Results of Operations and Financial Condition.
In connection with the proposed offering of the Notes disclosed below, Coty Inc. (the “Company”) anticipates disclosing to prospective investors certain preliminary estimates of its results of operations for the three months ended June 30, 2023, as follows:
For the three months ended June 30, 2023, the Company currently expects its revenue from continuing operations to be approximately $1,200.0 million to $1,400.0 million, its capital expenditures from continuing operations to be $65.0 million to $85.0 million, its adjusted operating income from continuing operations to be $90.0 million to $110.0 million and its adjusted EBITDA from continuing operations to be $150.0 million to $170.0 million.
Some of the factors that influenced the Company’s results of operations for the three months ended June 30, 2023, as compared with the corresponding period in 2022, included net revenue growth across both of its divisions, which were partially offset by increases in advertising and promotional costs to supports its brands, as well as increases in its fixed costs, which were impacted by inflation.
The above information reflects the Company’s preliminary estimates based on currently available information. Neither Deloitte & Touche LLP, the Company’s independent auditors, nor any other independent accountants, have compiled, examined, or performed any procedures with respect to the preliminary estimates contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the preliminary estimates. The Company has not completed its internal closing procedures and related controls with respect to the financial information for the three months ended June 30, 2023 presented above. In connection with its quarterly closing and review, the Company may identify items that would require it to make adjustments to the preliminary estimates set forth above and such adjustments may be significant. As a result, the Company’s final results for the period may vary from the preliminary estimates presented above. The Company’s actual results will not be finalized until after this offering is completed and may differ materially from the above estimates. Accordingly, you should not place undue reliance upon these preliminary estimates. See “Forward-Looking Statements.”
In addition, the Company’s expected adjusted operating income and adjusted EBITDA are forward-looking non-GAAP financial measures. The Company does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for the charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
The information disclosed under this Item 2.02 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as expressly set forth in such filing.
On July 19, 2023, the Company announced that it, together with its wholly-owned subsidiaries HFC Prestige Products, Inc. and HFC Prestige International U.S. LLC (collectively, the “Issuers”), intends to launch a benchmark size offering of $600 million in principal amount of senior secured notes (the “Notes”), subject to market and other conditions. A copy of the press release issued by the Company on July 19, 2023 announcing the offering of the Notes is included as Exhibit 99.1 hereto and incorporated by reference herein.
This report is neither an offer to purchase nor a solicitation of an offer to sell any securities.
The statements contained or referenced in this report include certain “forward-looking statements” within the meaning of the relevant securities laws, including the expected closing of the offering of the Notes and the use of proceeds therefrom. These forward-looking statements are generally identified by words or phrases, such as “anticipate,” “are going to,” “estimate,” “plan,” “project,” “expect,” “believe,” “intend,” “foresee,” “forecast,” “will,” “may,” “should,” “outlook,” “continue,”