Coats Group profit climbs; raises medium-term margin forecast

(Alliance News) - Coats Group PLC on Thursday reported increased earnings for 2024 as it eyed ...

Alliance News 6 March, 2025 | 3:49PM
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(Alliance News) - Coats Group PLC on Thursday reported increased earnings for 2024 as it eyed higher profitability in the medium term.

The London-based manufacturer of industrial thread and footwear components said in 2024 pretax profit increased 10% to USD172.1 million from USD155.8 million in the previous year.

Revenue climbed 7.7% to USD1.50 billion from USD1.39 billion in 2023. Coats said revenue increased 9% on a constant exchange rate basis.

Earnings before interest and tax was up 8.7% to USD200 million from USD184 million, with an adjusted Ebit margin of 18.0% in constant currencies, widened from 16.7%.

Coats declared a final dividend of 2.19 US cents, up 10% from 1.99 cents in 2023.

The full-year dividend is 3.12 cents, an increase of 11% from 2.80 cents in the previous year.

Looking ahead, Coats said it expects 2025 to be in line with market expectations with strong free cash generation.

It said margins in 2025 should grow further, with improvement in the Performance Materials division and "final benefits from strategic projects", in part balanced by reinvestment to drive long-term growth.

Looking ahead, the company set a new target of more than 5% average organic revenue growth, from a previous target of around 6%. The company expects group Ebit margins between 19% to 21%, from previous expectations of 17%.

It expects to generate adjusted free cash in excess of USD750 million over a five-year period, which will "support an active capital allocation policy focused on accelerating compound earnings growth".

Chief Executive David Paja said: "We are pleased to have delivered another strong financial performance in 2024, despite wider macroeconomic uncertainties and I would like to thank all Coats employees for this achievement.

"Today we are updating our medium-term targets outlining higher performance in our three divisions which, together with our active capital allocation policy, will deliver an acceleration in earnings growth."

Coats shares were up 1.4% at 87.20 pence in London on Thursday afternoon.

By Michael Hennessey, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Coats Group PLC 87.00 GBX 0.35 -

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