Industrial-thread manufacturer Coats Group reported that its organic revenue was 6% higher for the period 1 July 2021 to 31 October this year as it begins to see a recovery. despite lockdown impacts in Vietnam.
The business said in a trading update on Tuesday that pricing and productivity actions continued to offset inflationary pressures, and it anticipated its performance for the year to be in line with its expectations.
“Strong operational performance, demand recovery, market-share gains and customer wins have continued, despite recent lockdown impacts in Vietnam, which have now subsided,” the company said in the update.
“The lessons learnt from shutdowns around the globe in 2020 mean the group continues to be well-placed to manage regional Covid disruption as our global footprint and organisational agility allow many of our customers to be supported from other manufacturing sites,” it added.
Revenue growth breakdown
The business said its Apparel & Footwear units grew 5% on the year compared to the same period in the previous year. “We continued to see positive end-market sentiment across the US, Europe and Asia. Sports and leisure continued to perform well,” it noted.
It also hihglighted that performance materials grew 8% on the year, with all segments continuing to perform strongly. However, it said its US personal protection requirements continue to be impacted by US labour availability issues.
“Pricing and procurement actions and self-help productivity programmes continue to offset heightened inflationary pressures in the supply chain (raw materials, energy, labour and freight inflation),” the group also mentioned in the statement.
Coats said it will release its full-year 2021 results on 3 March next year.