Coty Benefits From Strong Demand In Beauty Market; Q1 Revenue Grows 18%
Portfolio Pulse from Shivani Kumaresan
Coty Inc reported Q1 FY24 sales growth of 18% YoY to $1.64 billion, beating the analyst consensus estimate of $1.58 billion. The sales increase was driven by double-digit LFL growth in Prestige and Consumer Beauty. Adjusted EPS was $0.09, missing the analyst consensus estimate of $0.17. The company also announced its offers to purchase for cash up to $150 million of its 6.500% Senior Notes due 2026 and up to $250 million of 5.000% Senior Notes due 2026. Coty and its counterparties have decided to end the partial sale of its Wella stake.
November 08, 2023 | 10:25 am
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Coty's Q1 FY24 sales growth exceeded expectations, but its adjusted EPS fell short of estimates. The company also announced plans to buy back its Senior Notes and ended the partial sale of its Wella stake.
Coty's strong sales growth indicates a positive market response to its products, which could potentially boost its stock price. However, the lower-than-expected EPS might negatively impact investor sentiment. The decision to buy back Senior Notes could be seen as a sign of financial strength, but the termination of the Wella stake sale might raise questions about the company's strategic plans.
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