Coats Group reported organic revenue growth in H1, offsetting a mid-single-digit drop in apparel and footwear markets.
Coats Group posted a 1% organic revenue increase to $837 million in the first half, defying an estimated mid-single-digit decline in its apparel and footwear markets. The company attributed the growth to market-share gains, pricing actions, and technology investments, though EBIT fell 2% organically to $166 million.
EBIT margin held steady at 19.8%, including a 40-basis-point boost from the OrthoLite acquisition. Net debt stood at £842 million, or 2.3 times leverage, with a target to reduce it to two times or below by the end of 2026.
Management maintained its outlook, expecting second-half EBIT improvement and earnings in line with market expectations despite ongoing market weakness. OrthoLite integration remains on track, with $5 million in cost synergies targeted for 2026 and at least $20 million by 2028.