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(Alliance News) - ConvaTec Group PLC on Wednesday said it has raised its medium-term growth guidance after a profitable year.
Shares in ConvaTec were trading 6.7% higher at 269.20 pence in London that morning.
The Reading, England-based medical products and technology company said its pretax profit more than doubled to USD167.4 million in 2023, from USD81.9 million the prior year.
Basic earnings per share likewise more than doubled to 6.4 US cents from 3.1 cents.
ConvaTec also said revenue increased 3.4% to USD2.14 billion from USD2.07 billion, while organic revenue growth accelerated to 7.2%, "broad-based across all four chronic care categories".
The Advanced Wound Care division gave the strongest performance, with revenue increasing 12% or 9.5% organically to USD695.3 million from USD620.7 million. ConvaTec attributed this to its "strong performance in antimicrobials and growing position in [the] wound biologics segment".
Infusion Care revenue meanwhile grew 8.7% on a reported and organic basis, to USD370.9 million from USD341.1 million, thanks to continued strong demand for infusion sets.
ConvaTec then said adjusted operating profit increased 7.0% to USD431.8 million, with a margin of 20.2% or 20.8% on a constant currency basis. This was up from USD403.7 million with a 19.5% margin in 2022.
ConvaTec has recommended a final dividend of 4.460 cents per share, up from 4.330 cents the previous year. This would bring the full-year total dividend up to 6.229 cents from 6.047 cents.
ConvaTec also said it further strengthened its competitive position throughout the year with a "strong new product pipeline" and three acquisitions. These consisted of two small bolt-on acquisitions and its takeover of Starlight Science Ltd in April, which brought a "highly innovative anti-infective nitric oxide technology platform" to complement the Advanced Wound Care portfolio.
For the current year, ConvaTec expects 5% to 7% organic revenue growth, with an adjusted operating profit margin of at least 21.0% at constant currency. It also expects double-digit growth in EPS.
ConvaTec also said it has raised its medium-term organic revenue growth guidance to 5% to 7%, with further double-digit compound annual EPS growth. It also expects a mid-20s% adjusted operating profit margin by 2026 or 2027.
The increased guidance is "based on the strength of the new product pipeline and improvements in commercial execution," ConvaTec explained.
By Emma Curzon, Alliance News reporter
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