Convatec Group Plc · LSE:CTEC
Convatec — FY2024 Earnings Presentation
8 slides from Convatec's earnings presentation, November 2024
Slide 1: Upgrading FY24 sales & margin guidance
Nov / Dec 2024 Upgrading FY24 sales & margin guidance On-track for double-digit EPS growth in 2024 and 2025 Trading update for the ten months ending 31 October 2024
Slide 2: Strong, broad-based performance
Strong, broad-based performance Broad-based growth, all categories faster than H1 Organic revenue growth1 7.7% H1 24: 6.6% 6.6% organic growth excluding InnovaMatrix® MSD growth excluding InnovaMatrix® Advanced Wound Care HSD InnovaMatrix® growth c.40%; diversifying indications and channels Double d
Slide 3: Strategic progress
Strategic progress Successfully launching new product Driving simplification and productivity Global Quality & Operations Commercial G&A 3
Slide 4: On-track to deliver another year of strong growth & continued margin progression
On-track to deliver another year of strong growth & continued margin progression Organic sales growth Adjusted operating profit margin* 22.5% 7.25% - 8.0% ≥21.5%* 21.5% ~70 bps FX headwind 7.2% 20.5% 5.6% 20.2% 5.3% 19.5% 19.4% 19.5% 4.2% 18.5% 18.5% 2.3% 17.7% 17.5% 2019 2020 2021 2022 2023 2024E 1
Slide 5: Upgrading FY 2024 guidance
Upgrading FY 2024 sales & margin guidance Growth Commentary Previously upper half of 5.0% – 7.0% Organic sales 7.25% to 8.0% Driven by broad-based growth across all categories ≥21.5% @ constant currency; previously ≥21.0% Adj. operating margin +130 bps in CC H2 margin significantly above H1 driven b
Slide 6: Update on InnovaMatrix
Update on InnovaMatrix ® Announcement could be in 2024 or 2025 LCDs Uncertainty Delay, implementation period, modifications – remains uncertain Organic sales growth Increased Group organic growth by 1.1% points YTD c.40% FY24 YTD Winning new customers Proportion of IMX sales Proportion has increased
Slide 7: Update on US catheter code changes
Update on US catheter code changes - Opportunity not threat Market leader Vertically-integrated leader in the US: #1 in Service, #2 in Manufacturing Hydrophilic catheters >60% of Convatec US sales; market penetration c.40% Hydrophilic growing Expect increasing hydrophilic penetration in market and C
Slide 8: 2025 outlook
2025 outlook Group sales excluding Portfolio excluding InnovaMatrix® represents c.96% of sales 5.0 - 7.0% InnovaMatrix® Broadening and strengthening product portfolio Total Group irrespective of LCD outcome Group FY25 adjusted Growth YoY Ongoing productivity initiatives: price, mix, cost efficiency,