REG - Convatec Group PLC - AGM trading update for four months ended 30 April

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RNS Number : 1673F  Convatec Group PLC  21 May 2026

AGM trading update for the four months ended 30 April 2026

21 May 2026

 

Good start to the year, in line with expectations, and on track to deliver
2026 guidance

 

Key points

 

•    YTD organic revenue growth(1) ex-InnovaMatrix of 4.8%(2)
(inc-InnovaMatrix 1.6%; reported growth 5.5%(3))

 

•    Broad-based growth across categories with product launches
performing well and gaining share

 

•   On track to deliver 5-7% organic revenue growth(1) ex-InnovaMatrix in
FY26. As previously guided, growth is expected to increase in H2 given
customer order phasing and as product launches build

 

Broad-based category organic revenue growth

 

•    Advanced Wound Care (AWC) was mid-single digit ex-InnovaMatrix.
Growth led by LATAM and APAC, and including solid growth in Europe, with North
America up slightly versus a strong growth comparative. ConvaFoam continued to
gain share

 

•      As previously guided, InnovaMatrix will represent a c.3% Group
revenue headwind in H1 26 and c.2% headwind in FY26. We continue to estimate
around $20m FY26 revenue

 

•    Ostomy Care (OC) was mid-single digit. Growth led by Europe and
LATAM, with solid new patient volumes in our US Home Services Group (HSG). Our
new soft convex product, Esteem Body, continued to gain share

 

•    Continence Care (CC) was mid-single digit. Growth driven by
increased new patient volumes in HSG, and further strong growth outside the
US, both supported by excellent customer service. Our compact catheter,
GentleCath Air for Women, continued to gain share

 

•   Infusion Care (IC) was mid-to-high-single digit. Growth was led by
newer customers and therapies, particularly Neria Guard for AbbVie's treatment
of Parkinson's. Overall, IC growth is expected to accelerate in H2 given
customer order phasing

 

Unchanged FY26 guidance and medium-term financial targets

 

•    FY26 Group organic revenue growth(1) ex-InnovaMatrix 5-7%

 

•    FY26 adjusted operating profit margin of ≥23.0%

 

•    FY26 double-digit growth in adjusted EPS

 

•    Medium-term targets: 6-8% organic revenue growth from 2027,
double-digit adjusted EPS growth and reaching mid-20s% adjusted operating
margin by 2027

 1  Organic revenue growth is calculated by applying the applicable prior
period average exchange rates to the Group's actual performance in the
respective period and excluding acquired and disposed/discontinued businesses.

 2  In the four months to 30 April 2026, non-InnovaMatrix revenue represented
over 99% of Group revenues.

 3  US dollar depreciation YoY drove a significant FX revenue translation
benefit in the period.

 

Jonny Mason, Chief Executive Officer, commented:

 

"Convatec delivered a good start to 2026 and we are on track to deliver FY26
guidance. We saw further broad-based growth across our chronic care
categories, as new product launches continued to gain share.

 

"Our Accelerate strategy, announced last month, represents the next exciting
chapter of Convatec's growth story. Accelerate will see further improvements
in execution to deliver innovative chronic care solutions to more people
around the world. This will underpin sustainable 6-8% revenue growth from 2027
and double-digit adjusted EPS CAGR."

 

Operational and strategic progress

 

•       We are investing in significant growth capex across all
categories as our innovation pipeline accelerates and we scale up
manufacturing:

 

•      In AWC, five new products launching (see below)

•     In OC, further driving the launch of our one-piece soft convex
product Esteem Body. Flexi-Seal Air, our updated fecal management system, is
due to launch in H2 26, followed by our two-piece soft convex product Natura
Body in 2027

•     In CC, further driving our compact catheter GentleCath Air for
Women. In H2 26 GentleCath Air Pocket & Set and Cure Aqua are both due to
launch

•     In IC, adding significant capacity to meet demand across our
Inset Guard and Neria Guard portfolio, underpinned by long-term contracts

•    We have also signed our first patch pump supply agreement; this
enables us to support a wider range of diabetes patients for whom patch pumps
may be a preferred option, alongside our leading durable pump infusion care
set offering. This further demonstrates our product capability and ability to
work across the full range of pump solutions

 

•       We presented our pipeline of major new AWC products and strong
clinical evidence at key industry events including the European Wound
Management Association
(https://www.convatecgroup.com/media/press-releases/2026/convatecs-advanced-wound-care-innovation-leads-the-industry-at-european-wound-management-association-ewma-2026/)
in May. This included presentations on ConvaFoam and ConvaNiox and celebrated
30 years of our leading Hydrofiber technology platform Aquacel. We also
showcased the initial releases of ConvaFiber, and ConvaVAC

 

 

Unchanged other FY26 guidance

 

•       FY26 category revenue growth guidance:

•      AWC: mid-single digit ex-InnovaMatrix

•      Continue to estimate InnovaMatrix revenue of around $20m,
representing a headwind of c.2% to Group revenue in FY26 and c.3% in H1 26,
although market uncertainty is high

•      OC: mid-single digit

•      CC: mid-single digit

•      IC: high single-digit

•       Adjusted net finance expense of $70-75m

•       Adjusted book tax rate of c.24%, with cash tax rate again
lower

•       Total capex of $200-$230m. Within this, growth capex of
$135-165m

•       Opex R&D spend of $100-$110m; cash costs of adjusting
items of <$20m

•       Working capital growth below revenue growth and 100% equity
cash conversion

 

 

 

FY26 foreign exchange and macroeconomic environment

 

•      If current spot rates were to hold for the remainder of FY26, the
estimated tailwind to FY26 revenue growth would be c.160 bps (H1 26:
c.280bps], while the estimated headwind to adjusted operating margin would be
c.40 bps, all of which is in H1 26

•      We continue to monitor the situation in the Middle East. Our FY26
guidance assumes no material deterioration in the macroeconomic environment

 

Conference call details

 

Jonny Mason, Chief Executive Officer, and Fiona Ryder, Chief Financial
Officer, will host a conference call for analysts and investors to discuss the
trading update at 8:30am (UK time) on 21 May 2026. Please register for the
webcast using this link (https://edge.media-server.com/mmc/p/vz7bfozs/) .
Dial-in details are shown below:

 

•      United Kingdom (Local): + +44 20 3481 4247

•      United Kingdom (Toll-Free): + 44 800 260 6466

•      Access Code: 1644 558

 

 

 

Contacts

 

Analysts &            David Phillips
 
   +44 (0) 7909 324994

Investors                Vice President, Head of Investor Relations
                         ir@convatec.com
(mailto:ir@convatec.com)

 

  Sheebani Chothani

  Investor Relations Director

 

Media                     FGS
Global
                Convatec-UK@fgsglobal.com
(mailto:Convatec-UK@fgsglobal.com)

 

 

About Convatec

Pioneering trusted medical solutions to improve the lives we touch: Convatec
is a global medical products and technologies company, focused on solutions
for the management of chronic conditions, with leading positions in Advanced
Wound Care, Ostomy Care, Continence Care, and Infusion Care. With over 10,000
colleagues, we provide products and services in around 90 countries, united by
a promise to be forever caring. Our solutions provide a range of benefits,
from infection prevention, treatment for hard to heal wounds, at-risk skin and
ulcerated tissue to supporting debilitating conditions, improved patient
outcomes and reduced care costs. Convatec's revenues in 2025 were over $2
billion. The company is a constituent of the FTSE 100 Index (LSE:CTEC). To
learn more please visit http://www.convatecgroup.com
(http://www.convatecgroup.com/) .

 

All product and programme names are trademarks of Convatec and its
subsidiaries, including: InnovaMatrix(®), ConvaFoam™, ConvaNiox™,
Aquacel(®), Aquacel™ ConvaFiber™, ConvaVAC™, Esteem Body™, Esenta™,
Natura(®) Body, Flexi-Seal™ Air, Cure™ Aqua, GentleCath Air™ for Women,
GentleCath Air™ for Men, GentleCath Air™ Pocket, GentleCath Air™ Set,
Neria™ Guard, Inset™ Guard and me+ programme.

 

Forward Looking Statements

This document includes certain forward-looking statements with respect to the
operations, performance and financial condition of the Group. Forward-looking
statements are generally identified by the use of terms such as "believes",
"estimates", "aims", "anticipates", "expects", "intends", "plans", "predicts",
"may", "will", "could", "targets", continues", or their negatives or other
similar expressions. These forward-looking statements include all matters that
are not historical facts.

 

Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by the Company, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies that are difficult to predict and many of
which are outside the Group's control. As such, no assurance can be given that
such future results, including guidance provided by the Group, will be
achieved. Forward-looking statements are not guarantees of future performance
and such uncertainties and contingencies, including the factors set out in the
"Principal Risks" section of the Strategic Report in our Annual Report and
Accounts, could cause the actual results of operations, financial condition
and liquidity, and the development of the industry in which the Group
operates, to differ materially from the position expressed or implied in the
forward-looking statements set out in this document. Past performance of the
Group cannot be relied on as a guide to future performance.

 

Forward-looking statements are based only on knowledge and information
available to the Group at the date of preparation of this document and speak
only as at the date of this document. The Group and its directors, officers,
employees, agents, affiliates and advisers expressly disclaim any obligations
to update any forward-looking statements (except to the extent required by
applicable law or regulation). LEI number - 213800LS272L4FIDOH92

 

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