Coty Plans To Recommence Shareholder Returns - Read How - Coty (NYSE:COTY)

Coty Inc 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.
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Coty Plans To Recommence Shareholder Returns - Read How