Coats Group PLC Trading Statement (8555L)
18 May 2022 - 4:03PM
UK Regulatory
TIDMCOA
RNS Number : 8555L
Coats Group PLC
18 May 2022
18 May 2022
Coats Group plc
Trading update - 20% sales growth (1)
Coats Group plc ('Coats,' the 'Company' or the 'Group'), the
world's leading industrial thread manufacturer, today announces a
trading update for the period 1 January 2022 to 30 April 2022 ("the
period"), ahead of its Annual General Meeting later today.
Trading Update
-- Strong sales momentum through the first four months of the year
-- Price and productivity gains offsetting inflationary pressure to support margins
-- Strategic projects, announced alongside FY21 results, have commenced and are on track
-- Strong start to the year however we remain vigilant of potential macro-economic conditions
Revenue vs 2021
Reported CER
------------ ----
Group 16% 20%
------------ ----
Apparel & Footwear 17% 21%
------------ ----
Performance Materials 11% 16%
------------ ----
All following references are on an CER basis.
Group sales for the period grew 20% year-on-year.
Apparel and Footwear: Very strong volume growth in thread driven
by industry inventory restocking, buffer buying to support supply
chain disruption and continued underlying market recovery along
with strong pricing/mix to offset inflationary pressures, resulted
in sales growth of 21% for the division.
Performance Materials: Growth of 16% was driven by strong
pricing and double digit growth in both Personal Protection and
Composites. We have seen strong growth across all three regions
(Asia, EMEA, Americas).
Pricing and productivity actions have been successfully
implemented and continue to offset inflationary pressures in the
supply chain which supported margin progression across both
divisions.
In March, we announced a number of strategic projects to improve
margins by optimising the footprint, portfolio and improving the
overall cost base efficiency . These strategic projects are now
underway and on track. We will provide an update as part of our
Half Year results.
We continue to focus on executing our plans in the current
macro-economic conditions. Price leadership, productivity
programmes and strategic projects underpin our performance. Our
outlook for the year remains unchanged.
(1) Constant Exchange Rates (CER)
Enquiry details
Coats Group +44 (0)20 8210
Investors Nick Kidd plc 5090
Richard Mountain / Nick +44 (0)20 3727
Media Hasell FTI Consulting 1374
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About Coats Group plc
Coats is the world's leading industrial thread company. At home
in some 50 countries, Coats has a workforce of over 18,000 people
across six continents. Revenues in 2021 were US$1.5bn. Coats
provides complementary and value-adding products, services and
software solutions to the apparel and footwear industries. It also
applies innovative techniques to develop high technology
performance materials threads, yarns, fabrics and composites in
areas like personal protection, telecoms, energy, transportation,
and household and recreation. Headquartered in the UK, Coats is a
constituent of the FTSE 250 and FTSE4Good Index Series. It is a
participant in the UN Global Compact, a member of the Ellen
MacArthur Foundation, has approved short term Science Based Targets
to 2030 and is committed to developing a long-term target to reach
net-zero emissions by 2050, the highest level of ambition on
climate change under the Science Based Target initiative. The
pioneering history and innovative culture of Coats enable the
delivery of its purpose to connect talent, textiles and technology
to make a better and more sustainable world. For further
information go to www.coats.com .
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END
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