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ConvaTec first-quarter trading in line as supply problems persist
ConvaTec said first-quarter trading was in line with expectations reduced by supply problems that triggered a profit warning in 2017.
The maker of catheters, colostomy bags and other medical products said organic revenue, excluding mergers and acquisitions, in the three months to the end of March rose 3.7% to $458.2m (£336m) and 7.5% on a constant currency basis.
Organic ostomy care revenue fell 2.5% to $128m and wound care revenue rose 2.2%. ConvaTec said those figures were affected by continuing supply constraints.
ConvaTec said in February that first-half results would be hit by supply problems that emerged in October when the company warned on profits. The company lost customer orders as it moved wound care and ostomy production from the US to the Dominican Republic and new product revenue was less than expected.
Paul Moraviec, ConvaTec's chief executive, said: "We have delivered a solid start to the year, underlining 2018 as a year of stabilisation, and our performance in the first quarter clearly demonstrates the benefits of our diversified portfolio.
"We have made good progress throughout the business and whilst our Q1 results reflect the continuing impact of the supply constraints and associated lost orders which arose last year in our advanced wound and ostomy care franchises, as expected, we are encouraged by the good underlying demand for our key brands."
ConvaTec said it expected wound care revenue to recover during 2018. It stuck by guidance for organic revenue to rise by 2.5%-3% in 2018.