Coats Group Reports First-Half Results Amid Subdued Markets
Coats Group reported first-half organic revenue growth of 1%, reaching $837 million, despite a mid-single-digit decline in the apparel and footwear markets. EBIT fell by 2% to $166 million, with margins held steady at 19.8%. The company attributed its performance to market-share gains, pricing strategies, cost control measures, and innovation investments. The integration of OrthoLite is progressing well, with Coats on track for $5 million in cost synergies by the end of 2026 and up to $40 million annually in sales synergies by 2030. The company also plans capacity expansion in Indonesia and expects OrthoLite to return to growth in the second half. Coats maintained its outlook for EBIT improvement in the second half despite ongoing market weakness, with a target of reducing leverage from 2.3 times to two or below by year-end.
Topics: acquisition integration deleveraging strategy EBIT performance revenue growth