ConvaTec sees organic revenue growth at upper end of guidance
By Michele Maatouk
Date: Friday 29 Oct 2021
(Sharecast News) - Medical products company ConvaTec said on Friday that full-year organic revenue growth is set to be towards the upper end of its guidance range after an in-line third-quarter performance, which saw sales slow from the second quarter.
Reported revenue grew 3.7% on the year in the three months to the end of September, to $511m. ConvaTec highlighted continued momentum in Advanced Wound Care, modest growth in Ostomy Care and Continence Care, and declines in Infusion Care and Critical Care, as expected against tough prior year comparatives.
Group revenue for the nine months to 30 September was up 5.4% on an organic and constant currency basis.
ConvaTec said it now expects organic revenue growth towards the top end of its guidance range of between 3.5% and 5%, with a constant currency adjusted EBIT margin of 18% to 19%.
Chief executive officer Karim Bitar said: "During Q3, we continued to drive good momentum in the business and made further strategic progress implementing key transformation initiatives and improving execution. As expected, the growth in the third quarter slowed from Q2 given the relatively tougher comparatives. Notwithstanding the continuing uncertainties in the market, particularly around logistics and raw material inflation, for the full year we expect to be towards the upper end of our organic revenue guidance and to meet our EBIT margin guidance.
"We remain focused on pivoting to sustainable and profitable growth and are making good progress - I am confident in ConvaTec's long-term growth prospects."
At 0830 BST, the shares were up 2.8% at 203.60p.
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