interest expenses as part of its deleveraging efforts, consistent with its medium-term targets.
- The Company continues to expect FY23 revenues for the core business, adjusting for the impact of the Russia exit, to grow 6-8% LFL. 1H23 core business LFL revenue growth trends are expected to be consistent with its annual growth target of +6-8%, with demand remaining robust in Q2 and component constraints the primary limitation to growth. Q2 sales results will include the impact from exiting the Russia business, estimated at approximately 3% of revenues, as well as an estimated FX headwind on sales of 7-9% at current rates, with more moderate impact on profit.
- Coty continues to expect modest gross margin expansion in both Q2 and in FY23, despite the elevated inflationary environment.
- In addition, the Company continues to target leverage towards 4x exiting CY22 based on CY22 adjusted EBITDA approaching $950M, and continues to expect leverage of approximately 3x exiting CY23 and 2x exiting CY25.
For further details see:
Coty reports FQ1 earnings; FY23 revenue and profit reaffirmed