The company's adjusted operating profit up 11 per cent to $174 million (reported $167 million, up 9 per cent). For the reported period, the group operating margin climbed 11.5 per cent. The company's adjusted EPS rose 30 per cent (reported EPS went up 35 per cent).
"Coats delivered a strong performance in 2017. Momentum in industrial continued throughout the year in key apparel and footwear markets, where we continued to take share, and we saw double-digit growth in hi-tech end-uses in performance materials. This was partly offset by North America Crafts where market conditions remained weak. In an environment of rising input costs, we were able to grow our operating margins, through realising price increases, productivity and procurement gains, as well as tight control of our cost base. Following this strong performance in 2017 we have announced a full year dividend per share of 1.44 cents, which represents a 15 per cent year-on-year increase," said Rajiv Sharma, group chief executive, Coats.
The company reported adjusted free cash flow growth of 12 per cent to $87 million for 2017 ending December 31, 2017. This includes a $10 million year-on-year increase in capital spending, predominantly in H2, as anticipated. The full year dividend per share increased 15 per cent.
‘Through our continued strong financial delivery and investment in growth initiatives we have built a solid base for the future. However, the markets in which we operate are constantly changing. Our customers require an increased emphasis on speed, quality, value, innovation and corporate responsibility. To accelerate our transition from the industrial to the digital age, we launched the connecting for growth transformation programme, which will support our next phase of growth. We expect this programme to deliver increased productivity, with targeted net annualised operating cost savings of $15 million by 2020," Sharma said.
‘To further support our strategy delivery, we completed the performance materials acquisition of Patrick Yarn Mill, which extends our existing competencies and innovation capabilities. As with our previous acquisitions of Gotex, Fast React and GSD, we look forward to leveraging Coats’ unrivalled geographic footprint, breadth of global customer relationships and strong corporate brand to support Patrick Yarn Mill’s expansion," he added.
"We enter 2018 in a strong position, with continued momentum in our apparel and footwear and hi-tech performance materials businesses. Whilst market conditions in our North American Crafts business are expected to remain challenging, our new management team has commenced implementation of a refocused strategy. We expect 2018 adjusted operating profits to benefit from the incremental full year contribution from the Patrick Yarn Mill acquisition, and the anticipated first year benefits from the Connecting for Growth programme. As such, 2018 adjusted operating profits are expected to be slightly ahead of previous management expectations. We will also continue to focus on cash flow generation in order to allow us to continue to reinvest in both organic and inorganic growth opportunities," Sharma concluded. (RR)
Fibre2Fashion News Desk – India
Apparel/Garments | On 25th Jun 2018
Italian high-end men's apparel brand Stone Island tops the list of...
Textiles | On 25th Jun 2018
Italy based Tecnorama’s fully-automatic machinery for dispensing...
‘In future, clothing boundary lines will become increasingly blurred.’
‘There is huge demand in the Indian lingerie market for non-wired styles.’
Indian fashion market is growing at a staggering rate
Kusumgar Corporates is a leading manufacturer of technical textiles and...
New Delhi-based Jogindra Industries Private Limited provides an assortment ...
Fynd is the central online shopping destination for fashion, offering...
Suominen Corporation is a manufacturer of nonwovens as roll goods for...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
Bombay Textile Research Association
Bombay Textile Research Association (BTRA) is a leading name in textile...