Market overview

There are sound foundations for future sales and profit growth through ongoing product innovation, market leading use of digital channels together with procurement, productivity and pricing initiatives


Many of our markets closely reflect trends in GDP and consumer spend in their underlying demand pattern.  Therefore we expect a broadly positive picture in Asia, moderate growth in demand in North America and Europe, and a relatively flat situation in Latin America, especially Brazil.  It is expected that raw material costs will trend marginally upwards, and payroll and other inflationary pressures will continue to feature in many of the countries in which Coats operates.

Industrial Division

Year-on-year improvement in Industrial Division sales is expected during 2014, with contributions from both volume and price.  Inflationary cost rises in the business will continue to be offset by procurement and productivity improvements, while pricing initiatives will remain important in achieving profitable sales growth.

Crafts Division

In the Crafts Division, while 2013 saw 4% sales growth, it is expected that a reduction in fashion handknitting yarn sales will contribute to a sales decline in both EMEA and North America, limiting year-on-year growth. 


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