ConvaTec YTD revenues rise amid 'good start' to 2022
Convatec Group
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12:54 24/12/24
Medical products and technologies company ConvaTec said on Thursday that group revenues had risen 4.1% in the four months ended 30 April on a constant currency basis as it made "a good start to the year", with solid underlying growth in each of its four categories.
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ConvaTec said its advanced wound care unit achieved mid-single-digit organic revenue growth, with "a strong performance" in global emerging markets, a "good performance" in Europe, and a "stable performance" in North America.
In ostomy care, organic revenue growth was at a low-single-digit, while infusion care continued to deliver "strong double-digit organic revenue growth" as a result of continued high levels of demand for ConvaTec's differentiated infusion sets used in automated insulin delivery systems.
ConvaTec's continence and critical care category achieved also low-single-digit organic revenue growth, driven by a recovery in new patient starts in its continence unit, coupled with a good performance from its cure portfolio. However, this was moderated by "a slightly negative performance" within its critical care wing.
"We continue to expect organic revenue growth of between 4.0% and 5.5% and a constant currency EBIT margin of at least 18%. Our expectations for inflation have increased, with COGS inflation now estimated at approximately 8-9% (previously expected 5%)," said ConvaTec.
"However, we are managing these cost challenges by driving our simplification and efficiency agenda, leveraging our pricing center of excellence, and proactively managing our mix. Consequently, our full-year 2022 guidance is unchanged."
As of 0925 BST, ConvaTec shares were down 0.59% at 203.80p.
Reporting by Iain Gilbert at Sharecast.com