Item 8.01 Other Events.
Coty Inc. (NYSE: COTY) ("Coty" or the "Company") is filing this Current Report
on Form 8-K to provide further information to investors regarding its operations
in Russia. In calendar 2021, Coty's sales in Russia, including local Travel
Retail, accounted for a little over 3% of the Company's sales and a mid-single
digit percentage of adjusted EBITDA. After careful consideration, including
analysis of relevant U.S., U.K., and other applicable regulation, Coty has
decided to wind down its Russian operations starting immediately. While all of
the financial impacts, including the impact on the Company's long-term outlook,
of the decision are still being determined, this decision is not expected to
impact Coty's ability to achieve its previously issued fiscal 2022 outlook on
revenue, adjusted EBITDA or adjusted EPS guidance because of seasonally lower
contribution of the business in the fourth fiscal quarter.
The information disclosed under this Item 8.01 is being furnished and shall not
be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act
of 1934, as amended, nor shall it be incorporated by reference into any
registration statement or other document pursuant to the Securities Act of 1933,
as amended, except as expressly set forth in such filing.
The Company's adjusted EBITDA is a non-GAAP financial measure and its expected
adjusted EBITDA is a forward-looking non-GAAP financial measure. Reconciliation
of adjusted EBITDA to the nearest comparable GAAP financial measure is contained
in the press release attached as Exhibit 99.1 to the Form 8-K filed with the SEC
on February 8, 2022. The Company does not provide reconciliations of such
forward-looking non-GAAP measures to GAAP due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for such
reconciliation, including adjustments that could be made for the charges
reflected in our reconciliation of historic numbers, the amount of which, based
on historical experience, could be significant.
Forward Looking Statements
The statements contained in this report include certain "forward-looking
statements" within the meaning of the relevant securities laws, including the
expected financial impacts of the wind down of the Company's Russian operations.
These forward-looking statements are generally identified by words or phrases,
such as "anticipate," "are going to," "estimate," "plan," "project," "expect,"
"believe," "intend," "foresee," "forecast," "will," "may," "should," "outlook,"
"continue," "target," "aim," "potential" and similar words or phrases. These
statements are based on certain assumptions and estimates that the Company
considers reasonable, but are subject to a number of risks and uncertainties,
many of which are beyond the Company's control, which could cause actual events
or results to differ materially from such statements, including (i) the
Company's ability to implement the wind down as anticipated and its ability to
mitigate any unanticipated problems, liabilities or other challenges associated
with such implementation, (ii) global political and/or economic uncertainties,
disruptions or major regulatory or policy changes, and/or the enforcement
thereof that affect the planned wind down, our business, financial performance,
operations or products, including the impact of the war in Ukraine and any
escalation or expansion of such conflict and (iii) the other potential risks and
uncertainties that could affect the Company's business and financial results
included under the heading "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the Company's
latest Annual Report on Form 10-K for the fiscal year ended June 30, 2021 and
its subsequent quarterly reports on Form 10-Q and other documents it has filed
and may file with the United States Securities and Exchange Commission from time
to time. All forward-looking statements made in this report are qualified by
these cautionary statements. You are cautioned not to place undue reliance on
these forward-looking statements, which are made only as of the date of the
document in which such statement is made, and the Company does not undertake any
obligation, other than as may be required by law, to update or revise any
forward-looking or cautionary statements to reflect changes in assumptions, the
occurrence of events, unanticipated or otherwise, or changes in future operating
results over time or otherwise.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits:
Exhibit No. Description
Cover Page Interactive Data File (embedded within the Inline XBRL
104 document).
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