Business
Annual Results
Annual Results.
About this update from Convatec Group Plc
[{"type":"text","content":"\n\n\n \nAnnual Results for the twelve months ended 31 December 2023\nAccelerating revenue growth, strong profit and cash generation\nRaising medium term revenue guidance\n\nAccelerating organic revenue growth of 7.2%1, broad-based across all four chronic care categories\n· AWC2: 9.5%1 driven by strong performance in antimicrobials and growing position in wound biologics segment3\n· OC2: 4.2%1 driven by 6% growth in Convatec ostomy products with strength in Global Emerging Markets\n· CC2: 6.5%1 excellent customer service and higher reimbursement pricing in the US\n· IC2: 8.7%1 continued strong demand for infusion sets with multiple product launches in 2023\nReported revenue was $2,142m (2022: $2,073m), up 3.4% and 3.2% on a constant currency4 basis, lower than organic because of the strategic exit of the non-core hospital care activities and related industrial sales in 2022\n Further operating margin expansion\n· Strong adjusted gross margin expansion of 150bps to 61.6% principally driven by improved mix and stronger pricing coupled with further productivity, partially offset by inflation and FX\n· Adjusted operating profit margin of 20.2% (20.8% on a constant currency basis). Expansion of 70 bps (130 bps on a constant currency basis) with further progress in simplification and productivity of operating costs\n· Adjusted operating profit up 7.0% to $432m. Reported operating profit increased to $263m (2022: $207m)\n \nDelivering EPS and cashflow growth\n· Adjusted diluted EPS increased 6.1% to 13.4 cents. Reported diluted EPS increased 106% to 6.3 cents\n· Free cash flow to equity5 rose to $228m (2022: $105m) resulting in equity cash conversion5 of 83%\n Strong new product pipeline - further strengthening competitive position\n· Growing InnovaMatrix® and ConvaFoamTM in the US - positive clinician feedback\n· Acquired innovative anti-infective nitric oxide technology platform\n· Launching new compact hydrophilic catheter, GentleCathTM Air for Women, in Europe\n· Broadening customers and applications in IC - partnerships with Beta Bionics (iLet insulin pump in the US), AbbVie and ...