Convatec to hit top end of guidance after strong Q3

(Sharecast News) - Convatec's share price advanced on Tuesday after the medical products and technologies group narrowed its full-year sales guidance to the top of the expected range. The company said it now expects organic revenues to grow by between 6.75% and 7.5% in 2013, compared with previous guidance of 6% to 7.5%. The adjusted operating profit margin is still being targeted at "at least 20.5%".

Both targets had already been lifted in August at the time of its half-year results.

For the first ten months of the year, organic revenues were up 6.7%, though reported sales rose by just 2.5% due to the exist of hospital care activities the previous year.

The company, which specialises in treatments like wound management, ostomy care, continence products and infusions (like insulin delivery), said that organic growth grew in the mid to high-single digits across the board.

"Convatec has pivoted to a higher level of organic sales growth over recent years," said chief executive Karim Bitar.

"We are on track to deliver a mid-20s adjusted operating margin in 2026 or 2027, and double-digit compound growth in EPS and free cash flow, from 2024 onwards."

The stock was up 3.1% at 215p by 0942 GMT.