Coats returns to organic revenue growth, sees FY 'slightly ahead'
Industrial thread maker Coats Group said on Wednesday that its full-year performance is set be "slightly ahead" of its previous expectations as it reported a return to organic growth.
In an update for the period from 1 January to 30 April 2021, the company said group revenue grew 26% on the year on an organic basis.
In Apparel and Footwear, there was improving momentum, with 30% organic revenue growth on the year. Coats said robust volume growth resulted in increased factory activity.
Against 2019, the core thread business - which represents around 85% of Apparel and Footwear - grew 2%. Key markets performed well compared to 2019, albeit zips are recovering at a slower pace, it said.
In Performance Materials, revenue was up 14% on 2020 on an organic basis, with all segments performing well and growing against 2019 and 2020, with the exception of Personal Protection, which continues to be impacted by labour availability issues, specifically in the US yarns business.
Chief executive Rajiv Sharma said: "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 versus 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."