Revenues pass £700m at ConvaTec

Medical products manufacturer ConvaTec has increased revenues past £700m with the company making good progress in many areas according to interim results.

The company, which has its UK headquarters in Reading and a manufacturing base in Deeside, makes products for wound care and continence as well as ostomy bags.

Insider Media reports, for the six months ending on June 30th 2018, ConvaTec increased global revenues by ten per cent to $921m (£703m), up from $831m (£635m) in the same period in 2017. Operating profits also increased to $203m (£155m) from $193m (£147m).

Paul Moraviec, chief executive, said “In the first half of 2018, we delivered a solid performance and made good progress in many areas. Our Continence & Critical Care and Infusion Devices franchises delivered strong results and in the second quarter Ostomy Care returned to positive organic revenue growth. Within Advanced Wound Care we have seen strong demand for our newer Foam and Silver dressings, although this was offset by headwinds in our older DuoDERM hydrocolloid and base AQUACEL dressings, as a result of the supply constraints of last year and challenging market dynamics. However, recent positive trends and early results from our growth initiatives give us confidence that we will see an improved performance in Advanced Wound Care in the second half. The backorders which arose last year continued to fall during the second quarter and are now at a normal level, as planned. Despite the modest decline in adjusted gross margin in the first half, we are making good progress with our cost out programmes. We continue to invest in the commercial areas of the business and in new product development, whilst further reducing leverage. We are well positioned to deliver on our plans during the remainder of the year and consequently our guidance for the full year is unchanged.”

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