NEW YORK--(BUSINESS WIRE)--Dec. 9, 2016--
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.
“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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161209005077/en/
Source: Coty Inc.
Coty:
Investor Relations
Kevin Monaco, +1 212 389 6815
Or
Media
Jennifer
Friedman, +1 212 389 7175