08.16.16
Coty's fourth quarter sales increased 6% to nearly $1.1 billion, but the company reported an operating loss of $2.9 million for the period. Both results topped estimates.
“Fiscal 2016 showed our continued progress in our strategy of building a healthier and better business. In support of this strategy, we are actively preparing for the transformational merger with the P&G Beauty Brands business," explained CEO Bart Becht. "During the year, reported revenues were positively impacted by our completed acquisitions, in line with our strategy, but negatively impacted by foreign currency. On a like-for-like basis, we drove net revenue growth in our Power Brands, on which we put disproportionate focus, outperforming the overall business. Reported operating and net income were lowered by acquisition related costs. On an adjusted basis, we generated solid growth in profitability and margins, with strong growth in the full year EPS."
According to Becht, Coty made substantial progress on successfully integrating our recent acquisitions. For example, the Bourjois acquisition, which closed in April 2015, has now reached profitability levels exiting the fiscal year consistent with the rest of Coty's color cosmetics segment, while net revenues showed strong growth in the most recent quarter.
"Our acquisition of the digital marketing platform, Beamly, is contributing to a step change in our capabilities to digitally engage with our consumers," he added. "The Brazil acquisition, which closed in February 2016, is also showing strong revenue and profit momentum in its first full quarter results, with the integration with Coty's Brazil business expected to be completed by September 2016."
For fiscal 2016, revenues fell 1% to $4.3 billion. Net income fell 33% to about $157 million.
Becht maintains that preparation for the P&G Beauty Brands transaction is well advanced. The future organization is now finalized, including office locations, structure and staffing of key positions.
"As part of this, we are excited about the announcement of Camillo Pane as chief executive officer and member of the Coty Board, effective the day after the closing of the transaction," said Becht. "Camillo has an excellent track record of accelerating growth, improving business performance, and strengthening capabilities to create a best-in-class organization."
Coty has completed the cost and cash synergy analysis for the merger, confirming earlier announced targets of total potential cost savings of $780 million over four years post transaction close. Work continues to evaluate the impact of the intended portfolio and wholesale business rationalization. Finally, extensive work has been done on business, process and systems integration to prepare for the transition following the expected close of the transaction in October 2016, said Becht.
“Fiscal 2016 showed our continued progress in our strategy of building a healthier and better business. In support of this strategy, we are actively preparing for the transformational merger with the P&G Beauty Brands business," explained CEO Bart Becht. "During the year, reported revenues were positively impacted by our completed acquisitions, in line with our strategy, but negatively impacted by foreign currency. On a like-for-like basis, we drove net revenue growth in our Power Brands, on which we put disproportionate focus, outperforming the overall business. Reported operating and net income were lowered by acquisition related costs. On an adjusted basis, we generated solid growth in profitability and margins, with strong growth in the full year EPS."
According to Becht, Coty made substantial progress on successfully integrating our recent acquisitions. For example, the Bourjois acquisition, which closed in April 2015, has now reached profitability levels exiting the fiscal year consistent with the rest of Coty's color cosmetics segment, while net revenues showed strong growth in the most recent quarter.
"Our acquisition of the digital marketing platform, Beamly, is contributing to a step change in our capabilities to digitally engage with our consumers," he added. "The Brazil acquisition, which closed in February 2016, is also showing strong revenue and profit momentum in its first full quarter results, with the integration with Coty's Brazil business expected to be completed by September 2016."
For fiscal 2016, revenues fell 1% to $4.3 billion. Net income fell 33% to about $157 million.
Becht maintains that preparation for the P&G Beauty Brands transaction is well advanced. The future organization is now finalized, including office locations, structure and staffing of key positions.
"As part of this, we are excited about the announcement of Camillo Pane as chief executive officer and member of the Coty Board, effective the day after the closing of the transaction," said Becht. "Camillo has an excellent track record of accelerating growth, improving business performance, and strengthening capabilities to create a best-in-class organization."
Coty has completed the cost and cash synergy analysis for the merger, confirming earlier announced targets of total potential cost savings of $780 million over four years post transaction close. Work continues to evaluate the impact of the intended portfolio and wholesale business rationalization. Finally, extensive work has been done on business, process and systems integration to prepare for the transition following the expected close of the transaction in October 2016, said Becht.
