ConvaTec Group PLC (LSE:CTEC) reported solid financial results for the first half of 2025 on Tuesday, highlighting consistent revenue growth and improving profit margins. The upbeat figures pushed the company’s shares 0.7% higher in early trading.
For the six months ending June 30, the medical products and technology firm generated $1.18 billion in revenue, up 6.0% year-on-year, in line with market expectations. Organic revenue growth—excluding contributions from InnovaMatrix—was even stronger at 6.8%, with all business units delivering positive momentum.
Adjusted operating profit rose 13.1% to $252 million, while the company expanded its adjusted operating margin by 130 basis points to reach 21.3%. Adjusted earnings per share climbed 18.7% to 8.0 cents, slightly ahead of analysts’ projections.
The Infusion Care segment led the way, posting 14.1% organic growth. In response, ConvaTec upgraded its full-year outlook for this business unit, now expecting double-digit growth, up from the earlier forecast of high single digits.
Elsewhere, Continence Care revenues grew by 6.7%, Ostomy Care increased 4.7%, and Advanced Wound Care (excluding InnovaMatrix) saw a 4.3% rise.
“Convatec performed strongly in the first half and we are on track to deliver FY25 financial guidance,” said CEO Karim Bitar. “Under our FISBE strategy, we saw further broad-based organic revenue growth across all chronic care categories, further operating margin expansion and double-digit growth in adjusted EPS.”
The company reiterated its full-year 2025 guidance, targeting organic revenue growth between 5.5% and 7.0%, excluding InnovaMatrix. Revenue from InnovaMatrix is projected to reach at least $75 million this year.
Despite currency headwinds and anticipated tariff-related impacts shaving about 50 basis points from margins, ConvaTec is holding its adjusted operating margin forecast steady at 22.0% to 22.5%.
Looking ahead, the company remains confident in its medium-term goals, aiming for 5–7% organic revenue growth and adjusted operating margins in the mid-20s by 2026 or 2027.
The board declared an interim dividend of 1.877 cents per share, up 3.0% from last year.
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