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ConvaTec confident as company makes strong start in 2024

16th May 2024 10:14

(Alliance News) - ConvaTec Group PLC on Thursday said good progress had been made in 2024 so far, with revenue growth reported across all of its divisions, as the company reaffirmed its guidance for the full year.

The London-based medical technology company said revenue was up 5.2% on a reported basis in the first four months of 2024.

On a constant currency and organic basis, ConvaTec said its top line was up 5.4% and 6.5%, respectively.

ConvaTec did not provide actual figures in its trading update, just percentage changes.

The company reported "broad-based growth" across all divisions.

As expected, organic revenue growth in Advanced Wound Care was a mid-single-digit percentage, and ConvaTec noted an especially strong performance in the US boosted by its InnovaMatrix wound dressing device.

In Ostomy Care, organic revenue growth was a mid-single-digit percentage, supported by growth in Europe and the US.

Continence Care saw high-single digit growth, above ConvaTec's expectations, thanks to "strong new patient starts" and an increase in reimbursement levels in the US.

In Infusion Care, Convatec reported mid-single digit growth in line with expectations, and said that the division's performance was supported by increasing demand for infusion sets both within and outside of diabetes.

ConvaTec said new product innovation is progressing well, with regulatory clearances for its ConvaFoam dressing expected later this year.

As a result of its recent performance, ConvaTec said it is on track to meet its 2024 guidance and reiterated its annual forecasts.

The company is expecting organic revenue growth of between 5.0% and 7.0% for the full year, with mid-single to high-single digit increases across its four divisions.

In 2023, Convatec's revenue was USD2.14 billion, up 3.4% from USD2.07 billion the previous year.

ConvaTec expects to maintain its 5.0% to 7.0% organic growth target in the medium term, thanks to "strong underlying demand in its chronic care segments, coupled with its innovative new product pipeline".

Shares in ConvaTec were down 4.4% at 254.40 pence each in London on Thursday morning.

By Hugh Cameron, Alliance News reporter

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