ConvaTec posts solid first-half revenue, earnings per share growth
By Josh White
Date: Tuesday 29 Jul 2025
(Sharecast News) - ConvaTec Group posted a solid set of interim results for the first half on Tuesday, reporting broad-based revenue growth, margin expansion, and double-digit growth in earnings per share (EPS).
The FTSE 100 company said it achieved reported revenue of $1.18bn, reflecting a 6% increase compared to the same period in 2024.
Operating profit rose 20.1% to $179m, while operating margin expanded by 1.8 percentage points to 15.2%.
Diluted earnings per share grew 33.6%, reaching 5.1 cents per share.
On an adjusted basis, ConvaTec's revenue also increased by 6%, with a constant currency growth of 6.3%.
Adjusted operating profit rose 13.1% to $252m, and adjusted operating margin improved by 1.3 percentage points to 21.3%.
The company saw a significant increase in adjusted earnings per share, which grew 18.7% to eight cents per share.
It reported organic revenue growth excluding 'InnovaMatrix' at 6.8%, and a 6% increase including it.
Revenue from the product line, which represented 3% of group sales, decreased by 13%, in line with expectations.
The company said its adjusted operating margin of 21.3% was up by 130 basis points year-on-year, driven by strong demand across several categories, despite challenges from foreign exchange fluctuations.
ConvaTec achieved strong performance across its product categories, with the Advanced Wound Care (AWC) segment reporting 4.3% growth excluding InnovaMatrix, led by contributions from 'ConvaFoam' and 'Aquacel Ag+ Extra'.
Ostomy Care (OC) revenue grew by 4.7%, with strong contributions from new patient starts in the US and the launch of the 'Esteem Body' product.
Continence and Critical Care (CC) revenue increased 6.7%, driven by volume growth in the US and international expansion.
The Infusion Care (IC) segment posted a robust 14.1% growth, supported by strong demand for infusion sets in both diabetes and non-diabetes treatments.
ConvaTec said its innovation pipeline was continuing to deliver, with the company launching several new products.
Notably, it received regulatory approval for 'ConvaNiox', an advanced wound dressing powered by nitric oxide, which was expected to launch in Europe in the second half of 2025.
The 'Esteem Body' product in OC continued to perform well, and the 'GentleCath Air for Women' in CC had gained traction in its segment.
Additionally, the company said it saw growth in its infusion care product line, particularly with 'Neria Guard' for AbbVie's Parkinson's treatment.
"ConvaTec performed strongly in the first half and we are on track to deliver 2025 financial guidance," said CEO Karim Bitar.
"Under our FISBE strategy, we saw further broad-based organic revenue growth across all chronic care categories, further operating margin expansion, and double-digit growth in adjusted earnings per share.
"Looking ahead, we are well-positioned to deliver our medium-term targets, including double-digit compound annual growth in EPS and free cash flow to equity."
For the full year, ConvaTec said it had maintained its guidance for organic revenue growth excluding InnovaMatrix at 5.5% to 7.0%, with InnovaMatrix expected to generate at least $75m in revenue.
The company also reaffirmed its adjusted operating margin target of 22.0% to 22.5%, despite anticipated headwinds from foreign exchange and tariffs.
It said it was targeting another year of double-digit growth in adjusted earnings per share, with at least 80% cash conversion.
ConvaTec said it was confident in its ability to meet its medium-term targets, including reaching mid-20s adjusted operating margin by 2026 or 2027.
The company also updated its financial outlook, revising its forecast for the Infusion Care (IC) segment to double-digit growth, following strong performance in the first half.
It said it expected net finance costs to be between $65m and $70m, slightly reduced from previous guidance.
Capital expenditure for the year was projected to be between $130m and $150m, with research and development spending expected to range between $100m and $110m.
At 0855 BST, shares in ConvaTec Group were up 0.08% at 239p.
Reporting by Josh White for Sharecast.com.
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