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Contact Us Convatec Argentina Argentina Belize Belize Brasil Brasil Canada (English) Canada (English) Canada (Français) Canada (Français) Chile Chile Colombia Colombia Costa Rica Costa Rica Curaçao Curaçao El Salvador El Salvador Ecuador Ecuador Guatemala Guatemala Guyana Guyana Honduras Honduras Jamaica Jamaica México México Nicaragua Nicaragua Panamá Panamá Perú Perú Puerto Rico Puerto Rico República Dominicana República Dominicana Suriname Suriname Venezuela Venezuela United States (English) United States (English) België België Bosna i Hercegovina Bosna i Hercegovina Česko Česko Danmark Danmark Deutschland Deutschland Eesti Eesti España España France France Hrvatska Hrvatska Ireland Ireland Ísland Ísland Italia Italia Latvija Latvija Lietuva Lietuva Magyarország Magyarország Malta Malta Nederland Nederland Norge Norge Polska Polska Portugal Portugal România România Schweiz (Deutsch) Schweiz (Deutsch) Suisse (Français) Suisse (Français) Slovenija Slovenija Slovensko Slovensko Srbija Srbija Suomi Suomi Sverige Sverige Türkiye Türkiye United Kingdom United Kingdom Österreich Österreich Ελλάδα Ελλάδα България България Македонија Македонија Россия Россия Україна Україна South-Africa South-Africa ישראל ישראל الأردن الأردن الإمارات العربية المتحدة الإمارات العربية المتحدة البحرين البحرين المملكة العربية السعودية المملكة العربية السعودية ایران ایران پاکستان پاکستان عُمان عُمان قطر قطر لبنان لبنان مصر مصر العراق العراق الكويت الكويت Australia Australia Hong Kong SAR Hong Kong SAR 中国香港 中国香港 India India Indonesia Indonesia Malaysia Malaysia New Zealand New Zealand Philippines Philippines Singapore Singapore Việt Nam Việt Nam ไทย ไทย 대한민국 대한민국 中国 中国 中国台湾 中国台湾 日本 日本

28 October 2020

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Good Q3 performance and ongoing strategic progress

 

Key Points:

  • Q3 Group reported revenue of $493 million was 6.5% higher year on year; up 5.6%1 in constant currency.
    • Driven by significant growth in Infusion Care, continued strong growth in Continence & Critical Care, an improved performance in Advanced Wound Care and a flat performance in Ostomy Care.
    • COVID continued to drive less predictable demand, particularly in Advanced Wound Care and Critical Care, although underlying customer demand for the Group was encouraging.
    • Revenue for 9 months to 30 September 2020 was up 4.8% in constant currency.
  • We continued to progress our transformation initiatives as we pivot to sustainable and profitable growth and implement our FISBE (Focus, Innovate, Simplify, Build, Execute) strategy.
    • We proactively chose to defer a further c.$10m of recurring transformation investments to 2021 given the ongoing COVID backdrop.
  • Operating expenses continued to benefit from temporary COVID-related cost reductions; this is expected to phase out in due course.
  • Better than expected Q3 performance has enabled us to revise our 2020 full year guidance1:
    • We now expect to be towards the higher end of our constant currency revenue growth range of 2-3.5%.
      • We do not currently anticipate Q4 year-on-year revenue growth due to the impact of the skincare business disposal, challenging 2019 comparatives together with increasing uncertainty linked to rising global COVID infection rates.
    • We now expect our constant currency adjusted EBIT margin to be between 18.5-19% reflecting, in light of COVID, the proactive deferral of some recurring transformation investments into 2021 and certain operating expenses continuing to be lower, coupled with some operational gearing.

Karim Bitar, Chief Executive Officer, commented:

“We delivered a good trading performance in the third quarter.  We continued to respond well to stronger than anticipated customer and patient demand, particularly in our Infusion Care and Continence and Critical Care businesses.  We now expect to deliver revenue growth at the higher end of our guidance range and to exceed our previous margin guidance for 2020.

“Throughout this COVID pandemic our priority has been, and remains, to support and protect the patients and care givers we serve and our employees.  I want to thank our people for the dedication and resilience they are showing during these demanding times.  I am proud of how the business has reacted to the challenge, responding to the heightened needs of our customers and successfully improving the strength of our supply chain.  This has been achieved whilst also executing on our transformation initiatives and embedding the new operating model.   Notwithstanding our decision to proactively defer some additional investments to 2021, I am pleased with the strategic progress we have made. 

“There is still significant work ahead of us as we pivot to sustainable and profitable growth, but I am confident in Convatec’s long-term growth prospects.”  

(...)

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ir@convatec.com

Kate Postans: Vice President, Investor Relations   

+44 (0)7826 447807

   

Media

 

Buchanan: Charles Ryland / Chris Lane / Hannah Ratcliffe    

+44 (0)207 466 5000

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