ConvaTec YTD revenues rise amid 'good start' to 2022

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.

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