Coats Group in full recovery mode as revenue rises
Threads giant Coats Group seems to be bouncing back from the pandemic with the company on Tuesday saying that in the three months to the end of October, its organic revenue was 6% higher than the same period in 2019.
And the world's leading industrial thread manufacturer is on track to meet its full-year expectations.
That 6% uplift comes despite Covid disruption in Vietnam during the period, disruption that has now subsided.
It also said that its pricing and productivity actions “continue to offset inflationary pressures”.
Overall in the latest quarter, on an organic basis, group revenue rose 22% compared to last year as well as that 6% two-year uplift. It didn’t give any monetary figures.
In the Apparel & Footwear division, the one-year rise was 25% and the two-year rise was 5%. In performance Materials, the one-year rise was 17% and the two-year increase as much as 8%.
Coats said that “strong operational performance, demand recovery, market share gains and customer wins have continued, despite recent lockdown impacts in Vietnam. The lessons learnt from shutdowns around the globe in 2020 mean the group continues to be well-placed to manage regional Covid disruption as our global footprint and organisational agility allow many of our customers to be supported from other manufacturing sites”.
The healthy rise in Apparel & Footwear revenue clearly reflected the global fashion sector’s wider recovery. Coats said that it “continued to see positive end market sentiment across the US, Europe and Asia”. And it added that sports and athleisure “continued to perform well”. It appears that pre-lockdown fitness trends are merging with pandemic-hit consumers’ love of all-things sporty and comfortable to carry on driving this segment ever higher.
For the remainder of the year, and into 2022, Coats said it will continue to “drive profitable revenue growth by focusing on our strong customer relationships, our digital, innovation and sustainability credentials and ongoing pricing and productivity actions”.
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