30th Apr 2020 09:51
(Alliance News) - ConvaTec Group PLC on Thursday maintained its annual guidance after revenue grew in the first quarter of 2020.
The medical device company reported revenue of USD460 million in the three months to the end of March, up 6.9% compared to USD431 million a year earlier. On a constant currency basis, revenue grew by 8.9%.
ConvaTec explained that its growth was helped by customers increasing their inventories to ensure supply chain resilience, and a weak prior year comparator due to a rebate provision.
Looking ahead, the FTSE 250-listed company maintained its outlook for the year, but said risk has increased due to Covid-19, including in supply chain.
Notwithstanding the uncertainty due to the virus pandemic, ConvaTec said it continues to propose that the 2019 final dividend is paid.
"We had a solid first quarter with the group delivering well against robust demand and we are continuing to drive forward with our transformation as we pivot to sustainable and profitable growth," said Chief Executive Karim Bitar.
"We are maintaining our 2020 guidance; however, it is clear that risks across the business have increased and the operating environment contains a greater level of uncertainty and volatility in the months ahead," added Bitar.
ConvaTec shares were trading 2.3% higher in Thursday morning in London at 206.40 pence each.
By Evelina Grecenko; [email protected]
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