ConvaTec shares edge higher as company reports solid H1 results

Published 29/07/2025, 08:52

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.