ConvaTec Group PLC on Thursday reported a profit fall for 2022, amid a small rise in revenue, as it lifted its dividend.
The Reading, England-based medical products and technologies company was promoted to the FTSE 100 back in September.
Revenue was up 1.7% to $2.07 billion in 2022, from $2.04 billion in 2021. ConvaTec noted ‘strong’ organic growth in Advanced Wound Care and Infusion Care, and ‘good’ organic growth in Ostomy Care and Continence & Critical Care.
Pretax profit, however, was down by 46% to $81.9 million from $151.3 million, as gross finance expenses jumped to $73.2 million from $4.3 million a year earlier. According to MarketScreener-cited consensus, pretax profit was expected to drop just 11% to $134 million.
Operating profit was up by 1.8% to $207 million from $204 million in 2021.
ConvaTec sells products and services in wound & skin care, ostomy care, continence and critical care and infusion devices.
Chief Executive Officer Karim Bitar said: ‘Convatec achieved good sales growth and, despite the challenging market backdrop, delivered positive adjusted operating margin expansion, ahead of guidance.’
ConvaTec declared a final dividend of 4.330 cents, bringing the total dividend to 6.047 cents, up 3.0% from 5.871 cents a year prior.
Looking ahead, the company said it is pleased with growth achieved in 2022, and is focused on ‘pivoting to sustainable and profitable growth’.
It expects organic revenue growth to be between 4.5% to 6% for 2023.
Shares were down 2.3% to £219.20 pence each on Thursday morning in London.
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