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Yahoo
21-03-2025
- Business
- Yahoo
‘Functional soda' seen in rude health as PepsiCo takes plunge
If anyone needed convincing that, in the US at least, 'better-for-you' soda isn't a flash in the pan, perhaps PepsiCo's latest acquisition will have persuaded them. On Monday (17 March), just under 72 hours after Bloomberg reported PepsiCo was in late-stage talks to buy US prebiotic soda business Poppi, the US food and drinks giant announced a deal worth just under $2bn. Poppi, formerly known as Mother Beverage, was set up in 2015 and, after receiving funding on US business pitch TV show Shark Tank three years later, relaunched under its current brand in 2020. Since then, Poppi, co-founded by Allison Ellsworth and her husband Stephen, has built what has become one of the more recognisable names in the growing market for 'better-for-you' sodas in the US. Robert Moskow, a beverage-industry analyst at US investment bank TD Cowen, says Poppi generated sales of just over $391m in tracked channels in the last 52 weeks. A company spokesperson says Poppi ran up annual sales of 'north of $500m' in 2024. Alongside Olipop, Poppi, with its low-calorie and low-sugar sodas in 15 flavours, has become a brand synonymous with 'healthier' soda in the US. The purchase of Poppi is PepsiCo's second $1bn-plus acquisition in six months and the food-and-drinks major's latest attempt to tap into a growing part of the market through M&A. Speaking at the annual CAGNY investment conference last month, PepsiCo chairman and CEO Ramon Laguarta called out 'functionality' and 'multicultural' as two product trends that would be central to the company's investment strategy – and its recent deal-making underlines that thesis. In October, the Lay's snacks maker agreed to buy Mexican-American snacks maker Siete Foods for a fee of $1.2bn. 'More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,' Laguarta said on Monday. 'Poppi is a great complement to our portfolio transformation efforts to meet these needs.' After attending last week's Expo West trade show in California, Moskow highlighted better-for-you soda as an area the major players in conventional fizzy drinks needed to focus on. 'We believe carbonated soda leaders will need to take this segment of the market more seriously in 2025 rather than assuming it is a fad,' Moskow said at the time and, this week, he praised PepsiCo's move. 'We believe 'functional soda' is becoming a mainstream segment of the market with sustainable appeal,' he said on Monday. The transaction includes $300m of anticipated cash tax benefits for a net purchase price of $1.65bn, PepsiCo said. The deal also features an additional potential 'earnout consideration' based on whether certain undisclosed 'performance milestones' are reached, the company added. Barclays analyst Lauren Lieberman says the price tag works out at around four times Poppi's sales in the last 12 months, which, she says, 'strikes us as more akin to a beauty valuation'. However, Lieberman adds: 'We see a lot of similarities between the fast-growth, emerging brand landscape of each industry. Poppi boasts both scale and credibility with consumers (the latter of which really coming to light in our data work), which screens particularly attractive, in our view, when considering the path for an internal build would be long and uncertain.' Not all consumers have been happy, however. Poppi confirmed this week it had settled a lawsuit in the US filed by consumers who claimed they were misled by the company (Poppi said it 'acknowledges no fault, liability, or wrongdoing'). The settlement will allow Poppi and PepsiCo to look forward. For PepsiCo, it's a chance to buy into a burgeoning market and attempt to grow the brand further. The company had planned to launch a similar soda under its Soulboost brand (which hit the market four years ago with a range of sparkling waters including 'functional' ingredients like L-theanine and panax ginseng) but decided against the move (it's said the early indications for the new product were not positive) and pounced for Poppi instead. 'A frequent strategic dilemma when entering a new segment or category is whether to build or buy your way in,' David Clark, a former General Mills executive and founder of the Avenir Strategies consultancy, says. 'Buying typically involves paying a premium based on anticipated growth derived from past performance – the more solid the track record, the higher the premium. Building avoids this purchase premium but has a slow build and a high failure rate, circa 80%." Last month, Coca-Cola introduced its first prebiotic soda line, launching the Simply Pop brand in the US. Simply Pop, initially set to go on sale 'at retail in select regions' and via Amazon, is targeted at a product set that includes brands such as Poppi and Olipop. 'Of course, Coke may also be pursuing acquisitions ... but these initial moves suggest that Coke and Pepsi may see the BFY soda opportunity and urgency differently. It'll be interesting to see how this unfolds,' Clark says. Last month, Olipop was valued at $1.85bn after raising $50m in a Series C funding round, led by JP Morgan Private Capital's Growth Equity Partners. In 2023, CNBC quoted Ben Goodwin, Olipop's CEO, as saying PepsiCo and Coca-Cola had made an approach about a potential sale. Olipop said the new cash injection marked its 'final anticipated round of equity financing', after becoming profitable 'in early 2024'. The company, however, also confirmed that it fell short of its $500m sales target projected in May, generating over $400m in revenue for fiscal year 2024. 'The other big player in this space is Olipop and we fully expect them to get acquired by one of PepsiCo's rivals in the near term,' Richard Wyborn, a partner at UK-based consultancy Food Strategy Associates, says. 'Interest in prebiotics and gut health isn't going anywhere and is a trend we expect to appear in more and more categories in the future.' In the main, PepsiCo's acquisition of Poppi is seen by industry watchers as a deal that could benefit both sides. PepsiCo has snapped up a significant player in a buoyant product segment – and a segment that's expected to continue to grow. Meanwhile, Poppi gets the benefit of PepsiCo's distribution muscle. It wouldn't be a massive surprise if we saw, perhaps with some tweaks to recipes and flavours, Poppi products in more international markets in the months ahead. 'They need to ensure they let management continue to do what they've been doing – if it ain't broke don't fix it – but also ensure that they don't turbo charge the growth too much,' Wyborn says. 'Distribution should be built up gradually all the while ensuring velocities remain high.' However, not everyone is sold on the prospects for such functional sodas. PepsiCo's scale will undoubtedly help Poppi in the medium term and this type of bolt-on acquisition has delivered the best ROI in the FMCG industry. However, I remain sceptical about the long-term viability of these sodas,' Ivan Torossian, a consulting director at GlobalData, Just Drinks' parent, says. 'At $2.5–$3 per can, Poppi lacks the 'instant gratification' factor. Red Bull gives you instant wings and electrolyte beverages instant hydration but prebiotics? Consumers too concerned with sugar and gut might as well stick to water for a quarter of the cost. Is there really enough differentiation to sustain Poppi's positioning?' "'Functional soda' seen in rude health as PepsiCo takes plunge" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
21-03-2025
- Business
- Yahoo
‘Functional soda' seen in rude health as PepsiCo takes plunge
If anyone needed convincing that, in the US at least, 'better-for-you' soda isn't a flash in the pan, perhaps PepsiCo's latest acquisition will have persuaded them. On Monday (17 March), just under 72 hours after Bloomberg reported PepsiCo was in late-stage talks to buy US prebiotic soda business Poppi, the US food and drinks giant announced a deal worth just under $2bn. Poppi, formerly known as Mother Beverage, was set up in 2015 and, after receiving funding on US business pitch TV show Shark Tank three years later, relaunched under its current brand in 2020. Since then, Poppi, co-founded by Allison Ellsworth and her husband Stephen, has built what has become one of the more recognisable names in the growing market for 'better-for-you' sodas in the US. Robert Moskow, a beverage-industry analyst at US investment bank TD Cowen, says Poppi generated sales of just over $391m in tracked channels in the last 52 weeks. A company spokesperson says Poppi ran up annual sales of 'north of $500m' in 2024. Alongside Olipop, Poppi, with its low-calorie and low-sugar sodas in 15 flavours, has become a brand synonymous with 'healthier' soda in the US. The purchase of Poppi is PepsiCo's second $1bn-plus acquisition in six months and the food-and-drinks major's latest attempt to tap into a growing part of the market through M&A. Speaking at the annual CAGNY investment conference last month, PepsiCo chairman and CEO Ramon Laguarta called out 'functionality' and 'multicultural' as two product trends that would be central to the company's investment strategy – and its recent deal-making underlines that thesis. In October, the Lay's snacks maker agreed to buy Mexican-American snacks maker Siete Foods for a fee of $1.2bn. 'More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,' Laguarta said on Monday. 'Poppi is a great complement to our portfolio transformation efforts to meet these needs.' After attending last week's Expo West trade show in California, Moskow highlighted better-for-you soda as an area the major players in conventional fizzy drinks needed to focus on. 'We believe carbonated soda leaders will need to take this segment of the market more seriously in 2025 rather than assuming it is a fad,' Moskow said at the time and, this week, he praised PepsiCo's move. 'We believe 'functional soda' is becoming a mainstream segment of the market with sustainable appeal,' he said on Monday. The transaction includes $300m of anticipated cash tax benefits for a net purchase price of $1.65bn, PepsiCo said. The deal also features an additional potential 'earnout consideration' based on whether certain undisclosed 'performance milestones' are reached, the company added. Barclays analyst Lauren Lieberman says the price tag works out at around four times Poppi's sales in the last 12 months, which, she says, 'strikes us as more akin to a beauty valuation'. However, Lieberman adds: 'We see a lot of similarities between the fast-growth, emerging brand landscape of each industry. Poppi boasts both scale and credibility with consumers (the latter of which really coming to light in our data work), which screens particularly attractive, in our view, when considering the path for an internal build would be long and uncertain.' Not all consumers have been happy, however. Poppi confirmed this week it had settled a lawsuit in the US filed by consumers who claimed they were misled by the company (Poppi said it 'acknowledges no fault, liability, or wrongdoing'). The settlement will allow Poppi and PepsiCo to look forward. For PepsiCo, it's a chance to buy into a burgeoning market and attempt to grow the brand further. The company had planned to launch a similar soda under its Soulboost brand (which hit the market four years ago with a range of sparkling waters including 'functional' ingredients like L-theanine and panax ginseng) but decided against the move (it's said the early indications for the new product were not positive) and pounced for Poppi instead. 'A frequent strategic dilemma when entering a new segment or category is whether to build or buy your way in,' David Clark, a former General Mills executive and founder of the Avenir Strategies consultancy, says. 'Buying typically involves paying a premium based on anticipated growth derived from past performance – the more solid the track record, the higher the premium. Building avoids this purchase premium but has a slow build and a high failure rate, circa 80%." Last month, Coca-Cola introduced its first prebiotic soda line, launching the Simply Pop brand in the US. Simply Pop, initially set to go on sale 'at retail in select regions' and via Amazon, is targeted at a product set that includes brands such as Poppi and Olipop. 'Of course, Coke may also be pursuing acquisitions ... but these initial moves suggest that Coke and Pepsi may see the BFY soda opportunity and urgency differently. It'll be interesting to see how this unfolds,' Clark says. Last month, Olipop was valued at $1.85bn after raising $50m in a Series C funding round, led by JP Morgan Private Capital's Growth Equity Partners. In 2023, CNBC quoted Ben Goodwin, Olipop's CEO, as saying PepsiCo and Coca-Cola had made an approach about a potential sale. Olipop said the new cash injection marked its 'final anticipated round of equity financing', after becoming profitable 'in early 2024'. The company, however, also confirmed that it fell short of its $500m sales target projected in May, generating over $400m in revenue for fiscal year 2024. 'The other big player in this space is Olipop and we fully expect them to get acquired by one of PepsiCo's rivals in the near term,' Richard Wyborn, a partner at UK-based consultancy Food Strategy Associates, says. 'Interest in prebiotics and gut health isn't going anywhere and is a trend we expect to appear in more and more categories in the future.' In the main, PepsiCo's acquisition of Poppi is seen by industry watchers as a deal that could benefit both sides. PepsiCo has snapped up a significant player in a buoyant product segment – and a segment that's expected to continue to grow. Meanwhile, Poppi gets the benefit of PepsiCo's distribution muscle. It wouldn't be a massive surprise if we saw, perhaps with some tweaks to recipes and flavours, Poppi products in more international markets in the months ahead. 'They need to ensure they let management continue to do what they've been doing – if it ain't broke don't fix it – but also ensure that they don't turbo charge the growth too much,' Wyborn says. 'Distribution should be built up gradually all the while ensuring velocities remain high.' However, not everyone is sold on the prospects for such functional sodas. PepsiCo's scale will undoubtedly help Poppi in the medium term and this type of bolt-on acquisition has delivered the best ROI in the FMCG industry. However, I remain sceptical about the long-term viability of these sodas,' Ivan Torossian, a consulting director at GlobalData, Just Drinks' parent, says. 'At $2.5–$3 per can, Poppi lacks the 'instant gratification' factor. Red Bull gives you instant wings and electrolyte beverages instant hydration but prebiotics? Consumers too concerned with sugar and gut might as well stick to water for a quarter of the cost. Is there really enough differentiation to sustain Poppi's positioning?' "'Functional soda' seen in rude health as PepsiCo takes plunge" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
US Foods to Present at the 2025 CAGNY Conference
US Foods Reaffirms Fiscal Year 2025 Guidance and 2025-2027 Long-range Plan ROSEMONT, Ill., February 20, 2025--(BUSINESS WIRE)--US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, is participating at the 2025 Consumer Analyst Group of New York (CAGNY) Conference today at 11 a.m. EST. Dave Flitman, Chief Executive Officer, and Dirk Locascio, Chief Financial Officer, will present at the conference. "We overachieved our 2022 to 2024 long range plan through the focused execution of our strategy, where we delivered an Adjusted EBITDA increase of 11.7% to $1.74 billion in 20241," said Dave Flitman, Chief Executive Officer. "Building on this exciting momentum, US Foods is well positioned to execute on our new long-range plan for 2025 to 2027. I am highly confident in our ability to continue outpacing industry volume growth over the long-term and expand margins through our extensive portfolio of self-help initiatives, while driving long-term value creation for our shareholders." At the conference, the Company will highlight its momentum, including: Transforming US Foods with seasoned leadership focused on customer-centric solutions, operational excellence, and strong execution Leading in a highly fragmented and resilient industry with national scale, targeted customer growth, and digital innovation Driving balanced, profitable growth through our four-pillar strategy to further expand our market position Extending our technology leadership position to provide industry-leading solutions Accelerating cash flow generation which will result in more than $4 billion to deploy over the next three years ___________________________ 1 For a reconciliation of Adjusted EBITDA and Adjusted EBITDA increase for 2024, see our earnings press release dated February 13, 2025. Outlook for Fiscal Year 20252 The Company is reaffirming its previously announced fiscal year 2025 guidance of: Net Sales growth of 4% to 6% Adjusted EBITDA growth of 8% to 12% Adjusted Diluted EPS growth of 17% to 23% The Company also reiterates its 2025 to 2027 long-range plan growth algorithm, including: 5% sales Compound Annual Growth Rate (CAGR) 10% Adjusted EBITDA CAGR At least 20 basis points of annual Adjusted EBITDA margin expansion 20% Adjusted Diluted EPS CAGR The Company will webcast live from the CAGNY event, which can be accessed at An archived replay of the webcast will be available shortly after the live event is completed. About US Foods With a promise to help its customers Make It, US Foods is one of America's great food companies and a leading foodservice distributor, partnering with approximately 250,000 customer locations and foodservice operators to help their businesses succeed. With more than 70 broadline locations and more than 90 cash and carry stores, US Foods and its 30,000 associates provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, Ill. Visit to learn more. Forward-Looking Statements Statements in this press release which are not historical in nature, including those under the heading "Outlook for Fiscal Year 2025," are "forward-looking statements" within the meaning of the federal securities laws. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "outlook," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecast," "mission," "strive," "more," "goal," or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results and there are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures; the impact of climate change or related legal, regulatory or market measures; impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets; the impact of governmental regulations; product recalls and product liability claims; our reputation in the industry; labor relations and increased labor costs and continued access to qualified and diverse labor; indebtedness and restrictions under agreements governing our indebtedness; interest rate increases; disruption of existing technologies and implementation of new technologies; cybersecurity incidents and other technology disruptions; risks associated with intellectual property, including potential infringement; effective consummation of pending acquisitions and effective integration of acquired businesses; potential costs associated with shareholder activism; changes in tax laws and regulations and resolution of tax disputes; certain provisions in our governing documents; health and safety risks to our associates and related losses; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and management of retirement benefits and pension obligations. For a detailed discussion of these risks, uncertainties and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 filed with the Securities and Exchange Commission ("SEC"). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC's website at Additionally, we operate in a highly competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible to predict all risks nor identify all uncertainties. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to us at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law. ___________________________ 2 The Company is not providing a reconciliation of certain forward-looking non-GAAP financial measures, including Adjusted EBITDA and Adjusted Diluted EPS, because the Company is unable to predict with reasonable certainty the financial impact of certain significant items, including restructuring activity and asset impairment charges, share-based compensation expenses, non-cash impacts of LIFO reserve adjustments, losses on extinguishments of debt, business transformation costs, other gains and losses, business acquisition and integration related costs and planned divestiture costs and diluted earnings per share. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance periods. For the same reasons, the Company is unable to address the significance of the unavailable information, which could be material to future results. View source version on Contacts INVESTOR CONTACT:Mike Neese(847) MEDIA CONTACT:Sara Matheu(773) Sign in to access your portfolio
Associated Press
20-02-2025
- Business
- Associated Press
US Foods to Present at the 2025 CAGNY Conference
US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, is participating at the 2025 Consumer Analyst Group of New York (CAGNY) Conference today at 11 a.m. EST. Dave Flitman, Chief Executive Officer, and Dirk Locascio, Chief Financial Officer, will present at the conference. 'We overachieved our 2022 to 2024 long range plan through the focused execution of our strategy, where we delivered an Adjusted EBITDA increase of 11.7% to $1.74 billion in 2024 1,' said Dave Flitman, Chief Executive Officer. 'Building on this exciting momentum, US Foods is well positioned to execute on our new long-range plan for 2025 to 2027. I am highly confident in our ability to continue outpacing industry volume growth over the long-term and expand margins through our extensive portfolio of self-help initiatives, while driving long-term value creation for our shareholders.' At the conference, the Company will highlight its momentum, including: Transforming US Foods with seasoned leadership focused on customer-centric solutions, operational excellence, and strong execution Leading in a highly fragmented and resilient industry with national scale, targeted customer growth, and digital innovation Driving balanced, profitable growth through our four-pillar strategy to further expand our market position Extending our technology leadership position to provide industry-leading solutions Accelerating cash flow generation which will result in more than $4 billion to deploy over the next three years ___________________________ 1 For a reconciliation of Adjusted EBITDA and Adjusted EBITDA increase for 2024, see our earnings press release dated February 13, 2025. Outlook for Fiscal Year 2025 2 The Company is reaffirming its previously announced fiscal year 2025 guidance of: Net Sales growth of 4% to 6% Adjusted EBITDA growth of 8% to 12% Adjusted Diluted EPS growth of 17% to 23% The Company also reiterates its 2025 to 2027 long-range plan growth algorithm, including: 5% sales Compound Annual Growth Rate (CAGR) 10% Adjusted EBITDA CAGR At least 20 basis points of annual Adjusted EBITDA margin expansion 20% Adjusted Diluted EPS CAGR The Company will webcast live from the CAGNY event, which can be accessed at An archived replay of the webcast will be available shortly after the live event is completed. About US Foods With a promise to help its customers Make It, US Foods is one of America's great food companies and a leading foodservice distributor, partnering with approximately 250,000 customer locations and foodservice operators to help their businesses succeed. With more than 70 broadline locations and more than 90 cash and carry stores, US Foods and its 30,000 associates provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, Ill. Visit to learn more. Forward-Looking Statements Statements in this press release which are not historical in nature, including those under the heading 'Outlook for Fiscal Year 2025,' are 'forward-looking statements' within the meaning of the federal securities laws. These statements often include words such as 'believe,' 'expect,' 'project,' 'anticipate,' 'intend,' 'plan,' 'outlook,' 'estimate,' 'target,' 'seek,' 'will,' 'may,' 'would,' 'should,' 'could,' 'forecast,' 'mission,' 'strive,' 'more,' 'goal,' or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results and there are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures; the impact of climate change or related legal, regulatory or market measures; impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets; the impact of governmental regulations; product recalls and product liability claims; our reputation in the industry; labor relations and increased labor costs and continued access to qualified and diverse labor; indebtedness and restrictions under agreements governing our indebtedness; interest rate increases; disruption of existing technologies and implementation of new technologies; cybersecurity incidents and other technology disruptions; risks associated with intellectual property, including potential infringement; effective consummation of pending acquisitions and effective integration of acquired businesses; potential costs associated with shareholder activism; changes in tax laws and regulations and resolution of tax disputes; certain provisions in our governing documents; health and safety risks to our associates and related losses; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and management of retirement benefits and pension obligations. For a detailed discussion of these risks, uncertainties and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 filed with the Securities and Exchange Commission ('SEC'). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC's website at Additionally, we operate in a highly competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible to predict all risks nor identify all uncertainties. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to us at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law. ___________________________ 2 The Company is not providing a reconciliation of certain forward-looking non-GAAP financial measures, including Adjusted EBITDA and Adjusted Diluted EPS, because the Company is unable to predict with reasonable certainty the financial impact of certain significant items, including restructuring activity and asset impairment charges, share-based compensation expenses, non-cash impacts of LIFO reserve adjustments, losses on extinguishments of debt, business transformation costs, other gains and losses, business acquisition and integration related costs and planned divestiture costs and diluted earnings per share. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance periods. For the same reasons, the Company is unable to address the significance of the unavailable information, which could be material to future results. Mike Neese (847) 232-5894 [email protected] CONTACT: Sara Matheu (773) 580-3775 [email protected] SOURCE: US Foods Copyright Business Wire 2025. PUB: 02/20/2025 06:45 AM/DISC: 02/20/2025 06:44 AM
Yahoo
19-02-2025
- Business
- Yahoo
Coty Provides Update on Category Leadership, Financial Progress, and Strategy to Fuel Outperformance of Beauty Market at CAGNY 2025 Conference
Coty to Overdrive Fragrance Category Across Price Points, from $5 to $500 Leading Position and Capabilities in Fragrances, Plus Multi-Category Expertise, to Fuel Expansion On Track to Deliver Leading TSR Through Profit, EPS, and Free Cash Flow Expansion Strong Progress Towards ~2x Leverage Target Exiting CY26 NEW YORK, February 19, 2025--(BUSINESS WIRE)--Regulatory News: Coty (NYSE: COTY) (Paris: COTY), one of the world's largest beauty companies with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care, is pleased to confirm that Chief Executive Officer Sue Nabi and Chief Financial Officer Laurent Mercier will present at the 2025 Consumer Analyst Group of New York Conference (CAGNY) on Wednesday, February 19 at 4:00pm EST or 10:00pm CET. Coty will provide an update on its category leadership, financial and strategic progress, and how it plans to fuel outperformance of the beauty market, while capturing white-space opportunities across categories and price points. Coty has consistently outpaced the beauty market in 9 of the last 14 quarters through best-in-class execution of its strategic growth pillars. The Company continues to leverage its global leadership position in both prestige and mass fragrances, its best-in-class fragrance capabilities and robust brand portfolio to fuel strong sell-out growth for its fragrance business, which accounts for over 60% of its sales and an even larger portion of its profit. This fragrance leadership underpins Coty's strategy to capture growth in existing and new geographic markets as well as scenting adjacencies, which together represent a multi-billion dollar opportunity. At the same time, Coty's established positions in cosmetics and bodycare, and strengthening capabilities in skincare, will further reinforce its multi-category beauty portfolio. The Company's strategic progress is complemented by a disciplined financial approach and a robust deleveraging agenda. Over the past 4 fiscal years, Coty has expanded its adjusted gross margins by over 400 basis points and adjusted EBITDA margins by 130 basis points to 17.8%. In the first half of 2025, Coty reached a key milestone exiting CY24, reporting a leverage below 3x for the first time in over 8 years. Coty continues to target steady gross and EBITDA margin expansion, coupled with double-digit adjusted EPS growth in the coming years, with leverage declining towards 2x by the end of CY26. Sue Nabi, Coty's CEO, said, "The beauty market has evolved considerably since we first unveiled our strategy over three years ago. We see significant growth opportunities for our core brands in the coming years, particularly in the fragrance category, where structural tailwinds are supporting category growth. Our fragrance portfolio delivered outperformance at all price points in the first half of this year, driven by strong momentum across iconic brands including Hugo Boss, Burberry, Chloe and Marc Jacobs. "With 2025 emerging as a key year for the sector, we are confident in our ability to fuel Coty's outperformance of the global beauty market and deliver long-term growth, leveraging our multi-category beauty expertise, track record of innovation and IP utilisation, and diversified portfolio of brands across the price spectrum." The presentation accompanying management's remarks will be available on Coty's Investor Relations website, under Events and Presentations. A live webcast of the presentation will begin at 4:00pm EST or 10:00pm CET, and a replay of Coty's remarks will be available at About Coty Inc. Founded in Paris in 1904, Coty is one of the world's largest beauty companies with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care. Coty serves consumers around the world, selling prestige and mass market products in over 120 countries and territories. Coty and our brands empower people to express themselves freely, creating their own visions of beauty; and we are committed to protecting the planet. Learn more at or on LinkedIn and Instagram. Cautionary Note Regarding Forward-looking Statements The statements contained in this press release include certain "forward-looking statements" within the meaning of the securities laws. These forward-looking statements reflect Coty's current views with respect to, among other things, its outlook, expected guidance, trends and strategic information. These forward-looking statements are generally identified by words or phrases, such as "anticipate," "are going to," "estimate," "plan," "project," "expect," "believe," "intend," "foresee," "forecast," "will," "may," "should," "outlook," "continue," "target," "aim," "potential" and similar words or phrases. These statements are based on certain assumptions and estimates that Coty considers reasonable and are not guarantees of Coty's future performance, but are subject to a number of risks and uncertainties, many of which are beyond Coty's control, which could cause actual events or results to differ materially from such statements, including the factors identified in "Risk Factors" included in Coty's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and its subsequent quarterly reports on Form 10-Q. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this press release, and Coty does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. Coty provides guidance only on a non-GAAP basis and does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for restructuring, integration and acquisition-related expenses, amortization expenses, adjustments to inventory, and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant. View source version on Contacts For more information: Investor Relations Olga Levinzon +1 212 389-7733olga_levinzon@ Media Antonia Werther +31 621 394495Antonia_Werther@ Sign in to access your portfolio
