(Alliance News) - ConvaTec Group PLC on Friday reported strong revenue growth in the first half, supported by growth in all of its divisions.
Shares in the medical products and technologies company were down 5.0% to 244.90 pence in London on Friday morning.
Pretax profit for the six months ended June 30 was USD112.1 million, a rise of 38% year-on-year from USD81.5 million.
The Reading, England-based firm posted revenue of USD1.01 billion, up 11% from USD908 million.
The primary driver of this performance was the rebound in Advanced Wound Care compared with the first half of 2020 when the arrival of the pandemic had significantly reduced elective procedures and restricted access to healthcare settings, supported by good growth in Infusion Care and solid performances in the other categories, the firm said.
ConvaTec declared an interim dividend of 1.717 cents per share, unchanged from the same period a prior year.
"Following the first half performance, which was ahead of our expectations, we are updating our guidance. We now expect full year organic revenue growth of between 3.5 and 5.0%," the company said.
Previous guidance was between 3.0% and 4.5%. Revenue grew 4.2% on an organic basis in 2020.
However, during the second half ConvaTec expects higher raw material prices and freight costs coupled with increases in operational expenditures given planned transformation investments into research & development and selling and distribution.
The company is also aware of continuing Covid-19 uncertainty, particularly in Asia Pacific and Latin America.
By Amrit Sahota; newsroom@alliancenews.com
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ConvaTec (CTEC)
