Coty Inc. Announces 82% Dividend Increase and Transition to Quarterly Dividend Payout
December 09 2016 - 8:00AM
Business Wire
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161209005077/en/
Coty:Investor RelationsKevin Monaco, +1 212 389
6815OrMediaJennifer Friedman, +1 212 389 7175
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