ConvaTec Group Plc (CTEC) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everybody. Nice to see you. Welcome to ConvoTec's first half of 2026 results announcements. The usual disclaimers apply. And today we're going to follow the normal format, which is that I'll give a few words of introduction. Fiona will talk you through the performance, financial and outlook. and then I'll update on strategic progress before we'll be happy to take any questions that you've got. So let's start with a quick recap from the Capital Markets Day just back in April. These were the three things we suggested should be the key takeaways. We operate in large and growing markets with leading positions. We're focused on four chronic care categories, which leads to a high proportion of recurring revenue. CombiTech is a strong and resilient business. We're delivering broad-based growth and we've got a track record of operational improvements which increase profitability. And then the growth opportunity is substantial. We have new products launching across all of those four categories, which means that we will grow ahead of those growing markets. And there's more to come, as you'll hear today. Those structurally growing markets, with the leading positions and the recurring revenue, with our new products launching, that all drives the Comfortec Frywheel. And that's what leads to the sustainable level of growth at 6-8% for organic revenue and double digits for EPS, every year starting from next year. and at an operating margin of mid-20s, the cash generation is strong and that will enable us to invest organically in OPEX and CAPEX to sustain the growth, to grow the dividend in line with earnings and there will be further capital available to increase returns for shareholders. So that's what we said in April and I'm pleased to say that from the first half ...