Coty Inc. announced a quarterly loss as charges associated with recent acquisitions more than offset improving sales in its fragrance business. The company has been aggressively hunting deals to improve its business and grow its footprint. Last year Coty said it would acquire much of Procter & Gamble ’s beauty business, including labels such as CoverGirl makeup, Gucci fragrances and Clairol hair dye, for about $13 billion.
Net revenues of $4,349.1 million decreased 1% as reported and like-for-like. Reported operating income of $254.2 million decreased 36% from the prior-year, driven primarily by acquisition related costs. Adjusted operating income of $622.9 million increased 3% from the prior-year. Reported net income of $156.9 million decreased 33%, while adjusted net income of $485.2 million increased 19% from the prior-year. Reported earnings per diluted share of $0.44 decreased 31%, while adjusted earnings per diluted share of $1.37 increased 21% from the prior-year. Net cash provided by operating activities was $501.4 million compared to $526.3 million in the prior-year, despite an increase in cash acquisition-related costs of over $100 million relative to the prior year.
