Business
ConvaTec Group Plc First Half Results 2019
ConvaTec Group Plc First Half Results 2019.
About this update from Convatec Group Plc
[{"type":"text","content":"\n \nRNS Number : 4631H ConvaTec Group PLC 01 August 2019 \n\n \nConvaTec Group Plc First Half Results 2019\nImproving growth trend in second quarter, Transformation Initiative on track, guidance confirmed\nKey points:\n· Group reported revenue of $888.9 million in the first half was 3.5% lower year on year and flat1 on an organic basis;\no Excluding the one-off rebate provision6 taken in the first quarter ($8.9 million) to revise the estimate of the distributor rebates accrual, growth in the first half was 1.0%1 on an organic basis;\no The second quarter saw an improving revenue trend, with positive organic revenue growth across all franchises and Group growth of 2.1%1; \n· Transformation Initiative on track: three-year programme, $150 million investment (including c.$45 million capex), anticipated gross benefits in 2021 of $130 - $150 million per annum;\no $14 million cost in first half;\no Operational Excellence programme delivered net positive productivity in the first half, with benefits more than offsetting inflation and depreciation;\n· Reported operating profit / EBIT of $93.6 million, 23.3% lower year on year, reflecting the one-off rebate provision6, foreign exchange, plus investment in commercial areas and regions, and the Transformation Initiative;\n· Adjusted2 operating profit / EBIT of $165.2 million, 18.8% lower year on year, due to same drivers as above; adjusted2 EBIT margin declined, as expected, to 18.6% (2018: 22.1%);\n· Interim dividend 1.717 cents maintained;\n· Leverage 2.6 times Net Debt/EBITDA3, continued good adjusted cash conversion 89.8% (2018: 75.2%);\n· Guidance for the full year maintained: organic revenue growth 1.0% - 2.5%1, adjusted EBIT2 margin 18% - 20%, including c. $40 million Transformation Initiative and c. $10 million of MDR4 costs.\nGroup revenue\n\n\n\n\n \n\n\nSix months ended 30 June\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\n \n\n\n2019\n$m\n\n\n2018\n$m\n\n\nReported\ngrowth\n\n\nForeign Exchange impact\n\n\nOrganic1 growth\n\n\nOrganic1,* growth ex. rebate\n\n\nQ2\nOrganic1 \ngrowth\n\n\n\n\nReven...