Coty Inc. shares rose 9.6% in pre-conference trading near a six-month high as the consumer beauty products company announced higher-than-expected quarterly earnings and announced a deal to sell most of its stake in Wella.
Net income for the quarter fell to $ 103 million, or 13 cents a share, from $ 200.6 million, or 24 cents a share, a year ago.
Excluding the extraordinary, the company showed an adjusted earnings per share of 8 cents against losses, while estimates spoke of a profit of 3 cents.
Revenue rose 22 percent to $ 1.37 billion, according to estimates, while comparable sales rose 20.6 percent, exceeding company estimates.
For 2022, Coty Inc. upgrades estimates for comparable sales to a low-to-medium increase in the 13% -19% range compared to a previous estimate for a low increase in the same range.
In a separate statement, Coty said it had agreed to sell a 4.7% stake in Wella to KKR & Co in exchange for the acquisition of 56% of the remaining convertible preference shares in Coty.
The sale of Wella’s stake will leave Coty with a 25.9% stake in Wella.
Once the deal is completed, KKR will own 2.4% of Coty Inc.
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Source From: Capital
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