Leading industrial thread manufacturer Coats has announced that its revenue has gone up 5 per cent on a CER basis to $740 million for the six months ended June 30, 2017. The company also reported a strong growth of 7 per cent in industrial division across both apparel and footwear (5 per cent), and performance materials (18 per cent).
The adjusted operating profit of the company increased 14 per cent on a CER basis (12 per cent reported) with Group revenue growth further underpinned by margin increase across both industrial (50 bps) and crafts (260 bps). Adjusted EPS went up 38 per cent to 3.06c with higher operating profit, reduction in effective tax rate, and mark-to-market foreign exchange gains. Underlying EPS growth was 19 per cent.
Strong adjusted free cash flow for the last twelve months was $109 million (June 2016: $84 million). As expected, second half capital expenditure will increase to $30-40 million ($50-60 million full year spend).
Return on capital employed by the country increased 400 bps to 34 per cent (2016: 30 per cent) mainly as a result of higher profitability. The company also reported good operational progress on the identified focus areas of simplification, innovation and enhancing its digital capabilities.