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COTY - Coty Inc


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this is very, very bad

 

write-offs on recent acquisitions needed to right the ship?

Writeoff seems inevitable but doesn't really change anything since it's already discounted in the share price I'd think.

 

But I think it's a huge positive they sack the CEO, I just don't know the new Guy.

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this is very, very bad

 

write-offs on recent acquisitions needed to right the ship?

Writeoff seems inevitable but doesn't really change anything since it's already discounted in the share price I'd think.

 

But I think it's a huge positive they sack the CEO, I just don't know the new Guy.

I don't know if the Becht stepping aside is a good sign

 

the new director likely didn't want to take the helm in total and will be responsible for finding a new ceo?  or have they given up and intend to sell all the pieces?  I think we're leaning on the latter though after the P&G write-downs, I'm not sure what value there is left?

 

interesting that the stock is moving up today

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  • 2 months later...

https://www.ft.com/content/55c0c50e-17e6-11e9-b93e-f4351a53f1c3

 

Becht split from Harf and Goudet.  And apparently wanted JAB to focus more on its core holdings.

 

Laubies has expressed a pretty clear plan and analysis of what previous mgmt may have misstepped.

 

That sounds interesting.

Where can this plan and analysis be found?

An interview or conference call? Could you post a link please?

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Roger, thanks for flagging that FT article.  I have cancelled my subscription and missed it.  I saw Miller and the resulting stock moves.  I am long and wrong both AVP and COTY (and my logic is/was kind of weirdly identical to his elevator pitch, but I thought Mirantando and co (the activist guys from Raleigh) would get it sorted/clean house a lot more quickly so was even earlier).  Pretty dismayed to learn the reasons why Becht left as I would 100% agree with him and if they are taking outside money and adding partners/diluting the talent to grow into a big AUM PE shop versus investing "their own money" for high returns that pretty much totally screws up my thesis on the incentives.  I'm sure it will work out well for their management fees, but I probably will look to exit Coty over the longer term because of this change.

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  • 8 months later...

FT article about plans to shop the professional/salon bidness:

 

https://www.ft.com/content/d5b2d472-f3f6-11e9-b018-3ef8794b17c6

 

Says hired UBS, and floats a $8-$9 billion expectation (from their banker?)...I see a ~$15 Billion total EV; and I think that segment is ~20% of revenues.  Includes brazil business i think, but not sure how material that is.

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  • 6 months later...
Guest cherzeca

The story with Coty is really unbelievable.

 

Health & beauty is known to be a good business, look at their competitors (l'Oreal, Estee Lauder,...)

The people, JAB,  running it have a very good reputation. Look at their other holdings : Reckitt Benckiser, DE, dr Pepper Keurig, AB Inbev and were associated with 3G capital and a certain moment Buffett (takeover Avon Cosmetics). They have a reputation for being good operators and Harf (CEO JAB) also as good capital allocator.

 

Against all these odds, the Coty story is a continuous disaster.

 

They did a terrible takeover with the Procter & Gamble assets, and since then, they never got it on the rails again...

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