Full Year 2024 Coats Group PLC Earnings Call Transcript
Key Points
- Coats Group PLC (CGGGF) reported a strong financial performance with a 9% revenue growth in constant currency.
- The company achieved an 18% EBIT margin, surpassing their 2024 target of 17%.
- Earnings per share increased by 18%, reflecting improved operating performance.
- Coats Group PLC (CGGGF) generated $153 million in free cash flow, demonstrating excellent cash generation.
- The company successfully de-risked its UK pension liabilities, eliminating the need for further cash contributions.
- Performance materials division underperformed, with a 1% revenue decrease and a 7.4% margin, below the 2024 target.
- The closure of the Toluca plant in Mexico indicates operational inefficiencies and market challenges in performance materials.
- The company faces ongoing weakness in some US markets, particularly in performance materials.
- Hyperinflation accounting in Turkey negatively impacted reported revenue and EBIT growth.
- The performance materials division's recovery is contingent on market recovery in industrials and telecom sectors, which remains uncertain.
Good morning and welcome. I'm delighted to be here for my first set of set of results at Coates, and I look forward to meeting those of you that I haven't met yet in the coming weeks and months.
So here's our agenda today.
I'm going to take you through the highlights for the year. Jackie will present our financial performance, and after that I will give you a strategic update introducing our new medium term targets.
Then we take your questions.
So let's start with headlines.
We delivered another strong set of financial results despite macroeconomic uncertainty.
Revenue grew 9% in constant currency.
Adjusted EBIT margin, grew 120 basis points to 18%.
Earnings per share grew 18% to 9.5%. And we generated $153 million of free cash flow.
We continue to drive value for shareholders with a proposed final dividend of 2.$0.19, up 10% on 2023.
We also continue to outperform our industry by gaining share in both the global apparel and
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