Convatec Q1 revenues grow, maintains FY guidance
By Iain Gilbert
Date: Thursday 29 Apr 2021
(Sharecast News) - Medical device company Convatec reported improved first-quarter revenues on Thursday but opted to keep its full-year outlook unchanged due to the ongoing Covid-19 pandemic and uncertainties arising from it.
Convatec posted revenues of $500.0m for the three months ended 31 March, 8.7% higher year-on-year overall, 6.7% on an organic basis, or 5.4% in constant currency.
The FTSE 250-listed firm cited "strong organic growth" in its advanced wound care and infusion care units as a key driver, as well as "modest growth" in its ostomy care and continence care divisions and "continued strength" in the group's critical care unit.
However, despite the improved revenue performance, Convatec kept its 2021 full-year outlook unchanged, citing "continuing macro uncertainties", with organic revenue growth pegged to be between 3.0-4.5% and constant currency adjusted underlying earnings margins puffed to be around 18.0% to 19.5%.
Chief executive Karim Bitar said: "We have made a good start to the year, continuing to deliver for our customers and patients. In addition, we effectively executed on our strategy, notably with the acquisition of Cure Medical which strengthens our position as a leading developer and manufacturer of continence care products in the large and growing US marketplace.
"We are making good progress and remain focused on executing on the significant number of strategic initiatives underway as we continue on our journey to pivot to sustainable and profitable growth. Despite the near-term uncertainties, I remain confident in ConvaTec's growth prospects."
As of 1020 BST, Convatec shares were up 4.43% at 216.80p.
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