NEW YORK--(BUSINESS WIRE)--The Board of Directors of Coty Inc. (NYSE: COTY) declared a quarterly cash dividend of $0.125 per common share, payable on March 27, 2020, to shareholders of record on February 18, 2020. This dividend will be considered a taxable dividend.
This dividend is eligible for Coty’s stock dividend reinvestment program giving shareholders the option to receive their full dividend in cash or to receive their dividend in 50% cash / 50% common stock. For purposes of determining the common stock dividend, the number of shares of common stock will be calculated on the basis of the average share price on the New York Stock Exchange over the period of five trading days immediately prior to February 18, 2020. The election deadline is expected to be March 16, 2020.
All registered shareholders should receive an election form from Computershare. All shareholders holding shares through a bank, broker or intermediary should receive instructions from their respective bank, broker or intermediary as to how to make an election, and should contact their bank, broker or intermediary if they have not received instructions.
About Coty Inc.
Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, hair color and styling, and skin and body care. Coty is the global leader in fragrance, a strong number two in professional hair color & styling, and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment. For additional information about Coty Inc., please visit www.coty.com.
Certain statements in this communication may be “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements reflect Coty Inc.’s (“Coty”) current views with respect to, among other things, Coty’s capital allocation strategy and payment of dividends, the election date for electing stock dividends, the basis of calculating the equity portion of future dividends, future ability to return cash to shareholders, and Coty’s ability to support its planned business operations in the near-term and long-term basis. These statements are based on certain assumptions and estimates that Coty considers reasonable and are subject to a number of risks and uncertainties, many of which are beyond the control of Coty, which could cause actual events or results to differ materially from such statements, including: (1) a change in Coty’s capital allocation and cash management priorities impacting the return of cash to shareholders and its financial ability to declare dividends on a quarterly payout schedule or at all, including declaration and payment of future quarterly dividends for the remainder of the fiscal year ending June 30, 2020 and in future periods, and the amount of any such dividend; (2) Coty’s ability to successfully implement its multi-year Turnaround Plan, including its management headquarters relocation and management realignment, and to develop and achieve its global business strategies, compete effectively in the beauty industry and achieve the benefits contemplated by its strategic initiatives, and its ability to manage the integration of future acquisitions with Coty’s business, operations, systems, financial data and culture and the ability to realize synergies, avoid future supply chain and other business disruptions, reduce costs and realize other potential efficiencies and benefits (including through Coty’s restructuring initiatives), cash flow and liabilities, each at the levels and costs and within the expected time frame or at all; (3) the results of Coty’s strategic review of its Professional Beauty business, associated hair and nail brands sold by the Consumer Beauty division and Brazilian operations and any transaction related thereto, including timing of such strategic review and any transaction and the use of proceeds from any such transaction; (4) restrictions imposed on Coty through its license agreements, outstanding senior unsecured notes and credit facilities, including restrictions on Coty’s ability to pay dividends and changes in the manner in which Coty finances its debt and future capital needs, including potential acquisitions and restructuring, capital expenditures, and business realignment and other costs; (5) global political and/or economic uncertainties and disruptions or major legal, regulatory or policy changes and/or the enforcement thereof that affect Coty’s business, financial performance, operations or products, including the impact of Brexit; and (6) other factors described from time to time in documents that Coty files with the U.S. Securities and Exchange Commission (the “SEC”). More information about these and other factors is included under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Coty’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2019 and other periodic reports Coty has filed and may file with the SEC from time to time. All forward-looking statements made in this communication are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this communication, and Coty 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.
This release shall not constitute an offer of securities for sale pursuant to the stock dividend reinvestment program that is mentioned.