Convatec Group Plc · LSE:CTEC
Convatec — Q3 2018 Earnings Presentation
14 slides from Convatec's earnings presentation, Oct 15, 2018
Slide 1: Q3 2018 Trading update and guidance change
Q3 2018 Trading update and guidance change 15 October 2018 0
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, OR TO ANY RESIDENT THEREOF OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD BE UNLAWFUL OR TO ANY OTHER PERSON. This pres
Slide 3: Q3 2018 Key points
Q3 2018 Key points • Guidance for FY 2018 revised • Primarily due to change in inventory policy by biggest customer in Infusion Devices: $18 to $23 million impact in Q4 • Challenging dynamics in specific Wound Care markets • FY 2018 organic revenue growth now expected to be flat to +1.0% • Adjusted
Slide 4: Q3 2018: Franchise Summary
Q3 2018: Franchise Summary Q3 2018 Revenue ($m) Q3 Organic Growth1 Advanced 146.8 +0.8% Wound Care Ostomy Care 131.4 +1.5% Continence & 107.5 +1.4% Critical Care Infusion 66.5 -3.7% Devices Total Revenue 452.2 +0.4% 1 Organic growth is growth at constant exchange rates (“CER”), excluding M&A activit
Slide 5: Advanced Wound Care
Advanced Wound Care Growth below expectations Q1 18 +2.2%1 Q2 18 -0.2%1 • Good performance from AQUACELTM Ag+ anti-biofilm and Foam Q3 +0.8%1 • Trends in Base AQUACELTM and DuoDERMTM normalising. Skin care remains a drag • Surgical cover dressing recovery taking longer than expected • UK challenging
Slide 6: Ostomy Care
Ostomy Care New products and impact of patient losses Q1 18 -2.5%1 Q2 18 +0.3%1 • Impact of patient loss at top of 50 – 100 bps range for Group organic revenue growth • Good performance in Latam, Asia Pacific, Q3 +1.5%1 positive trends in smaller European markets • Strong performance from new produc
Slide 7: Continence & Care
Continence & Care Strong underlying momentum offset by expected headwinds Q1 18 +5.6%1 Q2 18 +5.9%1 • c. 5.5% organic growth excluding packaging recall and product rationalisation • Strong performance from US Home Distribution Group3 Q3 +1.4%1 • GentleCath™ Glide performing well in US • Q3 impacted
Slide 8: Infusion Devices
Infusion Devices Performance impacted by inventory changes and ordering patterns Q1 18 +16.3%1 Q2 18 +2.7%1 • Continuing good underlying demand in insulin pump market Q3 -3.7%1 • Q3 performance reflects strong tailwinds in H1 and prior year comparator • Change in inventory policy by biggest customer
Slide 9: Summary and Outlook
Summary and Outlook Q3 2018 • Advanced Wound Care disappointing • Improved performance from Ostomy Care • Performance in Continence & Critical Care reflects headwinds, as expected • Infusion Devices performance reflects tailwinds in H1 and strong prior year comparator FY 2018 • Anticipate $18 to $23
Slide 10: ing —
ing — FoamLite Avelle” ConvaTec ~ GentleCath Cee ESTEEM © Flex Convex |
Slide 11: Appendix
Appendix 10
Slide 12: Quarterly Revenue Performance
Quarterly Revenue Performance Quarterly reported revenues by franchise Organic1 growth rate by franchise (%) 2017 2018 2017 2018 $m Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 AWC 138.4 147.9 157.8 147.1 142.9 146.8 2.6 1.4 2.3 2.2 (0.2) 0.8 11.4% 132.9 Ostomy 132.1 11.9% 142.2 128.0 138.0 131.4 3.6 (1.8) 0
Slide 13: Revenues By Geography
Revenues By Geography Q3 2018 reported Reported growth Organic growth1 ($m) EMEA 184.6 (0.4)% +1.3% Americas 231.9 +2.8% (1.1)% APAC 35.7 +3.2% +5.5% Group 452.2 +1.5% +0.4% 1 Organic growth presents year on year growth at constant exchange rates (“CER”), excluding M&A activities 12
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