ConvaTec Group PLC (LSE:CTEC) shares topped the FTSE 100 leaderboard on Wednesday, rising 5% after the colostomy bag, insulin pump and incontinence care specialist posted results at the top end of guidance and expectations.
Organic revenue growth was up 7.7% over the past calendar year, with the company having guided to a range of 7.25-8.0%, which was the best rate of growth since its 2016 IPO.
Operating profit was up 23.7% to $325 million as margins of 21.2% were the highest since 2018.
Adjusted earnings per share increased 13.7% to 15.2 cents and a dividend of 6.416c per share was up 3% year on year.
On the outlook, guidance remained for 5-7% organic growth of revenues not including its InnovaMatrix wound-care product, with another year of double-digit growth in adjusted EPS.
Analysts at Stifel noted that the outlook was "as expected" ahead of new Medicare local coverage determination (LCD) rules in April that exclude coverage of InnovaMatrix.
Despite this, Convatec still expects margin expansion in FY25 to 22.0-22.5%, and to deliver double-digit EPS growth.
Analysts said was "in line or slightly ahead of expectations"
"Confirmation that the LCD issue is not blowing the business off course, with mid-term growth and margin expansion targets still on track, supports our investment thesis."