ConvaTec Group (CTEC) Trading Update summary

Sales and Trading Performance

• Organic revenue growth excluding InnovaMatrix reached 6.7% YTD, with all categories contributing and North America and emerging markets leading gains.

• Including InnovaMatrix, organic revenue growth was 6.2%, and reported growth was 5.1%.

• Infusion Care achieved double-digit organic growth, driven by strong demand and new therapies, with guidance for high single digit growth for the full year.

• Advanced Wound Care, Ostomy Care, and Continence Care all saw mid to high single digit growth, with strong performance in North America and emerging markets.

• Six consecutive years of accelerating organic revenue growth, with operating profit margin up 350bps over three years.

Strategic Initiatives and Innovation

• Regulatory clearance received in the EU and UK for ComboNiox/ConvaNiox, a nitric oxide dressing, with launches planned for later in 2025.

• Esteem Body and GentleCath Air for Women are expanding in key markets, with further launches for male and bagged versions planned for 2026.

• Infusion set technology, especially NeriaGuard, is driving growth in both diabetes and non-diabetes therapies, with high demand linked to new therapies.

• Eight new product launches are planned over the next two years, supporting revenue growth targets.

• Automation, AI-driven productivity, and expanded Global Business Services are delivering operational efficiencies.

Financial Guidance and Outlook

• FY25 organic revenue growth guidance (excluding InnovaMatrix) tightened to 5.5%-7%, with at least $75m in InnovaMatrix sales expected.

• Adjusted operating profit margin expected at 22%-22.5%, with double-digit adjusted EPS growth and strong cash conversion anticipated.

• Capex guidance set at $130m–$150m; interest expense at $70m–$75m; adjusted book tax rate around 24%.

• On track to deliver both annual and medium-term targets, with continued focus on innovation and operational improvement.

• Up to 15m own shares to be purchased in FY25 for employee incentives.