UK's Coats Group H1 revenue rises on market share gains
UK's Coats Group H1 revenue rises on market share gains
Overview
UK industrial thread maker's H1 revenue rose 19% yr/yr on reported basis, 1% organic growth
Adjusted EBIT margin held at 19.8% as cost discipline offset higher investment
Adjusted basic EPS fell 6% yr/yr amid higher investment in growth and technology
Outlook
Coats Group maintains full-year outlook, expects modest market declines in apparel and footwear in H2
Company expects to deliver c.$15m incremental cost benefits in H2, including OrthoLite synergies
Coats Group expects strong free cash flow for full yr, in line with $1 bln five-year target
Result Drivers
MARKET SHARE GAINS - Co said it outperformed core apparel and footwear markets, which declined mid-single digits, by gaining share through product innovation and operational agility
INNOVATION AND NEW PRODUCTS - Growth in target adjacencies and new product launches, such as composite energy tapes and digital solutions, contributed to revenue
COST AND PROCUREMENT DISCIPLINE - Maintained adjusted EBIT margin at 19.8% through cost controls and procurement actions despite inflation and higher investment
Company press release: ID:nRSb0585Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $837 mln |
|
H1 Adj. Basic EPS |
| $0.04 |
|
H1 Adj. Operating Profit |
| $166 mln |
|
H1 Adjusted Net Debt |
| $842 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the textiles & leather goods peer group is "buy"
Wall Street's median 12-month price target for Coats Group PLC is GBp118.00, about 52.2% above its July 27 closing price of GBp77.55
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)