Companies

Coats reports improving sales trend

Nov 30, 2023 United Kingdom

The industrial thread manufacturer’s organic revenue fell by 12% year-over-year from July to October, which suggests an improving trend as compared to the 19% decline recorded in the first half

In the four months to the 31^st of October, Coats’ revenue dropped by a reported 9%, on a comparable basis to the same period of 2022. In addition, its organic revenue fell by 12% at constant currency rates, reflecting an improvement over the first half of the year, in which it declined by 19% year-over-year.

The apparel segment performed far better in these four months. Between July and October, its organic revenue was down by 5% year-over-year at constant currency rates, as compared to the drop of 20% registered in the first six months of 2023. The footwear segment also improved at 18% lower year-over-year, as compared to the 23% decrease in the first half.

The performance materials segment, however, “continues to be impacted by the previously disclosed customer insourcing of production, as well as customer phasing issues in some US end markets”. As a result, its organic revenue declined by 20% in the four months to the end of October, on a comparable basis to a fall of 14% in the first semester.

“The Group has continued to deliver significant benefits from its strategic projects which, together with agile and effective pricing, and the delivery of synergies from last year’s footwear acquisitions, have resulted in adjusted operating margins strengthening further in the period. This increases our confidence of achieving our 2024 goal of c.17%”, added Coats in this latest trading update.

Image Credits: coats.com

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