ConvaTec Group PLC announce a final dividend of 4.154 cents per share

DividendMax Ltd.

ConvaTec Group PLC announce a final dividend of 4.154 cents per share

The ConvaTec Group PLC Board is proposing a final dividend of 4.154 cents to per share which brings the 2021 full year dividend to 5.871 cents per share, a 3.0% increase over the 2020 full year dividend. This level is at the top of their stated policy of 35% to 45% of adjusted net profit and reflects the Board's confidence in the future growth prospects, its underlying financial strength, cash generation and liquidity.

Other financial highlights include:

Strong revenue growth: +7.6%, +5.8% on a constant currency basis and +5.3% on an organic basis

o Driven by strong growth in Advanced Wound Care and Infusion Care and modest growth in Ostomy Care and CCC (comprising of good growth in the continence business moderated by stable performance in critical care products)

o Total revenue growth supported by the Cure Medical and Patient Care Medical acquisitions partially offset by impact of non-core skin care and incontinence divestments (incremental $10 million)

Adjusted EBIT performance improved: +3.3% and +5.4% on a constant currency basis

Constant currency adjusted EBIT margin of 18.4% in line with guidance. Profitability reflected continued investment, foreign exchange and inflationary headwinds.  Adjusted EBIT margin of 17.7% (2020: 18.5%). 

Reported operating profit was $204 million (2020: $211 million). Year on year change principally reflecting foreign exchange, continued investment, higher amortisation of acquired intangibles and acquisition and divestiture related costs. 

Improved earnings momentum: adjusted diluted EPS +8.3%. Reported diluted EPS +3.5%

Strengthened balance sheet: despite significant strategic investments, leverage was reduced to 1.9x net debt/adjusted EBITDA (2020: 2.0x). 

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