ConvaTec Group PLC

ConvaTec Group PLC (LSE: CTEC) is an FTSE 250 index-listed technology and medical products Company specializing in wound treatment, continence and critical care, infusion devices, and ostomy care.

Interim Results (H1 FY23 Results, Released on 02 August 2023)

• Improved Financial Performance: The company reported a marginal increase in the revenue by 1.1% to USD 1,055 mn in H1 FY23 against USD 1,045 mn in pcp. This was majorly driven by the 10.4% increase in the sales of Advanced Wound Care to USD 338 mn in H1 FY23 versus USD 307 mn in pcp, and an approx. 7% increase in sales in both Continence Care and Infusion care segments in the reported period.
• Profitability: The operating profit surged by 41.7% to USD 123.4 mn in H1 FY23 against USD 87.1 mn in pcp, whereas the operating profit margin improved by 3.4% to 11.7% in the reported period (H1 FY23) against 8.3% in pcp. This was on account of an improved mix of profitability across various categories, increased pricing, and productivity, offsetting the inflationary impact of COGS, resulting in 2.20% of gross margin expansions.
• Dividend Declaration: The management announced an interim dividend of USD 1.769 per share (3.0% higher than the dividend in pcp), which will be paid on 28 September 2023.
• Outlook: The management is optimistic and expects the organic revenue growth to be between 6.0% and 7.5% which is higher than the previously stated guidance of 5% to 6.5% for FY23. Further, the adjusted operating profit margin is expected to be close to 20.5% on a constant currency basis, which is higher than the previously stated guidance of 19.7% for FY23.

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

ConvaTec Group PLC (LSE: CTEC) was trading at the current market price of GBX 224.28 (as of 04 August 2023, 08:38 AM, GMT+1)

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 04 August 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.

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