The company, now a prominent global footwear component manufacturer, reports that it is «performing to plan,» showcasing early signs of recovery in its core Apparel operations. Despite a 12% decline in group organic revenue for the period from July 1 to October 31, there is improvement from the 19% dip in H1, particularly in the Apparel segment where organic revenue was 5% lower. Footwear organic revenue experienced an 18% decline, and the Performance Materials division faced challenges with a 20% lower organic revenue.
Coats emphasizes significant benefits from strategic projects, effective pricing strategies, and synergies resulting from recent footwear acquisitions. The company’s adjusted operating margins have strengthened, instilling confidence in achieving its 2024 goal of approximately 17%. Cash generation remained robust, supporting a solid balance sheet.
With early signs of recovery in Apparel and ongoing margin strengthening, Coats anticipates its full-year performance to align with the board’s expectations. The release of full-year 2023 results is scheduled for March 7, 2024. Stay tuned for further updates on Coats Group’s resilient performance in the global market.