Coats’ yearly revenue has grown four per cent. Pre-tax profits slipped as lower demand for zips dented apparel and footwear revenue.
The benefits from the turnaround program, connecting for growth, was realised faster than initially anticipated, with net benefits delivered in 2018.
Revenues from apparel and footwear were largely unchanged from last year. Growth in the segment was impacted by slower demand for zips due to certain fashion trends, and a 15 per cent decline in Latin America Craft sales.
The full year dividend per share was increased by 15 per cent.
The company enters 2019 in a strong position, with continued positive momentum in its core apparel and footwear and hi-tech performance materials businesses. The exit of its non-core North American Crafts business will ensure complete focus on growing the remaining businesses organically and identifying further value-add bolt-on acquisitions.
Coats sold North America Crafts to Spinrite. Coats has had a crafts heritage in North America and a long association with crafters but decided to sell North America Crafts since the crafting market has evolved in the past decade and requires a higher degree of specialisation, scale, innovation and digital capabilities to succeed. Coats will use proceeds from the sale to make further value accretive acquisitions.