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ConvaTec Group PLC on Tuesday lifted its 2023 organic revenue growth expectations as strong sales growth continued in the 10 months to October 31. The Reading, England-based medical products and technology company now expects organic revenue growth to be between 6.8% and 7.5% after previously expecting a growth margin of 6.0% and 7.5%. ConvaTec also expects its adjusted operating profit margin is expected to grow to at least 21% on a constant currency basis, compared to 12% in 2022. This comes as the company said revenue grew 6.7% on an organic basis, and by 2.5% overall. This was partly impacted by the ‘strategic exit’ of hospital care activities in 2022, CovaTec said, but noted strong sales growth across its Advanced Wound Care, Ostomy Care, Continence Care and Infusion Care divisions. Chief Executive Officer Karim Bitar commented: ‘ConvaTec has pivoted to a higher level of organic sales growth over recent years. We are on track to deliver a mid-20s adjusted operating margin in 2026 or 2027, and double-digit compound growth in [earnings per share] and free cash flow, from 2024 onwards.’ Shares in ConvaTec grew 3.0% to 214.94 pence each in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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