Edition:
India

Coty Announces Turnaround Plan To Better Leverage Its Platform And Step Up Performance


Monday, 1 Jul 2019 

July 1 (Reuters) - Coty Inc ::COTY ANNOUNCES TURNAROUND PLAN TO BETTER LEVERAGE ITS PLATFORM AND STEP UP PERFORMANCE.SETS FINANCIAL TARGETS FOR FISCAL YEAR 2023.ANNOUNCES EXPECTATIONS FOR FISCAL YEAR 2020.EDGAR HUBER WILL BE APPOINTED PRESIDENT OF AMERICAS & ASIA PACIFIC.FIONA HUGHES WILL BE APPOINTED PRESIDENT OF CONSUMER BEAUTY BRANDS.SIMONA CATTANEO WILL BE APPOINTED PRESIDENT OF LUXURY BRANDS.ANNOUNCED A TURNAROUND PLAN TO DRIVE SUBSTANTIAL IMPROVEMENT IN CONSUMER BEAUTY WHILE ALSO FURTHER OPTIMIZING LUXURY AND PROFESSIONAL BEAUTY.GIANNI PIERACCIONI WILL BE APPOINTED PRESIDENT OF EMEA;.NEW ORGANIZATION DESIGN IS EXPECTED TO BE IN EFFECT BY JANUARY 1, 2020..COTY INTENDS TO CREATE A CENTRALIZED MANAGEMENT HEADQUARTERS IN AMSTERDAM.TARGETING FOR FISCAL YEAR 2023 OPERATING MARGIN OF BETWEEN 14% AND 16%.FULL STRUCTURE IMPLEMENTATION AND CONSOLIDATION OF MANAGEMENT HEADQUARTERS ARE EXPECTED TO BE COMPLETED BY JULY 1, 2020.TARGETING FOR FISCAL YEAR 2023 FREE CASH FLOW OF AROUND $1 BILLION.COTY EXPECTS TO INCUR ONE-TIME CASH COSTS OF APPROXIMATELY $600 MILLION SPREAD OVER FISCAL YEARS 2020 THROUGH TO 2023.FOR FISCAL YEAR 2023, ASSUMING NET REVENUES WILL REMAIN SIMILAR IN TOTAL TO THAT OF FISCAL YEAR 2019, AT A CONSTANT FOREIGN EXCHANGE RATE.SEES FY 2023 OPERATING MARGIN: BETWEEN 14% AND 16%.TO IMPLEMENT TURNAROUND, COTY EXPECTS TO INCUR ONE-TIME CASH COSTS OF APPROXIMATELY $600 MILLION SPREAD OVER FISCAL YEARS 2020 THROUGH TO 2023.