Coats’ revenue has fallen two per cent in fiscal 2019. However, operating profit jumped 30 per cent. Sales in Asia grew one per cent. Growth across key non-China markets (Indonesia and Vietnam) continued to benefit from incremental volumes moving out of China (a dynamic that was exacerbated by US-China trade war uncertainty in 2019). Americas and EMEA (Europe, Middle East and Africa) reported decline in sales by seven per cent and three per cent.
The industrial thread manufacturer enters 2020 as a lean and agile organisation, having delivered significant positive strategic change through 2019. This was a year of continued growth in profits and cash, despite a market backdrop which saw lower than normal growth in retail sales of apparel and footwear, and temporary softness in some of the industrial end-markets. In apparel and footwear, this meant taking a bigger market share by delivering high quality products with world class levels of speed, customer service and support. However growth was impacted by slower demand for zips and trims due to certain in-year fashion trends and conscious low margin product rationalization as well as the impact of tail market exits and other customer/product portfolio rationalisation actions.
Coats is well placed to take advantage of the fast-paced and rapidly changing modern world by capturing the many opportunities.