Convatec boosts full-year guidance, shares jump

Convatec Group boosted full-year revenue guidance on Thursday, following a strong start to the year.

The medical products firm said revenues in the four months to 30 April had eased 1.7% on a reported basis, in line with expectations after it exited hospital care activities.

But on an organic basis, revenues jumped 3.1%, prompting the chronic care specialist to boost full-year guidance.

It said: "Given the good organic growth so far this year against tough comparatives, coupled with the improving momentum and confidence of the outlook, we now expect organic revenue growth for 2023 to be between 5% and 6.5%."

Previously, Convatec had forecast annual revenue growth of between 4.5% and 6%.

Expectations for an operating profit margin on a constant currency basis were left unchanged at "at least" 19.7%.

The blue chip noted that there had been mid-single digit revenue growth in most divisions during the four-month period, including ostomy, continence and advanced would care, which had seen particularly strong trading in emerging markets.

Organic growth in infusion was flat, however, due the phasing of customer orders and strong prior year comparators.

As at 0915 BST, shares in Convatec were ahead 4% at 223.1p, making it the biggest riser on the FTSE 100.