Convatec hails 'strong' start to 2025

(Sharecast News) - Convatec hailed a "strong" start to 2025 and revising its full-year guidance for top-line growth a tad higher. In a trading update released ahead of its AGM, the global medical products and technologies company said that organic revenue growth was now pegged to rise by 5.5-7.0%, against a prior forecast for an increase of 5.0-7.0%.

Convatec also said that it remained on track to attain an adjusted full-year operating profit margin of 22.0-22.5%, as well as another year of double-digit growth in adjusted earnings per share.

According to Karim Bitar, its chief executive officer: "Convatec delivered a strong start to the year with continued broad-based organic revenue growth across all our categories.

"We are on track to deliver our financial targets. Our FISBE strategy continued to drive our performance, supported by our strongest-ever innovation pipeline and ongoing simplification and productivity initiatives."

Guidance for mid-to-high single digit revenue growth in its various product categories was also retained.

Capital expenditures were still seen reaching between $130-150m together with interest expenses of $70-75m.

Recently introduced tariffs in the US were not expected to have "material" financial impacts.

At current FX rates, management estimated that Convatec was set to enjoy a revenue tailwind of around 40 basis points and a profit margin headwind of approximately 20bp in comparison to the year before.

As of 0731 BST, shares of Convatec were flat at 275.20p.