Home / Knowledge / News / Textiles / Revenue of Coats elevates 5% in 2018 first half

Revenue of Coats elevates 5% in 2018 first half

31
Jul '18
Courtesy: Coats
Courtesy: Coats
In the first half of fiscal 2018 ending June 30, 2018, Coats, one of the leading industrial thread manufacturers in the world, has registered 5 per cent increase in revenue on a CER basis to a total of $788 million (7 per cent reported), with 2 per cent organic growth and a 3 per cent contribution from the acquisition of Patrick Yarn Mill.

The company has registered continued strong revenue performance in apparel and footwear thread (up 4 per cent), double-digit organic growth in hi-tech performance materials. The adjusted operating profit up 12 per cent on a CER basis to $100 million (reported $81 million, down 6 per cent) and adjusted operating margin grew to 12.7 per cent.

For the reported period, the adjusted free cash flow for the last twelve months $85 million; down 22 per cent on the same period to June 2017 due to planned increase in capital expenditure, however in line with full year 2017 ($87 million).

"Coats continued its good start to the year, with CER revenue growth of 5% and an adjusted operating profit growth of 12%, achieved by the strong performance of the Industrial Division. We have continued to outperform the market in Apparel and Footwear despite continued mixed demand from retailers by maintaining our customer-led approach to service, digital solutions and corporate social responsibility. We have leveraged our global footprint and customer base to expand our Performance Materials business. Innovation capability has been enhanced by the recent acquisition of Patrick Yarn Mill. In North America Crafts, we have seen an improving trend so far this year however market conditions remain tough," Rajiv Sharma, group chief executive, said.

The adjusted EPS went up 19 per cent to 3.6 cents (reported EPS of 2.4 cents, down 17 per cent) as a result of higher operating profits, a further reduction in effective tax rate and a lower pension finance charge.

"Our customers require an increased emphasis on speed, quality, value, innovation and corporate responsibility. To accelerate our transition from industrial to digital, we launched the Connecting for Growth transformation programme in February, which will support our next phase of development. Due to the encouraging start made by this programme, where we are realising benefits faster than initially anticipated, I am pleased to report that the net benefits (after reinvestments) in 2018 are now expected to be $10 million (previously $5 million).
We look to build on a strong first half of the year by continuing to outperform the market, deliver productivity improvements, maintain tight control of our cost base, whilst investing in our growth opportunities. As a result of the faster delivery of the net benefits from the Connecting for Growth programme, we now anticipate delivering a full year performance slightly ahead of management’s previous expectations," Sharma concluded. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 29th May 2020

Aatma Nirbhar Bharat Abhiyan needs to step up: Crisil

The steps announced by the government for the micro, small and medium ...

Pic: Shutterstock

Apparel/Garments | On 29th May 2020

Bangladesh’s Beximco exports 6.5 million PPE gowns to US

Bangladesh’s Beximco Group recently exported 6.5 million personal...

Pic: LC Waikiki

Apparel/Garments | On 29th May 2020

Turkish clothing brand LCW uses Iran as production hub

Turkish clothing brand LC Waikiki has placed an order with Iranian...

Interviews View All

Software Firms, Head honchos

Software Firms
Head honchos

Blockchain technology will shorten lead times

C. Dhandayuthapani, Mag Solvics Pvt. Ltd

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Aaron Spivak,

Aaron Spivak

Canada-based Hush Blankets was founded by Lior Ohayon and Aaron Spivak to...

Paolo Toricella,

Paolo Toricella

Electronics for Imaging (EFI) is a global technology company, based in...

Laksheeta Govil,

Laksheeta Govil

Founded in 2014, Fizzy Goblet is a Delhi / NCR based handcrafted leather...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search