ConvaTec disappoints as sales hit by forex

The FTSE 100 newcomer generated revenue of $403.1m in the first quarter, flat at the reported level but up 1.8% at constant exchange rates and 1.2% organically.

ConvaTec said good momentum across the business was slightly offset by expected phasing impacts of new products coming on stream.

Sales of advanced wound care products grew by 4.2% to $134m at constant currencies or 1.8% reported, slowed by changes to reimbursement rates in France and the wider timing of orders.

Ostomy care revenue grew 3.3% to $122m constant exchange rates as management execute their plan to return to a sustainable growth strategy.

Continence and critical care sales were down 1.2% at the reported level to $85.5m, almost flat underlying after a 4% impact in the quarter from the planned rationalisation of the product portfolio to improve margins.

Infusion device sales declined by 4.2% reported and 3.1% underlying to $62m due to customer inventory reductions, as expected.

Chief executive Paul Moraviec said he was continuing to deliver on the strategy set out at the time of the IPO last summer.

"We had a good start to the year, reflecting consistent execution across all franchises. In particular we saw continued progress in Ostomy, and continuing underlying momentum from Continence & Critical Care, despite the impact of the planned product rationalisation. Growth in Advanced Wound Care was impacted by the timing of orders in the EMEA region."