Coats Group (LSE:COA) reported first-half revenue of $837 million, an increase of 19% compared with the same period last year. On an organic basis, revenue grew 1%, reflecting resilient underlying performance despite softer conditions in several of its end markets.
The company maintained an adjusted EBIT margin of 19.8% during the period as disciplined cost management and procurement efficiencies helped offset higher investment in strategic growth initiatives. Adjusted basic earnings per share declined 6% year-on-year to $0.04, primarily reflecting increased spending on technology and long-term business expansion.
Coats continued to outperform its core apparel and footwear markets, gaining market share even as those sectors contracted by mid-single digits during the first half. Management attributed this performance to ongoing product innovation, operational flexibility and strong customer relationships. Additional revenue growth was generated through expansion into adjacent markets and the launch of new products, including composite energy tapes and digital solutions.
Adjusted operating profit reached $166 million during the first six months of the year, while adjusted net debt stood at $842 million. The company reaffirmed its full-year guidance and expects apparel and footwear markets to remain modestly weaker during the second half. Coats also anticipates delivering around $15 million in additional cost savings over the remainder of the year, including synergies from the OrthoLite acquisition. Management expects strong free cash flow generation for the full year, supporting its long-term objective of delivering $1 billion in cumulative free cash flow over five years.
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