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Investing.com -- ConvaTec Group PLC (LON:CTEC) on Tuesday reported first-half 2025 results that showed broad-based revenue growth and margin expansion, with adjusted earnings per share rising 18.7% to 8.0 cents, slightly ahead of analyst expectations.
The medical products and technologies company saw its shares rise 0.7% following the announcement.
The company posted revenue of $1.18 billion for the six months ended June 30, representing a 6.0% increase compared to the same period last year, in line with analyst estimates.
Organic revenue growth excluding InnovaMatrix was 6.8%, driven by strong performance across all business segments. Adjusted operating profit increased 13.1% to $252 million, with adjusted operating margin expanding by 130 basis points to 21.3%.
ConvaTec’s Infusion Care category was the standout performer with 14.1% organic growth, prompting the company to raise its full-year growth expectations for this segment to double-digit from previous guidance of high single-digit.
The Continence Care segment grew 6.7%, while Ostomy Care and Advanced Wound Care (excluding InnovaMatrix) both delivered 4.7% and 4.3% growth respectively.
"Convatec performed strongly in the first half and we are on track to deliver FY25 financial guidance," said Karim Bitar, Chief Executive Officer. "Under our FISBE strategy, we saw further broad-based organic revenue growth across all chronic care categories, further operating margin expansion and double-digit growth in adjusted EPS."
The company reaffirmed its full-year 2025 guidance, projecting organic revenue growth of 5.5-7.0% excluding InnovaMatrix, with InnovaMatrix revenue expected to be at least $75 million.
ConvaTec also maintained its adjusted operating margin target of 22.0-22.5%, despite approximately 50 basis points of headwinds from foreign exchange and anticipated tariffs.
ConvaTec remains confident in its medium-term targets of 5-7% organic revenue growth and reaching mid-20s percentage adjusted operating margin by 2026 or 2027.
The company declared an interim dividend of 1.877 cents per share, representing a 3.0% increase from the previous year.