Coats sees FY in line despite revenue fall

17th May 2023 07:23

(Sharecast News) - Shares in Coats fell on Wednesday as the industrial thread and global footwear component maker held annual guidance, with results expected to be weighted to the second half.

In a trading update for the first four months of the year, Coats said revenues fell 7%, and 20% on an organic basis, against a "very strong" prior year comparator, adding that operating profit margins were "resilient", supported by strategic projects and tight cost control.

The revenue decline "reflects the continuation of the widespread industry destocking in apparel and footwear, together with previously disclosed customer contract in-sourcing in performance materials. This was partly offset by the annualised contribution from the prior year acquisitions in footwear.

Reporting by Frank Prenesti for Sharecast.com