Coats Group in strong recovery phase as sales top pre-pandemic level
Coats Group is back on form. The global threads producer said Wednesday it enjoyed a "strong recovery" in both operational performance and demand in the first six months of the year. Even May and June Covid-hit problems in its important India market have now subsided, it noted.
All that means group half-year sales rose to $732 million, up from $536 million a year ago and, more importantly, ahead of the $705 million reported in the pre-pandemic 2019 period.
Organic group sales for the period grew 34% year-on-year, up 1% versus 2019. Excluding the impact of the two-month India lockdown, organic growth would have been up 3% vs 2019, it noted.
Performance in its Apparel & Footwear division was flat compared to 2019, although it recorded 2% growth in core thread (which accounts for 85% of A&F) vs 2019.
Coats also said it saw “positive end-market sentiment across [the] US, Europe and Asia”, while sports and athleisure “continue to perform well” as the “casualisation trend continues”.
The Performance Materials division recorded 4% growth, with all segments “continuing to perform strongly", apart from Personal Protection "which continues to be impacted by US labour availability issues”, Coats added.
And those positive H1 numbers mean group adjusted operating profit for the six months is now expected to be around $95 million, strongly ahead of the $34 million earned in 2020, but slightly down on 2019’s $102 million.
Coats also said its performance for full-year 2021 is now anticipated to be "moderately ahead" of its previous expectations.
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