Half-year profits slide to £193m for ConvaTec

Convatec

Global medical products company ConvaTec, which has its headquarters in Deeside, has suffered a 12% dip in operating profit to £193.5m although its revenue has remained stable at £831.3m.

Its half-year results to June 30 come in the wake of the company’s acquisition of US distributor of incontinence and catheter supplies Woodbury Holdings for £92.5m.

The company reported continued solid demand growth in foam, silver, surgical cover dressings and Avelle, offset by changes to reimbursement rates in France in its advanced wound care division.

Chief executive Paul Moraviec said: “These results show the continued progress we are making across the business, as we deliver on our strategy to drive growth, innovation and efficiency.

“During the first half we saw accelerating growth in our Ostomy Care franchise, which delivered 3.6% organically in Q2, driven by a strong performance in the US and continued underlying momentum across our other three franchises.”

“Our Margin Improvement Programme delivered a further net 40 bps of gross margin benefit in the first half at constant currency, and we continue to expect to deliver around half of the targeted of about 300 bps adjusted gross margin improvement during 2017.”

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