Coats Group PLC Trading Statement (0607Z)
19 Mayo 2021 - 01:00AM
UK Regulatory
TIDMCOA
RNS Number : 0607Z
Coats Group PLC
19 May 2021
19 May 2021
Coats Group plc
Trading update
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 2021 to 30 April 2021 ('the
period'), ahead of its Annual General Meeting later today. Given
the exceptional circumstances of 2020, we include 2019 detail in
this statement.
Trading Update
-- Strong operational performance and a return to organic growth vs 2019
-- Pricing and productivity actions being successfully
implemented to offset inflationary pressures
-- Performance for the year anticipated to be slightly ahead of our previous expectations
Revenue vs 2020 Revenue vs 2019
Reported CER(1) Organic(2) Reported CER(1) Organic(3)
--------- ------- ----------- --------- ------- -----------
Group 28% 27% 26% 3% 5% 1%
--------- ------- ----------- --------- ------- -----------
Apparel & Footwear 31% 30% 30% (2)% 0% 0%
--------- ------- ----------- --------- ------- -----------
Performance Materials 18% 18% 14% 22% 24% 4%
--------- ------- ----------- --------- ------- -----------
All following references are on an organic CER basis.
Organic group sales for the period grew 26% year-on-year (1%
versus 2019).
In Apparel and Footwear we saw improving momentum and recovery
(up 30% versus 2020 and flat versus 2019). Robust volume growth
resulted in increased factory activity. Against 2019 the core
thread business (which represents c.85% of Apparel and Footwear)
grew solidly (up 2%). Key markets performed well vs 2019, albeit
zips are recovering at a slower pace.
Performance Materials was up 14% versus 2020 and 4% versus 2019,
with all segments performing well and growing against 2019 and
2020, with the exception of Personal Protection. Personal
Protection continues to be impacted by labour availability issues,
specifically in the US Yarns business.
Pricing and productivity actions are being successfully
implemented to offset inflationary pressures (raw materials, labour
and freight inflation) in the supply chain.
In April we announced the completion of a three year $360
million ESG-linked bank refinancing (with the ability for two
one-year extensions). Our committed debt facilities total $585
million across our Banking and US Private Placement group, with a
range of maturities from 2024 through to 2027, and we currently
have around $350 million of committed headroom against these
banking facilities. As at 30 April 2021 our net debt (excluding
IFRS16) was $162 million (31 December 2020 $181 million).
Rajiv Sharma, Chief Executive, commented:
"We are pleased to have seen recovery and positive momentum
during the period, which resulted in a strong operational
performance and a return to growth vs 2019. Whilst we remain
vigilant around the ongoing Covid pandemic, given the improving end
market sentiment, we anticipate that the recovery in our trading
will continue and that our anticipated performance for the year
will be slightly ahead of our previous expectations.
During the period we continued to implement self-help programs
related to price and productivity. We also maintained focus on our
strategic pillars of Digital, Innovation and Sustainability, which
are a source of competitive advantage today and into the future. A
strong balance sheet provides strategic optionality and positions
us well to continue to win the recovery."
1 Constant Exchange Rate (CER) are 2020 and 2019 results restated
at 2021 exchange rates;
2 Organic on a CER basis includes like-for-like contributions from
Pharr HP (post acquisition date of February 2020);
3 Organic on a CER basis includes like-for-like contributions from
Threadsol (post acquisition date of February 2019) and excludes
contribution from Pharr HP (acquired in February 2020)
_________________________________________________________________________________________
Enquiry details
+44 (0)7880 471
Investors Victoria Huxster Coats Group plc 350
Richard Mountain / +44 (0)20 3727
Media Nick Hasell FTI Consulting 1374
_________________________________________________________________________________________
About Coats Group plc
Coats is the world's leading industrial thread company. At home
in some 50 countries, Coats has a workforce of 17,000 people across
six continents. Revenues in 2020 were US$1.2bn. Coats' pioneering
history and innovative culture ensure the company leads the way
around the world. It provides complementary and value added
products, services and software solutions to the apparel and
footwear industries. It applies innovative techniques to develop
high technology Performance Materials threads, yarns and fabrics in
areas such as Transportation, Telecommunications and Energy, and
Personal Protection. Headquartered in the UK, Coats is a FTSE 250
company, a constituent of the FTSE4Good Index Series, a participant
in the UN Global Compact and a member of the Ellen MacArthur
Foundation. It has also committed to developing a long-term target
to reach net-zero emissions by 2050, the highest level of ambition
on climate under the Science Based Target Initiative.
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END
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