Coty Inc. Announces 82% Dividend Increase and Transition to Quarterly Dividend Payout

NEW YORK--()--Coty Inc. (NYSE:COTY) announced today that its Board of Directors has approved a transition to a quarterly dividend payout schedule effective immediately, and approved Coty’s first quarterly dividend of $0.125 per share of common stock. The dividend represents an expected total dividend of $0.50 per share of common stock per annum, which is an 82% increase in Coty’s per annum dividend. Coty’s first quarterly dividend is payable on December 28, 2016 to shareholders of record at the close of business on December 19, 2016.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations”

“The increase in our dividend, and the transition of the timing to a quarterly payout schedule, enhances the Company’s ability to return cash to shareholders throughout the year,” said Patrice de Talhouёt, EVP and Global Chief Financial Officer. “We remain committed to creating shareholder value as Coty strives to become a global industry leader by being a clear challenger in beauty.”

About Coty Inc.

Coty is one of the world’s largest beauty companies with approximately $9 billion in revenue, with a purpose to celebrate and liberate the diversity of consumers’ beauty. Its strong entrepreneurial heritage has created an iconic portfolio of leading beauty brands. Coty is the global leader in fragrance, a strong number two in professional salon hair color & styling, and number three in color cosmetics. Coty operates three divisions – Coty Consumer Beauty, which is focused on color cosmetics, retail hair coloring and styling products, body care and mass fragrances sold primarily in the mass retail channels with brands such as COVERGIRL, Max Factor and Rimmel; Coty Luxury, which is focused on prestige fragrances and skincare with brands such as Calvin Klein, Marc Jacobs, Hugo Boss, Gucci and philosophy; and Coty Professional Beauty, which is focused on servicing salon owners and professionals in both hair and nail, with brands such as Wella Professionals, Sebastian Professional and OPI. Coty has approximately 20,000 colleagues globally and its products are sold in over 130 countries. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment.

For additional information about Coty Inc., please visit www.coty.com.

Forward-Looking Statements

Certain statements in this communication are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Coty Inc.’s (“Coty”) current views with respect to, among other things, Coty’s capital allocation strategy and payment of dividends, future ability to return cash to shareholders, and the Coty’s ability to support its planned business operations on a near- and long-term basis. These forward-looking statements are generally identified by words or phrases, such as “anticipate”, “estimate”, “plan”, “project”, “expect”, “believe”, “intend”, “foresee”, “forecast”, “will”, “may”, “should”, “outlook”, “continue”, “target”, “aim” and similar words or phrases. These statements are based on certain assumptions and estimates that Coty considers reasonable and are subject to a number of risks and uncertainties, many of which are beyond the control of Coty, which could cause actual events or results to differ materially from such statements, including:

  • A change in Coty’s capital allocation strategy impacting the return of cash to shareholders and financial ability to declare dividends on a quarterly payout schedule or at all, including declaration and payment of future quarterly dividends for the remainder of the fiscal year ending June 30, 2017, and the amount of any such dividend;
  • Coty’s ability to achieve its global business strategy and compete effectively in the beauty industry, including successfully leveraging growth opportunities and addressing challenges inhibiting growth in its brand portfolio;
  • the success of the integration relating to the acquisition (the “Transactions”) of The Procter & Gamble Company’s (“P&G”) global fine fragrances, salon professional, cosmetics and retail hair color businesses, along with select hair styling brands (the “P&G Beauty Brands”) with Coty’s business, operations and culture and the ability to realize synergies and other potential benefits of the Transactions within the time frames currently contemplated;
  • Coty’s ability to successfully execute on its announced intent to divest or discontinue non-strategic brands and the related risks and to rationalize wholesale distribution by reducing the amount of product diversion to the value and mass channels;
  • Coty’s ability to anticipate, gauge and respond to market trends and consumer preferences, which may change rapidly, and the market acceptance of new products;
  • risks associated with Coty’s M&A strategy and other strategic transactions, including Coty’s ability to acquire suitable businesses and managerial, integration, operational and financial risks associated with acquisitions and other strategic transactions;
  • risks related to the Coty’s international operations, including reputational, regulatory, economic and foreign political risks;
  • dependence on certain licenses, entities performing outsourced functions and third-party suppliers;
  • Coty and its brand partners’ and licensors’ ability to obtain, maintain and protect the intellectual property rights used in its products and their abilities to protect their respective reputations;
  • Coty’s ability to implement its integration and restructuring programs as planned and the success of the programs or any anticipated programs in delivering anticipated improvements and efficiencies;
  • administrative, development and other difficulties in meeting the expected timing of market expansions, product launches and marketing efforts;
  • global political and/or economic uncertainties or disruptions;
  • Coty’s ability to manage seasonal variability;
  • consolidation among retailers, shifts in consumers’ preferred distribution channels, and other changes in the retail environment in which Coty sells its products;
  • disruptions in Coty’s operations, including due to disruptions in supply chain, manufacturing sites or information systems, labor disputes and natural disasters
  • restrictions imposed on Coty through its credit facilities, including restrictions on Coty’s ability to pay dividends, and changes in the manner in which Coty finances its debt and future capital needs;
  • increasing dependency on information technology and Coty’s ability to protect against service interruptions, data corruption, cyber-based attacks or network security breaches, costs and timing of implementation and effectiveness of any upgrades to its information technology systems and failure by Coty to comply with any privacy or data security laws or to protect against theft of customer, employee and corporate sensitive information;
  • changes in laws, regulations and policies that affect the Coty’s business, products and/or ability to repatriate cash;
  • Coty’s ability to attract and retain key personnel;
  • use of estimates and assumptions in preparing the financial statements, including with regard to revenue recognition, the market value of inventory and the fair value of acquired assets and liabilities associated with acquisitions;
  • risks associated with Coty’s non-U.S. joint ventures, including relating to control and decision-making, compliance, accounting standards, transparency and customer relations;
  • market acceptance of new product introductions; and
  • the illegal distribution and sale by third parties of counterfeit versions of Coty’s product.

More information about potential risks and uncertainties that could affect Coty’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 fiscal quarter ended September 30, 2016 and other periodic reports Coty has filed and may file with the Securities and Exchange Commission from time to time.

All forward-looking statements made in this communication are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this communication, and Coty does not undertake any obligation, other than as may be required by 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.

Contacts

Coty:
Investor Relations
Kevin Monaco, +1 212 389 6815
Or
Media
Jennifer Friedman, +1 212 389 7175

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Release Summary

Coty Inc. Announces 82% Dividend Increase and Transition to Quarterly Dividend Payout

Coty Inc.