March 20, 2020 / 11:00 AM / 10 days ago

BRIEF-Coty Sees Q3 Revenue Down About 20%

March 20 (Reuters) - Coty Inc:

* DECIDED TO WITHDRAW ITS GUIDANCE FOR FY20

* REVIEWED ITS FINANCIAL POSITION IN VIEW OF CURRENT MARKET CONDITIONS, WHICH ARE EXPECTED TO AMPLIFY MOVING INTO Q4

* RECOMMENDING TO BOARD THAT SHAREHOLDERS BE GIVEN OPTION TO RECEIVE UP TO 100% OF THEIR QUARTERLY DIVIDEND IN KIND FOR COMING TWO QUARTERS

* JAB HAS NOTIFIED COMPANY THAT IT HAS DECIDED TO FULLY REPAY LOAN IT USED TO FINANCE TENDER OFFER IN 2019

* HAS AMPLE AND SUFFICIENT LIQUIDITY AND HEADROOM TO MEET ITS COVENANTS

* NOW EXPECTS NET REVENUES FOR Q3 OF FY20 TO DECLINE ROUGHLY 20% LIKE-FOR-LIKE, WITH MEANINGFUL IMPACT ON PROFIT

* CONTINUING TO PURSUE WITH CONFIDENCE STRATEGIC REVIEW OF ITS PROFESSIONAL HAIR AND BRAZILIAN BUSINESSES.

* COTY - AND HAS DECIDED TO WITHDRAW ITS GUIDANCE FOR FY20, SO AS TO HAVE NECESSARY FLEXIBILITY

* CONTINUING TO PURSUE STRATEGIC REVIEW OF ITS PROFESSIONAL HAIR AND BRAZILIAN BUSINESSES

* JAB FOUNDING PARTNER SAYS SUPPORT COTY MANAGEMENT’S PROPOSAL TO ADJUST DIVIDEND IN Q3 AND Q4, AND JAB WILL ELECT FOR FULL PAYMENT IN SHARES

* OPEN CHANNELS AND MARKETS ARE BEING PRIORITIZED, WITH ACCELERATION OF A NUMBER OF INITIATIVES, IN PARTICULAR E-COMMERCE

* INITIATIVES INCLUDE ACTIVATIONS ON AMAZON, WITH SALES IN U.S. NEARLY DOUBLING IN RECENT WEEKS

* INITIATIVES INCLUDE LAUNCHING KYLIE SKIN-CARE EUROPE IN COMING WEEKS.

* TEAMS ARE ALSO GETTING PREPARED FOR AN INCREASE IN DEMAND POST-COVID 19 DISRUPTIONS, STARTING IN ASIA

* HAS INCREASED FURTHER ITS FOCUS ON COST CONTROL AND CASH-FLOW

* TAKING A NUMBER OF ADDITIONAL MEASURES, TEMPORARY OR STRUCTURAL, TO ADJUST ITS EXPENSES AND PROTECT ITS CASH FLOW Source text for Eikon: Further company coverage:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below