By Anthony O. Goriainoff
Coats Group said Wednesday that reported revenue fell 12% in the first four months of 2023, and backed its guidance for the year.
The London-listed industrial-thread manufacturer said revenue on a constant currency basis fell 7% in the Jan. 1 to April 30 period.
Organic current exchange rates revenue fell 20% against a strong prior-year comparator and reflected the continuation of the widespread industry destocking in apparel and footwear alongside previously-disclosed customer contract insourcing in performance materials, it said. However, this was partly offset by the annualized contribution from prior acquisitions, the company said.
Coats continues to expect its full-year performance to be second-half weighted and underpinned by the contribution from acquisitions, associated synergies and strategic projects.
“With a significantly strengthened commercial and operational platform, the group remains very well-positioned in its markets. Consequently, we remain excited about the growth and margin opportunities across the group over the medium term, with improved cash generation providing an additional catalyst to our strategic ambitions,” the company said.
Shares at 0700 GMT were down 1.80 pence, or 2.5%, at 71.20 pence.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
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