(Alliance News) - Coats Group PLC on Tuesday reaffirmed its 2021 guidance after the solid revenue growth seen in its first half continued in the four months since.
The thread manufacturer said it had posted a strong organic revenue performance for the period July 1 to October 31, up 22% year-on-year, and up 6% versus 2019. The four-month period saw "demand recovery, market share gains and customer wins", despite recent lockdown impacts in Vietnam which have now subsided, Coats said.
Back in 2018, Coats bought Threadsol, an Indian company with an office in Vietnam.
The FTSE 250-listed firm said Apparel & Footwear organic revenue growth was 25% on 2020 and 5% on 2019. Performance Materials revenue grew 17% organically on 2020 and 8% on 2019.
Coats noted heightened inflationary pressures in the supply chain but said it was taking pricing and procurement actions to offset these.
The company said 2021 performance will be in line with expectations.
"For the remainder of the year, and into 2022, we will continue to drive profitable revenue growth by focusing on our strong customer relationships, our digital, innovation and sustainability credentials and ongoing pricing and productivity actions," Coats said.
Shares in the company were down 0.1% at 68.01 pence each in London on Tuesday morning
Coats will release its 2021 results on March 3.
By Will Paige; willpaige@alliancenews.com
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Coats (COA)