COTY 3Q24

EARNINGS CALL

May 6, 2024

1

3Q24 LFL GROWTH +10% AND FYTD LFL GROWTH +13%

CB +6% LFL PRESTIGE +13% LFL

LFL REVENUE +10% LFL IN Q3 AND +13% LFL FYTD,

AHEAD OF GUIDANCE

PRESTIGE LFL +13% IN Q3 AND +17% FYTD

37%

Q3

➢ STRONG LFL GROWTH ACROSS ALL CATEGORIES

➢ MOMENTUM ACROSS ACROSS ALL REGIONS, WITH

ESPECIALLY ROBUST GROWTH IN APAC, EMEA AND THE

GLOBAL TRAVEL RETAIL CHANNEL

REVENUE

MIX

63%

➢ MINOR IMPACT FROM PRIOR YEAR RETAILER RESTOCKING

WITH MORE SIGNIFICANT HEADWIND IN Q4

➢ RETAILER INVENTORIES IN KEY MARKETS AT HEALTHY LEVELS

CONSUMER BEAUTY LFL +6% IN Q3 AND +7% FYTD

  • LFL GROWTH ACROSS ALL CATEGORIES, PARTICULARLY IN MASS FRAGRANCES AND SKINCARE
  • MOMENTUM IN EUROPE, LATAM AND ASIA EX. CHINA

4

GROWTH ACROSS ALL REGIONS

APAC

+11% LFL

12%

AMERICAS

+11% LFL

Q3 43%

REVENUE

MIX

45%

EMEA

+9% LFL

AMERICAS LFL +11% IN Q3 AND +13% FYTD

DRIVEN BY VERY STRONG DOUBLE-DIGIT % GROWTH IN LATIN AMERICA, CANADA AND THE TRAVEL RETAIL CHANNEL

EMEA LFL +9% IN Q3 AND +12% FYTD SUPPORTED BY GROWTH ACROSS MOST MARKETS AND THE TRAVEL RETAIL CHANNEL

ASIA PACIFIC LFL +11% IN Q3 AND +16% FYTD

FUELED BY STRONG GROWTH ACROSS MOST MARKETS AND THE TRAVEL RETAIL CHANNEL. IN CHINA, PRESTIGE SALES GREW STRONGLY, WHILE CONSUMER BEAUTY SALES WERE LOWER

5

GROWTH FUELED BY BOTH VOLUMES AND PRICE & MIX

Q3FYTD

Volume

+ MSD % + LSD %

Price*

+ HSD % + HSD %

Mix & Other*

~ SLIGHTLY

+ LSD %

NEGATIVE

LSD - MSD % VOLUME GROWTH IN Q3 IN BOTH PRESTIGE & CONSUMER BEAUTY

TARGETED PRICING ACTIONS GOING FORWARD

SLIGHTLY NEGATIVE IMPACT FROM MIX AND OTHER IN Q3, WITH +LSD % BENEFIT FYTD

*Estimated

6

STRONG SERVICE LEVELS & EASING INFLATION

  • CONTINUED STRONG SERVICE LEVELS AT ~94% IN Q3
  • NEGLIGIBLE IMPACT FROM COGS INFLATION IN Q3 AND EXPECTED TO CONTINUE IN Q4
  • CURRENTLY SEE LIMITED RISK FROM RED SEA CONFLICT & BALTIMORE PORT CLOSURE
  • EXCESS & OBSOLESCENCE HEADWIND MODERATING IN 2H24 AND INTO FY25

8

CONFIRMED FY24 & FY25 SAVINGS TARGET

  • Q3 SAVINGS DELIVERED OF ~$25M, WITH FYTD TOTAL OF OVER $90M
  • CONFIRMING FY24 SAVINGS TARGET TO $110-120M
    • DRIVEN BY MATERIAL COSTS, DISTRIBUTION AND STRUCTURAL A&CP SAVINGS
    • INCREASED SAVINGS FUELING REINVESTMENT IN STRUCTURAL GROWTH CAPABILITIES AND TEAMS, PARTICULARLY DIGITAL, SKINCARE AND RETAIL
  • FY25 SAVINGS TARGET OF ~$75M REAFFIRMED

ROBUST Q3 GROSS MARGIN EXPANSION, WITH FY24 REAFFIRMED

ADJUSTED GROSS MARGIN

+190 bps YoY

+20 bps YoY

64.8%

64.2%

64.4%

62.9%

Q3

FYTD

FY23

FY24

GROSS MARGIN 190 BPS BETTER YOY IN Q3, DRIVEN BY:

  • BENEFIT FROM PREMIUMIZATION AND CARRY-OVERPRICING
  • SIGNIFICANTLY EASING INFLATION
  • SUPPLY CHAIN PRODUCTIVITY SAVINGS

EXPECT GROSS MARGIN EXPANSION IN Q4, SUPPORTING OUTLOOK FOR MODEST FY24 GROSS

MARGIN EXPANSION

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Coty Inc. published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 21:32:20 UTC.