Coats Group PLC Trading Statement (6438W)
November 16 2017 - 1:00AM
UK Regulatory
TIDMCOA
RNS Number : 6438W
Coats Group PLC
16 November 2017
16 November 2017
Coats Group plc
Trading update
Coats Group plc ('Coats' or the 'Company'), the world's leading
industrial thread manufacturer, announces a trading update for the
period 1 July to 31 October 2017 ('the period').
Year-on-year sales performance
July to October Year to October
Reported CER Organic Reported CER Organic
sales* sales*** sales* sales**
Industrial 6% 5% 5% 5% 6% 5%
Apparel & Footwear 6% 6% 6% 4% 5% 5%
Performance Materials 4% 4% 4% 11% 12% 7%
Crafts (12)% (12)% (12)% (9)% (10)% (10)%
Group 3% 2% 2% 3% 4% 3%
* Constant exchange rate (CER) restates 2016
figures at 2017 exchange rates
** On a CER basis excluding contributions from
bolt-on acquisitions
*** Organic growth for the period was in line
with CER growth due to the acquisitions of
Fast React Systems and Gotex taking place
in June 2016
In the following commentary all comparisons are on an organic
basis for the period unless stated otherwise.
Group sales for the period from 1 July to 31 October 2017 grew
2% year-on-year, driven by a strong performance in the Industrial
division, up 5%.
This strong Industrial performance was achieved due to good
momentum in the core Apparel and Footwear business (70% of the
Group's sales), up 6%, which is ahead of the year to October growth
of 5%. The strong Apparel and Footwear performance in the period
was achieved despite continued mixed demand from clothing retailers
and ongoing pricing pressures, as we maintained our customer-led
approach to innovation and digital solutions, alongside our strong
corporate responsibility credentials. Performance Materials
continued to grow in the period, up 4%. This was below the year to
October growth rate due to a decline in traditional end uses, where
US consumer durables (e.g. bedding and quilting) showed a marginal
downturn year-on-year following a return to growth in the first
half of the year. Growth in hi-tech end uses remained robust with
key end uses (e.g. wire and cable, and engineering performance
yarns) continuing to deliver double-digit year-on-year growth. The
outlook for Performance Materials remains positive.
The Crafts division remained weak showing a year-on-year decline
of 12% for the period (10% decline for the year-to-date). The North
American Crafts business, which now accounts for around 10% of
Group sales, was the main driver behind the Crafts sales decline as
underlying market conditions remained tough, as well as having been
adversely impacted in the period by the introduction of own-label
handknitting products at a major customer.
Strategic progress
As previously announced, key focus areas for driving the next
phase of growth at Coats relate to simplification, innovation and
further development of digital capabilities, all of which are an
evolution of the existing strategy. We have made good progress in
these focus areas in the period and continue to work on developing
the detailed plans. We will provide a further update in February
2018 with the announcement of the 2017 Full Year Results.
Outlook
The Group continues to perform strongly, particularly in the
Industrial division, and expects to deliver 2017 full year results
in line with management's expectations.
Enquiry details
UK media Richard Mountain / Nick Hasell +44 (0) 20 3727 1374
Investors Rob Mann +44 (0) 20 8210 5175
This announcement contains inside information for the purposes
of the Market Abuse Regulation.
About Coats Group plc
Coats is the world's leading industrial thread manufacturer and
a major player in the Americas textile crafts market. At home in
some 60 countries, Coats employs over 19,000 people across six
continents. Revenues in 2016 were US$1.5bn. Coats' pioneering
history and innovative culture ensure the company continues leading
the way around the world, providing complementary and value added
products and services to the apparel and footwear industries;
applying innovative techniques to develop high technology
Performance Material threads and yarns in areas such as automotive
composites and fibre optics; and extending the crafts offer into
new markets and online. Headquartered in the UK, Coats is a FTSE250
listed company on the London Stock Exchange. To find out more about
Coats visit www.coats.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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