Interim results for the six months ended 30 June 2026

Strong delivery in H1, on track for FY26 and accelerating from H2 

London, UK, 4 August 2026 – Convatec, a leading medical products and technologies company focused on solutions for the management of chronic conditions, announces its interim results for the six months ended 30 June 2026.

Highlights: On-track delivery, confirming guidance for full year and medium term

• Organic revenue growth¹ ex-InnovaMatrix of 5.0% (H1 25: 6.8%). New products are launching well and gaining share
• Adjusted operating margin²  21.2% (H1 25: 21.3%; +50 bps in constant currency)
• Investing in all categories to meet rising demand and underpin our medium-term Accelerate strategy targets 
• FY26 guidance confirmed for 5.5-6.5% organic revenue growth ex-InnovaMatrix, margin expansion to ≥23.0%, double-digit EPS growth and c.100% equity cash conversion
• Announcing a $200m share buyback, to complete by end 2026. This follows the $300m buyback last year

Broad-based organic revenue growth, led by new product launches

• AWC⁴: Organic growth of 3.4%¹ ex-InnovaMatrix, with growth ahead of slower markets. Continued strong ConvaFoam growth 
  • InnovaMatrix down >90% after US reimbursement changes; $69m non-cash impairment
• OC⁴: Organic growth of 4.3%¹, led by Europe and comprising 5.3% ostomy growth, moderated by a 4% decline in Fecal Management Systems. Esteem Body continued to gain share, reaching annualised revenue of c.$60m
• CC⁴: Organic growth of 5.9%¹, driven by US volumes, excellent customer service and strong international growth. Convatec-manufactured products represented >60% of CC revenue. GentleCath Air for Women revenue more than doubled, adding >1ppt bps to category growth
• IC⁴: Organic growth of 7.4%¹, expected to accelerate in H2 given our visibility of orders. Continued strong demand in diabetes and particularly non-diabetes therapies, led by AbbVie Parkinson's treatment

Confirming FY26 outlook; on track to deliver our medium-term targets

• Narrowing FY26 Group organic revenue growth ex-InnovaMatrix³ to 5.5-6.5% (previously 5-7%), including H2 of 6-8%. H2 revenue growth will be led by an acceleration in IC 
• Category growth rates for the year unchanged: AWC, OC and CC mid-single digit; IC high-single digit 
  InnovaMatrix revenue of c.$5-10m³, (previously c.$20m), representing an FY26 headwind of c.2.5% to Group revenue 
• FY26 adjusted Group operating margin² ≥23.0% (unchanged), inclusive of c.40 bps of FX
• Double-digit adjusted EPS² growth (unchanged)
• Strong cash generation, with c.100% equity cash conversion⁶ (unchanged)
• On track to deliver our Accelerate medium-term targets, including mid-20s operating margin by 2027

H2 margin growth

• H2 operating margin will be materially higher than H1, driven by: i) Convatec's normal higher H2 revenue weighting; ii) faster IC growth in H2, with positive mix effects; iii) lower InnovaMatrix headwinds half-on-half and; iv) additional simplification and productivity savings

Jonny Mason, Chief Executive Officer, commented:
“Convatec delivered further broad-based and resilient growth across our chronic care categories. We are on track for another year of margin expansion and double-digit EPS growth. We expect to accelerate growth in H2, supported by new product launches, improving execution and our great team of Convatec colleagues who bring our promise of forever caring to life daily for the millions of people who rely on our trusted medical solutions.

“Our Accelerate strategy, announced in April, represents the next exciting chapter of our growth story, which will see increases in capacity and further improvements in execution to deliver innovative chronic care solutions to more people around the world. We will deliver sustainable 6-8% annual revenue growth, starting from 2027, and double-digit annual EPS growth.” 

H1 26 financial summary

• Adjusted operating profit² up 3.9% to $262m. Reported operating profit down 36.1% to $115m, including a $69m non-cash impairment of InnovaMatrix assets 
• Adjusted operating margin² of 21.2%, down 10 bps YoY (up 50 bps in constant currency) with InnovaMatrix headwinds of c.140 bps offset by good cost efficiency progress. Reported operating margin of 9.3% 
• Net finance costs up $6m YoY to $38m given higher average net debt YoY. FY26 finance cost $70-75m (unchanged), helped by lower average finance costs in H2 and beyond 
• Adjusted tax rate down 100 bps to 23.0%. 
• Adjusted diluted EPS² increased 6.3% to 8.5 cents. Reported diluted EPS 2.7 cents (H1 25: 5.1 cents)
• Record investment to support future growth. Total H1 capex of $128m (H1 25: $69m), comprising growth capex of $90m (H1 25: $40m) and operational capex of $38m (H1 25: $29m). FY26 capex is weighted to H1; full year guidance of $200-230m, including $135-165m growth capex (unchanged)
• Free cash flow to equity⁶ before growth capex† of $22m (H1 25: $98m). Consistent with our normal seasonality, there was a working capital outflow in H1 (see page 13 in the Finance review). Working capital was higher than the prior year due to higher inventory and lower payables, both expected to reverse in H2. We continue to expect c.100% free cash to equity⁶ conversion in FY26 
• H1 26 net debt of $1,534m (H1 25: $1,165m), representing a net debt to adjusted EBITDA ratio of 2.3x (H1 25: 1.9x). We expect to be at a ratio of c.2.0x by year end, driven by H2 profit growth and working capital inflow
• The Board is declaring an interim dividend of 2.116 cents, an increase of 15% 
• $200m share buyback announced; to complete in H2 26

Launches, innovation and pipeline

• AWC⁴: ConvaNiox limited Europe launch, with excellent early feedback; US clinical trial progressing well. ConvaVAC also on limited European launch and received initial US clearance in July 2026; full launch expected in 2027. ConvaFiber launches in Germany in H2 26
• OC⁴: Esteem Body ahead of expectations, with segment share now up to c.15%; Natura Body on track for launch in 2027, completing our soft convex product portfolio 
• CC⁴: GentleCath Air for Women winning share in compact catheters, now with >10% share of segment in the US, including switching from competitors. On track to launch GentleCath Air Pocket & Set male catheter in Europe later in 2026, completing our compact product portfolio
• IC⁴: supporting MiniMed’s new wearable pump, MiniMed Flex, and announced our first hybrid patch pump supply agreement. Supporting Supernus and Tanabe with their new advanced Parkinson’s therapies

Investor and analyst presentation

The results presentation will be held at 08:30hrs (UK time) today. The event will be simultaneously webcast and the link can be found here. The full text of this announcement and the presentation for the analysts and investors meeting can be found on the Results centre page of the Convatec Investor Relations website.

Scheduled events 

Trading update for the 10 months ending 31 October 2026	18 November 2026
FY26 preliminary results	23 February 2027

 
Dividend calendar 

Ex-dividend

20 August 2026

Record date

21 August 2026

Payment date

30 September 2026

 

Contact
Investor Relations: IR@convatec.com
Media: MediaRelations@convatec.com

The section of this announcement regarding the share buyback programme includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. The person responsible for making this announcement is James Kerton, Company Secretary, Convatec Group Plc: cosec@convatec.com  
(1) Organic growth is calculated by applying the applicable prior period average exchange rates to the Group's actual performance in the respective period and excluding acquired and disposed/discontinued businesses.
(2) Consistent with prior years, management present adjustments to the reported figures to produce more meaningful measures in monitoring the underlying performance of the business. Reported numbers include $48m relating to the non-cash amortisation of BMS intangibles, which end in H2 26, and a $69m non-cash impairment relating to InnovaMatrix assets. These are set out in the table on page 12.
(3) In October 2025, Medicare Administrative Contractors announced a price rate of $127/cm² for Skin Substitutes and Tissue-Based Products. This payment rate represented a significant price reduction of over 85% for skin substitute products, including Convatec’s InnovaMatrix product. As a result of the revenue reduction, and in advance of returning to growth, we have impaired all assets relating to InnovaMatrix (see page 12 and the Financial Review for further details).
(4) AWC is Advanced Wound Care; OC is Ostomy Care; CC is Continence Care and IC is Infusion Care.
(5) Certain financial measures in this document, including adjusted results, are not prepared in accordance with International Financial Reporting Standards (IFRS). All adjusted measures are reconciled to the most directly comparable measure prepared in accordance with IFRS in the Non-IFRS Financial Information below pages 15-20.
(6) Free cash flow to equity was redefined in FY25, separating growth capex & certain non-cash items.

Chief Executive Officer’s review: strong delivery in H1; on track for FY26 & medium-term targets
Convatec delivered a good first half financial performance, with 5.0% organic revenue growth excluding InnovaMatrix (1.8% including InnovaMatrix; reported growth 4.4%), adjusted operating margin down 10 bps to 21.2% (up 50 bps in constant currency) and adjusted diluted EPS5 up 6.3% to 8.5 cents (reported diluted EPS 2.7 cents), all on track to deliver our guidance for FY26. 

We achieved significant strategic and operational progress, building a strong base from which to deliver our new Accelerate strategy, announced in April 2026. This includes investing in new capacity across all categories to meet rising demand. We are on track to launch eight new chronic care products in 2026/27, including six in 2026.

Organic revenue growth
H1 26 organic revenue growth (ex-InnovaMatrix) of 5.0% was broad-based, with over half our organic growth coming from products launched in the last 3 years. Our H1 growth followed five years of organic revenue growth within our target 5-7% range (ex-InnovaMatrix). 

Growth including InnovaMatrix was 1.8%, as InnovaMatrix revenue declined by over 90% following US reimbursement changes. The US skin substitute market remains highly uncertain, and we now estimate InnovaMatrix revenue of $5-10m in FY26, representing less than 0.5% of Group sales. 

Looking forward, we expect H2 26 growth ex-InnovaMatrix of 6-8%, led by faster growth in IC based on known customer order phasing. We then expect to sustainably deliver 6-8% annual revenue growth from 2027.

Adjusted operating margin 
Adjusted operating margin² decreased by 10 bps YoY to 21.2% (up 50 bps in constant currency; 9.3% reported operating margin). This was despite a c.$37m reduction in InnovaMatrix sales YoY which represented c.140 basis point headwind to H1 26 adjusted operating margin.

The increase in constant currency margin was driven by further operating costs efficiencies from our simplification and productivity initiatives. Overall adjusted operating expenses represented 38.2% of revenue (H1 25: 38.9%), down 70 bps YoY. Within this, adjusted G&A² further decreased to c.6% of revenue (H1 25: 7.0%), and R&D represented 4.7% of revenues (H1 25:4.2%).

These savings were delivered by expanding Convatec Business Services (CBS) beyond Finance, IT and HR activities, now including indirect procurement, legal operations, strategic pricing and some sales support activities. CBS will continue to expand the range of services, supported by ongoing adoption of AI and automation. In commercial areas, our Centre of Excellence (CoE) in Global Marketing & Sales supported delivery across each category and our Strategic Pricing CoE contributed to c.30 bps of price improvement YoY.

Operational productivity initiatives continued to progress well. In Global Operations, we further increased automation in our facilities, including completing our secondary packaging capabilities in Deeside, and automating our Rhymney facility, which added significant new Hydrofiber capacity with no headcount growth.

Between 2021 and 2025, adjusted operating margin increased by 460 bps (+490 bps in constant currency), despite higher inflation in 2022/23. We are on track to deliver FY26 adjusted operating margin² guidance of ≥23.0%, which would represent our fifth consecutive year of margin growth. We are also on track to deliver our medium-term target of mid-20s% margin by 2027. Overall, our resilient business model is well positioned to deliver sustainable double-digit annual growth in adjusted EPS⁵.

H2 operating margin increase is underpinned by higher revenues and strategic initiatives  
H2 operating margin will be materially higher than H1, driven by four key areas:

• H2 revenue weighting: our H2 revenue is materially higher than H1, as it has been in previous years (2025: $79m higher; 2024: $63m higher), driven by customer buying activity. There are also four additional trading days in H2 versus H1, similar to 2025. Given operating expenses are broadly spread throughout the year, this drives c.200 bps H2 margin versus H1.
• Infusion Care phasing: in FY 26 IC sales are also weighted to H2. This has positive operational leverage and margin mix effects. This drives c.50 bps margin uplift versus H1.
• Lower InnovaMatrix headwind: InnovaMatrix revenue decreased by c.$37m YoY and represented a YoY operating margin headwind of c.140 bps in H1. As sales had already started to reduce in H2 25, the operating margin drag is lower in H2 26, driving c.40 bps margin uplift versus H1.
• Simplification & productivity savings: in H2 we expect to realise the benefits of operational productivity initiatives started in H2 25 and H1 26, including automation of our manufacturing facilities, strategic sourcing and coupled with some specific organisational simplification. These are expected to deliver a c.80 bps margin uplift versus H1.

Overall, we expect operating expenses in H2 26 will be slightly down versus H1, and down versus H2 25.

Cost of goods sold (COGS) inflation 
We are on track to deliver our FY 26 margin guidance of ≥23%. This reflects the benefit of FY26 contractual arrangements with suppliers, where we forward-purchase materials, typically for 6-12 months. Some limited cost increases related to the Middle East conflict are included.

We are also on track to deliver our medium-term margin target of mid-20s by 2027 at prevailing price levels.

We purchase a diverse range of input material in our COGS, including numerous polymers, resins, adhesives, silicone, chemical feedstocks, metals, as well as packaging, utilities and freight. No single material represents more than 5% of COGS. Cost impact is mitigated by the diversity of raw materials, some of which are uncorrelated to oil price. 

Executing our capital allocation priorities to accelerate growth
Our strong cash generation supports both investment for growth and returns to shareholders, consistent with our capital allocation priorities. These are: 1) fund organic investment to drive future revenue growth and innovation; 2) pay an annual dividend consistent with a 35-45% payout ratio; 3) execute compelling M&A to strengthen competitive offering, and 4) any surplus capital would be available for return to shareholders. Our target net debt to adjusted EBITDA leverage remains 2.0x (2025: 2.0x).

Having transformed key areas of our production network in recent years, we are focused on responding to strong demand by expanding capacity and new product development. Growth capex develops new products and creates or increases capacity. In H1 26 it was $90m (H1 25: $40m) as we put capacity in place for accelerated growth. We expect $135-165m for FY26 (FY25: $121m). Operational capex maintains our existing operations as well as improving technology, capability and productivity and in H1 26 was $38m (H1 25: $29m). 

We continue to expect total capex in 2026 of $200-$230m, including growth capex of $135-$165m. We are investing organically across all categories, but particularly in IC where we see significant demand, and our growth is underpinned by long-term contracts. We are also diversifying manufacturing across existing locations, further increasing our resilience. We expect capex to settle between 5-7% of revenue from 2028 onwards.

In H1 we declared an increased dividend of 15% and purchased $22m of treasury shares to hold for employee share schemes. For FY26, we expect to pay a dividend equivalent to 35-45% of net income and are targeting net debt to adjusted EBITDA leverage of 2.0x. We have announced today a further $200m share buyback, to complete by 31 December 2026, which will take cumulative share buybacks in 2025/6 to $500m.

FY26 Group outlook: on track to deliver our key financial targets 

• Reiterating our guidance for double-digit adjusted EPS2 growth (unchanged)
• Narrowed Group organic revenue growth excluding InnovaMatrix3 to 5.5-6.5% (previously 5-7%). We expect revenue growth of 6-8% in H2 26
• Category growth excluding InnovaMatrix is unchanged:
  • AWC⁴: mid-single digit growth ex-InnovaMatrix. InnovaMatrix revenue of c.$5-10m (previously c.$20m)
  • OC⁴: mid-single digit growth
  • CC⁴: mid-single digit growth
  • IC⁴: high-single digit growth
• Adjusted operating margin of ≥23.0%, inclusive of 40 bps estimated YoY foreign exchange headwinds, with cost efficiency measures offsetting c.80 bps of InnovaMatrix headwinds in FY26
• If current spot rates were to hold for the remainder of FY26, the estimated tailwind to FY26 revenue growth would be c.130 bps and the headwind to operating margin would be c.40 bps 
• Adjusted net finance expense of $70-75m (unchanged; 2025: $68m), helped by lower average finance costs in H2 following our recent refinance and 2025 bond issue
• Adjusted book tax rate of c.23% (previously 24%), with the cash tax rate again lower
• Total capex of $200-$230m (unchanged). Within this, we expect growth capex of $135-165m
• Opex R&D spend of $100-$110m; cash costs of adjusting items of c.$20m (both unchanged)
• Strong cash generation, with c.100% equity cash conversion6 (unchanged)

Category review

We sell over 1 billion high-quality consumable products per annum and are among a small number of global leaders in the categories in which we operate. Convatec is market-leading in categories contributing over 60% of Group revenues. There are notable synergies across the Convatec categories in areas such as science and innovation, product and clinical development, automated manufacturing, polymer and biomaterial sciences, adhesive technologies, sales & marketing and shared mid-and-back-office processes.

Group revenue growth was broad-based across all categories, increasing by 5.0% ex-InnovaMatrix. Revenue increased by 1.8% on both an organic and constant currency basis, and by 4.4% reported 



Advanced Wound Care 
Revenue ex-InnovaMatrix increased by 3.4% on an organic basis (H1 25: 4.3%). Revenue including InnovaMatrix of $356m decreased by 3.0% on a reported basis and by 7.0% on an organic basis. Europe, the US and RoW each grew ahead of slower markets.

We saw further strong contribution from ConvaFoam, which continued to take share in the US and Europe as customers adopted our foam product. Aquacel Ag+ Extra, our leading antimicrobial product, continued to deliver good growth. InnovaMatrix declined by 94% to c.$2m given significant US reimbursement changes (see below). 

ConvaVAC (our new single use negative pressure wound dressing) and Aquacel ConvaFiber (our next generation Hydrofiber dressing) are on limited market launches, with minimal revenue in 2026 and full launches expected in 2027. ConvaVAC has received strong early patient feedback in Europe and also received US 510k clearance in June 2026. Aquacel ConvaFiber is due to launch in Germany this summer, and more broadly in 2027. 

Drivers of AWC growth acceleration   
We continue to expect mid-single digit ex-InnovaMatrix AWC growth for 2026, with growth building in H2, supported by:

• ConvaFoam growth as we expand into new markets and introduce new SKUs

We are also on track to further accelerate in FY27 to mid-to-high single-digit growth as product launches scale up.

Update on ConvaNiox 
ConvaNiox, our new nitric oxide-based platform product, is enabling Convatec to establish a new product category to treat non-healing wounds: multimodal dressings which act across multiple healing barriers at the same time. The technology can absorb exudate, donate moisture, sustain a low pH environment and provide antibiofilm protection. Our initial focus is diabetic foot ulcers (DFUs), of which 16.5m are diagnosed globally each year , c.60% of which are non-healing after 12 weeks and c.20% may lead to an amputation. We also see further opportunities in venous leg ulcers (VLUs) and in surgical wound complications.

Over 600 patients in Europe have now benefited from ConvaNiox in six countries, with very encouraging clinical and patient feedback. Although revenue will be minimal in 2026, we have secured our first tender wins in Europe and established initial key opinion leader advocacy, to support creation of this new multimodal category. In July 2026, we received notification that ConvaNiox will be included within UK Drug Tariff (part IX) at a reimbursement price of £40 per dressing. ConvaNiox also received designation in the UK as a new product category, an important validation of ConvaNiox’s differentiated clinical and health value proposition. 

In the US, we are pursuing a de novo FDA submission and our randomised controlled trial (RCT) has seen faster enrollment than initially planned and is expected to publish in 2027. We have also commenced a real-world evidence study in the UK, with more sites planned in Europe. Our previous RCT  showed that ConvaNiox achieved 60% more DFUs healed and three times faster wound area reduction compared to standard care.

Update on skin substitutes reimbursement 
As previously reported, a revised Centers for Medicare Services (CMS) payment rate of $127.28 per sq cm for skin substitutes came into effect from 1 January 2026. This payment rate represented a significant price reduction of over 85% for skin substitute products, including Convatec’s InnovaMatrix product. Market volumes are also down.

InnovaMatrix revenue decreased by 94% in H1 26 to $2.5m and represented a headwind to Group growth of 3.2%. This resulted in a YoY headwind to Group operating margin of 140 bps in H1 26.

The skin substitute market remains very challenging, particularly in DFU and VLU. As a result, we have recognised a $69m impairment in respect of assets relating to InnovaMatrix (see Financial Review).

We now expect FY26 InnovaMatrix revenue of $5-10m (previously c.$20m). This will represent a c.2.5% headwind to Group revenue in FY26 and a c.2.0% Group headwind in H2 26. We are closely managing our variable costs, including pausing one of two RCTs.

Ostomy Care 
Revenue of $353m grew by 8.2% on a reported basis and 4.3% on both organic and constant currency bases.

Growth was driven by good performance in Europe, supported by increased new patient starts. Ostomy product growth was 5.3% ahead of OC category growth, however our fecal management product Flexi-Seal (c.10% of OC sales) declined by 4%, given a reduction in flu hospitalisations YoY. Flexi-Seal Air is now scheduled to launch in 2027.

Esteem Body, our one-piece soft convex product, continued to be the main growth driver. Our annualised revenue is now c.$60m, representing a market share of c.15%, and is ahead of our launch expectations. Growth was also strong in our Esenta accessory products, which represented c.20% of OC sales. 

During H1 we commenced two US Group Purchasing Organisation (GPO) agreements (previously announced). As expected, new patients will build slowly from these GPOs, however they provide an important access point in the acute setting, from where our strategy is to support patients across the continuum of care, driving revenue growth.

Drivers of OC growth acceleration   
We continue to expect mid-single digit OC growth for 2026, with growth building in H2, supported by:

• Further Esteem Body growth
• New patient starts, in part helped by our two recent GPO wins

We are also on track to deliver acceleration in FY27 to mid-to-high single-digit OC growth.

Continence Care 
Revenue of $277m grew by 6.6% on a reported basis and by 5.9% on both organic and constant currency bases. 

Performance was driven by US volume growth as we continued to gain share, with increased new patient starts helped by leading customer service (>80 net promoter score, showing world-class customer loyalty and engagement) and strong commercial execution. This was further supported by faster growth in Convatec-manufactured products, now over 60% of revenues, including excellent growth in our compact catheter GentleCath Air for Women, which more than doubled revenue and added >1ppt to category growth. More broadly, our hydrophilic catheters, which use our proprietary FeelClean technology, continued to be well received by HCPs and customers, again growing faster than non-hydrophilic. 

Revenue outside the US continued to grow strongly from a low base and combined contributed over 1 percentage point to CC growth.

Drivers of CC growth    
We continue to expect mid-single digit CC growth for 2026, with H2 growth similar to H1. We are also on track to deliver an acceleration in FY27 to mid-to-high single-digit growth, supported by:

• The launches of GentleCath Air Pocket & Set and Cure Aqua
• Further volume growth in the US, led by our leading market service
• Strong growth outside the US

Update on proposed US competitive bidding program

As previously reported, on 28 November 2025 Centers for Medicare & Medicaid Services (CMS) in the US released a final rule outlining updates for the 2026 Medicare Home Health payment system and the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP). Medicare beneficiaries currently enjoy access to a wide range of personalised catheter and ostomy products, plus significant support and advice. The proposed rule changes could impact the choice and supply available to patients and providers.  CMS will follow a detailed process to implement the changes.

There have been no material changes to the CBP process in H1 26. CMS has stated they are seeking 8-10 large, nationwide suppliers in each of Continence and Ostomy, compared to several thousand suppliers today. Should CMS proceed with CBP, we are well-placed to grow volumes given our leading customer service and loyalty, attractive segment positions and differentiated portfolio. We continue to anticipate a 1-2% reduction in Group sales in the year of implementation, which CMS has indicated will be no earlier than 2028.

Infusion Care  
Revenue of $246m grew by 8.2% on a reported basis, and by 7.4% on both organic and constant currency bases. Growth was driven by further strong demand for Convatec infusion sets in both diabetes and non-diabetes therapies. 

In diabetes, we saw further durable insulin pump penetration led by increasing adoption of automated insulin delivery and continuing pump innovation. Diversification of our products and customers continued to progress well, and we were delighted to announce our first hybrid patch pump supply agreement. We are also supporting the MiniMed Flex (a wearable, durable insulin pump) launch. We are able to support a wider range of diabetes patients and further demonstrate our product capability and ability to work across the full range of pump solutions. 

In non-diabetes therapies, revenue growth was again high double-digit as penetration of our Neria Guard infusion sets continued to increase in the treatment of pain management, immunoglobulin deficiency and Parkinson’s disease. Our fastest growth was in AbbVie’s Parkinson’s therapy, and non-diabetes therapies represented over 15% of IC revenue. We are supporting two other therapies for the treatment of advanced Parkinson’s disease which have launched or are launching, and we look forward to supporting new partners with Neria Guard infusion sets. 

Drivers of IC growth acceleration   
We continue to expect high-single digit IC growth for 2026, with an acceleration in H2, supported by:

• Customer order phasing in diabetes, with significant visibility on increased H2 revenue
• Further high double-digit growth in non-diabetes

We are also on track to deliver further acceleration to double-digit IC growth in FY27, supported by new capacity.

Update on FDA Warning Letter
We continue to work closely with the FDA. While it will take time to address all the observations raised in their January 2026 Warning Letter, we are making good progress. The FDA’s observations did not relate to product performance or patient safety, and the letter does not affect or restrict our production, marketing, manufacturing or distribution of products.

Strong start to our Accelerate strategy 
Convatec announced its new Accelerate strategy in April 2026. Accelerate represents the evolution of the company’s previous FISBE strategy, which transformed Convatec into a chronic care leader in each of its care categories. Accelerate is how we will deliver faster growth and recently-upgraded medium term guidance of:

• From 2027, 6-8% annual organic revenue growth, with acceleration in each category:
  • AWC: high single-digit growth (from 2028)
  • OC: mid/high single-digit growth (from 2027)
  • CC: mid/high single-digit growth (from 2027)
  • IC: double-digit growth (from 2027)
• 24-26% adjusted operating margin
• Double-digit adjusted earnings per share growth (per annum)
• Double-digit free cash flow to equity growth (CAGR)

Our Accelerate strategy focuses on 1) superior patient outcomes and choice; 2) value for money for payors and 3) outstanding results for healthcare professionals. In setting our medium-term guidance of sustainable 6-8% annual revenue growth, we assume a certain level of reimbursement dynamics. We also consider the breadth of revenues across categories, geographies and products, our innovation pipeline and new product vitality index. 

Accelerate is structured around four strategic pillars:

1. Customer-focused growth (C): H1 26 examples include:

• AWC: ConvaFoam winning market share, taking our overall global Foam share to c.6% so far; developing further clinical evidence for ConvaNiox, where RCT is recruiting ahead of plan. In July 2026, we were also delighted to receive drug tariff listing in the UK for ConvaNiox, in its own category 
• OC: Esteem Body winning market share, with annualised sales of c.$60m; commencing two new Group Purchasing Organisation contracts in the USA, which help build our presence in the acute setting. We were also delighted to be named ‘supplier of the year’ to Captis, a healthcare organisation under the Vizient GPO
• CC: increased new patients starts, led by continued outstanding customer service and further engagement with the me+ programme
• IC: supporting all advanced Parkinson’s therapies on the market; supporting new form factors in diabetes including our first patch pump programme and MiniMed’s Flex wearable durable pump
• Group: investing $90m in H1 growth capex to target the fastest growth segments
  

2. Technology & innovation (T): H1 26 examples include:

• Continuing to deliver on the strongest product pipeline in our history, with eight new products launching in 2026-27 (our ‘wave 2’ innovation, following eight ‘wave 1’ products between 2022-25)
• Significant progress in generating clinical evidence, including our ongoing ConvaNiox RCT and presenting our 2025 Aquacel AG+ Extra RCT. Also building market access capability 
• Our market-leading Hydrofiber technology platform Aquacel celebrates its 30th anniversary this year. Over 1.5 billion Aquacel dressings have been used by patients since launch and a new variation, ConvaFiber, is launching, starting in Germany 
• Focus on reduced innovation cycle time, with wave 2 launches faster than wave 1
• Scaled enterprise AI from pilot to production, embedding agentic AI and Microsoft Copilot across Quality, Commercial, Supply Chain and Finance to accelerate decision-making and drive measurable productivity 
  

3. Execution excellence (E): H1 26 examples include:

• Recruiting a new lead for Global Operations to drive further simplification and productivity
• Establishing separate executive accountability for science and innovation and for quality and regulation 
• Introducing a bottom-up project in OC, redirecting sales investment towards the highest returning areas
• Focusing our digital solutions activity within each category’s marketing team, driving simplification benefits and strengthening performance 
• In H2 we will open a fourth CBS centre, in India, which will focus on technology and innovation. CBS have been integral in reducing G&A as a percentage of Group revenue from nearly 13% to c.6% in H1 26 
  

4. Culture, purpose and performance (C): H1 26 examples include:

• Sustained very strong engagement in our H1 colleague survey (top decile)
• Introduced new leadership behaviours, supported by our ‘Leadership for Growth’ programme
• De-layered our management structure in RoW markets 
  

About Convatec
Pioneering trusted medical solutions to improve the lives we touch: Convatec is a global medical products and technologies company, focused on solutions for the management of chronic conditions, with leading positions in Advanced Wound Care, Ostomy Care, Continence Care, and Infusion Care. With over 10,000 colleagues, we provide products and services in around 90 countries, united by a promise to be forever caring. Our solutions provide a range of benefits, from infection prevention, treatment for hard to heal wounds, at-risk skin and ulcerated tissue to supporting debilitating conditions, improved patient outcomes and reduced care costs. Convatec's revenues in 2025 were over $2 billion. The company is a constituent of the FTSE 100 Index (LSE:CTEC). To learn more please visit http://www.convatecgroup.com

Principal risks 
The Board reviews and agrees our principal risks on a bi-annual basis, taking account of our risk appetite together with our evolving strategy, current business environment and any emerging risks that could impact the business. Our system of risk management and internal controls is aligned to best practice and meets the requirements of the UK Corporate Governance Code 2024. Updates to the principal risks and mitigation plans are made as required in response to changes in our risk landscape. Details of our enterprise risk management framework are set out in the Group's 2025 Annual Report and Accounts.

The Board has reviewed the principal risks as at 30 June 2026, taking into consideration the risks that existed during the first six months of 2026 and those that it believes will have an impact on the business over the remaining six months of the current financial year.

The principal risks have been assessed against the context of the global economic pressures that are impacting all businesses at present and the wider uncertain geopolitical climate. At half-year 2026, the order of our principal risks remains largely unchanged. Principal risks have been realigned to reflect new Executive member reporting lines and this has formed the Quality and Regulatory risk. This new risk has been raised to be our third most significant risk reflecting the ongoing quality remediation programme. We have also elevated our Political and Economic Environment risk as a result of the Middle East conflict’s adverse impact on cost and inflation pressures. These challenges do not significantly impact our 2026 Group forecast.

Our principal risks are set out below in order of their potential impact on our ability to deliver our strategy successfully: 1. Operational Resilience (previously Operational Resilience & Quality), 2. Customer & Markets, 3. Quality and Regulatory (previously Operational Resilience & Quality, and Innovation & Regulatory), 4. Political & Economic Environment, 5. Cyber & Information Security, 6. Product Innovation & Launch (previously Innovation & Regulatory), 7. Legal, Compliance & Privacy, 8. People, and 9. Environment & Communities.

The Board assesses the overall risk profile of the Group to ensure it is within our risk appetite. In making this assessment, the Board considered the impact of the broader risk landscape on the business and the effectiveness of our controls and mitigation actions. We work to build further resilience in our operations and to ensure that each principal risk remains within our risk appetite.

Forward Looking Statements
This document includes certain forward-looking statements with respect to the operations, performance and financial condition of the Group. Forward-looking statements are generally identified by the use of terms such as “believes”, “estimates”, “aims”, “anticipates”, “expects”, “intends”, “plans”, “predicts”, “may”, “will”, “could”, “targets”, continues”, or their negatives or other similar expressions. These forward-looking statements include all matters that are not historical facts. 

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies that are difficult to predict and many of which are outside the Group’s control. As such, no assurance can be given that such future results, including guidance provided by the Group, will be achieved. Forward-looking statements are not guarantees of future performance and such uncertainties and contingencies, including the factors set out in the “Principal Risks” section of the Strategic Report in our Annual Report and Accounts, could cause the actual results of operations, financial condition and liquidity, and the development of the industry in which the Group operates, to differ materially from the position expressed or implied in the forward-looking statements set out in this document. Past performance of the Group cannot be relied on as a guide to future performance. 

Forward-looking statements are based only on knowledge and information available to the Group at the date of preparation of this document and speak only as at the date of this document. The Group and its directors, officers, employees, agents, affiliates and advisers expressly disclaim any obligations to update any forward-looking statements (except to the extent required by applicable law or regulation). 

All product and programme names are trademarks of Convatec and its subsidiaries, including: InnovaMatrix^®, ConvaFoam™, ConvaNiox™, Aquacel^®, Aquacel™ ConvaFiber™, ConvaVAC™, Esteem Body™, Esenta™, Natura® Body, Flexi-Seal™ Air, Cure™ Aqua, GentleCath Air™ for Women, GentleCath Air™ for Men, GentleCath Air™ Pocket, GentleCath Air™ Set, Neria™ Guard, Inset™ Guard and me+ programme.