28th Oct 2020 09:43
(Alliance News) - ConvaTec Group PLC on Wednesday reported a jump in revenue in the third quarter with several divisions driving the growth.
The medical products and technologies company said revenue in the three months ended September 30 was USD493 million, up 6.5% from USD462.9 million a year prior. This was driven by significant growth in its Infusion Care division, continued strong growth in Continence & Critical Care, and an improved performance in Advanced Wound Care.
ConvaTec said: "Covid-19 continued to drive less predictable demand, particularly in Advanced Wound Care and Critical Care, although underlying customer demand for the group was encouraging."
Operating expenses continued to benefit from temporary Covid-19 related cost reductions. This is expected to phase out in due course, ConvaTec said.
ConvaTec now expects to be towards the higher end of its constant currency revenue growth range of between 2% and 3.5% in 2020.
"We do not currently anticipate fourth quarter year-on-year revenue growth due to the impact of the skincare business disposal, challenging 2019 comparatives together with increasing uncertainty linked to rising global Covid-19 infection rates," ConvaTec added.
Chief Executive Karim Bitar said: "We delivered a good trading performance in the third quarter. We continued to respond well to stronger than anticipated customer and patient demand, particularly in our Infusion Care and Continence and Critical Care businesses. We now expect to deliver revenue growth at the higher end of our guidance range and to exceed our previous margin guidance for 2020."
ConvaTec shares were up 4.4% at 193.00 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
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