18th May 2022 11:50
(Alliance News) - Coats Group PLC shares rose on Wednesday after it reported robust sales growth in the first four months of 2022, supported by increased volumes and strong pricing.
Shares were up 6.5% at 76.75 pence each on Wednesday midday in London.
Coast is an Uxbridge, England-based manufacturer and distributor of sewing thread and supplies.
Group sales in the period to April 30 grew 16% year-on-year, supported by growth in its Apparel & Footwear, as well as its Performance Materials businesses.
In Apparel and Footwear, Coats recorded strong volume growth in thread, driven by industry inventory restocking, buffer buying to supported by supply chain disruption, and continued underlying market recovery.
Further, strong pricing and a good mix to offset inflationary pressures, lead to sales growth of 17% in this divisions.
Coats' Performance Materials business reported sales growth of 11%, driven by strong pricing and double digit growth in the Personal Protection and Composites segments. The higher sales were recorded across all regions, Coats added.
Coats left its full-year outlook unchanged and noted that it remains "vigilant" of potential macro-economic conditions.
By Abby Amoakuh; [email protected]
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