RELATED PARTY TRANSACTIONS

12 Months Ended

Jun. 30, 2025

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Performance Guarantee

In connection with the sales of certain businesses, the Company has assigned its rights and obligations under a real estate lease to JAB Partners LLP. The remaining term of this lease is approximately six years. While the Company is no longer the primary obligor under this lease, the lessor has not completely released the Company from its obligation, and holds it secondarily liable in the event that the assignee defaults on the lease. The maximum potential future payments that the Company could be required to make, if the assignee was to default as of June 30, 2025, would be approximately $3.3. The Company has assessed the probability of default by the assignee and has determined it to be remote.

Equity Transfer Agreement

In connection with the Award granted to the Company’s CEO on June 30, 2021, JAB Beauty B.V. agreed to transfer to her (either directly or through contributing to the Company) one-half of the total number of shares of Common Stock owed to her when the Award vests, which has now been fulfilled. See Note 20—Share-Based Compensation Plans for more information on the Award.

Relationship with KKR

As noted in Note 19—Equity and Convertible Preferred Stock, in fiscal 2020, KKR Aggregator purchased Series B Preferred Stock. This preferred stock conveyed to KKR Aggregator the right to designate two directors to the Company’s Board of Directors and voting rights on an as-converted basis. As a result of various conversions/exchanges described below, KKR no longer holds any preferred stock of the Company and no longer has the right to designate any directors to the Company's Board of Directors.

From time to time, certain funds held by KKR may hold the Company’s Senior Secured and Unsecured Notes (as defined in Note 12—Debt). These funds may receive principal and interest payments on the same terms as other investors in the Company’s Senior Secured and Unsecured Notes.

Wella

As of June 30, 2025, Coty owned 25.84% of the Wella Company as an equity investment and performs certain services to Wella. Refer to Note 10—Equity Investments.

On December 22, 2021, the Company entered into an agreement with (“KKR Bidco”) related to post-closing adjustments to the purchase consideration the Wella Business. In relation to this contingent consideration agreement, the Company recognized gains of $10.1, $19.7, and $30.8, during fiscal 2025, 2024 and 2023, respectively, reported in Other expense (income), net.

In connection with the sale of the Wella Business, the Company and Wella entered into a Transitional Services Agreement (“TSA”) and the Company performed services for Wella in exchange for related service fees. The Company and Wella have mutually agreed to end the contracted TSA services on January 31, 2022, as well as previously existing distribution services in Brazil during fiscal 2024. The Company and Wella continue to have in place manufacturing arrangements to facilitate the Wella Business transition in the U.S. and Brazil. TSA fees and other fees earned were $0.2 and $5.0, respectively, for the year ended

June 30, 2025, $2.2 and $10.0, respectively, for the year ended June 30, 2024, and $3.3 and $7.6, respectively for the year ended June 30, 2023. Fees are principally invoiced on a cost plus basis and were included in Selling, general and administrative expenses and Cost of sales, respectively, in the Company's Statement of Operations.

The Company also entered into an agreement with Wella to provide management, consulting and financial services to Wella and its direct and indirect divisions, subsidiaries, parent entities and controlled affiliates. Fees earned and reflected in Other expense (income), net in fiscal years 2025, 2024 and 2023 were $1.2, $1.2, and $2.7, respectively.

As of June 30, 2025, accounts receivable from and accounts payable to Wella of $34.6 and $0.4, respectively, were included in Prepaid expenses and other current assets and Other current liabilities, respectively, in the Company's Balance Sheets. Additionally, as of June 30, 2025, the Company has accrued $35.1 related to long-term payables due to Wella included in Other noncurrent liabilities in the Company's Consolidated Balance Sheet.

Coty will continue to recognize the share-based compensation expense for Wella employees until the existing equity awards reach their vesting date. For the years ended June 30, 2025, 2024 and 2023, Coty recorded $0.7, $2.1, and $4.6 of share-based compensation expense related to Wella employees, which was presented as part of Other expense (income), net in the Consolidated Statements of Operations.

The Company has certain sublease arrangements with Wella after the sale. For the years ended June 30, 2025, 2024 and 2023, the Company reported sublease income of $7.6, $8.2, and $9.1 from Wella.

Consulting Services and Other Arrangements

Until June 30, 2023, director Beatrice Ballini was a senior member at Russell Reynolds Associates, which provided $0.9 in recruiting services to the Company in fiscal 2023. As of fiscal 2024, Russell Reynolds Associates is no longer a related party.