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FTSE 100 medical products group ConvaTec said it had a “good start to the year” as it reported revenues up 1.8 per cent in constant currencies in its quarterly trading update.
The maker of colostomy bags and bandages said revenues had grown to $403.1m for the first three months of 2017, expected to be its weakest quarter, up 1.2 per cent after stripping out the effects of M&A.
It reported “continued progress” in its ostomy division and “continued underlying momentum” from its continence and critical care division, but said its advanced wound care division had been hit by the timing of orders.
In its full year results in March, ConvaTec beat expectations for adjusted ebitda after the group said its efforts to boost margins had progressed faster than previously anticipated.
The Berkshire-based group joined the stock exchange in October in the year’s largest initial public offering, raising nearly £1.5bn after a stint in private equity ownership.
Nordic Capital and Avista, the two private equity groups behind the listing, sold down a substantial chunk of their 60 per cent stake at the end of March, four weeks after the group’s maiden results, with Novo AS, the venture capital arm of Danish healthcare group Novo Nordisk, taking a 20 per cent stake.
Paul Moraviec, ConvaTec chief executive, said:
We continue to deliver on the strategy set out at the time of our IPO. We had a good start to the year, reflecting consistent execution across all franchises. In particular we saw continued progress in Ostomy, and continuing underlying momentum from Continence & Critical Care, despite the impact of the planned product rationalisation. Growth in Advanced Wound Care was impacted by the timing of orders in the EMEA region.