Breaking Down Coats Group plc Financial Health: Key Insights for Investors

Step into the story of Coats Group plc, a heritage company with over 250 years of expertise that today operates in more than 50 countries and employs over 18,000 people, driving innovation in industrial threads and structural components while pursuing a mission to deliver superior returns and long-term sustainable value; celebrated as one of the World's Best Workplaces™ and lauded for diversity and environmental leadership, Coats surpassed expectations in 2024 by cutting Scope 1 and 2 greenhouse gas emissions by 51%, and has set clear targets-including net-zero by 2050 and eliminating virgin oil-based products by 2030-underpinned by strategic pillars of sustainability, innovation and digital transformation, programs like Energy4Performance (E4P) to boost employee well-being, and a customer-centric, family-oriented culture that positions it to convert scale and engineering excellence into competitive advantage.

Coats Group plc (COA.L) - Intro

• Heritage: >250 years of continuous operation and industry presence
• Global footprint: Operating in 50+ countries
• Workforce: 18,000+ employees worldwide
• Sustainability milestone: 51% reduction in Scope 1 & 2 emissions (2024)
• Recognition: Awards for environmental sustainability and diversity in leadership; one of the World's Best Workplaces™
• Strategic focus: Innovation, sustainability, digital transformation, and long‑term shareholder value

Mission

• Deliver product and service innovation that reduces customer environmental footprints
• Drive profitable growth and superior returns for investors
• Support safe, inclusive workplaces and communities

Vision

• Lead the transition to circular and low‑carbon products
• Embed digital services that increase customer productivity and traceability
• Be recognized as the most trusted sustainable supplier in target markets

Core Values

• Customer focus - prioritising reliability, quality and value for customers
• Innovation - continuous R&D investment in materials, processes and digital tools
• Sustainability - measurable targets for emissions, waste and responsible sourcing
• People - commitment to safety, diversity, development and employee wellbeing
• Integrity - ethical conduct, transparent reporting and strong governance

Strategic Priorities & KPIs

• Decarbonisation - achieving Science Based Targets and net‑zero pathways (51% Scope 1 & 2 reduction achieved in 2024)
• Portfolio evolution - growing higher‑margin engineered and digital offerings
• Operational excellence - drive productivity in manufacturing and supply chain
• People & culture - maintain and improve workplace recognition and leadership diversity

Coats Group plc (COA.L) Overview

Coats Group plc (COA.L) is a global leader in industrial threads, yarns and performance materials, combining a multi‑decade heritage with a strategy focused on innovation, sustainability and digital transformation to deliver long‑term shareholder value.

Mission Statement

Coats Group plc's mission is to deliver superior returns and long‑term, sustainable value for its investors by leveraging innovation, sustainability, digital technologies and global scale to create world‑class products and services. The mission emphasizes ethical practices, customer focus and a family‑oriented culture that fosters collaboration and enduring stakeholder relationships.

• Deliver superior financial returns and sustainable value to shareholders.
• Use innovation and digital solutions to drive product and service differentiation.
• Place sustainability at the core of product design and operational management.
• Maintain ethical practices, customer‑centricity and long‑term partnerships.

Vision

To be the world's most trusted partner in industrial threads, yarns and performance materials - enabling customers to meet their sustainability goals while delivering superior financial performance through technology, scale and continuous improvement.

• Global reach: operating in more than 50 countries and serving customers across apparel, footwear, industrial, and consumer markets.
• People: around 17,000 employees committed to continuous improvement and customer service.
• Manufacturing footprint: production facilities located across multiple continents to support supply resilience and local customer needs.

Core Values

• Integrity & Ethics - transparent governance and responsible business conduct.
• Customer‑Centricity - building long‑term relationships and co‑creating solutions.
• Innovation - continuous R&D and adoption of digital technologies for product and process advancement.
• Sustainability - embedding environmental and social responsibility in products and operations.
• People & Community - investing in workforce development and safe, inclusive workplaces.

Sustainability: Strategic Priority and Competitive Advantage

Sustainability is central to Coats' strategy - both in the products it creates and how it manages operations. The company positions sustainable innovation as a competitive advantage, enabling customers to meet regulatory and consumer expectations while driving differentiated revenue.

Investment and Performance Metrics

• Scale and reach: operations in 50+ countries, serving global apparel, footwear and industrial customers.
• Workforce: around 17,000 employees supporting manufacturing, technical services and customer solutions.
• R&D & innovation: sustained investment in new materials, dyeing and finishing technologies and digital traceability to drive product value.
• Governance: public company listed on the London Stock Exchange (COA.L) with board oversight of ESG and strategic delivery.

2023-2026: Focused Targets and KPIs

For the 2023-2026 period Coats has committed to a set of measurable targets to demonstrate progress on its longer‑term sustainability commitments. Key tracked KPIs include emissions intensity, percentage revenue from sustainable products, waste reduction, water efficiency and safety metrics. These KPIs are reported annually and inform capital allocation and R&D priorities.

• Emissions & energy: track absolute and intensity metrics for scope 1 & 2 emissions and energy efficiency improvements.
• Sustainable revenue: increase proportion of sales from certified or recycled products and circular offerings.
• Operational efficiency: reduce waste and improve water use in priority facilities.
• Safety & people: reduce incident rates and invest in training and skills development.

Further detail on Coats' heritage, strategy and how it creates value for customers and investors can be found here: Coats Group plc: History, Ownership, Mission, How It Works & Makes Money

Coats Group plc (COA.L) - Mission Statement

• Mission focus: supply best-in-class thread and performance component solutions to footwear, apparel, automotive and industrial markets worldwide.
• Operational priorities: speed-to-market, consistent product quality, scalable productivity, continuous innovation and measurable sustainability outcomes.
• Commitments: decarbonisation, elimination of virgin oil-based products by 2030, and a net-zero emissions pathway by 2050.

• Sustainability: targets to achieve net-zero emissions by 2050 and to phase out products using virgin oil-based materials by 2030, alongside circularity initiatives and increased recycled-content products.
• Innovation: development of high-performance threads, bonded and structural components, smart textiles and formulation improvements that reduce waste and improve product lifecycle.
• Digital transformation: digitising manufacturing and supply chains to improve lead times, traceability, cost-to-serve and customer responsiveness.

• Emissions targets: committed to net-zero by 2050; near-term scope 1 & 2 reduction targets aligned with this pathway.
• Materials target: eliminate virgin oil-based products by 2030-shifting to recycled and bio-based feedstocks.
• R&D and innovation spend: sustained investment in new products and processes to improve yield, reduce waste and enable higher-value applications.
• Digital metrics: measurable reductions in lead times and inventory days through digitised planning and customer portals.

• Capex allocation: prioritise high-return productivity projects, sustainability-enabling equipment and digital upgrades to manufacturing and logistics.
• Commercial strategy: deepen partnerships in high-growth segments (technical textiles, automotive, sportswear) to capture margin-accretive opportunities.
• ESG integration: embed circular design, traceability and supplier engagement into product roadmaps and commercial contracts.

Coats Group plc (COA.L) - Vision Statement

• Integrity: a non-negotiable standard - transparency in reporting, ethical sourcing and compliance across 50+ manufacturing sites and global supply chains.
• Sustainability: a clear pathway to net-zero by 2050, with interim 2030 targets for absolute and intensity-based reductions in scope 1, 2 and prioritized scope 3 emissions.
• Innovation: investment in R&D and application engineering to deliver high-value, highly engineered products for apparel, footwear, automotive, and industrial markets.
• Customer-centricity: tailored solutions and technical partnerships across more than 100 countries to anticipate and meet diverse customer needs.
• Family-oriented culture: collaborative workplaces and long-tenure relationships that drive retention and cross-functional knowledge sharing.
• Employee well-being: programs such as Energy4Performance (E4P), which have driven measurable improvements in engagement, absenteeism and productivity.

• Integrity and governance: audited sustainability disclosures, third-party supplier assessments and anti-bribery controls integrated in procurement.
• Sustainability actions: energy efficiency projects, renewable energy procurement, circularity pilots (recycled yarns and take-back programs) and product life‑cycle assessments to reduce scope 3 impacts.
• Innovation delivery: co-development programs with major brands, sample-to-production cycles shortened by digital tooling and laboratory-led performance testing.
• Customer-focus metrics: Net Promoter improvement, contract renewal rates, and technical service hours per account to track added value.
• People & culture: E4P initiatives targeting physical, mental and financial well-being, employee engagement surveys and leadership development that reduce turnover and boost productivity.