UNDERSTANDING COATS
Prospects
Understanding Coats
Prospects
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FY 2024
Outlook for 2025
Based on current market conditions and normalised customer buying behaviour, we anticipate another year of financial and strategic progress in 2025, in line with market expectations.
This guidance reflects continued organic growth for Apparel and Footwear, in line with the medium- term growth targets for these divisions. Organic growth in Performance Materials is expected to be modest with no expected recovery in the America’s Yarns business and a gradual recovery in the Telecoms and Energy business. Margins in 2025 should benefit from further growth, improvement in Performance Materials and the final benefits from strategic projects, which will be balanced in part by some targeted reinvestment to drive long term growth initiatives.
Free cash generation is again expected to be strong in 2025, supporting the Group’s capital allocation strategy.
H1 2025
Outlook
The Group’s full year outlook remains unchanged and is in line with current market expectations with a balanced weighting between first and second half trading overall. Our full year confidence is supported by continued market share gains in Apparel and Footwear and our growth in adjacencies. This is underpinned by the strong operating margin performance, already within the middle of our medium-term target range of 19-21%, and the growth in free cash flow, which is expected to further increase in the second half and into 2026.
The Group is mindful of the current market uncertainty, including from the dynamic tariff backdrop, and continues to monitor this closely but we believe we are well placed to navigate these challenges.