Declaración comercial
22 November 2023
abrigos grupo plc
Actualización de Trading
Strengthening margins and cash; signs of gradual market recovery; trading in line with expectations
Coats Group plc ('Coats', the 'Company' or the 'Group'), the world's leading industrial thread and global footwear component manufacturer, today announces a trading update for the period 1 July to 31 October 2023 (the 'period').
H1 2023 | 1st Julio a 31st October 2023 vs same period in 20223 | |||
Organic1,3 CER | reportado | CER1 | Organic1 CER | |
Ropa | - 20% | - 7% | - 5% | - 5% |
Calzado | - 23% | 0% | 0% | - 18% |
Materiales de rendimiento | - 14% | - 21% | - 20% | - 20% |
Grupo procesos |
- 19% | - 9% | - 8% | - 12% |
All following references are at CER unless specified.
The Group traded as expected during the four month period. Group organic revenue is on an improving trend at 12% lower year-on-year (compared to H1 2023 down 19%), including early signs of the anticipated gradual recovery in Apparel, where organic revenue was 5% lower. Reflecting the timing lag of destocking having started later, Footwear organic revenue was 18% lower year-on-year in the period.
Performance Materials continues to be impacted by the previously disclosed customer insourcing of production, as well as customer phasing issues in some US end markets. As a result, organic revenue in Performance Materials was 20% lower.
The Group has continued to deliver significant benefits from its strategic projects which, together with agile and effective pricing, and the delivery of synergies from last year's footwear acquisitions, have resulted in adjusted operating margins strengthening further in the period. This increases our confidence of achieving our 2024 goal of c.17%.
As previously indicated, we have seen modest translational foreign exchange headwinds across the majority of our major currencies against the US dollar YTD, which we expect to accommodate within existing guidance. However, accounting requirements related to significant rate fluctuations from the Turkish Lira mean that the Group is likely to incur a specific incremental translation impact to full year adjusted operating profit, which at current exchange rates we estimate would be c.$5 million (see note 2).
Cash generation remained strong through the period, supporting the Group's robust balance sheet. As at 31 October 2023, leverage was 1.5 times, comfortably within the target range of 1-2 times.
Gran Lugar para Trabajar
On 16 November 2023, Coats was named one of the 2023 World's Best Workplaces by Great Place to Work (GPTW), being one of only 25 companies chosen globally. GPTW selects companies based on their dedication to creating exceptional workplace cultures, prioritising people, fostering a culture of trust and empowering colleagues worldwide to achieve their full potential.
Outlook
With early signs of a gradual recovery in Apparel, and our adjusted operating margin continuing to strengthen, we expect our full year performance to be in line with the Board's expectations. This is before any specific impact from Turkish Lira translation as described above.
Seguimos centrados en delivering the significant operational and financial benefits of our strategic projects, acquisition synergies and delivering our other ongoing self-help actions. As a result, we remain confident of achieving our 2024 operating profit margin goal of c.17%. Over the medium term, our scale and global footprint, strong digital platform and technical support capabilities, alongside continued investment in innovation, sustainability and operational efficiency, will enable us to grow ahead of our market with strong profitability and cash generation.
The Group will release its Full Year 2023 results on 7 March 2024.
Consultas |
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Inversionistas | Victoria Huxster / julian wais
| abrigos grupo plc | +44 (0) 7880 471350 / +44 (0) 7720 999764 |
Medios | Montaña Richard / nick hasell | Consultoría FTI | 44 0 20 3727 1374 |
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1. Constant exchange rate (CER) figures are 2022 results restated at 2023 exchange rates. Organic CER figures are results on a CER basis and includes like-for-like contributions from Texon (post acquisition date of July 2022) and Rhenoflex (post acquisition date of August 2022).
2. Since mid-2022 hyperinflation accounting methodology has been required to be applied in our Turkey market. This requires the translation of local currency results for a reporting period at the spot rate at the end of the period (vs average rate for non-hyperinflation accounting countries). As a result, and given significant depreciation of the Turkish Lira, reported results for our Turkey business in USD can be volatile and so no guidance has been able to be given YTD on the impact of this. The Turkish Lira has depreciated by over 50% during 2023. Based on latest exchange rates (31 Oct), and assuming no further significant Turkish Lira volatility for the rest of the year, we expect a $5 million incremental adjusted operating profit headwind due to this impact vs previous FX guidance (which excluded Turkey).
3. Following the completion of the European Zips sale on 31 August 2023, reported, CER and organic CER numbers exclude European Zips sales from both 2023 and 2022.
Acerca de Coats Group plc
Coats es líder mundial en fabricación de hilos y componentes estructurales para prendas de vestir y calzado, así como un pionero innovador en materiales de alto rendimiento. Estas soluciones críticas se utilizan para crear una amplia gama de productos, incluidos aquellos que brindan seguridad y protección para las personas, los datos y el medio ambiente. Con sede en el Reino Unido, Coats es una empresa FTSE250 y miembro del índice FTSE4Good. Los ingresos en 2022 fueron de 1.6 millones de dólares. Con la confianza de las empresas líderes del mundo para ofrecer soluciones vitales, innovadoras y sostenibles, Coats ofrece productos de valor agregado, incluidos hilos para prendas de vestir, accesorios y calzado, componentes estructurales para calzado y accesorios., tejidos, hilados y aplicaciones de software. Los socios clientes incluyen empresas de las industrias de indumentaria, calzado, automoción, telecomunicaciones, protección personal y artículos para actividades al aire libre. Con una orgullosa herencia que se remonta a más de 250 años y un espíritu de evolución para mantenerse constantemente a la vanguardia de las necesidades cambiantes del mercado, Coats tiene operaciones en unos 50 países con una fuerza laboral de más de 18,000 2030 personas y presta servicios a sus clientes en todo el mundo. Coats conecta talento, textiles y tecnología para crear un mundo mejor y más sostenible. En todo el mundo, hay cuatro centros de innovación y sostenibilidad de Coats dedicados, donde los expertos colaboran con socios para crear los materiales y productos del mañana. Participa en el Pacto Mundial de las Naciones Unidas y está comprometida con objetivos de sostenibilidad basados en la ciencia para 2050 y más allá, con el objetivo de lograr cero emisiones netas para XNUMX. Coats también se compromete a lograr sus objetivos en materia de diversidad, equidad e inclusión, salud en el lugar de trabajo y seguridad, bienestar de los empleados y la comunidad, y desempeño social de los proveedores. Para obtener más información sobre Coats, visite www.abrigos.com.
Declaración de precaución
Ciertas declaraciones contenidas en este informe provisional son prospectivas. Aunque el Grupo cree que las expectativas reflejadas en estas declaraciones prospectivas son razonables, no podemos garantizar que estas expectativas resulten correctas. Debido a que estas declaraciones contienen riesgos e incertidumbres, los resultados reales pueden diferir materialmente de aquellos expresados o implícitos en estas declaraciones prospectivas. No asumimos ninguna obligación de actualizar ninguna declaración prospectiva, ya sea como resultado de nueva información, eventos futuros o de otro modo.
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