ConvaTec Group PLC (LON:CTEC) has implemented its turnaround plan at the expense of earnings for the year to 31 December.
Cost increases and impairments nearly wiped out its profit before tax, down 91% to US$19mln.
READ: ConvaTec downgraded to ‘underweight’ by JP Morgan to reflect turnaround risk
Revenue, instead, was broadly flat at US$1.8bn, while cash in the bank was 18% higher at US$385mln. Dividend flat at US$5.7 cents per share.
The medical products manufacturer has embarked on a transformational strategy to drive greater innovation, customer focus and efficiency costing around US$210 between 2019 and 2021.
While “there is much more to do as we pivot to sustainable and profitable growth”, the FTSE 250-listed company expects revenue to grow by up to 3.5% in 2020.
Shares dropped 5% to 196.8p on Friday at the opening bell.