Convatec declares its maiden interim dividend for 2017

DividendMax Ltd.

Convatec declares its maiden interim dividend for 2017

Group highlights:

•  Group reported revenue of $831.3 million grew 0.3%, 2.1% CER or 1.5% organically, with underlying momentum across all franchises, particularly in Ostomy Care, offset by phasing impacts and short-term fulfilment constraints;

•  Advanced Wound Care: continued solid demand growth in Foam, Silver, Surgical Cover Dressings and AvelleTM, offset by changes to reimbursement rates in France and short-term fulfilment constraints;

•  Ostomy Care: continued execution of the Group's strategy delivered accelerating revenue growth;

•  Continence & Critical Care and Infusion Devices delivered good underlying momentum;

•  Margin Improvement Programme (the "MIP Programme") on track for full year guidance - 40 basis points (bps) performance benefit in H1, with a 150 bps increase in adjusted gross margin to 60.3%, including favourable foreign exchange movements;

•  Continued investment in the business to support product and regional growth, plus inclusion of public company related costs for the first time led to adjusted EBIT margin 190 bps lower;

•  Strategic acquisitions strengthen franchises - Acquisition of Woodbury Holdings ("Woodbury") immediately accretive on completion and builds on the success of 180 Medical. EuroTec integration on track;

•  Inaugural interim dividend of 1.4 cents per share; and

•  Guidance for the full year is confirmed, revenue growth weighted towards the second half of the year.

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