ConvaTec FY profits lower on restructuring costs
Medical products supplier ConvaTec reported a slump in full year profit as restructuring costs hit its bottom line.
The company on Friday said pre-tax profit fell to $18.9m from $201.2m, while revenue was roughly flat at $1.83bn. ConvaTec spent $40m on its "Transformation Initiative".
It added that it did not expect any significant interruption to trading from the coronavirus which has spread from China into Europe.
“In 2019, sales in China accounted for less than 1% of Group revenues and within our supply chain there are a small number of component parts and accessories that are manufactured by third-parties in affected areas of (Asia Pacific),” Convatec said.
“At this stage, assuming that the situation normalises in (the second quarter) and that the outbreak is contained, we do not anticipate any significant business interruption, however we are continuing to assess potential impacts, and the subsequent mitigating actions. We have a number of employees in affected areas and we aim to ensure that they are in an environment which is safe and secure.”
The company forecast constant currency revenue growth of 2% - 5% and constant currency adjusted earnings before interest and tax margin of 16% - 18%.