Coats Group (COA) Trading Update summary

Trading performance and revenue

• Revenue grew 4% year-on-year for the period, with Apparel and Footwear segments each up 5% at constant exchange rates.

• Performance Materials revenue was flat, excluding the US Yarns business, due to subdued end markets.

• Reported revenue growth was 2%, reflecting currency impacts.

Portfolio actions and margin improvement

• Announced exit from low-margin US Yarns business, with sale expected to generate $16m net cash proceeds in June 2025.

• Exit from US Yarns is expected to improve portfolio quality and margins.

• Underlying EBIT margins continued to improve, supported by efficiency gains and investment in growth drivers.

Outlook and guidance

• Full-year expectations remain unchanged, with profit expected to be evenly split between H1 and H2.

• Adjusted EBIT margin for H1 expected within the 19–21% medium-term target range.

• Strong free cash flow generation anticipated, supporting flexible capital allocation and acquisition pipeline.