2nd May 2018 10:05
LONDON (Alliance News) - ConvaTec Group PLC on Wednesday reported a rise in revenue for the first quarter of the year, both at reported rates and on an organic basis, as it retained its full-year guidance.
The medical technology firm said revenue rose 3.7% on an organic basis in the first quarter of 2018, representing a 7.5% rise at constant currencies and up 14% at reported rates.
Within divisions, Advanced Wound Care revenue rose 10% to USD147.1 million, up 2.2% on an organic basis. Ostomy Care rose 5.1% to USD128.0 million, down 2.5% on an organic basis, while Continence & Critical Care jumped 27% to USD108.4 million, up 5.6% organically.
Infusion Devices rose 20% to USD74.7 million, up 16% organically.
The performance in Advanced Wound Care and Ostomy Care reflects the "ongoing impact of supply constraints" which arose last year, ConvaTec said.
However, the company said it is "confident" organic revenue growth in Advanced Wound Care will improve over the course of the year.
"We made good progress in fulfilling backorders on our moldable products that arose in 2017 and anticipate Ostomy performance will improve throughout the rest of the year, as we continue to stabilise and optimise our manufacturing and supply chain and execute on our strategy," ConvaTec added.
The FTSE 250-listed company retained its guidance for the year ahead, including the expectation of organic revenue growth between 2.5% to 3.0%.
"We have delivered a solid start to the year, underlining 2018 as a year of stabilisation, and our performance in the first quarter clearly demonstrates the benefits of our diversified portfolio," said Chief Executive Paul Moraviec.
"We have made good progress throughout the business and whilst our Q1 results reflect the continuing impact of the supply constraints and associated lost orders which arose last year in our Advanced Wound and Ostomy Care franchises, as expected, we are encouraged by the good underlying demand for our key brands," Moraviec added.
Shares in ConvaTec were up 1.4% at 221.00 pence on Wednesday.
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