REG - Coats Group PLC - Trading Statement

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RNS Number : 9800E  Coats Group PLC  20 May 2026

20 May 2026

Coats Group plc

AGM Trading Update

Robust performance year-to-date,

full-year expectations unchanged

 

Coats Group plc ('Coats' or the 'Group'), a world-leading Tier 2 supplier of
critical components to the apparel and footwear industries, today announces a
trading update for the four month period 1 January to 30 April 2026 (the
'period') ahead of its Annual General Meeting to be held later today.

 

 Continuing operations  1(st) January to 30(th) April 2026 revenue versus same period in 2025
                        Organic CER                          Reported
 Apparel                1%                                   1%
 Footwear               (4)%                                 55%
 Group                  (1)%                                  18%

 

 

All following references are at organic constant exchange rates (CER) unless
specified.

 

The Group delivered a robust performance with revenue 1% lower against a solid
pre-tariff comparator period.

 

Apparel revenue was up 1%, strongly outperforming the core thread end market,
driven by our key differentiators of operational agility, enduring customer
relationships and our global manufacturing capabilities. The division
continues to win market share across its portfolio including in China domestic
and also saw strong growth in automotive thread.

 

In line with our expectations, Footwear revenue was 4% lower on an organic
basis, which we estimate to be inline with industry trends, as customer
caution persisted and inventory levels remained low. OrthoLite revenue was
lower than the same period last year on a proforma basis against a very strong
prior year comparator and temporary capacity challenges in Indonesia, where we
are expanding our footprint. Our plans to realise cost synergies are on track
and we are increasingly positive on sales synergies. We remain confident in
OrthoLite's growth prospects.

 

Group EBIT margin was slightly higher than the same period last year,
reflecting the benefits of the 2025 footprint consolidation in Footwear and
the positive contribution from OrthoLite.

 

While the ongoing tensions in the Middle East have not had a material impact
on trading to date, we are monitoring conditions closely. We have promptly
enacted our well-honed operational and commercial playbook ensuring optimal
pricing and cost discipline. We will continue to take action as required to
mitigate supply chain pressures and raw material and energy cost increases.

 

Outlook

 

The Group's full year outlook remains unchanged with a modest second half
profit weighting due to expected inflation cost recovery timing.

 

We expect full year free cash flow generation to remain strong, enabling the
Group to continue to reduce leverage into our target range of 1-2x by
year-end.

 

 

The Group will release its interim results on Tuesday 28 July 2026.

 

 

 Enquiry details
 Investors  Chris Dyett                   Coats Group plc  +44 (0) 7974 974 690
 Media      Nick Hasell / Victoria Hayns  FTI Consulting   +44 (0)20 3727 1340

About Coats Group plc

 

Coats is a world-leading Tier 2 manufacturer and trusted partner for the
apparel and footwear industries. We deliver essential materials, components,
and software solutions that help our customers grow, compete and win.

 

With over 250 years of industry expertise, we're shaping the future of the
apparel and footwear supply chain through insight-led innovation, impactful
sustainability practices, and digital technologies that unlock better product
quality, efficiency and performance.

 

Headquartered in the UK, Coats is a FTSE 250 company and a constituent of the
FTSE4Good Index. In 2025, we generated $1.5 billion in revenue and employed
c.19,000 people worldwide - all united by a spirit of innovation, quality and
service. Learn more at www.coats.com or follow us on LinkedIn.

 

LEI: 2138003SPYWGAITNFY17

 

Cautionary statement

 

Certain statements in this trading update are forward-looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations
will prove to have been correct. Because these statements contain risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements. We undertake no obligation to
update any forward-looking statements, whether as a result of new information,
future events or otherwise.

 

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