TIDMCTEC
RNS Number : 6928G
ConvaTec Group PLC
17 November 2022
17 November 2022
Convatec Group Plc
Capital Markets Event
Convatec will host a Capital Markets Event this afternoon, 17
November 2022.
Convatec's Executive Leadership Team, including Chief Executive
Officer, Karim Bitar, and Chief Financial Officer, Jonny Mason,
will present the next phase of Convatec's FISBE strategy and the
Group's future growth opportunities.
The team will provide insight into how the Group intends to
deliver sustainable organic revenue growth of 4-6% per annum and
adjusted operating profit margin expansion into the mid-20s over
the medium-term. In delivering these targets, the Group also
expects to achieve double-digit EPS and Free Cash Flow CAGR.
The presentations will provide detail into:
- The attractive chronic care markets the Group operates in and
Convatec's leading positions across key geographies
- The next phase of the Group's FISBE strategy and how the five pillars will evolve to:
-- Focus on strengthening customer loyalty in key markets and categories
-- Innovate to increase vitality and velocity of trusted medical solutions
-- Simplify to improve productivity across our organisation
-- Build and embed mission-critical capabilities and winning culture
-- Execute with excellence while integrating ESG
- The growth strategies and opportunities for each of the
Group's categories - Advanced Wound Care, Ostomy Care, Infusion
Care and Continence Care - and how each will improve the customer
experience, enhance its portfolio and drive productivity
- How the Group intends to improve its operating profit margin by:
-- strengthening mix across and within categories
-- driving simplification and productivity across commercial,
Global Quality & Operations and G&A
- The attractive financial qualities of the Group, its cash
generative nature, and the Group's capital allocation framework
On 10 November 2022 the Group published its 10-month trading
statement which highlighted continued good momentum in the
business. The Group upgraded its 2022 full-year revenue guidance to
5.4-5.8% organic revenue growth, and confirmed it was on track to
deliver an adjusted operating profit margin in 2022 of at least
19%.
Consistent with the Group's medium-term targets, Convatec
expects 4-6% organic revenue growth for 2023 to be achievable and
for there to be further operating profit margin progression,
assuming a modest reduction in the rate of inflation in 2023.
The Group is also pleased to announce that on 15 November it
refinanced its bank facilities with $1.2 billion committed for 5
years at slightly improved margins over base rates. The Group's
$500m 2029 senior unsecured notes remain in place. The Group
expects Net Debt at year-end to be c.2.1x EBITDA and adjusted
finance expense to be c.$55m for 2022. Given the increases in the
underlying market base rates, the current expectation is that all
in debt costs in 2023 will be c.150bps higher.
The Group will not be disclosing any new material information at
today's event.
Capital Markets Event details
The Capital Markets Event for institutional investors and
sell-side analysts will start today at 14:00. Places are limited so
if you would like to attend in-person please contact
IR@Convatec.com
There will also be a live webcast for attendees who wish to join
the event virtually, available here .
A copy of the presentation will be available on Convatec's
website after the event with the on-demand webcast available on
Friday.
Enquiries
Analysts and Investors
Kate Postans, VP Investor Relations, Convatec +44 (0)782 644
7807
ir@convatec.com
Media
Buchanan: Charles Ryland / Chris Lane +44 (0)207 466 5000
About Convatec
Pioneering trusted medical solutions to improve the lives we
touch : Convatec is a FTSE 100 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 and critical care, and infusion care. Group
revenues in 2021 were over $2 billion. With around 10,000
colleagues, we provide our products and services in over 100
countries, united by a promise to be forever caring. Our products
provide a range of benefits, from infection prevention and
protection of at-risk skin, to improved patient outcomes and
reduced care costs. To learn more about Convatec, please visit
http://www.convatecgroup.com
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).
[1] Bold denotes changes from FISBE 1.0
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