Coty Expects Q1 Adjusted EBITDA To Be Roughly Flat To Moderately Lower Y/Y Despite Strong Gross Margin Expansion
Portfolio Pulse from Benzinga Newsdesk
Coty anticipates its Q1 adjusted EBITDA to be flat or slightly lower year-over-year, despite strong gross margin expansion. The company maintains its FY25 adjusted EBITDA growth target of 9-11% YoY, with expectations of resumed growth in Q2. Coty aims for a leverage ratio close to 2.5x by the end of CY24, although tight inventory management by retailers may affect cash inflow timing. While global beauty growth is resilient, U.S. market growth has slowed in the latter half of Q1.
October 14, 2024 | 8:34 pm
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Coty expects Q1 adjusted EBITDA to be flat or slightly lower YoY, but maintains FY25 growth targets. U.S. market growth slowdown may impact cash flow timing.
Coty's Q1 adjusted EBITDA is expected to be flat or slightly lower, which may not significantly impact the stock price in the short term. However, the maintenance of FY25 growth targets and the potential impact of U.S. market slowdown on cash flow are important considerations for investors. The company's leverage target and gross margin expansion provide some positive outlook, balancing the potential negative impact of the U.S. market slowdown.
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IMPORTANCE 80
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