Coats Group (COA) Earnings Call Presentation

Financial Highlights - CER revenue increased by 2%[7], driven by strong growth in January-April, despite increased market uncertainty[7] - Group adjusted EBIT margin increased to 19.8%[7], aligning with the medium-term target range of 19-21%[7] - Achieved 7% CER EBIT growth[26] - Adjusted EPS increased to 4.69 cents[33] - Free cash flow pre-dividend increased from $39 million to $54 million[37] Acquisition of OrthoLite - A definitive agreement was reached to acquire 100% of OrthoLite Holdings LLC for an enterprise value of $770 million[7] - OrthoLite holds approximately 36% market share of the addressable open-cell market[10] - OrthoLite's revenue in 2024 was $258 million, with an EBITDA margin of 28%[11] - Identified joint cost synergies of $20 million annually by FY28[21] Strategic Rationale - The acquisition is expected to accelerate the company's footwear growth strategy[15] - The combined Coats Footwear FY24 proforma revenue is approximately $700 million[15] - The acquisition is expected to be EPS accretive from the first full year[15]