Good morning and good afternoon, everyone. This is Olga Levinzon, Coty's Senior Vice President of Investor Relations. Thank you for joining us today for the prepared remarks portion of Coty's Fourth Quarter and Fiscal 2023 Earnings. Later this morning, at approximately 8:15 a.m. Eastern Time, we will hold a separate live Q&A session on today's results, which you can access via our investor relations website. Joining me this morning for our presentation are Sue Nabi, Coty's CEO; and Laurent Mercier, Coty's CFO. Before I hand the call over to Sue, I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty's earnings release and the reports filed with the SEC, where the company lists factors that could cause actual results to differ materially from these forward-looking statements. In addition, except where noted, the discussion of Coty's financial results and Coty's expectations reflect certain adjustments as specified in the non-GAAP financial measures section of the company's release. Thank you. I will now turn it over to our CEO, Sue Nabi.

Thank you, Olga. Welcome everyone. I am very happy to share that today's fiscal '23 results mark the third consecutive year of Coty delivering strong financial, operational, and strategic performance. This is also the 12th consecutive quarter of the company reporting results in line with or ahead of expectations. These accomplishments are the result of the focus and agility across the full Coty organization as we continue to amplify our strengths, adjust to evolving market conditions, and capture new opportunities. In fact, our Q4 and fiscal '23 results are again amongst the best in our competitive set, speaking to the power of the Coty business. Looking externally, beauty demand remains resilient across our key categories and geographies, in the midst of the current macroeconomic uncertainty, with no signs of trade-down, while the famous fragrance index we have been discussing for over a year shows no sign of slowing. In fact, the beauty category continues to be a standout in key markets like the U.S., as the only category to grow volumes in the last six months amongst all CPG and general merchandise categories, speaking to the beauty industry's ability to meet consumers' emotional needs. This fully reaffirms the message that we have been conveying for some time: that Coty and our peers have a key role to play in fueling consumer excitement and generating consumer demand by launching innovative and desirable products supported by meaningful storytelling as well as clean and sustainable formulations and packages. As a result, we continue to target growing our sales ahead of the beauty market, growing our profit ahead of sales, steadily deleveraging our balance sheet, and positioning Coty to continue to succeed as a beauty powerhouse with still significant untapped potential. Let me now summarize the key messages from our results. First, we once again delivered revenue growth ahead of both expectations and raised guidance, fueled by the strong beauty demand and successful key brand initiatives in both divisions. Our Q4 like-for-like revenues grew 17%, ahead of our updated guidance of 12% to 15% and outlook at the start of the quarter of 10%. We saw particularly strong sales momentum in Prestige coupled with double-digit growth in Consumer Beauty. Our full year revenues grew 12% on a core like-for-like basis, with double-digit growth in both divisions, marking the second consecutive year of double-digit growth for the company. Second, our fiscal '23 profits were ahead of guidance, with adjusted operating income growing 20% year-on-year and adjusted EBITDA growing 7%, despite strong reinvestments in our business and significant ForEx headwinds of over $70 million for the year. Third, we continued to execute and make progress across our strategic growth pillars. Finally, our fiscal '24 outlook is in line with or ahead of our medium-term growth algorithm, as we are targeting like-for-like growth at the top end of our medium-term 6% to 8% range, moderate gross and EBITDA margin expansion, and double-digit growth in our adjusted EPS. And I will now take a few moments to cover our revenue trends during the quarter before Laurent takes you through our financials. Then I will finish with an update on our strategic progress and, of course, our outlook. Starting now with our revenue performance. As you can see, our Q4 like-for-like revenues grew 17%, well ahead of raised guidance. This brings our fiscal year-to-date core like-for-like revenue growth to 12%, well ahead of our original 6% to 8% like-for-like growth guidance, and the second consecutive year of double-digit like-for-like growth for the company. In Q4, our core Prestige business grew 21% like-for-like, resulting in 13% core like-for-like growth in fiscal '23. The strong sales growth acceleration in Q4 reflected double-digit growth across Americas, EMEA, and the Travel Retail channel, and a couple of points of benefit from the China low comparison last year. We are continuing to see robust fragrance demand across all key markets. At the same time, retailer inventories at the end of Q4 are at healthy levels, particularly as we are now entering the stronger seasonal demand period. In Consumer Beauty, core revenues grew 10% like-for-like, bringing fiscal '23 core like-for-like growth to 11%. Our Q4 Consumer Beauty growth came from solid growth in color cosmetics and continued strong momentum in our Brazilian brands. Geographically speaking, like-for-like revenues continued to grow in all regions for the quarter and for the year. Americas revenues grew 13% like-for-like in Q4 and 10% in fiscal '23, with double-digit growth in nearly every market and in regional Travel Retail. EMEA, core like-for-like sales grew 13% in both Q4 and fiscal '23. We saw double-digit growth across most markets and in Travel Retail. Asia Pacific revenues grew 40% like-for-like in Q4 and 13% in fiscal '23, with a robust rebound in China and Hainan, particularly given the depressed base period comparison, as well as strong momentum in broader Asia and local Travel Retail. A critical part of our strategy is our unwavering focus on driving balanced growth. Growth in Q4 and fiscal '23 was once again supported by volumes, price, and mix. In Q4, we saw low single-digit core volume growth and mid-teens expansions from the combination of price and mix. For fiscal '23, core volumes also grew in the low single-digits, while price and mix grew approximately 10%. Our intent in the coming quarters and years is to continue to drive a balanced agenda, with our top-line growth supported by a combination of volumes, pricing, and mix. I will now hand the call over to Laurent to take you through our financial results.

Thank you, Sue. I am pleased to say that we continued to deliver strong financial performance, with the Q4 results marking the 12th consecutive quarter of results in line with or ahead of expectations. Let's start with an update on how we are navigating the complexities of global supply and inflation. Building on the strong progress made last quarter in improving our Prestige service levels through expanded dual-sourcing, detailed supply and demand planning, and building of safety stock, we again improved in Q4, reaching a mid-90s service level exiting the quarter. We are confident that we'll be able to meet fiscal '24 demand, including during the peak holiday period. Turning to the inflationary backdrop. In the fourth quarter, COGS inflation was approximately 2.1% of sales. For the full year, COGS inflation was approximately 2% of revenues. Looking to fiscal '24, while cost inflation on certain commodities such as paper and energy are easing, costs on other materials and components are still growing in large part due to labor. In the first half of fiscal '24, we continue to expect COGS inflation to remain elevated, driven by the combination of delayed inflation impact based on our procurement negotiations with suppliers, as well as the capitalization of the higher COGS we've incurred in recent months, which gets released to the P&L roughly four months later. As these two factors are more timing related and the underlying inflation drivers are clearly easing, we expect a significant moderation in COGS inflation in the second half of fiscal '24. Our execution on savings, strategic revenue management, and pricing is helping us to balance this inflationary impact. We are currently in the process of another round of pricing in the first quarter of fiscal '24, as we continue our portfolio transition to cleaner and more sustainable products, which in turn also drives category value growth, while also closing pricing gaps versus our competition, particularly in Consumer Beauty. I will now provide an update on our All-in-to-Win program. In Q4, we delivered savings of approximately $50 million, bringing our fiscal year '23 savings to approximately $180 million, ahead of our target of approximately $170 million in fiscal year '23. Due to our strong project pipeline, we are increasing our fiscal year '24 savings estimate to over $100 million, up from our previous target of approximately $90 million. Savings in fiscal year '24 will be driven by material value analysis, platforming savings, and structural A&CP savings among other projects. We continue to target $75 million of savings in fiscal year '25, reaffirming the savings target announced in Q2. In sum, having delivered over $600 million of savings life-to-date, we continue to optimize all of our processes and expenditures, thereby positioning Coty to be both flexible and fully equipped to invest in our strategic priorities. And importantly, we are now in phase two of our transformation, as we put in place more enablers for sustainable growth and business acceleration across the brands and markets, supplementing our savings initiatives, which fuel profit expansion and reinvestment. Moving to our gross margin performance. Q4 adjusted gross margin of 62.8% increased by 70 basis points from last year, bringing the year-to-date adjusted gross margin to 63.9%, which is up 20 basis points year-on-year and up by a very significant 390 basis points versus two years ago. Our Q4 gross margin increase was driven by supply chain productivity; the positive benefits from mix; and additional price increases executed at the end of Q3. These benefits to gross margin were partially offset by COGS inflation of approximately 210 basis points of sales in Q4. Despite inflation that was prevalent this year, we delivered gross margin expansion in both Q4 and fiscal year '23. Going forward, we will continue executing on our multi-pronged, multi-year gross margin attack plan, as we drive our gross margins to the mid-60%s and beyond. I'd like to take a moment to discuss our investments in research and development. As we have transformed our business over the last three years, steadily executing on our six-pillar strategy, we have been steadily reinvesting in our organizational capabilities, including R&D. In fact, our R&D investment is close to 10% higher than it was two years ago, with investments behind skincare growing substantially above these levels. We expect to step change our R&D investments in the coming years, particularly behind skincare, as we pursue our ambition to double our skincare revenues in the next few years and position skincare as a key pillar of Coty's business model. Let me now walk you through our marketing investments. In Q4, A&CP investments represented approximately 28% of sales, stable with Q3 levels and with the prior year, as we continued to support our key initiatives. This brings the fiscal year '23 A&CP level to approximately 27%, in line with our expectations and relatively stable year-over-year. As with prior quarters, our marketing spend was concentrated behind key innovations in Prestige and Consumer Beauty, as well as whitespace opportunities. Moving to our profit delivery for the quarter. Our Q4 adjusted operating income grew 61% to $105 million, with our fiscal '23 operating income expanding a strong 20% year-on-year. This delivery was particularly impressive given strong ForEx headwinds, which negatively impacted our fiscal year '23 adjusted EBITDA by over $70 million. So, both the Prestige and Consumer Beauty segments delivered double-digit adjusted operating income growth in Q4 and fiscal '23, with margin improvement in both businesses. As a result, our Q4 adjusted operating margin grew 220 basis points year-over-year, with fiscal year '23 margin up strongly by 170 basis points to 13.3%. Importantly, we continue to expect strong income growth and margin expansion going forward. Our Q4 adjusted EBITDA grew 25% year-over-year to $165 million, with 7% growth in fiscal year '23 to $973 million. As a result, our Q4 adjusted EBITDA margin increased 90 basis points year-over-year, bringing our fiscal year '23 adjusted EBITDA margin to 17.5%, up 40 basis points versus last year. Now turning to our adjusted EPS, where we reported strong momentum in the quarter. Our Q4 diluted adjusted EPS was $0.01, up $0.02 year-over-year driven by a much stronger Q4 adjusted operating income, partially offset by higher tax and interest expense. Specifically, the Q4 interest expense stepped up sequentially versus Q3, driven by a higher cost of debt in the rising interest rate environment, as well as a $5 million increase in ForEx costs. There was no material net impact from the mark-to-market on the equity swap in the quarter. Our fiscal year '23 diluted adjusted EPS was $0.53, up 89% year-over-year and includes a non-cash EPS benefit of $0.15 from the mark-to-market on the equity swap in the second and third quarters. Our fiscal year '23 operational EPS, excluding the swap, was $0.38, driven by net profit improvement, which reflects very substantial growth of 36% versus last year. Looking ahead to fiscal year '24, I would like to provide some additional details related to our current expectations for certain drivers of our adjusted EPS. First, we expect depreciation to be in the $230 million to $240 million range. Second, we anticipate net interest expense for the year to be in the mid-$200 million. Third, we anticipate an adjusted effective tax rate for fiscal '24 in the mid to high 20%s. Finally on fiscal '24 share count, we currently estimate 1% of dilution, though similar to fiscal '23, quarterly share count will fluctuate based on GAAP anti-dilution provisions. Moving to our free cash flow. We generated free cash flow of $38 million in the quarter. For the year, we generated $403 million of free cash flow, which was in line with our expectations despite the inventory build required to increase safety stock and meet anticipated fragrance demand in the first half of fiscal year '24. In the coming years, we expect steady expansion in free cash flows. Our intent is to continue to use our strong free cash flow and opportunistic asset monetization to actively reduce our debt and advance our deleveraging agenda. Moving to our capital structure. We ended Q4 with net debt of approximately $4 billion. As a result, our leverage at the end of the quarter was around 4.1x, down from around 4.4x at the end of Q3 and consistent with our expectations. Factoring in our Wella stake, we ended the quarter with economic net debt of approximately $3 billion. We remain committed to divesting our Wella stake by calendar year '25 and as a first step in this objective, we recently entered into a binding letter of intent to sell 3.6% of our retained Wella stake for $150 million to IGF Wealth Management, subject to customary closing conditions including consent by KKR. The transaction would reflect a 4% premium to the book value of Wella as of March 31. Additionally, as part of our active efforts to strengthen our balance sheet, we successfully issued $750 million of 2030 senior secured notes in July. We used the combination of these proceeds and our revolver to fully pay down our Term Loan B, resulting in approximately 85% of our total debt now being fixed rate, which is key in the current interest rate environment. Looking beyond fiscal '23, our strong continued progress on deleveraging and debt paydown supports our expectation for our interest expense to steadily decline in the coming years, despite the currently rising interest rate environment. To sum up, we are confident in our next major leverage milestones, as we continue to target leverage towards 3x exiting calendar '23, approximately 2.5x exiting calendar year '24 and approximately 2x exiting calendar year '25. I will now hand it back to Sue to review our strategic progress in the quarter.

Thank you, Laurent. Let me outline some key points regarding our ongoing implementation of our six-pillar strategy, starting with the first pillar, which aims to stabilize and grow our Consumer Beauty business. During the quarter, both the mass beauty market and our Consumer Beauty segment remained quite dynamic. As I noted before, our Consumer Beauty revenues saw an approximate 10% like-for-like increase during the quarter, with growth in the high single digits to double digits across our main categories, including cosmetics, body care, and mass fragrances. For fiscal '23, Consumer Beauty achieved an 11% growth on a core like-for-like basis, with most of our leading brands experiencing growth in the high single digits to low double digits during the fiscal year. This strong performance was bolstered by our recently announced partnership with Adidas, which positions us well to leverage emerging trends in well-being and athleisure within beauty. We have also focused on appealing to Gen Z consumers with clean and vegan formulations while targeting Gen X with skinified makeup, and we have intensified these efforts across our brand portfolio in fiscal '23. We are capitalizing on the rapidly expanding clean beauty trend with new launches such as CoverGirl's Clean Fresh Yummy Gloss, which has topped the Spring 2023 lip launch rankings, along with Adidas' Active Skin & Mind range and Bourjois' Healthy Mix foundation. Additionally, we have made significant strides in skinified beauty with the introductions of Max Factor's Miracle Pure foundation and extensions to the CoverGirl Simply Ageless line. Our recent success in quickly leveraging key innovations in cosmetics is exemplified by Bourjois' Twist Up mascara technology, which has quickly gained recognition, becoming the top mascara in the French market post-launch. This technology has also recently been introduced under the Max Factor brand with the Lash Wow 2-in-1 mascara, which has quickly achieved top rankings following its launch. This demonstrates that rapidly adopting unique and superior innovations will be crucial in advancing our Consumer Beauty portfolio, and we have more innovations planned in the coming quarters. As we enter fiscal '24, we are pushing further into clean beauty with CoverGirl continuing to lead this segment in the U.S. mass channel. Recently, we launched CoverGirl's Lash Blast Cleantopia mascara, the brand's first plant-powered clean mascara, and we have begun promoting it with a new video campaign featuring brand ambassador Kelsea Ballerini. To summarize our approach in Consumer Beauty, we have repositioned key brands, established meaningful communications, and revamped our innovation pipelines for each brand. Our next focus will be on fully seizing the opportunity with Gen Z consumers, leveraging the impact of social media influencers and organic advocacy. Noteworthy launches such as CoverGirl Clean Fresh Yummy Gloss and Rimmel Kind & Free have gained viral traction on TikTok. As we head into fiscal '24, we plan to harness the power of social media to bolster our brands and enhance community engagement, aligning closely with market trends and Gen Z behaviors. Moving on to our second pillar, which is centered around accelerating our luxury fragrance business. We are experiencing a robust fragrance market, with strong global demand and ongoing premiumization as customers seek more sophisticated and long-lasting scents. This heightened interest is driven by increased fragrance usage among Gen Z, men, and Hispanic consumers, supported by social media's role in brand discovery and trial. The Prestige fragrance market grew by over 10% in the fourth quarter and fiscal '23, significantly outpacing historical growth rates. Meanwhile, Coty’s Prestige fragrance revenues rose by over 20% like-for-like in the fourth quarter and in the low teens for fiscal '23, surpassing the broader market growth. All of Coty's top brands saw double-digit growth in this period, and as we enter fiscal '24, there are no indicators suggesting a slowdown in demand for fragrances. While we are already leading in prestige fragrances, our potential for growth remains considerable, particularly in the female fragrance category. We hold a strong position in the male fragrance category valued at $13 billion, yet the female category is nearly double that size at $24 billion, where we are currently ranked in the top three. We are also enhancing our positioning in the smaller but rapidly growing $4 billion ultra-premium fragrance segment with offerings like our Chloe Atelier des Fleurs collection and the upcoming Infiniment Coty Paris launch. To fully capitalize on these opportunities, in addition to our Prestige Skincare and Prestige Cosmetics ambitions, we are enhancing our organizational structure within our Prestige division. A significant milestone in our efforts to elevate our share of female fragrances is the recent launch of Burberry Goddess Eau de Parfum, which is now being distributed globally. This unique gourmand fragrance features a blend of distinct vanillas and is packaged in Burberry's first-ever refillable bottle. Early results of the Burberry Goddess launch are promising, with it already ranking as a top three fragrance in major airports and showing a sell-out rate that is significantly higher than recent Coty launches. In addition, the Burberry Goddess is boosting sales for both the Burberry Hero and Burberry Her men’s fragrances. We are enthusiastic about this innovative launch and believe it positions Burberry Goddess for considerable success moving forward. Underlying the strength of our fragrance business is the longevity of our licensing agreements, with an average remaining duration of 13 years for our top seven Prestige brands. The renewal and extension of key licenses, including those for Hugo Boss and Davidoff, affirm Coty's status as a preferred partner for global fashion houses. I am especially excited to announce the expansion of our collaboration with Marc Jacobs, which includes the development of a new makeup line planned for launch in the coming years, alongside a renewed license that extends for over 15 years. The Marc Jacobs brand stands out between couture and indie, promising to be a unique addition to our Prestige Cosmetics collection. Concurrently, we are expanding our Prestige makeup business, which saw a revenue growth of over 25% like-for-like in Q4, supported by the reopening of the Chinese market and successful launches from Burberry and Gucci. As noted previously, we introduced new long-wear foundations under both Burberry and Gucci in China to tap into the higher-loyalty complexion sub-category. The Burberry Beyond Wear Perfecting Matte foundation, inspired by the iconic Burberry trench coat, is now ranked fifth in premium long-lasting foundations on Tmall. Kylie Cosmetics has also seen robust growth, with its makeup sales increasing significantly globally in both the fourth quarter and for fiscal '23, thanks to expanded distribution and exciting new products. Moving on to our third strategic pillar, building our skincare business. Recently, we have ignited our comprehensive strategy with exciting initiatives across our skincare brands, including Lancaster, Orveda, and Philosophy. In March, we launched a new ultra-premium skincare line called Ligne Princiere under the Lancaster brand, initially focused on the China market. The early results are promising, with overall Lancaster brand revenues growing over 15% year-over-year in Q4, and the Ligne Princiere line achieving a remarkable 20% to 30% month-over-month sales growth. The conversion rate at new counters in China is outperforming leading beauty peers, and product feedback has been overwhelmingly positive, with repeat purchase intent exceeding 40%. This is a proud moment for Coty scientists and our skincare teams. Now, our focus will shift to increasing consumer traffic, leveraging the Chinese digital ecosystem. Alongside Lancaster's revitalization, Philosophy has undergone a refresh across all touchpoints in the U.S., introducing a new formulation principle and launching the Dose of Wisdom bouncy skin reactivating serum, which is already outperforming expectations with an impressive average rating. Overall, our skincare acceleration is gaining momentum, marked by new innovations and enhanced merchandising, along with effective storytelling and brand equity building. Moving to our fourth strategic pillar, digital and e-commerce. We are experiencing significant growth in e-commerce, social commerce, and consumer advocacy. Livestreaming has played a critical role in building brand awareness and engagement for Lancaster in China, showing remarkable month-on-month growth as we collaborate with key opinion leaders and our beauty advisors. During one livestream event, we achieved over $300,000 in sales within just three hours. On the e-commerce front, we opened the Marc Jacobs flagship store on Lazmall, connecting with over 90 million consumers in Southeast Asia, and Marc Jacobs reached the top fragrance ranking on Lazmall in April. We also focus on leveraging micro and macro influencers to effectively advocate for our brands. A notable case is CoverGirl's Yummy Gloss, which has gone viral among Gen Z, exceeding 120 million views on TikTok and driving sales far beyond our original projections. Shifting to our fifth strategic pillar, building our presence in China. Following the easing of COVID restrictions, our sales in China have rebounded as we enhance our local footprint. In Q4, our revenues in China rose over 15% compared to two years prior, though we note that monthly trends could be uneven due to variable government regulations and the gradual recovery. Notably, Burberry Hero has risen to become the third-best male fragrance in China, closely following Bleu de Chanel and Dior Sauvage, and we are eager for the launch of Burberry Goddess there. In terms of ultra-premium fragrances, we recently hosted an event in Hainan showcasing the new Atelier des Fleurs scents to a large audience. We strongly believe in the potential of the China market for Coty, where our brands are desired but still have limited distribution. Despite macro fluctuations, the demand for beauty in China presents significant opportunities for us. Finally, we continue to see robust growth in Travel Retail, with sales increasing over 30% like-for-like in both the quarter and fiscal '23. Travel Retail now represents approximately 8% of our overall business, comparable to our penetration prior to COVID, even as international travel remains below pre-pandemic levels. We are expanding our market share in this lucrative segment, particularly in EMEA and the Americas, aided by distribution expansion, exclusive Travel Retail products, successful innovations, and a broadening multi-category presence. With consumers' appetite for travel remaining strong, and the anticipated return of Chinese travelers soon, we are optimistic about the growth prospects in this channel. Lastly, our sixth strategic pillar focuses on sustainability. We reached several ESG milestones recently, including strengthening our ESG governance by expanding our sustainability office. We are committed to reducing our packaging-related carbon footprint and are increasing our range of refillable products, with Burberry Goddess being the latest addition, following Chloe Naturelle Intense and Adidas Active Skin & Mind. Regarding fiscal '24, we anticipate core like-for-like revenues to grow within the upper range of our medium-term target of 6% to 8%, with Prestige leading the way. We expect fiscal '24 reported revenues will include a 0% to 2% ForEx benefit mainly in the first half, and a 1% to 2% headwind from the divestiture of the Lacoste license in the latter half. We foresee modest gross margin expansion year-over-year, aligning with our growth strategy. Some timing-related factors may pressure our gross margins in the first half, chiefly due to heightened COGS inflation and the return of historical patterns concerning fragrance gift sets which faced supply challenges last year. However, we believe these factors will significantly improve in the latter half, allowing for modest gross margin expansion driven by strong improvements in that timeframe. Our goal for fiscal '24 is to achieve adjusted EBITDA margin expansion between 10 to 30 basis points, equating to adjusted EBITDA of $1.065 billion to $1.075 billion based on current exchange rates, inclusive of profit headwinds related to the Lacoste license divestiture. We estimate adjusted EPS for fiscal '24, excluding equity swap, will range from $0.44 to $0.47, signaling a growth of over 16% to 25%. We also aim to decrease leverage towards 3x by the end of calendar '23, approximately 2.5x by the end of calendar '24, and around 2x by the end of calendar '25. As for the first half outlook, as we see strong revenue growth momentum from Q4 continuing, we expect core like-for-like sales growth of 8% to 10% in the first half, again led by Prestige. For reported revenues, we anticipate a ForEx benefit of 1% to 2% in the first half. Regarding profits, we expect adjusted EBITDA margin expansion of 10 to 30 basis points, consistent with the full year, and adjusted EPS in the first half will likely range from $0.35 to $0.38. In conclusion, the beauty market continues to thrive with ongoing trends toward premiumization. In this favorable environment, we are effectively executing the three-year strategy we established, demonstrating momentum in our core categories while achieving initial successes in the new opportunities we are exploring in female fragrances, ultra-premium fragrances, skincare, prestige cosmetics, China, and Travel Retail. We are committed to a robust growth strategy featuring a mid-20% EPS CAGR, active deleveraging, and returns on capital as we advance our growth story and reinforce our position in the beauty industry. With that, I will open the call for questions.

Good morning, and good afternoon, everyone. My name is Leo, and I'll be your conference operator today. At this time, I would like to welcome everyone to Coty's fourth quarter fiscal 2023 question-and-answer conference call. As a reminder, this conference call is being recorded today, August 22, 2023. Please note that earlier this morning, Coty issued a press release and prepared remarks webcast, which can be found on its Investor Relations website. On today's call are Sue Nabi, 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 Coty's earnings release and the reports filed with the SEC, where the company lists factors that could cause actual results to differ materially from these forward-looking statements. In addition, except where noted, the discussion of Coty's financial results and Coty's expectations reflect certain adjustments as specified in the non-GAAP financial measures section of the company's release. With that, we will now open the lines for questions.

Hey, good morning, everyone, and congrats on a strong fiscal '23 results. First question on kind of the assumptions embedded in your initial guidance for fiscal '24. I know, Sue, you mentioned, the category at the Prestige level, particularly in fragrances, remains strong. Just what have you assumed in your guidance? Are you assuming a continuation of the momentum? Are you assuming a little bit of a slowdown with the more uncertainty in the macro environment? Just any color on that would be helpful.

Good morning, Filippo. Let me give the mic to Laurent for this part and I can compliment.

Yeah, absolutely. Hello, Filippo. So, I mean, first of all, indeed, as you highlighted, what's important is really that we are positioning the fiscal '24 guidance at the top of the mid-term guidance, and following, as you highlighted, a very good landing of our fiscal '23. So to make it short, really our assumptions is that the momentum is here to stay. Definitely, we are seeing the beauty categories are very resilient. And here, I'm talking about both categories, Prestige and Consumer Beauty. So definitely, and this is what is confirmed also by our retailers that beauty is definitely the darling category of the retailers. So definitely, both on Prestige and Consumer Beauty we keep this great momentum for fiscal '24. And this is amplified also by the strong initiatives that Coty is putting in place again on both divisions.

Great. And just a quick follow-up. On pricing, I know you guys are planning for an additional price increase in Q1. Is it mainly in Consumer Beauty? It seems like you mentioned closing the gap versus competition. And can you comment a bit on like responses from retailers, what you're seeing it in the market from the conversations that you're having? Thank you.

We successfully implemented pricing across fiscal '23, and this process went smoothly with both retailers and consumers, with no impact on demand elasticity. In Q1 fiscal '24, we are introducing a mid-single-digit price increase in both the Prestige and Consumer Beauty divisions. This decision is driven by the understanding that inflation will persist in the first half of fiscal '24, and it aligns with our overall strategy. We are also seeing resilience in various categories, and our price increases are strategically planned using a disciplined approach. Our pricing office utilizes extensive data from the past two years to identify where we can raise prices without affecting demand. Additionally, we are committed to ensuring that these price increases are accompanied by value creation for both retailers and consumers, while also investing in our sustainability initiatives, which have been positively received and help facilitate acceptance of the price increase for Q1 fiscal '24.

Good morning, everyone, and congratulations on the great results. I have a couple of questions, one related to the consumer segment and the other regarding Prestige. On the consumer side, you mentioned CoverGirl, and it seems like you believe the challenge lies in leveraging digital marketing through TikTok. Could you provide more insights about the situation with your store presence and whether you'll have sufficient shelf space as we head into the fall? Additionally, I'm interested in your plans for Consumer Beauty in Brazil, which is a significant mass fragrance market. I would like to hear your thoughts on that. Lastly, any updates on the skincare launches in Asia would be appreciated. Thank you.

Good morning, Javier, and thank you for your question. You're right to point out the two key areas for growth in our Consumer Beauty business. The first is the makeup sector, where we believe we have accomplished about 70% of what we aimed to achieve. Specifically, with CoverGirl, we have revitalized the lip category, making it one of the fastest-growing in the market. We have also improved the eye category significantly. Our recent launches, such as Yummy Gloss, which has exceeded our sales expectations, and the upcoming Cleantopia mascara, contribute to consolidating our progress. We're focusing our digital marketing efforts primarily towards Gen Z and creating viral moments similar to what we achieved with Yummy Gloss. Our next step is to enhance the face category, which we believe has been a driving force behind the growth of a key competitor. We are actively working on this. With lip and eye products already gaining traction, we hope to position 90% to 95% of CoverGirl for the future through modern marketing strategies, particularly on platforms like TikTok. Regarding shelf space, we can confirm that CoverGirl's positioning has remained stable since the spring 2023 resets and will continue to do so for the fall 2023 resets. Any changes in shelf space for other brands do not affect CoverGirl. It's noteworthy that CoverGirl and one other brand are increasing their penetration in the U.S. market, with CoverGirl's purchase frequency being 2.5 times higher than the category average and key competitors. This indicates that our new strategies and innovations are resonating well with consumers. Importantly, CoverGirl is not just targeting Gen Z; it appeals to Gen Z, millennials, Gen X, and boomers. We aim to effectively address both Gen Z and Gen X, the latter being particularly loyal and spending more in this category. Now, regarding Brazil, as we discussed during our Investor Day in July, we see this as a significant opportunity. We have robust capabilities in fragrances and are implementing successful strategies from our other divisions. Brazil represents a $4 billion market, and we began our efforts there in April, entering retailers traditionally associated with our Prestige portfolio while also exploring direct store opportunities. Currently, we’ve started with 2,000 points of sale, with potential to expand to 15,000. This rollout is still in its early stages, but we're excited about its potential for our Consumer Beauty portfolio, particularly since our mass fragrances enhance our overall market presence. Lastly, in Asia, we launched the Lancaster Ligne Princiere skincare line in March, and it is achieving all the benchmarks we set, generating strong buzz on social media and meeting consumer expectations for performance and aesthetics. Going forward, our focus will be on increasing traffic to the brand, leveraging platforms like Red, Douyin, and WeChat for content creation and community engagement. Our efforts are on track, and we are finally optimizing our digital strategy within the Chinese skincare market, which is more complex than the makeup or fragrance sectors. This experience is also beneficial for Coty as a whole.

Hi. Good morning, and thank you for the question. Yesterday, you announced the expansion of the Marc Jacobs license with the build-out of the beauty side. I was wondering how should we think about that build out versus your initiatives with owned brands in your portfolio like Infiniment Coty in fragrance and Lancaster in skincare. Thanks.

Good morning, Anna. Our announcement yesterday is a continuation of our 20-year relationship with Marc Jacobs Fragrances. We've collaborated successfully for two decades, and this partnership has yielded fantastic results. In fiscal '23, Marc Jacobs was the second fastest-growing brand in the Prestige category at Coty, experiencing high double-digit growth. This is truly a testament to our long-term collaboration. We are excited to extend this partnership into the coming decades and to reintroduce the highly sought-after Marc Jacobs makeup line. The media coverage surrounding this makeup collaboration reflects the strong cult following of the brand. It is exceptionally well-positioned in the indie, mid-couture makeup space, which is where the market is headed and where significant growth opportunities lie. Similarly, our own brands maintain a strong presence as a destination for long-term licenses. Adding this new category will enhance our color cosmetics portfolio in Prestige, along with our other color cosmetics brands in the mass market, including CoverGirl, Max Factor, Bourjois, and Rimmel. I really prefer to take on opportunities together rather than choosing one over the other. Our Infiniment Coty initiative is progressing well, with the PR launch scheduled for October and the rollout in stores, including a global direct-to-consumer launch, planned for January 2024. Regarding Lancaster, we have made comments previously, and today we are excited to announce the sale of what we believe is one of the most effective skincare serums ever, the OmniPotent Concentrate from our Orveda skincare line. This product has generated significant interest, with consumers waiting since May for its release, which is happening today.

Hey, good morning, team. Thanks for taking the question, and congrats on a great quarter. So first, I'd like to touch a little bit more on the guidance for next fiscal year and really the quarterly cadence that you alluded to. And it looks like there is a bit of a slowdown that's may be implied in the back half of the year, and I know you're coming up against some more challenging comps in the back half. But I was wondering if you could touch on if there's anything else that you're factoring into guidance for the year beyond that in regards to the cadence. Thank you.

Good morning, Korinne. First of all, our fiscal year '24 guidance for top-line growth is at the upper end of our mid-term expectations, which is 6% to 8%. For the first half of the year, we are targeting growth between 8% and 10%. This outlook is based on a strong start to fiscal '24, which gives us great confidence. As I mentioned earlier, both categories are experiencing rapid growth, and Coty has implemented several successful initiatives across both divisions. In addition to what Sue highlighted regarding the momentum from our initiatives launched last year, such as skincare and the Consumer Beauty restart, we also have exciting developments in Prestige. For instance, the Prestige fragrance segment is thriving, particularly with the positive feedback we received about Burberry Goddess from retailers and consumers. This sets a strong tone for the year. In Consumer Beauty, we're seeing impressive results as well; our recently launched Yummy Gloss is selling eight times more than we initially expected. Overall, this reflects a combination of robust market growth in Prestige and Consumer Beauty, enhanced by the initiatives and groundwork Coty has established over the past three years. There are no underlying factors suggesting a slowdown in the second half of the year, and we currently have good visibility into the strong momentum for the first half. That’s what I can share at this point.

Very helpful. Thanks for all the color. And then, if I could just touch a little bit on the segment margins. I believe there was a bit of a contraction in Consumer Beauty. Can you just touch on it as we think about going forward over the next couple of quarters and years on how to think about the proper run rate for margins for each of the segments? And where will we really see the most expansion from? Thank you.

I want to point out that for the fiscal year, the EBIT margin for Consumer Beauty grew by 21% and increased by 70 basis points. This growth reflects the efforts we began three years ago to revamp the brand, as exemplified by CoverGirl. We're also focusing on gross margin improvements. Our strategy for the mid-term definitely includes expanding both gross margins and EBIT margins across Consumer Beauty and Prestige. Additionally, I would mention that in fiscal '23, Consumer Beauty was the most affected by COGS inflation, which led us to implement price increases that are ongoing into Q1 of fiscal '24. We are committed to our innovations, which are set to enhance gross margins akin to those in Prestige. We have all the necessary components to foster sustainable and profitable growth for both Prestige and Consumer Beauty. We're also pursuing productivity measures in Consumer Beauty, notably through platforming, which aims to standardize our brands and drive optimization. We anticipate expansion in both Consumer Beauty and Prestige over the coming years.

Great. Thanks. Good morning, and congrats on a very strong year. My first question is around the pricing actions in Consumer Beauty. If you could just elaborate a little bit on the range of price plans that you have, key categories where you see the biggest gaps, and then, whether it's coming with new product plans along with that?

Thank you, Olivia. The pricing for Consumer Beauty is quite detailed and not straightforward. We are assessing it on a brand, segment, and market basis to ensure that our pricing aligns with consumer needs and retailer strategies. It's important to note that the price range in Consumer Beauty extends from about $4 to over $20, which we are carefully reviewing. In addition to our existing product lineup, we have an exciting pipeline of innovations, such as Yummy Gloss, mascara, Cleantopia, and Lash Wow, which we aim to launch at premium price points. These innovations present an opportunity to increase prices as they are high-quality products that are particularly appealing to Gen Z, especially since they are clean, vegan, and sustainable. Lastly, we have initiated strategic revenue management programs, which we plan to expand in all major markets to enhance the value of our products while ensuring that value is shared with retailers and within Consumer Beauty. We have a comprehensive and detailed plan that will help improve the gross margin for Consumer Beauty in the coming years.

Yeah. So indeed, you mentioned, pricing at very granular levels is critical for us, and we are making sure to capture the sentiment of consumers. So, I think we are all excited about the outlook. Thank you, everyone.

This does conclude today's conference. You may now disconnect your lines. And everyone, have a great day.