29th Oct 2021 10:34
(Alliance News) - ConvaTec Group PLC on Friday said it is on track to hit the upper-end of its full-year revenue guidance after positive momentum continued across most of the wound dressings maker's business.
ConvaTec shares were up 4.0% to 205.90 pence each in London on Friday morning.
The FTSE 250-listed medical products and technologies company reported revenue of USD511 million in the third quarter of 2021, up 3.7% year-on-year from USD493 million.
In the nine months to September 30, revenue was up 5.4% on an organic and constant currency basis.
Chief Executive Karim Bitar said: "During the third quarter, we continued to drive good momentum in the business and made further strategic progress implementing key transformation initiatives and improving execution."
Segmentally, ConvaTec noted continued momentum in Advanced Wound Care; modest growth in Ostomy Care and Continence Care; and performance declines in Infusion Care and Critical Care. The declines were expected though, due to "tough prior year comparatives".
"As expected, the growth in the third quarter slowed from Q2 given the relatively tougher comparatives," Bitar said.
Looking ahead, the company expects to be towards the upper end of its organic revenue growth guidance of 3.5% to 5.0% for the full year. Constant currency adjusted earnings before interest and taxes margin is expected to be between 18% and 19%.
Last year, the company reported revenue of USD1.89 billion.
"Notwithstanding the continuing uncertainties in the market, particularly around logistics and raw material inflation, for the full year we expect to be towards the upper end of our organic revenue guidance and to meet our Ebit margin guidance," Bitar said.
By Greg Roxburgh; [email protected]
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