ConvaTec Group (CTEC) Trading Update summary

Trading and Financial Performance

• Organic revenue growth excluding InnovaMatrix reached 6.3% year-to-date, with reported growth at 6.2% and broad-based category contributions.

• FY25 organic revenue growth guidance is 6.0–6.5% (excluding InnovaMatrix), with adjusted operating profit margin at 22.0–22.5% and double-digit adjusted EPS growth expected.

• FY26 outlook anticipates 5–7% organic revenue growth (excluding InnovaMatrix), continued margin expansion, and double-digit EPS growth.

• InnovaMatrix revenue for FY25 expected to be $70 million, with CMS reimbursement changes in 2026 representing a 1–2% group revenue headwind and less than 2% of group revenue.

• Adjusted net finance expense projected at $65–70m, capex at $160–180m, and book tax rate at approximately 24%.

Strategic Progress and Product Pipeline

• New product launches such as ConvaFoam, Esteem Body, and GentleCath Air for Women are gaining market share and supporting growth.

• Three new wound care products (ConvaNioX, ConvaFiber, ConvaVac) and other pipeline launches are planned for 2026, with ConvaNioX seen as a major long-term opportunity.

• Esteem Body in ostomy care is gaining share in all major markets, with Natura Body (two-piece) launching in 2027.

• Infusion care growth is driven by both diabetes and non-diabetes therapies, with new products for Medtronic and AbbVie performing strongly.

• Secured first US Ostomy GPO contract in over five years and extended another key contract by three years.

Capital Expenditure and Growth Investments

• CapEx is being accelerated to $160–180m to support strong demand, especially in infusion care and wound care.

• CapEx is expected to run above 5% of sales for a couple of years, then return to steady-state levels.

• Investments are supported by clear customer forecasts and minimum volume commitments.

• $202m of a $300m share buyback program completed and first $500m investment grade bond issued.