4th August 2022

Sales Growth And “Robust” Profits At ConvaTec

Medical products and technologies business Convatec Group has reported strong first half sales growth and a “robust” profit performance despite a challenging trading environment.

Total group revenue in the six months to 30 June 2022 increased by 3.6 per cent on a reported basis to $1.4bn. Adjusting for M&A and business restructuring, group revenue rose 6.4 per cent on an organic basis.

Reported operating profit was 35.7 per cent lower at $87m, which Convatec said was primarily reflecting hospital care exit costs.

The business said it was on track to achieve its full year guidance.

Chief executive Karim Bitar said: “This performance demonstrates that Convatec is continuing to pivot to sustainable and profitable growth. 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 back drop, a robust profit performance.  We are confirming our 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 per cent over time.”

ConvaTec is a FTSE 250 global medical products and technologies company. In the UK, the business has sites in Reading, Deeside, Sunderland, Tredegar, Basingstoke, Lincoln, Stirling, Cheltenham and Croydon, South Shields and Greenhithe.