Convatec Group (CTEC)

Sector:

Health Care

Index:

FTSE 250

192.30p
   
  • Change Today:
    -0.70p
  • 52 Week High: 202.80
  • 52 Week Low: 118.55
  • Currency: UK Pounds
  • Shares Issued: 1,983.51m
  • Volume: 1,869,194
  • Market Cap: £3,814.30m
  • RiskGrade: 145
  • Beta: 0.75

ConvaTec wraps up solid third quarter performance

By Josh White

Date: Wednesday 30 Oct 2019

LONDON (ShareCast) - (Sharecast News) - Medical products and technologies company ConvaTec Group updated the market on its trading for the third quarter on Wednesday, reporting that it was in line with management expectations, with full-year guidance remaining unchanged.
The FTSE 250 company said group revenue for the three months ended 30 September was $462.9m, which was 2.4% higher on a reported basis and 4.6% higher on an organic basis year-on-year, which the board said in part reflected the benefits of some short-term tailwinds.

For the nine months ended 30 September, revenue was $1.35bn, which was a decline of 1.6% on a reported basis due to foreign exchange movements, but growth of 1.5% on an organic basis.

Looking at its franchises for the third quarter, in Advanced Wound Care, ConvaTec reported organic growth of 3.6%, which was reportedly driven by its silver portfolio, in particular 'AQUACEL Ag+', as well as foam, while distributor inventory movements provided a short-term tailwind which would partly reverse in the fourth quarter.

In Ostomy Care, the company said organic growth of 3.0% reflected a "solid underlying performance" against a weak 2018 performance.

For Continence and Critical Care organic growth was 8.0%, which the board said was "flattered" - as expected - by a weaker prior year comparator due to a packaging recall, along with continued growth in its Home Distribution Group (HDG).

In Infusion Devices, organic growth was 4.3%, which was also put down to a weaker prior year comparator.

The ConvaTec board said its transformation initiative remained on track, and left its guidance for the 2019 financial year unchanged.

"I am excited to have joined ConvaTec and returned to the healthcare sector," said chief executive officer Karim Bitar.

"Since I joined the group at the end of September I have had the opportunity to visit several sites and engage with many colleagues; I have been encouraged by their enthusiasm and the potential within ConvaTec."

Bitar said he was "pleased" the company reported a solid performance in the third quarter, but added it was a "small step" on a "significant journey" as it focussed on pivoting to sustainable and profitable growth.

"As an organisation we need to get closer to patients, to strengthen our innovation pipeline and to drive a relentless focus on execution excellence.

"I look forward to giving an update on our plans and progress next year."

As at 0952 GMT, shares in ConvaTec were up 9.01% at 199.55p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CTEC Market Data

Currency UK Pounds
Share Price 192.30p
Change Today -0.70p
% Change -0.36 %
52 Week High 202.80
52 Week Low 118.55
Volume 1,869,194
Shares Issued 1,983.51m
Market Cap £3,814.30m
Beta 0.75
RiskGrade 145

CTEC Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
67.63% below the market average67.63% below the market average67.63% below the market average67.63% below the market average67.63% below the market average
2.86% below the sector average2.86% below the sector average2.86% below the sector average2.86% below the sector average2.86% below the sector average
Price Trend
63.13% above the market average63.13% above the market average63.13% above the market average63.13% above the market average63.13% above the market average
58.97% above the sector average58.97% above the sector average58.97% above the sector average58.97% above the sector average58.97% above the sector average
Income
41.92% below the market average41.92% below the market average41.92% below the market average41.92% below the market average41.92% below the market average
33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average
Growth
12.23% below the market average12.23% below the market average12.23% below the market average12.23% below the market average12.23% below the market average
5.88% below the sector average5.88% below the sector average5.88% below the sector average5.88% below the sector average5.88% below the sector average

What The Brokers Say

Strong Buy 4
Buy 1
Neutral 8
Sell 1
Strong Sell 1
Total 15
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CTEC Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 04-Apr-19
Paid 17-Oct-19 16-May-19
Amount 1.72¢ 3.98¢

Trades for 06-Dec-2019

Time Volume / Share Price
16:50 699 @ 194.25p
16:35 946,684 @ 192.30p
16:29 201 @ 191.35p
16:29 682 @ 191.35p
16:29 617 @ 191.50p

CTEC Key Personnel

CFO Frank Schulkes
CEO Karim Bitar
Chair John McAdam

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