Coty (COTY) Q1 2027 Prepared Remarks earnings summary

Executive summary

• Q1 FY27 revenue was $1,555.2M, down 1.6% like-for-like and ahead of guidance and expectations; recovery remains uneven in a transition year.

• Top 6 core Prestige brands returned to 5% like-for-like growth, with five of six brands growing.

• Priorities include quality growth, productivity-funded reinvestment, stronger cash generation and execution accountability.

Financial highlights

• Net revenue was $1,555.2M; adjusted EBITDA was $274.2M, down 7% YoY, with both ahead of consensus.

• Adjusted EPS excluding the equity swap was $0.15, flat YoY and above guidance of $0.11–$0.13; adjusted diluted EPS including the swap benefit was $0.16.

• Free cash flow was $84.6M versus $11.2M in Q1 FY26; operating cash flow was $130.4M versus $65.2M.

• Reported net income attributable to common shareholders was $106.2M versus $64.6M; adjusted net income was $146.1M versus $106.0M.

Outlook and guidance

• Q2 like-for-like revenue is expected to decline at a low-single-digit rate; FX is expected to be a low-single-digit headwind, while reported revenue is guided to a high-single-digit decline.

• Q2 adjusted EBITDA is expected to decline at a high-single-digit rate; adjusted EPS excluding the equity swap is guided to $0.16–$0.18.

• Top 6 core Prestige brands are expected to grow in Q2 at a more moderate pace than Q1; H1 FY27 free cash flow is expected to exceed $300M.

• A broader long-term outlook and financial framework is planned after the strategic review, targeted for completion by end-CY26.

• FY27 Prestige launches were tracking ahead of plan; Q1 innovation sales grew at a low-single-digit rate at accretive gross margins.