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ConvaTec Group PLC on Tuesday announced an increased dividend for its first half, during which it ‘performed strongly’.
The London-based medical products and technologies company reported revenue of $1.18 billion for the six months ended June 30, up 6.0% or 6.3% at constant exchange rates, from $1.11 billion the previous year. Organic revenue growth, excluding its InnovaMatrix product, was 6.8%.
Pretax profit for the period increased 32% on-year to $137.4 million from $104.0 million. Basic and diluted earnings per share rose 34% to 5.1 cents from 3.8 cents, and adjusted basic and diluted EPS rose 19% from 6.8 cents, to 8.1 cents and 8.0 cents respectively.
Operating profit climbed 20% to $179 million, and adjusted operating profit rose 13% or 14% at CER to $252 million. The operating margin grew to 15.2% from 13.4%, and the adjusted margin grew to 21.3% from 20.0%.
ConvaTec declared an interim dividend of 1.88 cents per share, up 3.0% from 1.82 cents.
‘The group performed strongly in H1 25 and we continue to expect group organic revenue growth excluding InnovaMatrix of 5.5-7.0%,’ ConveTec said. ‘InnovaMatrix FY25 revenue guidance of at least $75m is also unchanged.’
The company also reiterated full-year guidance of an adjusted operating margin between 22.0% and 22.5%, ‘despite an adverse FX impact’ and expected incremental tariff costs of between $5 million and $10 million.
ConvaTec lowered its full-year guidance range for net finance costs to between $65 million and $70 million, from between $70 million and $75 million.
It said it remains confident in delivering its medium-term targets: organic growth between 5% and 7% per year, a mid-20s adjusted operating margin by 2026 or 2027, and ‘double-digit compound annual growth in adjusted EPS and free cash flow to equity’.
Shares in ConvaTec were trading 1.4% higher at 242.20 pence on Tuesday morning in London.
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