The ConvaTec Board is proposing a final dividend of 3.983 cents to per share and therefore a 2020 full year dividend of 5.7 cents per share, in line with the 2019 full year dividend. This is outside their stated policy of 35% to 45% of adjusted net profit but is a reflection of the Board's confidence in the future performance of the Group, its underlying financial strength, realised distributable reserves position, cash generation and liquidity.
Other financial highlights include:
Improved revenue growth: +3.7% reported growth and +4.0% on a constant currency basis.
Attractive diversified portfolio providing resilience during the pandemic.
o FY20 performance driven by strong growth in Infusion Care and Continence & Critical Care offsetting limited growth in Ostomy Care and decline in Advanced Wound Care.
o Q4 revenue performance reflected the impact of the latest COVID-19 resurgence late in the year. This was driven primarily by better than expected revenues in Continence & Critical Care.
Continued investment for growth: Adjusted EBIT margin of 18.5% (2019: 19.4%) in line with the latest guidance.
Strong adjusted free cash flow: $347 million (2019: $397 million) and adjusted cash conversion of 90% (2019: 98%).
Strengthened balance sheet: Reduction in leverage to 2.0x Net Debt/Adjusted EBITDA (2019: 2.5x).