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ConvaTec Group PLC on Tuesday posted a fall in annual profit amid inflated expenses but expects revenue to grow in line or faster than the markets in which it operates for the year ahead.
The FTSE 250-listed medical products and technologies company reported pretax profit of $151.3 million in 2021, slipping 13% from $174.7 million in 2020 on the back of rising expenses.
Cost of sales rose 4.5% to $915.2 million from $875.5 million; selling & distribution expenses increased 16% to $539.7 million from $463.3 million; and general & administrative expenses grew 8.9% to $285.3 million from $262.1 million.
Revenue improved 7.9% to $2.04 billion from $1.89 billion.
‘Our performance in 2021 demonstrates we are now pivoting to sustainable and profitable growth - with good revenue and earnings momentum. During 2021 we made significant operational improvements and grew our portfolio through strategic M&A - enabling us to deliver more effectively for our customers,’ said Chief Executive Karim Bitar.
ConvaTec proposed a final dividend of 4.154 US cents per share, up 4.3% from 3.983 cents in 2020. This brought the total annual payout to 5.871 cents a share, up 3.0% from the year prior's 5.7 cents.
For 2022, ConvaTec expects to achieve sustained organic revenue growth of between 4.0% and 5.5%. The constant currency adjusted earnings before interest and tax margin is seen at ‘at least’ 18%, compared to 17.7% in 2021.
‘ConvaTec expects to grow revenue in line or faster than the markets in which we operate, which are growing at approximately 4%. There is still work ahead; however, I am confident in ConvaTec's significant growth prospects,’ Bitar said.
ConvaTec shares were up 0.6% to 175.25 pence each in London on Tuesday morning.
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