Convatec Group (CTEC)

Sector:

Health Care

Index:

FTSE 100

233.80p
   
  • Change Today:
      0.20p
  • 52 Week High: 248.60p
  • 52 Week Low: 168.35p
  • Currency: UK Pounds
  • Shares Issued: 2,043.87m
  • Volume: 2,750,676
  • Market Cap: £4,778.57m
  • RiskGrade: 96

ConvaTec confirms guidance after strong H1 revenue growth

By Josh White

Date: Thursday 04 Aug 2022

LONDON (ShareCast) - (Sharecast News) - ConvaTec reported "strong" revenue growth in its first half on Thursday, up 3.6% on a reported basis to $1.05bn, 8% on a constant currency basis, and 6.4% on an organic basis, with "positive performances" across all of its divisions.
The FTSE 250 company said reported operating profit was 35.7% lower year-on-year for the six months ended 30 June at $87m, which was primarily down to hospital care exit.

Adjusted operating profit was stable at $204m, and up 1.1% on a constant currency basis, despite significant cost of goods sold inflation of 7%, and investments in sales and marketing and research and development operating expenses of 15% on a constant currency basis.

The firm's adjusted operating profit margin was 19.6%, down from 20.3% year-on-year, with price mix, productivity improvement, a reduction in general and administrative expenses and a currency tailwind more than offset by inflation and the operating expense investments.

ConvaTec said operating costs would be "more evenly phased" across the year in 2022 than in 2021.

Reported diluted earnings per share were 43.9% lower, which was also primarily due to the hospital care exit costs.

Adjusted diluted earnings per share were down 10% due to the treatment of US deferred tax, and excluding the recognition of deferred tax assets post-acquisitions, adjusted earnings per share would have been down 2.7%.

Net debt widened by $196m, largely due to strategic merger and acquisition investments, with the company's leverage standing at 2.3x net debt-to-adjusted EBITDA, compared to 1.9x at the end of the 2021 financial year.

The board declared an interim dividend of 1.717 cents, in line with the half-year distribution in 2021.

ConvaTec said it was on track to deliver organic revenue growth of between 4% and 5.5%, and a constant currency adjusted operating profit margin of at least 18%, as indicated in March and notwithstanding the current inflationary backdrop.

"This performance demonstrates that ConvaTec is continuing to pivot to sustainable and profitable growth," said chief executive officer Karim Bitar.

"Our competitive position and financial performance are strengthening as we successfully execute our 'FISBE' strategy.

"ConvaTec has achieved strong sales growth and, despite the significant inflationary backdrop, a robust profit performance."

Bitar noted the company was confirming its guidance for the full year.

"We remain focused on executing our strategy and are confident in ConvaTec's ability to grow in line or faster than its markets and to improve its operating margin to mid-20% over time."

At 1106 BST, shares in ConvaTec were up 9.82% at 252.8p.

Reporting by Josh White at Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CTEC Market Data

Currency UK Pounds
Share Price 233.80p
Change Today 0.20p
% Change 0.09 %
52 Week High 248.60p
52 Week Low 168.35p
Volume 2,750,676
Shares Issued 2,043.87m
Market Cap £4,778.57m
RiskGrade 96

CTEC Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.13% below the market average99.13% below the market average99.13% below the market average99.13% below the market average99.13% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
75.42% above the market average75.42% above the market average75.42% above the market average75.42% above the market average75.42% above the market average
89.74% above the sector average89.74% above the sector average89.74% above the sector average89.74% above the sector average89.74% above the sector average
Income
97.4% below the market average97.4% below the market average97.4% below the market average97.4% below the market average97.4% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
21.36% below the market average21.36% below the market average21.36% below the market average21.36% below the market average21.36% below the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average

What The Brokers Say

Strong Buy 6
Buy 5
Neutral 4
Sell 3
Strong Sell 0
Total 18
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CTEC Dividends

  Latest Previous
  Interim Final
Ex-Div 25-Aug-22 31-Mar-22
Paid 06-Oct-22 19-May-22
Amount 1.72¢ 4.15¢

Trades for 30-Jan-2023

Time Volume / Share Price
16:35 1,755,925 @ 233.80p
16:35 16,444 @ 233.80p
16:35 16,409 @ 233.80p
16:35 16 @ 233.80p
16:35 2,991 @ 233.80p

CTEC Key Personnel

CEO Karim Bitar
Chair John McAdam
CFO Jonny Mason

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