Coty Inc. Class A

Hello, my name is Todd, and I'll be your conference operator today. At this time, I would like to welcome everyone to Cody's second quarter fiscal 2024 question and answer conference call. As a reminder, this conference call is being recorded today, February 8, 2024, at 18, sorry, 8.15 a.m. Eastern or 2.15 p.m. Central European time. Please note that on February 7th, at approximately 4.30 p.m. Eastern Time or 10.30 p.m. Central European Time, Cody issued a press release and prepared remarks webcast, which can be found on its investor relations website. On today's call are Sue Nobby, Chief Executive Officer, and Laurent Mercier, Chief Financial Officer. I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Cody's earnings release and the reports filed with the SEC or the company list factors that could cause actual results to differ materially from these forward-looking statements. In addition, except where noted, the discussion of Cody's financial results and Cody's expectations reflect certain adjustments as specified in the non-GAAP financial measurements section of the company's press release. With that, we will now open the line for questions. If you would like to ask a question at this time, please press star 1 on your telephone keypad. You may remove yourself at any time by pressing star 2. Once again, that is star and 1 to ask a question. Our first question will come from Rob Ottenstein with Evercore. Please go ahead.

Thank you very much, and congratulations on another terrific quarter. So, Sue, your outperformance in Prestige Fragrances was really impressive. Two questions on that. How much of that outperformance is attributable to new brand launches? And then second, as the Prestige Fragrance market normalizes, can you continue your outperformance? And if so, what gives you the confidence to be able to do that? Thank you.

Yes, good morning. Thank you very much for your kind words. Indeed, it's a very good quarter, specifically driven by the prestige performance. You know, the outperformance in this division has been achieved thanks to a very good, I have to say, balance of new launches and strong performance of the base business. which is also supported by the halo from the launches. If I take the example of Burberry Goddess or Burberry as a brand, all the three lines are growing. The one that is by definition new, Burberry Goddess, biggest launch ever at Coty, top one fragrance innovation around the world. while at the same time Burberry Hero, which is a few years old, or Burberry Hero, which is two and a half years old, are also growing. So, in fact, this, I would say, outstanding performance we're having behind our innovations is also benefiting other brands. Some other brands of the portfolio, I'm thinking about Calvin Klein or Davidoff, are also growing double-digit without new innovations. In a way, it's really a good balance between innovation and based business, if I may call it like this. And what gives us the confidence in this outperformance in this market that's going to normalize still is going to be a mid to high single digit growth, which is far above what was the case just a few years ago. But the confidence we're having it from a lot of capabilities we have been able to build during the last three years. capabilities to build blockbusters, be it in terms of creating winning juicers, creating winning mixers, finding the right balance between influencer marketing, classical media, sampling, etc. All this is a know-how that's here to stay and here to develop. It's also a confidence that we are taking from our still white space opportunities geographically speaking, but also white space opportunities in terms of categories. So all of these give us a confidence that we will hopefully continue to outperform this very dynamic market.