Coats Group plc, the world's leading industrial thread manufacturer, posted 24 per cent revenue decrease to $536 million in its first half (H1) FY20 ended on June 30, 2020 compared to revenue of $705 million in the same period previous year. Company’s operating profit for the six months period slipped to $34 million (H1 FY19: $102 million).
“I am proud of the speed, confidence, clarity and empathy with which Coats has responded to the Covid-19 challenges,” Rajiv Sharma, group chief executive, said in a press release. “We have seen an improving sales trend in recent, albeit low-season, months with organic sales declines reducing to 25 per cent in June and 18 per cent in July.”
Sales in Asia during H1 FY20 fell 27 per cent to $283 million ($388 million) due to severe lockdown measures in key A&F markets (India / Bangladesh) and some offset from Vietnam. Americas sales dropped 6 per cent to $149 million ($158 million). While, sales in EMEA slipped 24 per cent to $104 million ($137 million) with Italy (zips) impacted by lockdown.
Apparel and footwear segment sales plunged 29 per cent to $372 million ($523 million). However, performance materials sales grew marginally 2 per cent to $164 million ($160 million).
“Our focus has already shifted to winning the recovery. In a crisis, customers depend on trusted and dependable partners like Coats that offer quality, reliability, innovation, sustainability, digital solutions and technical support. Our global scale has allowed us to reliably deliver products and services to customers, resulting in incremental customer wins,” Sharma said.
“We have seen an acceleration of digital adoption and sustainability in our industry and our recent investments in these areas have resulted in commercial gains during the period,” Sharma said in the release.