Coty Expects Q1 Adjusted EBITDA To Be Roughly Flat To Moderately Lower Y/Y Despite Strong Gross Margin Expansion

Coty continues to expect FY25 adjusted EBITDA to grow +9-11% YoY, consistent with prior guidance, including resumed adjusted EBITDA growth in Q2.

This adjusted EBITDA growth target, in conjunction with continued though more moderate revenue growth, reflects an even stronger adjusted EBITDA margin expansion in FY25, following the 30 bps adjusted EBITDA margin expansion in FY24.

Coty continues to target leverage close to 2.5x exiting CY24, though the tight inventory management by retailers is adding some variability on cash inflow timing.

While beauty growth remains resilient in many parts of the world, the U.S. market growth has slowed in the second half of Q1.