Latest news with #CoatsGroup
Yahoo
3 days ago
- Business
- Yahoo
Coats Group First Half 2025 Earnings: EPS: US$0.041 (vs US$0.038 in 1H 2024)
Coats Group (LON:COA) First Half 2025 Results Key Financial Results Revenue: US$705.4m (down 4.8% from 1H 2024). Net income: US$65.9m (up 8.9% from 1H 2024). Profit margin: 9.3% (up from 8.2% in 1H 2024). EPS: US$0.041 (up from US$0.038 in 1H 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Coats Group Earnings Insights Looking ahead, revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Luxury industry in Europe. Performance of the market in the United Kingdom. The company's shares are down 11% from a week ago. Risk Analysis We should say that we've discovered 3 warning signs for Coats Group (1 doesn't sit too well with us!) that you should be aware of before investing here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Coats Group PLC (CGGGF) (H1 2025) Earnings Call Highlights: Record Profit Margins and Strategic ...
Revenue: $705 million, up 2% at constant currency. EBIT: $140 million, up 7% at constant currency. Adjusted EBIT Margin: Increased by 100 basis points to 19.8%. Free Cash Flow: Increased from $39 million to $54 million. Net Debt: $430 million with leverage of 1.4 times. Apparel Revenue: $381 million, up 3% on a constant currency basis. Footwear Revenue: $199 million, up 1% on a constant currency basis. Performance Materials Revenue: Declined 2% to $125 million on a constant currency basis. Interim Dividend: $0.01, an increase of 7.5% compared to the same period last year. Warning! GuruFocus has detected 7 Warning Signs with FRA:S0A. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Coats Group PLC (CGGGF) reported a record profit margin of 19.8%, achieving their medium-term target ahead of schedule. The acquisition of OrthoLite, a leader in insoles, is expected to enhance growth and profitability, with OrthoLite holding a 36% market share in its segment. Sales of recycled thread increased by 73% year-on-year, demonstrating strong growth in sustainable product lines. Free cash flow generation improved significantly from $39 million to $54 million, indicating strong cash management. The company identified $20 million in cost synergies from the OrthoLite acquisition, expected to be fully realized by 2028. Negative Points There was a deceleration of orders since April due to uncertainty about US consumer confidence, impacting overall sales momentum. The exit from the North America yarns business, while beneficial for margins, indicates a strategic retreat from certain markets. Uncertainty around US tariffs has led to cautious ordering from brands, affecting short-term revenue visibility. Performance materials revenue declined by 2% due to ongoing issues in some US markets, including destocking by telecommunication customers. The integration of OrthoLite will require careful management to avoid disrupting top-line growth, with synergies phased over three years. Q & A Highlights Q: Can you provide background on the decision and timing of the Ortholite acquisition given current market uncertainties? A: David Paja, CEO: We've been tracking Ortholite for about two years, and management engagement has been ongoing for over 18 months. The acquisition process was initiated by Ortholite's private equity owner earlier this year. Despite market uncertainties, we believe the footwear space offers attractive growth and profit potential, and Ortholite, as a market leader, is well-positioned for medium-term growth. Q: Can you explain the Circle technology and the decision for a 5% royalty on future sales? A: David Paja, CEO: Circle technology addresses the midsole space in footwear, offering disruptive performance and sustainability. Given its early stage, we opted for a 5% royalty on future sales rather than upfront valuation. This arrangement allows us to handle potential future upside sensibly. Q: What are the current trading trends for Ortholite, and how are they impacted by tariffs? A: David Paja, CEO: Ortholite has shown strong performance, growing around 15% year-on-year in the first half. This is driven by increased penetration of their open-cell foam technology and a favorable mix shift to higher-priced molded insoles. Despite market uncertainties, we've taken a cautious view on future performance, not extrapolating the first half's growth. Q: How does the acquisition of Ortholite change Coats' go-to-market strategy with brands? A: David Paja, CEO: The acquisition enhances our credibility as a super Tier 2 supplier. Ortholite's extensive brand relationships complement our existing portfolio, offering cross-selling opportunities. We will leverage their brand intimacy and our operational excellence to drive innovation and improve manufacturing processes. Q: Can you elaborate on the sustainability advantages of open-cell technology over EVA? A: David Paja, CEO: Open-cell technology offers superior environmental benefits due to its chemistry and high levels of recycled content. It provides better breathability and cushioning, making it suitable for athletic applications. This technology is more sustainable than EVA, which faces significant environmental challenges. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Time of India
5 days ago
- Business
- Time of India
UK's Coats Group to buy footwear insole maker OrthoLite for $770 million
British thread manufacturer Coats Group said on Wednesday it would buy U.S.-based footwear insole maker OrthoLite for $770 million, including debt. The deal is expected to deliver $20 million in annual savings by 2028, Coats said. OrthoLite holds a 36% share of the global open-cell foam insole market, supplying more than 500 million pairs a year to around 550 brand customers and has over 310 co-branding agreements. The acquisition is expected to boost Coats' operating profit margin and earnings per share from the first full year of ownership. Coats' footwear division reported 403 million pounds in revenue for fiscal year 2024, according to the company's annual report.
Fashion United
5 days ago
- Business
- Fashion United
Coats Group acquires OrthoLite for 770 million dollars
British manufacturing firm Coats Group has entered an agreement to acquire OrthoLite Holdings LLC for 770 million dollars. The deal intends to create 'a 'super tier 2' supplier for footwear components', while helping Coats expand into the 'high growth insole segment'. The transaction, which is expected to close in Q4 2025, was funded through a combination of new debt facilities with existing lenders and the proceeds of an equity placing. Coats said 'compelling financial returns' are anticipated. OrthoLite is a US company specialising in insole open-cell foam technology for footwear. Through its acquisition, Coats will also take ownership of Cirql, a newly developed proprietary foam technology OrthoLite launched earlier this year targeting the midsole market. Coats said that OrthoLite's offering is a 'highly complementary addition' to its portfolio, aligning on consumer base, route-to-market and sustainability values, thus making it a 'compelling strategic fit'. The group further sees the acquisition as an opportunity to 'reinforce its position as global leader in the footwear market'. In a statement, David Paja, Coats' chief executive officer, said: 'The combination of Coats and OrthoLite is fantastic news for both companies and for the footwear industry. It brings together two global leaders in adjacent segments of the footwear components market with a shared vision for innovation and sustainability and with unparalleled brands and customer relationships.'
Reuters
6 days ago
- Business
- Reuters
UK's Coats Group to buy footwear insole maker OrthoLite for $770 million
July 16 (Reuters) - British thread manufacturer Coats Group (COA.L), opens new tab said on Wednesday it would buy U.S.-based footwear insole maker OrthoLite for $770 million, including debt.
