ConvaTec (CTEC) Trading update summary

Financial Performance and Guidance

• Organic revenue growth excluding InnovaMatrix was 4.8% YTD, with InnovaMatrix representing a 2-3% group headwind and less than 1% of group revenue, in line with guidance.

• Group organic revenue growth including InnovaMatrix was 1.6%, with reported revenue growth of 5.5% due to USD depreciation and a 160 bps FX tailwind if current rates hold.

• FY26 guidance unchanged: 5-7% organic revenue growth (ex-InnovaMatrix), ≥23% adjusted operating profit margin, and double-digit EPS growth.

• Adjusted net finance expense expected at $70–75m, book tax rate at ~24%, and equity cash conversion at ~100%.

• Total capex guidance is $200–230m, with $135–165m for growth capex and opex R&D spend of $100–110m.

Segment and Product Updates

• Advanced Wound Care, Ostomy Care, and Continence Care all delivered mid-single digit growth, led by LATAM, APAC, and Europe, with ConvaFoam, Esteem Body, and AQUACEL Ag+ Extra performing well.

• Infusion Care achieved mid to high single-digit growth, with non-diabetes therapies now over 15% of revenues and a new patch pump supply agreement signed.

• Product launches such as ConvaNiox, ConvaFiber, ConvaVAC, Flexi-Seal Air, Natura Body, GC Air Pocket & Set, and Cure Aqua are planned, with a strong innovation pipeline in all categories.

• New product launches and capacity expansions are expected to accelerate growth from 2027.

• Major new products and clinical evidence have been presented at key industry events.

Strategic and Operational Progress

• Accelerate strategy is progressing as planned, with five new wound care products in limited market release and further launches scheduled.

• Commercial execution improvements evidenced by recent GPO contract wins, market share gains, and rising new patient starts.

• Productivity and simplification initiatives are expected to support margin expansion, even with inflationary pressures.

• Growth capex is expanding capacity, supported by long-term contracts and increased investments across all categories.

• First patch pump supply agreement in diabetes secured, expanding offerings.