Coty Inc. (COTY) in New York City is one of the world's largest beauty corporations, with a well-known portfolio of fragrance, color cosmetics, and skin and body care products. The company is a global fragrance leader and ranks third in color cosmetics. Its shares have gained 12.6% in price over the past six months and 5.86% over the past month to close yesterday's trading session at $8.69. Its strong top-line growth and development across all its business segments, spurred by key product launches, have propelled its share price.
Last month, COTY reported that it now expects to receive a shareholder payout of at least $250 million from its equity holding in Wella, representing a considerable increase from the previous estimate of around $175 million. Coty aims to use this distribution, together with cash, to fully redeem its EUR550 million unsecured notes due 2023 when the bond call price falls to par on April 15, 2022, accelerating the company's deleveraging trajectory.
