14th Jul 2021 09:46
(Alliance News) - Coats Group PLC noted a "strong" sales and operations performance in its first half trading update on Wednesday.
The industrial thread maker also noted recovering demand in the six months to June 30.
The Uxbridge, England-based company, which employs 17,000 people across six continents, said operational performance has continued to improve despite May and June lockdowns in India, which have since ended.
The company noted "positive" market sentiment across Asia, Europe and the US.
Sales for the first half hit USD732 million, up 36% from USD536 million a year ago and up 3.0% from USD705 million in the first half of 2019. Coats had reported revenue of USD1.16 billion for all of 2020, down 16% from USD1.39 billion in 2019.
Coats said it now expects adjusted operating profit for the first half of the year to be around USD95 million, almost tripled from USD34 million a year prior, though still down 6.0% from USD102 million in the first half of 2019, before the pandemic.
Shares in Coats were trading up 2.8% at 69.70 pence each in London on Wednesday morning.
The sewing supplies manufacturer said its Apparel & Footwear division performed in line with 2019. First-half core thread sales, which account for 85% of the Apparel & Footwear division, were 2% higher than the same period in 2019.
Sports and 'athleisure' wear continue to perform well, the company noted, as the casual clothing trend continues.
Meanwhile, Coats noted that sales in its Performance Materials division increased by 4% in the first half when compared to 2019. Most related segments performed well, except for its Personal Protection area, which continues to be hurt by a shortage of labour in the US.
Coats said it will release its full half-year results on August 3.
By Scarlett Butler; [email protected]
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