Coats Group
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Executive Summary
This report analyses the financial and business performance of Coats Group. It covers an overview of the company and industry. It also states the financial performance, ratios, and competitor comparison of the company. Coats Group is a British manufacturer of industrial threads, yarns, footwear components, and performance materials. The company reported that its revenues, gross profits, net profits, and Adjusted EBITDA increased. The company has high revenue and net margin compared to other companies. The company has to reduce its debt to maintain a strong market position in the global textile and apparel markets.
Company Overview
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Coats Group is a British manufacturer of industrial threads, yarns, footwear components, and performance materials. The company was founded by the Coats family in the eighteenth century. It is a public limited company listed on the London Stock Exchange under the abbreviation COA. Previously, the company produced cotton threads, and it was merged with the Clark thread company, forming J & P Coats Ltd. The company is headquartered in London, the United Kingdom. It operates in over 50 countries and serves apparel, footwear, aerospace, and telecom industries.
Industry Overview
The company operates in the international textile and apparel materials market. The company deals in sewing threads, yarns, footwear materials, zips, trims, and performance materials. The industry’s major thrust is on sustainability, new developments in textile technologies, and the global clothing and footwear market. The industry’s growth is hindered by fluctuating prices of materials, production costs, and competition.
Financial Performance Analysis
Particulars (USD Million) | FY2024 | FY2025 |
Revenue | 1,433.00 | 1,464.90 |
Gross Profit | 546.7 | 575.1 |
Net Profit | 99.7 | 121.2 |
Adjusted EBITDA | 314.8 | 333.0 |
Key Financial YOY
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Revenue Trend Over 3–5 Years
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Interpretation
The company’s revenue has increased by USD 1,464.9 million in 2025 as compared to USD 1,433.0 million in 2024. Additionally, the gross profit and net profit, as well as the Adjusted EBITDA, also rose, which suggests an increase in profitability and performance of the company’s operations in 2025.
Key Financial Ratio
Ratio Category | Formula | FY 2025 | Interpretation |
Current Ratio | Current Assets / Current Liabilities | 1.56 | Company has strong short-term liquidity and can comfortably meet its current obligations. |
Quick Ratio | (Current Assets − Inventory) / Current Liabilities | 1.2 | Indicates good immediate liquidity without relying on inventory sales. |
Gross Margin % | Gross Profit / Revenue × 100 | 39.17% | Strong profitability from operations and low cost management. |
Net Profit Margin % | Net Profit / Revenue × 100 | 8.27% | This suggests that the company can generate profits from its sales or revenues. |
Return on Equity (ROE) | Net Profit / Shareholders’ Equity × 100 | 15.88% | This implies that the firm can generate good returns for its shareholders from their equity investments. |
Debt-to-Equity Ratio | Total Debt / Shareholders’ Equity | 1.37 | The firm has a high gearing ratio, which means it is highly leveraged and therefore very risky. |
Interest Coverage Ratio | EBIT / Interest Expense | 4.63 | This suggests that the company has sufficient earnings to pay its interest expenses. |
Inventory Turnover | Cost of Sales / Inventory | 5.14 times | Inventory is efficiently managed and replenished multiple times during the year. |
Asset Turnover | Revenue / Total Assets | 0.57 times | Indicates moderate efficiency in utilizing assets to generate revenue, typical of capital-intensive businesses. |
SWOT Analysis
Strengths | Weaknesses |
Global leader in industrial threads and textile materials. | High debt-to-equity ratio indicates significant leverage. |
Strong profitability and growing Adjusted EBITDA. | Exposure to fluctuations in raw material prices. |
Strong focus on innovation and sustainable products. | Capital-intensive operations result in lower asset turnover. |
Opportunities | Threats |
Rising demand for sustainable textile products. | Intense competition in the textile and materials industry. |
Growth in footwear and performance materials markets. | Volatility in raw material and energy costs. |
Expansion in emerging markets. | Economic slowdowns may reduce consumer demand. |
Peer / Competitor Comparison
Company | Revenue (USD Million) | Net Profit Margin | Debt-to-Equity Ratio |
Coats Group | 1,464.90 | 8.27% | 1.37 |
Unifi, Inc. | 571.34 | -3.56% | 0.43 |
Vardhman Textiles Ltd | 1174 | 7.66% | 0.18 |
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Conclusion and Recommendations
Coats Group’s financial performance has been stable and prosperous in the 2025 fiscal year. The company is gaining ground in terms of revenue, gross profit, net profit, and adjusted EBITDA. Coats Group’s competitive position within the global textile and materials market remains strong. The company has a good liquidity position and profitability, while having a high equity ratio. In order to preserve its strong financial position, the company should consider decreasing its debt.
References & Sources
- Coats Group Official Website.
- Coats Group Annual Report 2025
- Yahoo Finance - Unifi Inc
- Moneycontrol - Vardhaman Textiles
- Yahoo Finance - Indorama Ventures
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