Executive Summary

On July 1, 2019, Coty announced a turnaround plan, designed to improve performance, especially in consumer beauty and to optimize its luxury and professional beauty businesses. The announcement also covers the financial outlook and provided information on management changes.

• The plan focuses on three strategic pillars: rediscover growth, regain operational leadership and build a culture of pride and performance.
• For FY20, Coty expects a moderating decline in net revenues, constant currency adjusted operating income to be up 5-10% and moderate improvement in free cash flow.
• By FY23, Coty forecasts 0-2% growth in net revenue, an operating margin of 14-16% — and hopes to attain a leverage ratio of net debt to EBITDA below 4x by that year.