Share Prices & Company Research

Market News

30 Apr 2020 | 08:51

Convatec reiterates 2020 guidance, will pay final dividend

(Sharecast News) - Medical device maker ConvaTec backed its 2020 guidance on Thursday and said it is planning to pay a final dividend, but conceded that risks across the business have increased due to the coronavirus pandemic. In an update for the three months to the end of March, the company said group revenue rose 6.9% year-on-year to $640m as customers increased their inventories to ensure supply chain resilience.

Revenue in Advanced Wound Care was up 1.8% to $132m, while Ostomy Care revenue increased 6.6% to $127m. Continence & Critical Care revenue was 9.9% higher at $119m and Infusion Care revenue rose 11.8% to $82m.

The company said it still plans to propose that the 2019 final dividend is paid, subject to approval at the annual meeting next week. "This reflects the board's confidence in the future performance of the group and its underlying financial strength and cash generation," it said.

ConvaTec maintained its 2020 guidance of 2.0% to 3.5% constant currency revenue growth and between 16% and 18% constant currency adjusted EBIT margin, but said it was "cautious" about the increased risks.

"Q1 included the impact of customers increasing their inventories to ensure supply chain resilience and a weak prior year comparator. However, Covid-19 has introduced more uncertainty into the environment in which we operate.

"We expect Advanced Wound Care revenue, which is more exposed to elective procedures and hospital visits, to be adversely impacted. We are aware of external risk factors, particularly in relation to the supply chain, and we are focused on proactive mitigation."

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 10th July 2020
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.