Coats Group (COA) Trading Update summary

Trading performance and sales growth

• Group sales grew 11% at constant exchange rates for July–October 2024, up from 8% in H1, driven by strong momentum in Apparel and Footwear divisions.

• Apparel and Footwear divisions saw 14% year-on-year growth, benefiting from normalized customer buying and inventory patterns.

• Performance Materials returned to 1% growth but remains impacted by weak order books in personal protection and composites, especially in the Americas.

Financial outlook and guidance

• Full-year operating margin is expected to be around 18%, supported by strong sales and ongoing strategic projects.

• Year-end leverage, including additional pension funding, is anticipated at 1.6–1.7x, in line with previous guidance.

• Full-year performance is expected to be in line with market expectations, with continued strong cash generation.

Strategic positioning and leadership

• CEO David Paja highlighted the company's premium quality, execution strength, and opportunities for further improvement.

• The group remains confident in sustaining momentum into the final quarter and is well positioned for medium-term growth.