Trading update for the three months ended 30 September 2018 and change in FY 2018 guidance

15 October 2018

Convatec Group Plc (“the Group” or “Convatec”) is today providing an update on trading in the third quarter and revising guidance for full year expectations for both organic revenue growth and adjusted EBIT margin. 

The revised guidance is driven primarily by a change in inventory policy by the biggest customer in our Infusion Devices franchise, which is expected to have a material negative impact on revenue in the fourth quarter of between $18 – $23 million, and to a lesser extent challenging market dynamics in specific markets in Advanced Wound Care.

Therefore, the Group now expects full year organic revenue growth to be flat to 1.0%¹, from 2.5% to 3.0%¹ previously. As a result of this reduction in revenue expectations and consequent adverse mix impacts, guidance for adjusted EBIT margin in FY 2018 has also been revised down to 23% - 24%, from 24% - 25%.

As separately announced today, Paul Moraviec has informed the Board that he wishes to retire. He will step down as Chief Executive Officer and cease to be a Director with immediate effect. The Board has asked Rick Anderson, currently a Non-Executive Director of Convatec, to assume the position of Interim Chief Executive Officer.

The Board continues to have confidence in the fundamentals of the business and its future potential. Our cost out plans are under development and the Group will provide an update on these with the FY 2018 results in February 2019.

Download the full text of this announcement and the presentation for the Analysts and Investors meeting

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