ConvaTec pleased with adjusted earnings performance

Medical technologies company ConvaTec posted its unaudited results for the 2016 calendar year on Thursday, with adjusted revenue growing 2.3% to $1.69bn, or 4% at constant exchange rates.

The FTSE 100 firm said adjusted EBITDA improved 7.1% to $508m, pr 6.5% at constant currencies, while adjusted operating profit was ahead 8.1% to $472m, or 7.1% at constant exchange rates.

Its EBIT margin increased to 28% from 26.5% in 2015, while earnings per share were up to 13 cents from 10 cents.

Proforma earnings per share were 18 cents, compared to 17 cents in 2015.

On a reported basis, revenue grew 2.3% to $1.69bn, with EBITDA down 18.4% to $336m and operating profit dropping 33.2% to $154m.

“We are successfully delivering on the strategy set out at the time of our IPO,” said ConvaTec chief executive officer Paul Moraviec.

“All four franchises advanced well in 2016, resulting in group revenue growth of 4% at constant currency.

“Performance in the Advanced Wound Care franchise was particularly strong, and strategic initiatives in Ostomy Care are gaining traction.”

Moraviec said the company was ahead of schedule on its margin improvement plan and now expected to achieve around half of the targeted 300bps improvement during 2017.

“2016 was a transformative year for ConvaTec, culminating in a successful IPO and the refinancing of our debt.

“We have a diversified business, with leading positions in large and structurally growing markets together with a strong pipeline of innovative new products.

“We are well placed to create value for shareholders and to improve the lives of our patients across the world living with chronic conditions.”