THE ConvaTEC share, whislt being mindful, have maintained in line with the prior year.
Otherfinancial highlights include:
Group reported revenue of $908 million up 2.1% year on year, 4.3% in constant currency driven by Continence and Critical Care and Infusion Care, partially offset by lower Advanced Wound Care revenue.
As expected, second quarter growth was impacted by lower volumes in Advanced Wound Care and by the unwinding of increased customers' inventories in Ostomy Care.
The strategic transformation is progressing well; with investments proactively re-phased in response to conditions resulting from COVID-19.
Recurring transformation investment in 2020 expected to be between $50 million and $55 million (previously $60 million and $65 million), of which $16 million in the first half.
As a result, annual gross benefits in 2021 now expected to be between $130 million and $150 million (previously between $150 million and $170 million).
Reported EBIT4 of $113 million, 20.7% higher year on year, and Adjusted EBIT2 of $182 million, 10.0% higher, reflecting the prior year rebate provision, temporary cost reductions due to COVID-19 and net productivity gains. Adjusted2 EBIT margin increased to 20.0% (2019: 18.6%).
Reduction in leverage to 2.2x net debt/adjusted EBITDA2, 3 (31 December 2019: 2.5x), adjusted cash conversion2 of 73% (30 June 2019: 90%) with the prior year benefiting from favourable inventory movements.
FY2020 outlook maintained: uncertainty and risk of disruption due to COVID-19 remains.
Lower revenue growth and higher transformation investment expected in the second half, alongside a return to higher operating expense levels.