ConvaTec Group PLC
SWB:2CV

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ConvaTec Group PLC Logo
ConvaTec Group PLC
SWB:2CV
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Price: 2.82 EUR -2.08% Market Closed
Market Cap: 3.7B EUR

ConvaTec Group PLC
Investor Relations

ConvaTec Group PLC is a notable player in the realm of medical products and technologies, deftly weaving its narrative within the healthcare industry. Founded in 1978, the company has steadily established itself through strategic expansion and innovation, focusing on improving the lives of patients and enhancing healthcare delivery. The company's core business revolves around four main product categories: Advanced Wound Care, Ostomy Care, Continence and Critical Care, and Infusion Care. Each of these sectors is backed by a robust commitment to research and development, allowing ConvaTec to deliver specialized products that cater to both specific patient needs and broader healthcare system demands.

ConvaTec's financial model centers around providing essential, high-quality medical solutions that ultimately support improved patient outcomes. The company garners revenue by partnering with hospitals, healthcare providers, and direct consumer channels, ensuring its products reach where they are most needed. With a global footprint spanning multiple continents, ConvaTec not only distributes its products widely but also adapts its strategy to meet the nuanced requirements of diverse markets. By aligning itself closely with caregivers and leveraging cutting-edge technology, the company maintains a sustainable economic engine through both recurring sales from consumables and long-term relationships with its institutional clients.

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Last Earnings Call
Fiscal Period
Q2 2022
Call Date
Aug 4, 2022
AI Summary
Q2 2022

Strong Sales Growth: ConvaTec delivered 8% constant currency growth and 6.4% organic revenue growth in the first half of 2022, with all four categories contributing.

Margins Hold Up: EBIT margin was 19.6%, stable year-on-year despite inflation and higher investment in R&D and sales/marketing.

Guidance Unchanged: Management reaffirmed full-year guidance for 4%–5.5% organic sales growth and at least 18% EBIT margin (constant currency), despite increased cost pressures.

Operational Efficiency: Ongoing focus on simplification and efficiency led to G&A expenses dropping below 10% of sales for the first time.

Strong Cash Generation: Robust cash flow enabled continued investment in growth, including $179 million in M&A during H1.

Product Pipeline: New product launches and acquisitions (e.g., Triad Life Sciences) are expected to support future growth and margin improvement.

Supply Chain Resilience: Management reported a stronger and more resilient supply chain, aided by increased inventory and automation investments.

Mid-Term Margin Ambition: Leadership reiterated confidence in growing EBIT margin to the mid-20% range over time.

Key Financials
Revenue Growth (constant currency)
8%
Organic Revenue Growth
6.4%
EBIT Margin
19.6%
Adjusted Operating Profit
$104 million
EBITDA
$252 million
Net Debt
$1,077 million
Leverage
2.3x
CapEx
$64 million (H1); $100–120 million (FY 2022 guidance)
Book Tax Rate
25% (expected for FY 2022)
Cash Tax Rate
18% to 19% (expected for FY 2022)
Reported EPS
down 44%
Adjusted EPS
down 10%
R&D as % of Sales
about 5%
Earnings Call Recording
Other Earnings Calls

Management

Mr. Karim Bitar
CEO & Director
No Bio Available
Mr. Jonathan Peter Mason
Group CFO & Director
No Bio Available
Mr. John Haller
Executive VP and Chief Quality & Operations Officer
No Bio Available
Dr. Divakar Ramakrishnan Ph.D.
Executive VP, Chief Technology Officer and Head of Research & Development
No Bio Available
Ms. Kate Postans
Vice President of Investor Relations & Corporate Communications
No Bio Available
Ms. Evelyn Douglas J.D.
Executive VP, Chief of Corporate Strategy & Business Development and General Counsel
No Bio Available
Ms. Moyra Withycombe
Interim Chief People Officer
No Bio Available
Ms. Kjersti Grimsrud Biotechnology, M.Sc.
President & COO of Infusion Care
No Bio Available
Mr. David Shepherd
President & COO of Global Advanced Wound Care
No Bio Available
Mr. Seth R. Segel
President and COO of Continence Care & Home Services Group
No Bio Available

Contacts

Address
BERKSHIRE
Reading
Fl 7, 3 Forbury Place, 23 Forbury Road
Contacts