- Coty Inc (NYSE:COTY) plans to return equity distributions and start hedging a $200 million share buyback program in 2024.
- The company lowered leverage from about 7x at the end of FY21 to 4.7x at the end of Q3 FY22.
- Coty sees continued strong free cash flow generation and steady deleveraging progress in the coming years.
- It said it is on track to reach its targeted leverage of about 2x by calendar 2025.
- The company has entered into total return swaps of shares with banks to hedge its exposure at prevailing stock price trading levels over the hedging periods for a planned $200 million share buyback program.
- "Our strategy for unlocking value expansion in Coty has remained consistent, anchored on three key objectives: accelerating our sales and profit growth, deleveraging our balance sheet, and simplifying our capital structure," said CFO Laurent Mercier.
- Price Action: COTY shares are trading lower by 1.29% at $6.88 in premarket on the last check Friday.
- Photo Via Company
