Coats Group PLC Trading Update (9169Z)
23 May 2019 - 4:00PM
UK Regulatory
TIDMCOA
RNS Number : 9169Z
Coats Group PLC
23 May 2019
23 May 2019
Coats Group plc
Trading update
Coats Group plc ('Coats', the 'Company' of the 'Group'), the
world's leading industrial thread company, announces a trading
update for the period 1 January to 30 April 2019 ahead of its
Annual General Meeting later today.
Group performance
Group sales for the period grew 2% year-on-year on a CER and
organic basis, driven by growth across both Apparel and Footwear
(up 2%) and Performance Materials (up 4%).
On a reported basis, Group sales reduced 3% as a result of the
anticipated year-on-year currency translation headwinds (notably
Indian Rupee, Turkish Lira and Brazilian Real). Based on current FX
rates, the impact of these translation headwinds is expected to be
weighted to the first half of 2019 following the tailwinds seen in
the same period in 2018.
Apparel and Footwear (A&F)
The A&F business grew 2% year-on-year as underlying retail
markets remained mixed but overall supportive. This growth was
driven by a robust performance in the core thread business, which
grew 3%, as we continued to deliver high service levels to our
customers. Geographically, key Asian markets performed strongly,
with some offset in Latin America.
Performance Materials
The Performance Materials business grew 4% year-on-year. This
was driven by double-digit growth in hi-tech end uses (for example,
Wire and Cables, including Gotex), with some ongoing offset from
traditional end use segments in North America, as well as the
phasing of certain customer programmes.
Outlook
Whilst we remain cautious around the current macroeconomic
uncertainties, based on our current assessment of business trends,
we anticipate delivering 2019 full year performance in line with
management's expectations.
Enquiry details
Richard Mountain / Nick
UK media Hasell +44 (0) 20 3727 1374
Investors Rob Mann +44 (0) 20 8210 5175
About Coats Group plc
Coats is the world's leading industrial thread company. At home
in some 50 countries, Coats has a workforce of 18,000 people across
six continents. Revenues in 2018 were US$1.4bn. Coats' pioneering
history and innovative culture ensure the company continues leading
the way around the world. It provides complementary and value added
products, services and software solutions to the apparel and
footwear industries. It applies innovative techniques to develop
high technology Performance Materials threads, yarns and fabrics in
areas such as automotive composites, fibre optics and Oil and Gas.
Headquartered in the UK, Coats is a FTSE 250 company and is a
constituent of the FTSE4Good Index Series. To find out more about
Coats visit www.coats.com.
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END
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