Half Year 2024 ConvaTec Group PLC Earnings Call Transcript
Key Points
- ConvaTec Group PLC (CNVVY) reported strong broad-based organic revenue growth of 6.6% in the first half of 2024, which is in the top half of their guidance range.
- The company is on track to expand its operating profit margin, achieving a 40 basis point increase on a constant currency basis despite a 70-basis point FX headwind.
- Free cash flow to equity improved significantly, nearly $50 million stronger than the previous year, primarily due to better working capital management.
- ConvaTec Group PLC (CNVVY) confirmed its 2024 guidance and medium-term targets, expecting to deliver 5% to 7% organic revenue growth and at least a 21% operating profit margin in constant currency.
- The company is launching several new products across all four categories, which are expected to drive long-term growth and strengthen its competitive position.
- Earnings per share were flat as reported, with only a 4.5% increase on a constant currency basis, impacted by higher financing costs.
- The company faced a 220 basis point headwind from inflation in the first half, with expectations for inflation to remain a challenge in the second half.
- There is uncertainty surrounding the draft LCD proposal, which could impact growth in the wound care segment if implemented as drafted.
- The company experienced headwinds in certain regions, such as China and LATAM, due to political reforms and anti-bribery campaigns, affecting growth in those areas.
- FX headwinds have developed recently, with the pound moving about 5%, which could negatively impact the company's margins.
Good morning. How are you all doing? So quiet but I guess some smiles, which is good. Hi, [Menita]. Nice to see you. She is like why is he calling me out. Anyway, look, it's a real pleasure to be with you here this morning, and I'd like to welcome you to ConvaTec's first half 2024 results review. What we'll be doing today, both Johnny and I is reviewing both our financial performance and the strategic progress we've made.
We're very pleased with the financial performance and the strategic progress we've made and what I thought we could do now was to really spend some time to understand what are the five key overarching messages or thoughts we want to leave you with today.
The first one is that in the first half of the year, we went ahead and delivered strong broad-based organic revenue growth. In addition, we're very much on track to go ahead and expand our operating profit margin, and we're growing our earnings and our free cash flow. So clearly a strong financial result. When you then combine that from a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
