Resultados anuales
Resultados anuales correspondientes a los doce meses finalizados el 31 de diciembre de 2023
Accelerating revenue growth, strong profit and cash generation
Raising medium term revenue guidance
Acelerando el crecimiento orgánico de los ingresos del 7.2%1, broad-based across all four chronic care categories
· AWC2: 9.5%1 driven by strong performance in antimicrobials and growing position in wound biologics segment3
· OC2: 4.2%1 driven by 6% growth in Convatec ostomy products with strength in Global Emerging Markets
· CC2: 6.5%1 excellent customer service and higher reimbursement pricing in the US
· IC2: 8.7%1 continued strong demand for infusion sets with multiple product launches in 2023
Reported revenue was $2,142m (2022: $2,073m), up 3.4% and 3.2% on a constant currency4 basis, lower than organic because of the strategic exit of the non-core hospital care activities and related industrial sales in 2022
Further operating margin expansion
· Strong adjusted gross margin expansion of 150bps to 61.6% principally driven by improved mix and stronger pricing coupled with further productivity, partially offset by inflation and FX
· Adjusted operating profit margin of 20.2% (20.8% on a constant currency basis). Expansion of 70 bps (130 bps on a constant currency basis) with further progress in simplification and productivity of operating costs
· Adjusted operating profit up 7.0% to $432m. Reported operating profit increased to $263m (2022: $207m)
Delivering EPS and cashflow growth
· Adjusted diluted EPS increased 6.1% to 13.4 cents. Reported diluted EPS increased 106% to 6.3 cents
· Flujo de caja libre a capital5 rose to $228m (2022: $105m) resulting in equity cash conversion5 de 83%
Strong new product pipeline - further strengthening competitive position
· Growing InnovaMatrix® and ConvaFoamTM in the US - positive clinician feedback
· Acquired innovative anti-infective nitric oxide technology platform
· Launching new compact hydrophilic catheter, GentleCathTM Air for Women, in Europe
· Ampliación de clientes y aplicaciones en IC: asociaciones con Beta Bionics (bomba de insulina iLet en EE. UU.), AbbVie y Mitsubishi Tanabe (Parkinson), Medtronic (780G en EE. UU.) y Tandem (Mobi en EE. UU.)
Confidence in outlook - improving earnings and cash generation
· In 2024: we expect 5-7% organic revenue growth, adjusted operating profit margin of at least 21.0% on a constant currency basis and double-digit growth in EPS and free cash flow to equity
· Medium-term: Based on the strength of the new product pipeline and improvements in commercial execution we have raised our organic revenue growth expectation to 5-7% p.a. (previously 4-6%), we also expect to reach a mid 20's% adjusted operating profit margin by 2026 or 2027 and to deliver double-digit compound annual growth in EPS and free cash flow to equity
Karim Bitar, director ejecutivo, comentó:
"Convatec's revenue growth accelerated and was broad-based across all our categories. We further expanded our operating margin and increased earnings per share and free cash flow to equity.
"We remain focused on executing our FISBE 2.0 strategy. Given our innovative new product pipeline and strengthened competitive position, Convatec has pivoted to a higher level of organic sales growth. We are on track to deliver our medium-term margin guidance leading to double-digit compound growth in EPS and free cash flow to equity."
Principales aspectos financieros destacados
reportado | Equilibrado | ||||||
AF 2023 | AF 2022 | Cambios | AF 2023 | AF 2022 | Cambios | Cambio CC | |
Ingresos | $ 2,142m | $ 2,073m | 3.4% | $ 2,142m | $ 2,073m | 3.4% | 3.2% |
Beneficio operativo | $ 263m | $ 207m | 26.7% | $ 432m | $ 404m | 7.0% | 10.2% |
Margen de beneficio operativo | 12.3% | 10.0% | 2.3% ptos | 20.2% | 19.5% | 0.7% ptos | 1.3% ptos |
EPS diluido | 6.3 centavos | 3.1 centavos | 105.9% | 13.4 centavos | 12.6 centavos | 6.1% | |
Dividendo por acción | 6.229 | 6.047 | 3.0% |
· Red técnica4 increased by $61m to $1,129m. Net debt to EBITDA ratio was maintained at 2.1x after $179m of M&A investment and $129m in capex investment to drive future growth, coupled with $111m dividend payment
· The Board recommends a final dividend of 4.460 cents resulting in full year dividend of 6.229 cents, an increase of 3%
Percentage movements throughout this release are calculated on actual unrounded numbers.
(1) Organic growth presents period over period growth at constant currency, adjusted for: Triad Life Sciences acquisition (Mar'22) the exit of hospital care and related industrial sales and the reconfigured business in Russia (May'22) and the acquisition of A Better Choice Medical (Jul'23)
(2) AWC is Advanced Wound Care; OC is Ostomy Care; CC is Continence Care and IC is Infusion Care
(3) Wound Biologics segment, as defined by SmartTRAK. This segment includes skin substitutes, active collagen dressings and topical drug delivery. Triad Life Sciences was renamed Advanced Tissue Technologies (ATT) following its acquisition in mid-March 2022. ATT began to contribute to the organic growth rate following the anniversary of the deal completion.
(4) El crecimiento a tipo de cambio constante se calcula aplicando los tipos de cambio medios aplicables del período anterior al rendimiento real del Grupo en el período respectivo.
(5) Certain financial measures in this document, including adjusted results above, are not prepared in accordance with International Financial Reporting Standards (IFRS). All adjusted measures are reconciled to the most directly comparable measure prepared in accordance with IFRS in the Non-IFRS Financial Information below (pages 21 to 26). Equity cash conversion is a new non-IFRS financial measure introduced in the year and is calculated as Free cash to equity/Adjusted net profit.
Contacto
Analistas e Inversores | Kate Postans, Vicepresidenta de Relaciones con Inversores y Comunicaciones Corporativas Sheebani Chothani, Gerente de Relaciones con Inversores y Comunicaciones Corporativas | +44 (0) 7826 447807
|
Medios | Buchanan: Charles Ryland/Chris Lane | 44 0 207 466 5000 |
Presentación de inversores y analistas
The results presentation will be held in person at The Auditorium, Chartered Accountants' Hall, One Moorgate Place, London EC2R 6EA at 9.00am (UK time) today. The event will be simultaneously webcast and the link can be found esta página.
El texto completo de este anuncio y la presentación para la reunión de analistas e inversores se pueden encontrar en la página "Resultados, informes y presentaciones" del sitio web de Convatec. www.convatecgroup.com/investors/informes.
próximos eventos
Trading update for the 4 months ending 30 April 2024: | 16 de mayo de 2024 |
Interim results: | 30 Julio 2024 |
Calendario de dividendos
Ex Dividend | 25 de abril de 2024 |
Grabar fecha | 26 de abril de 2024 |
AGM | 16 de mayo de 2024 |
Fecha de pago | 23 de mayo de 2024 |
Acerca de Convatec
Pioneros en soluciones médicas confiables para mejorar las vidas que tocamos: Convatec is a global medical products and technologies company, focused on solutions for the management of chronic conditions, with leading positions in advanced wound care, ostomy care, continence care and infusion care. With around 10,000 colleagues, we provide our products and services in almost 100 countries, united by a promise to be forever caring. Our solutions provide a range of benefits, from infection prevention and protection of at-risk skin, to improved patient outcomes and reduced care costs. Convatec's revenues in 2023 were over $2 billion. The company is a constituent of the FTSE 100 Index (LSE:CTEC). To learn more about Convatec, please visit http://www.convatecgroup.com
Declaraciones prospectivas
This document includes certain forward-looking statements with respect to the operations, performance and financial condition of the Group. Forward-looking statements are generally identified by the use of terms such as "believes", "estimates", "aims", "anticipates", "expects", "intends", "plans", "predicts", "may", "will", "could", "targets", continues", or their negatives or other similar expressions. These forward-looking statements include all matters that are not historical facts.
Las declaraciones prospectivas se basan necesariamente en una serie de estimaciones y suposiciones que, si bien la Compañía las considera razonables, están inherentemente sujetas a importantes incertidumbres y contingencias comerciales, económicas y competitivas que son difíciles de predecir y muchas de las cuales están fuera del control del Grupo. . Como tal, no se puede garantizar que dichos resultados futuros, incluida la orientación proporcionada por el Grupo, se lograrán. Las declaraciones prospectivas no son garantías de desempeño futuro y dichas incertidumbres y contingencias, incluidos los factores establecidos en la sección "Principales riesgos" del Informe estratégico en nuestro Informe y cuentas anuales, podrían causar que los resultados reales de las operaciones, la situación financiera y liquidez y el desarrollo de la industria en la que opera el Grupo, difieran materialmente de la posición expresa o implícita en las declaraciones prospectivas establecidas en este documento. No se puede confiar en el rendimiento pasado del Grupo como guía para el rendimiento futuro.
Las declaraciones prospectivas se basan únicamente en el conocimiento y la información disponible para el Grupo a la fecha de preparación de este documento y se refieren únicamente a la fecha de este documento. El Grupo y sus directores, funcionarios, empleados, agentes, afiliados y asesores renuncian expresamente a cualquier obligación de actualizar cualquier declaración prospectiva (excepto en la medida requerida por la ley o regulación aplicable).
Revisión del director ejecutivo
Convatec continued to successfully execute its FISBE 2.0 strategy, strengthening its competitive position and delivering on our forever caring promise for patients and customers. The various strategic initiatives actioned during the period enhanced the quality of the business and improved our financial performance and prospects.
Atractivas perspectivas de crecimiento
Convatec operates in four categories of the structurally-growing, attractive chronic care markets. These have a combined market size of $14 billion p.a. and market growth rates of between 4-8% p.a. We are among the leaders in the categories in which we operate and expect to grow revenue in line with or faster than each market.
We serve a diverse set of chronic care markets, producing high-volume, high-quality consumables which our customers rely on, resulting in attractive recurring revenue. This diversity provides resilience and synergies, notably in areas such as biomaterial sciences, product and clinical development, automated manufacturing and shared supply chain capabilities. Consistent with our FISBE 2.0 strategy we have been investing in our innovation pipeline, building mission-critical capabilities, expanding capacity and increasing our resilience.
A chronic care focused business delivering sustainable and profitable growth
We continued to execute our FISBE strategy, strengthening our competitive position and our ability to consistently deliver sustainable and profitable growth. After a period of catch-up investment, equity cash conversion5 has now normalised and this strong cash generation will support continued organic and inorganic investment for growth, consistent with our capital allocation priorities.
Over the course of 2023, we remained focused on delivering for our customers. Our continued focus on innovation resulted in six new products launching and the R&D function was strengthened by an increased emphasis on clinical and regulatory. We enhanced both our innovation pipeline and service proposition using cash generated to acquire three businesses.
We further simplified our organisation, closed a small factory in the Netherlands and opened a new Global Business Services centre in Kuala Lumpur, which in combination with Lisbon and Bogota, will provide 24x7 support. Our Centres of Excellence continued to positively impact the business, with better pricing and greater salesforce productivity as the Customer Relationship Management platform roll-out was completed for our top 12 markets.
Further details on the progress made under each pillar can be found on pages 6 and 7.
We achieved a strong financial performance
Group reported revenue of $2,142m rose 3.4% (2022: $2,073m), and 3.2% on a constant currency basis, lower than organic growth because of the strategic exit of the non-core hospital care activities and related industrial sales in 2022. Organic revenue growth was 7.2%, in line with our latest guidance.
Adjusted operating profit rose 7.0% (10.2% on a constant currency basis). Adjusted operating profit margin was 20.2% (2022: 19.5%) with mix/price, operations productivity and G&A spend reduction more than offsetting significant inflation, continued investment in R&D and commercial capabilities, as well as a 60 bps foreign exchange headwind. Over a two-year period Convatec has delivered 250bps of improvement in its adjusted operating profit margin.
In 2022, the Group incurred costs relating to the exit of the hospital care business. As a result, and also benefitting from a higher gross margin, the reported operating profit increased 26.7% over the previous year.
Adjusted diluted EPS increased by 6.1% primarily due to improvements in adjusted operating profit and a reduction in non-operating expenses more than offsetting an increase in finance costs from higher market interest rates.
Reported diluted EPS increased by 105.9% as the prior year was impacted by higher adjusting items mostly relating to the exit of hospital care and the Triad acquisition.
Capital expenditure during 2023 was $129m (2022: $144m) as we continued to invest for future growth, expanding our manufacturing lines and developing new digital technologies to deliver enhanced customer experiences .
Free cash flow to equity increased to $228m (2022: $105m). Equity cash conversion (free cash flow to equity as a proportion of adjusted net profit) was 83% (2022: 41.0%) primarily driven by a significantly lower working capital outflow, the increase in EBITDA and lower capital expenditure.
Net debt increased by $61m to $1,129m, following three acquisitions and the payment of the first year earnout for Triad Life Sciences acquisition, together totaling $179m. Our net debt to EBITDA ratio remained unchanged at 2.1x. We continue to target leverage of 2x over time but are comfortable temporarily going higher for appropriate M&A opportunities.
Ingresos
Revenue increased by 3.4% on a reported basis, and by 3.2% on a constant currency basis. Adjusting for M&A and business restructuring1 Group revenue rose 7.2% on an organic basis. This growth was broad-based with strong growth in Advanced Wound Care, Infusion Care and Continence Care and good growth in Ostomy Care.
2023 $m | 2022 $m | Crecimiento / (disminución) informado | Impacto cambiario | Moneda constante2 crecimiento / (disminución) | Organic4 crecimiento | |
Ingresos por categoría | ||||||
Cuidado avanzado de heridas | 695.3 | 620.7 | 12.0% | 0.4% | 11.6% | 9.5% |
Cuidado de la ostomía | 608.3 | 583.0 | 4.3% | 0.1% | 4.2% | 4.2% |
Cuidado de la continencia | 457.2 | 425.4 | 7.5% | 0.1% | 7.4% | 6.5% |
Cuidado de la infusión | 370.9 | 341.1 | 8.7% | 0.0% | 8.7% | 8.7% |
Ingresos excluyendo salida de atención hospitalaria | 2,131.7 | 1,970.2 | 8.2% | 0.2% | 8.0% | 7.2% |
Salida de atención hospitalaria y ventas industriales relacionadas5 | 10.7 | 102.3 | (89.5)% | n / a | n / a | n / a |
Total | 2,142.4 | 2,072.5 | 3.4% | 0.2% | 3.2% | 7.2% |
(5) Relates to residual stock being sold during 2023
Cuidado avanzado de heridas
Revenue of $695 million increased 12.0% on a reported basis or 11.6% on a constant currency basis. On an organic basis revenue rose by 9.5%. This performance was enhanced by InnovaMatrix®, which contributed to organic growth from April.
The business achieved strong sales growth in North America supported by the growing position in the wound biologics segment3, broad-based double-digit growth in GEM despite some market softness in China in H2 and good growth in Europe. Continued leadership in the antimicrobial segment enhanced the overall performance of the division.
We continued to make strategic progress in AWC during 2023, strengthening our position in the US with the launch of ConvaFoamTM. Reaction from healthcare professionals has been encouraging with a number of ongoing evaluations as well as conversions from competitor product to ConvaFoam. InnovaMatrix® continued to achieve strong momentum in the large and rapidly growing wound biologics segment3. Feedback from clinicians has been positive.
En 2024 nos centraremos en:
· Rolling-out recent launches to new markets:
o Launching ConvaFoamTM en Europa
o Launching new iterations of InnovaMatrix® en los EE.UU.
· Continuing to develop the future 2025+ AWC pipeline with:
o a new nitric oxide dressing, a new enhanced hydrofibre dressing and ConvaVacTM
· Improving commercial performance:
o Further leverage Salesforce Effectiveness Centre of Excellence (CoE) in our focus markets
o Further expand ATT salesforce and build synergies with existing AWC sales team
Cuidado de la ostomía
Revenue of $608 million was up 4.3% on a reported basis and increased 4.2% on constant currency and organic bases. The Ostomy Care category comprises Convatec ostomy products, our Flexi-SealTM sales (fecal management system product) and non-Convatec ostomy products.
We are making positive progress with the turnaround in Ostomy Care, particularly with Convatec ostomy products, where revenue grew 6.3%. The business achieved double-digit growth in the Global Emerging Markets as it continued to win share. In North America 180 Medical grew ostomy sales well from a small base and New Patient Starts remained stable. There was a good performance in Europe although, as expected, further planned declines in non-Convatec product sales via AmcareTM UK partially offset this positive performance. The launch of the ESENTATM brand of accessories continued to progress well. As anticipated, Flexi-SealTM finished close to flat for the full year, having declined in the first half when it was lapping tough comparatives.
Strategic progress continued in the ostomy business, as the team prepared for the launch of our new one-piece convex pouching system, Esteem BodyTM with Leak DefenseTM in the US and Europe. Leak DefenseTM refers to the exclusive combination of Convatec's gold-standard adhesives (Durahesive® and Modified Stomahesive®) coupled with the comprehensive, soft convexity range, which together are designed to adapt to the body for a secure seal that can help prevent leaks and achieve the desired wear time.
En 2024 nos centraremos en:
· Continuing to progress our innovation pipeline:
o Launching our new Estima CuerpoTM in the US and certain European markets
o Developing a new Flexi-SealTM Air product
o Developing a 2-piece Body portfolio for the future
· Further improving commercial execution across the continuum of care:
o Bringing all the products we sell in the fast-growth accessories market under the ESENTATM marca
o Improving new patient starts in the US, with continued collaboration with Home Service Group ('HSG')
o Enhancing engagement with patients, through Me+, and the interactions with healthcare professionals
Cuidado de la continencia
Revenue of $457 million rose 7.5% on a reported basis and 7.4% on a constant currency, with modest incremental contribution from the two acquisitions. On an organic basis revenue rose 6.5%.
A strong operating performance was supported by higher reimbursement pricing in the US during the year and increasing patient adoption of Convatec products (Cure Medical and GentleCathTM). The quality and breadth of the Convatec product portfolio have resulted in it growing as a proportion of overall sales, which is beneficial to the gross margin. En the US home service market (direct to consumer) we continued to gain share by providing world-class customer service.
We further strengthened the Home Service Group by acquiring A Better Choice Medical Supply LLC (Michigan) and All American Medical Supply Corp (New York), two North American continence care service businesses.
We made further progress building international sales and management teams, which has resulted in incremental sales in GEM and Europe which, although modest, were supportive to overall growth. We launched our new and improved GentleCathTM Air for Women 2.0 in Q4 2023 in France which has been well received by healthcare professionals and customers.
En 2024 nos centraremos en:
· Rolling-out launches to new markets:
o Launching GC Air for Women in additional European markets and the US
o Introducing Cure products into European and GEM markets
· Further improving commercial execution globally:
o Integrating recent HSG acquisitions in the US
o Continuing to build out and strengthen commercial teams in Europe
o Leveraging improved customer service performance at Amcare UK
Cuidado de la infusión
Revenue of $371 million increased 8.7% on reported, constant currency and organic bases. This growth was primarily driven by sustained strong demand for our innovative infusion sets for people with diabetes. We supported our customers with multiple product launches during 2023: Medtronic's 780G insulin pump approval in the US, Beta Bionics iLet bionic pancreas system launch in the US and soft launch of Tandem's Mobi pump.
Our neriaTM brand infusion sets, for non-insulin therapies, achieved strong double-digit growth, and included the launch of AbbVie's new Parkinson's drug therapy in Japan.
En 2024 nos centraremos en:
· Delivering for our diabetes customers given the continued strong demand for our infusion sets:
o Scaling up MioAdvance Extended Wear Infusion Set following US launch of Medtronic's 780G
o Supporting Tandem with the full launch of Mobi in the US
o Supporting Beta Bionics following its iLet launch in the US
o Supporting Ypsomed as they grow their durable pumps business
· Continuing to diversify patient base
o Providing Neria sets for AbbVie Parkinson's launch in Europe and preparing for US launch, expected in 2024
o Increasing penetration with European distributors of infusion sets for European palliative care and pain management
· Enhancing operations:
o Increasing production capacity for future demand
o Optimising existing production lines and further improving quality
Historical revenue data*
* Proporcionado para reflejar las definiciones de categorías revisadas anunciadas el 23 de marzo, luego de la salida de la atención hospitalaria.
Ingresos reportados millones de dólares | 2019 | 2020 | 2021 | 2022 | 2023 | |
Cuidado avanzado de heridas | 570 | 547 | 592 | 621 | 695 | |
Cuidado de la ostomía | 569 | 590 | 615 | 583 | 608 | |
Cuidado de la continencia | 342 | 363 | 405 | 426 | 457 | |
Cuidado de la infusión | 238 | 283 | 316 | 341 | 371 | |
Grupo procesos | 1,719 | 1,783 | 1,928 | 1,971 | 2,131 | |
Revenue from hospital care and industrial sales | 108 | 112 | 110 | 102 | 11 | |
Grupo total reportado | 1,827 | 1,895 | 2,038 | 2,073 | 2,142 | |
Organic4 crecimiento/(disminución) % | 2019 | 2020 | 2021 | 2022 | 2023 | |
Cuidado avanzado de heridas | 0.5% | (2.7)% | 9.2% | 6.8% | 9.5% | |
Cuidado de la ostomía | 1.0% | 4.5% | 2.0% | 1.7% | 4.2% | |
Cuidado de la continencia | 5.4% | 5.4% | 3.4% | 5.1% | 6.5% | |
Cuidado de la infusión | 2.2% | 18.5% | 11.5% | 9.2% | 8.7% | |
Grupo procesos | 2.3% | 4.2% | 5.3% | 5.6% | 7.2% | |
Ejecutando nuestra estrategia FISBE
La ejecución de nuestra estrategia FISBE (Enfocar, Innovar, Simplificar, Construir, Ejecutar) está progresando bien.
Focus
Continuamos centrarse en nuestros 12 principales mercados, achieving organic revenue growth of 8.4% compared with 7.2% globally. The US was our largest market and grew strongly, supported by the contribution from InnovaMatrix®. China, whilst still a small part of the overall group, remained a key strategic market where we continued to strengthen our position, growing double-digit and winning market share in both Ostomy Care and Advanced Wound Care.
Teniendo laid the foundations for customer net promoter score (NPS) insight gathering, through a series of pilots in 2023, durante 2024 we will focus on embedding actionable NPS insight more broadly across the business.
Innovar
Continuamos invirtiendo para fortalecer nuestras capacidades de tecnología e innovación y avanzar en nuestra cartera; nosotros aumento del gasto ajustado en I+D by 12.9% to $104 million (2022: $92 million), equivalent to 4.8% of sales.
Empezamos Lanzamiento de ConvaFoamTM en los EE.UU, which is strengthening our competitive position in the very large and growing foam segment. Feedback from evaluations has been encouraging, with healthcare professionals particularly positive about its exudate and adhesion properties.
En abril, nosotros adquirió una tecnología de óxido nítrico antiinfeccioso altamente innovadora platform with a unique natural antimicrobial mode of action, backed by compelling scientific and clinical data. We will be looking to secure the first regulatory approvals for the first wound care product in 2025.
We began launching our new compact catheter, gentilcathTM Air for Women with FeelCleanTM Technology in France in Q4. This technology is designed for urethral protection and to reduce the risk of UTIs.
In Infusion Care we continued to collaborate with a number of partners within and outside diabetes and launched a number of products during the period:
- Infusion set with Beta Bionics new iLet bionic pancreas system
- Extended Wear Infusion Set in US with Medtronic 780G
- Equipo de infusión para la nueva bomba Tandem Mobi, aprobado por la FDA en julio
- Infusion set for AbbVie Parkinson's therapy launch in Japan
Mirando hacia 2024 we expect continued momentum with product launches. In Q1 we have begun to launch our new one-piece convex pouching system, Esteem BodyTM with Leak DefenseTM in Europe and the US. It is very early days but we are encouraged by the reaction from healthcare professionals so far.
We will also be leveraging our recent product launches by rolling them out in key geographies:
- InnovaMatrix® in certain GEM markets and, in the US, with new iterations;
- Begin the roll-out of ConvaFoamTM en Europa;
- GentleCath AirTM for Women in Europe and the US;
supporting AbbVie's Parkinson's drug launch in Europe and, later in the year, in the US.For 2025 and beyond we are also developing a richer pipeline with exciting new innovations, including:
- AWC: an enhanced hydrofibre, Nitric oxide wound dressing and ConvaVac (a single use negative pressure treatment);
- OC: Natura BodyTM;
- CC: GentleCathTM Air for Men v2.0; and
- IC: Further customer pump technology innovations including a potential new Parkinson's therapy
Simplificar
We continued to make progress simplifying the organisation.
Los gastos generales y administrativos ajustados se redujeron al 8.1% de las ventas (2022: 8.9%), declining 6.4% to $173 million (2022: $185 million) as we continued to transition activities to our Global Business Services centres; allowing us to improve, standardise and automate processes, build internal expertise and consolidate our corporate office facilities footprint.
We opened a new GBS facility in Kuala Lumpur to provide 24-7 business service support to the Group in conjunction with Lisbon and Bogota, started the migration of HR services and created a new IT Centre of Excellence.
Como parte de nuestro Plant Network Optimisation initiative, we closed a small factory in Roosendaal, the Netherlands, and migrated machines to our larger and more efficient site in Michalovce, Slovakia, which already manufactures similar Ostomy products.
en 2024, we intend to continue to embed our Global Business Services network, driving further efficiencies in finance, IT and HR. Our Global Quality and Operations function will continue to introduce smart factory tools and automation to the manufacturing footprint to drive enhanced productivity.
Construcción
Our Pricing Centre of Excellence (CoE), in collaboration with our business units, supported the delivery of 100 bps of pricing improvement on gross margin.
During the year we further developed our clinical and regulatory functions with a step up in clinical evidence generation and in scientific publications, and another year with more than 80 patent filings.
en 2024, we will continue to embed our CoEs within the business and drive commercial excellence. For example our Marketing CoE will drive our NPS customer loyalty measurement programme.
Ejecución
Nuestro Salesforce CoE has continued to roll out the single CRM platform to all of our Top 12 markets. This is driving enhanced salesforce productivity by increasing call rates and improving targeting to priority (A,B,X) accounts.
Through improved commercial execution we are participación ganadora en los mercados emergentes globales in both AWC and OC. Our sales in GEM continued to grow double digit, with revenue in China growing 30% notwithstanding the broader industry slow-down since the summer.
We have continued to focus on execution excellence within our Global Quality and Operations function, expanding capacity in IC, increasing automation on certain AWC product lines and further reducing complaints per million by c.12% during 2023.
We also made further progress embedding our Convatec Cares responsible business strategy, which underpins our commitment to embedding environmental, social and governance (ESG) practices.
In line with our goal to achieve net zero by 2045, we reduced Scope 1 and Scope 2 greenhouse gas emissions by 35% in 2023. We are pleased that our manufacturing sites now use 100% renewable electricity. In addition, our Scope 1, 2 and 3 (near term) targets were validated by Science-Based Targets Initiative (SBTi). We also received a 'B' from the Carbon Disclosure Project (CDP) in their 2023 ratings, recognising our progress.
Consistent with our commitment to diversity, equity and inclusion (DE&I) and wellbeing, we finished 2023 with 44% of the senior management team[ 1 ] being women, exceeding our 40% target.
Dividendo
The Board recommends a 3% increase in the full year dividend to 6.229 cents per share (2022: 6.047 cents). The payout ratio of 46% (2022: 48%) of adjusted EPS remains modestly ahead of the target range of 35-45%. The Board remains confident of the Group's future prospects and this progressive dividend recommendation is consistent with the approach over the last 3 years.
Taking into consideration the recent trends in take up and the cost of operating, the Board has taken the decision to terminate the scrip dividend option.
2024 guidance and upgraded medium term outlook
In 2024, we expect organic revenue growth of 5-7%. We are also raising our medium-term organic revenue growth to 5-7% p.a. (previously 4-6% p.a.), given growing confidence in both the new product pipeline and improved commercial execution. This reflects our expectations of high single-digit growth in AWC and IC and mid single-digit growth in OC and CC.
We remain focused on expanding our operating margin by growing revenue, improving our mix/price and delivering on our simplification and productivity agenda. In 2024 we expect further improvement in the adjusted operating margin to at least 21%, on a constant currency, based on the current geo-political backdrop and an inflation expectation of 3-5%.
We expect adjusted net finance expense for 2024 to be $75-85 million. The adjusted book tax rate is expected to be approximately 24% with the cash tax rate at approximately 18%. We expect capex of $120-140million reflecting the continued investments we are making across the Group.
In the medium term, we are on track to deliver a mid-20s% adjusted operating margin in 2026 or 2027. This requires on average 100bps or more of expansion per annum, compared to the delivery of 125bps expansion per year over the last 2 years in a high inflation environment.
We have now pivoted to sustainable revenue growth, have started to deliver margin expansion and expect to achieve double digit compound growth in EPS and free cash flow to equity over the medium term.
Riesgos principales
The Board reviews and agrees our principal risks on a bi?annual basis, taking account of our risk appetite together with our evolving strategy, current business environment and any emerging risks that could impact the business. Our system of risk management and internal control continues to develop, and updates to the principal risks and mitigation plans are made as required in response to changes in our risk landscape. Details of our enterprise risk management framework will be set out in the Group's 2023 Annual Report and Accounts to be published later in the month.
The Board has reviewed the principal risks as at 31 December 2023 and made a number of changes to reflect our assessment of their movement from those identified in 2022, the effect on the Group, our evolving strategy and the current business environment. The principal risks have been assessed against the context of the global inflationary cost pressures that are impacting all businesses at present and the wider uncertain geopolitical climate. The overall profile for the risks set out below remains largely unchanged over the financial year in terms of their potential impact on our ability to successfully deliver on our strategy:
· Calidad y Resiliencia Operacional;
· Sistemas de Información, Seguridad y Privacidad;
· Innovación y Regulatorio;
· Personas;
· Legal y Cumplimiento;
· Medio Ambiente y Comunidades; y,
· Hacienda y Hacienda.
The risk landscape has changed for the following principal risks, since the publication of the 2022 Annual Report and Accounts:
· Strategy and Execution Delivery - strategically we are pivoting into FISBE 2.0 and, with work carried out to date, this principal risk is now considered normal business activity.
· Customer and Markets - has been elevated as the consequences of global macroeconomic factors may manifest themselves through financial constraints impacting healthcare pricing and reimbursement models.
· Political and Economic Environment - has been elevated reflecting the continuing global inflationary pressure challenges on all aspects of our cost base, as well as ongoing global supply chain constraints and volatile geopolitical environment.
The Board assesses the overall risk profile of the Group to ensure it is within our risk appetite. In making this assessment the Board considered the broader risk landscape (including the sustained levels of inflation and interest rates, ongoing supply chain challenges and the continuing impacts of the wars in Ukraine and the Middle East) on the business environment and any continued or additional impact on the Group's business and principal risks, coupled with the controls and mitigations in place to address these challenges. In the main, as our processes and risk mitigations further develop and mature, we have continued to manage the challenges facing the wider business landscape and build further resilience into our operations. Principal risks continue to be appropriately mitigated and we work to ensure that each risk remains within our risk appetite.
Revisión financiera
Revenue grew by 3.4% on a reported basis, 3.2% on a constant currency basis and 7.2% on an organic basis. Constant currency growth was lower than organic growth due to the exit from the low-margin, low-growth hospital care activities during 2022.
The adjusted operating profit margin was 20.2%, representing an increase of 70bps over the previous year. Adjusting for foreign exchange headwinds, the expansion was 130bps, with pricing and mix benefits more than offsetting inflation and continued investment in commercial and R&D capabilities. Adjusted operating profit margin has increased by 250bps over the past two years.
Adjusted diluted earnings per share increased by 6.1% year-on-year to 13.4 cents per share, primarily due to improvements in adjusted operating profit and a reduction in adjusted non-operating expenses more than offsetting an increase in finance expenses. Reported diluted EPS more than doubled to 6.3 cents per share (2022: 3.1 cents per share).
Net cash generated from operations improved by 27.6% to $490.6 million ($384.5 million), with free cash flow to equity increasing by 116.8% to $228.3 million (2022: $105.3 million), driven by higher EBITDA and significantly better changes in working capital compared to the previous year. Equity cash conversion improved to 83.3% (2022: 41.0%).
We further enhanced the competitive position of the Group during the year, with the acquisition of an innovative anti-infective nitric oxide technology platform to strengthen our Advanced Wound Care portfolio, and two bolt-on acquisitions to strengthen our Home Services Group in the US.
In November 2023, the Group extended the term of its multicurrency revolving credit facility by one year and this is now committed to November 2028. The Group's term loan and $500.0 million senior unsecured notes remain in place and are committed until 2027 and 2029 respectively.
We remain confident of delivering sustainable future revenue growth and an adjusted operating margin in the mid-20s by 2026 or 2027, with double-digit compound annual growth in adjusted diluted EPS and free cash flow to equity.
Resultados informados y ajustados
The Group's financial performance, measured in accordance with IFRS, is set out in the Condensed Consolidated Financial Statements and Notes thereto on pages 27 to 48 and referred to in this Annual Report as "reported" measures.
The commentary in this Financial review includes discussion of the Group's reported results and alternative performance measures (or adjusted measures) (APMs). Management and the Board use APMs as meaningful measures in monitoring the underlying performance of the business. These measures are disclosed in accordance with the ESMA guidelines and are explained and reconciled to the most directly comparable reported measures prepared in accordance with IFRS on pages 21 to 26.
Revenue and the revenue growth on constant currency and organic bases are non-IFRS financial measures and should not be viewed as replacements of IFRS reported revenue. Percentage movements throughout this report are calculated on actual unrounded numbers.
Desempeño financiero del grupo
reportado | reportado | Equilibrado1 | Equilibrado1 | |
2023 | 2022 | 2023 | 2022 | |
$m | $m | $m | $m | |
Ingresos | 2,142.4 | 2,072.5 | 2,142.4 | 2,072.5 |
Beneficio bruto | 1,200.6 | 1,103.9 | 1,320.7 | 1,245.6 |
Beneficio operativo | 262.7 | 207.3 | 431.8 | 403.7 |
Beneficio antes de impuestos sobre la renta | 167.4 | 81.9 | 357.2 | 337.6 |
Beneficio neto | 130.3 | 62.9 | 274.1 | 256.8 |
Basic ganancias por acción (centavos por acción) | 6.4 ¢ | 3.1 ¢ | 13.4 ¢ | 12.7 ¢ |
Diluido ganancias por acción (centavos por acción) | 6.3 ¢ | 3.1 ¢ | 13.4 ¢ | 12.6 ¢ |
Dividendo por acción (centavos) | 6.229 ¢ | 6.047 ¢ |
|
1 Estas medidas financieras no IFRS se explican y concilian con las medidas financieras más directamente comparables preparadas de acuerdo con las IFRS en las páginas 21 a 26.
Ingresos
Group reported revenue for the year ended 31 December 2023 of $2,142.4 million (2022: $2,072.5 million) increased 3.4% year-on-year on a reported basis and 3.2% on a constant currency basis.
Adjusting for foreign exchange and acquisition and divestiture-related activities2, Group revenue grew by 7.2% on an organic basis. This was driven by strong growth in Advanced Wound Care, Infusion Care and Continence Care and good growth in Ostomy Care. For more details about category revenue performance, refer to pages 4 to 5.
2 Acquisitions were Starlight Science, A Better Choice Medical Supply and All American Medical Supply in 2023 and Triad Life Sciences in 2022. Divestitures related to the 2022 discontinuation of hospital care, related industrial sales and associated Russia operations (with the final discontinuances in early 2023).
Beneficio neto reportado
Reported gross margin increased from 53.3% to 56.0%. This was largely driven by pricing and mix benefits being partly offset by inflationary pressures and foreign exchange headwinds. Prior year comparatives also included higher one-time divestiture and termination costs primarily as a result of the hospital care and related industrial sales exit in 2022.
Reported operating profit increased by 26.7% to $262.7million, driven by improvements in the reported gross margin being partially offset by an increase in reported operating expenses of $41.3 million to $937.9 million. Increases in selling and distribution expenses of $36.6 million to $612.5 million and R&D of $18.0 million to $110.0 million were partly offset by a reduction in other operating expenses of $11.3 million (down from $13.8 million in 2022).
Reported net finance costs increased by $23.4 million to $75.5 million, primarily due to an additional $28.8 million of interest expense on borrowings due to higher market interest rates.
During the year, the fair value movement of the contingent consideration arising on acquisitions was $24.6 million (2022: $45.1 million).
Reported non-operating income/(expense), net decreased by $33.0 million to $4.8 million income (2022: $28.2 million expense) and principally consisted of foreign exchange gains of $0.2 million (2022: $14.2 million loss) and a gain of $3.9 million on divestiture-related activities relating to the sale of the Unometer? trademarks during the year. The prior year also included the recycling of $12.2 million of cumulative translation losses following the closure activities associated with the hospital care exit and a $2.0 million loss on divestitures.
The reported income tax expense for the year ended 31 December 2023 was $37.1 million (2022: $19.0 million) and this is explained further in the Taxation section below. The reported net profit was $130.3 million (2022: $62.9 million).
The basic reported earnings per share rose 105.6% to 6.4 cents (2022: 3.1 cents), reflecting the reported net profit divided by the basic weighted average number of ordinary shares of 2,038,653,228 (2022: 2,023,839,657).
Beneficio neto ajustado
Adjusted gross profit increased by 6.0% to $1,320.7 million (2022: $1,245.6 million). The adjusted gross margin increased year-on-year from 60.1% to 61.6% due to a combination of price, mix and productivity benefits of 460bps being partially offset by inflation and foreign exchange headwinds of 250bps and 60bps respectively. The Group benefited from the impact of reduced volumes of low-margin and low-growth products following the hospital care exit in 2022 and the growing contribution from Advanced Tissue Technology (ATT).
Adjusted operating expenses saw a net increase of $47.0 million to $888.9 million, with increases in adjusted selling and distribution expenses and adjusted R&D partly offset by a reduction in adjusted general and administrative expenses.
Increases in adjusted selling and distribution expenses of $47.0 million to $611.9 million, primarily driven by higher headcount associated with growing the business, expansion in the acquired ATT business and higher labour inflation, were only partially offset by the exit of hospital care.
Increases in adjusted R&D of $11.9 million to $103.9 million reflected the continued investment in our future pipeline of new products and new R&D talent joining the business through the recent acquisitions over the past few years.
Adjusted G&A decreased by $11.9 million year-on-year to $173.1 million, reflecting the Group's focus on simplification and productivity, notably as we continued to build internal expertise and reduce external third party spend whilst also seeing the benefits of transitioning more activities to our Global Business Services (GBS) centre in Lisbon. Adjusted G&A as a percentage of revenue fell to 8.1% (2022: 8.9%)
A reconciliation between reported and adjusted operating expenses is provided in the Non-IFRS financial information section on pages 21 to 26. The Group achieved an adjusted operating profit of $431.8 million (2022: $403.7 million), delivering an adjusted operating margin of 20.2% (2022: 19.5%) despite ongoing inflationary headwinds and continued investments for growth.
Adjusted net profit increased 6.7% to $274.1 million (2022: $256.8 million). The increases in adjusted operating expenses (as explained above), finance expenses (driven by higher market interest rates) and adjusted income tax expense (which is explained below) were more than offset by strong adjusted gross margin improvement and a reduction in adjusted non-operating expenses of $14.9 million (driven by favourable foreign exchange impacts on intercompany transactions).
Adjusted basic and diluted EPS at 31 December 2023 were 13.4 cents and 13.4 cents respectively (2022: 12.7 cents and 12.6 cents).
Taxation
Año terminado el 31 de diciembre | ||||
| 2023 | 2022 | ||
$m | Tasa efectiva de impuestos | $m | Tasa efectiva de impuestos | |
Reported income tax expense | (37.1) | 22.2% | (19.0) | 23.2% |
Efecto fiscal de ajustes | (38.5) |
| (41.7) | |
Otras partidas fiscales discretas | (7.5) |
| (20.1) | |
Gasto por impuesto sobre la renta ajustado | (83.1) | 23.3% | (80.8) | 23.9% |
The Group's reported income tax expense was $37.1 million (2022: $19.0 million). The decrease in the reported effective tax rate was mainly driven by a one-off net tax benefit following the successful resolution of an uncertain tax position, which for the purpose of calculating the adjusted income tax expense, was treated as an adjusting item.
The adjusted effective tax rate of 23.3% para el año terminado el 31 de diciembre 2023 (2022: 23.9%) was after reflecting the tax impact of items treated as adjusting items (further details can be found in the Reconciliation of reported earnings to adjusted earnings table in the Non-IFRS financial information section on page 23). The decrease in the adjusted effective tax rate was principally driven by the impact of profit mix between jurisdictions in which the Group had a taxable presence.
Ajustar elementos
Management and the Board will make adjustments to the reported figures, where appropriate, to produce more meaningful measures in monitoring the underlying performance of the business - Alternative performance measures (APMs). The Group's APM policy can be found in the Non-IFRS financial information section on page 21 and in line with this, the following adjustments were made to derive adjusted operating profit and adjusted net profit.
Beneficio operativo $m | Movimiento del valor razonable de la contraprestación contingente $m | Non-operating income/(expense) $m | Impuesto sobre la renta $m | |||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
reportado | 262.7 | 207.3 | (24.6) | (45.1) | 4.8 | (28.2) | (37.1) | (19.0) |
Amortización de intangibles adquiridos | 136.2 | 131.3 | - | - | - | - | (32.6) | (29.2) |
Adquisiciones y desinversiones | 10.1 | 56.6 | 24.6 | 45.1 | (3.9) | 14.2 | (0.7) | (11.3) |
Beneficios por terminación y costos relacionados | 9.5 | 7.1 | - | - | - | - | (2.0) | (1.2) |
Deterioro de activos | - | 1.4 | - | - | - | - | - | - |
Otros elementos de ajuste | 13.3 | - | - | - | - | - | (3.2) | - |
Otras partidas fiscales discretas | - | - | - | - | - | - | (7.5) | (20.1) |
Equilibrado | 431.8 | 403.7 | - | - | 0.9 | (14.0) | (83.1) | (80.8) |
Adjustments made to derive adjusted operating profit in 2023 included the amortisation of acquired intangibles of $136.2 million (2022: $131.3 million), of which $93.2 million (2022: $93.0 million) resulted from intangible assets arising from the spin-out from Bristol-Myers Squibb in 2008 and will be fully amortised by December 2026.
Acquisition and divestiture-related costs of $10.1 million (2022: $56.6 million) consisted of acquisition-related costs of $8.3 million (2022: $16.9 million) and divestiture-related costs of $1.8 million (2022: $39.7 million). Acquisition-related costs, which primarily consisted of deal-related fees, also included the inventory fair value release of $1.5 million (2022: $8.7 million) in respect of the Triad acquisition in 2022. Divestiture-related costs of $1.8 million were incurred as a result of the exit from the hospital care and related industrial sales activities.
Termination costs of $9.5 million were in respect of one-off, fundamental transformation projects and primarily due to the migration of HR services to our Global Business Services, the closure of the EuroTec factory in the Netherlands and a restructuring of activities in Switzerland. The latter two projects, in addition to the office footprint optimisation programme previously announced, contributed to other adjusting items of $13.3 million. These costs largely consisted of legal and professional fees, the impairment of right-of-use assets and property, plant and equipment and charges related to certain office closures.
During the year, the fair value movement of the contingent consideration arising on acquisitions was S24.6 million (2022: $45.1 million).
Net adjustments of $3.9 million made to non-operating income in 2023 wholly related to a gain made from the sale of the UnoMeter? trademarks, previously part of hospital care. This is disclosed within Note 5 - Non-operating income/(expense), net to the Condensed Consolidated Financial Statements.
Of the total $169.1 million of adjusting items recognised within operating profit in the Consolidated Income Statement in the year (excluding tax impact), $16.1 million was cash-impacting in 2023 (2022: $11.1million). There was also a cash outflow of $7.5 million during the year in respect of adjusting items recorded as accruals in the prior year. In 2024, the total cash impact of adjusting items recognised within operating profit (including amounts accrued in previous years), is currently expected to be of a similar quantum to the 2023 total. For further information on Non-IFRS financial information, see pages 21 to 26.
In the year to 31 December 2023, other discrete tax items related to the tax benefit of $15.1 million resulting from a provision release following the successful resolution of an uncertain tax position, partially offset by tax expenses of $7.6 million in respect of a restructuring of activities Switzerland. In the year to 31 December 2022, other discrete tax items related to the tax benefit of $20.1 million resulting from the recognition of deferred tax assets following the acquisition of Triad Life Sciences. For further details on deferred taxation see Note 6 - Income taxes to the Condensed Consolidated Financial Statements.
The Board, through the Audit and Risk Committee, continuously reviews the Group's APM policy to ensure that it remains appropriate, aligns with regulatory guidance and represents the way in which the performance of the Group is managed.
Adquisiciones
During the year, the Group completed three acquisitions. The acquisition of Starlight Science Limited in April 2023 included the highly innovative anti-infective nitric oxide technology platform, which complements the Group's Advanced Wound Care portfolio and has potential applications across the Group's other categories. In addition to the initial consideration of $56.7 million (£45.3 million), the sellers may earn contingent consideration up to a maximum of $163.9 million (£131.0 million), in the form of (i) a milestone payment of $58.8 million (£47.0 million) due upon regulatory clearances in the US and Europe; and (ii) earnout payments based on sales of products over the lifetime of the acquired patents, with the maximum earnout payable capped at $105.1 million (£84.0 million). The provisional discounted fair value of the contingent consideration recognised at the date of acquisition was $66.7 million.
We also completed two small bolt-on acquisitions in 2023 (A Better Choice Medical Supply LLC and All American Medical Supply Corp) for a combined net cash outflow of $27.7 million to further strengthen our US Home Services Group. There was no contingent consideration associated with these two acquisitions.
During the year, $94.7 million was paid in respect of contingent consideration associated with the Triad Life Sciences acquisition, in addition to the $50.0 million paid in 2022 following achievement of two short-term milestones. As at 31 December 2023, the discounted fair value of the contingent consideration payable in respect of the Group's acquisitions was $138.0 million (2022: $140.0 million). Refer to Note 10 - Acquisitions to the Condensed Consolidated Financial Statements for further details.
Reasonably possible changes in certain key assumptions and forecasts may cause the calculated fair value of the contingent consideration to vary materially within the next financial year and accordingly, this has been identified as a key source of estimation uncertainty. Refer to Note 1.2 - Critical accounting judgements and key sources of estimation uncertainty to the Condensed Consolidated Financial Statements for further details.
Dividendos
Dividends are distributed based on the distributable reserves of the Company, which are primarily derived from the dividends received from subsidiary companies and are not based directly on the Group's consolidated retained earnings. The distributable reserves of the Company at 31 December 2023 were $1,539.4 millones (2022: $1,562.9 millón).
The Board declared an interim dividend of 1.769 cents per share in August 2023 and has recommended a final 2023 dividend of 4.460 cents per share, which would bring the full year dividend to 6.229 cents per share (2022: 6.047 cents per share), an increase of 3% and a pay-out ratio when compared to adjusted net profit of 46% (2022: 48%). Our stated policy is a pay-out ratio of 35% to 45% of adjusted net profit but this is interpreted flexibly over time to reflect the underlying performance of the business and the Board's confidence in its future growth prospects. The Board has also taken the decision to terminate the scrip dividend option.
Refer to Note 8 - Dividends to the Condensed Consolidated Financial Statements for further information.
Flujo de caja y deuda neta
Equilibrado | |
2023 | |
$m | |
Comparable1 | 527.1 |
Movimiento de capital circulante1 | (8.1) |
(Pérdida) en derivados de tipo de cambio | (4.8) |
Ajustar elementos2 | (23.6) |
Gastos de capital | (129.2) |
| |
Flujo de caja operativo1,3 | 361.4 |
Impuesto pagado | (35.9) |
| |
Efectivo gratis al capital1,3 | 325.5 |
Intereses netos pagados | (65.6) |
Pago de pasivos por arrendamiento | (22.7) |
Otro4 | (8.9) |
| |
Efectivo gratis a capital1,3 | 228.3 |
Dividendos5 | (110.7) |
Acquisitions & divestitures6 | (178.8) |
| |
Movimiento de la deuda neta | (61.2) |
| |
Deuda neta1 a 1 de enero (excluidos pasivos por arrendamiento) | (1,068.1) |
| |
Deuda neta1 at 31 December (excluding lease liabilities) | (1,129.3) |
1. These non-IFRS financial measures are explained and reconciled to the most directly comparable financial measure prepared in accordance with IFRS in the Non-IFRS financial information section.
2. Details of adjusting items are provided in the adjusting items cash movement table in the Non-IFRS financial information section. Of the total cash outflow of $23.6 million during the year, $7.5 million related to accruals recorded in the prior year.
3. Compared to 2022, the cash flow measures have been simplified in respect of their title. 'Net cash for cash conversion' has been renamed 'Operating cash flow' and 'Free cash flow (post-tax)' has been renamed 'Free cash flow to capital'. In addition, a new measure has been introduced, 'Free cash flow to equity' (as defined in the Reconciliation of Operating cash flow, free cash to capital and free cash to equity' table on page 25. The Directors consider that these changes result in consistency of cash flow measures and provide improved definition, clarity and insight.
4. Other consisted of financing fees amortisation $2.8 million (2022: $6.6 million) and net FX loss on cash and borrowings of $6.7 million (2022: $4.9 million) offset by proceeds from PPE sales of $0.6 million (2022: nil).
5. Dividend cash payments of $110.7 million were made to shareholders during the year. This represented 87.3% of total dividends declared in the period, with the remaining 12.7% electing to settle via scrip dividends. The Board took the decision to terminate the scrip dividend option during the year.
6. Net acquisition and divestiture payments of $178.8 million consisted of the initial consideration payment of $56.7 million in respect of the acquisition of Starlight Sciences Limited, $27.7 million in respect of the acquisitions of A Better Choice Medical Supply LLC and All American Medical Supply Corp and $94.7 million in respect of the Year 1 earn out associated with the 2022 acquisition of Triad Life Sciences. These were offset by $0.3 million of income arising from divestiture-related activities.
Comparable
El EBITDA ajustado aumentó en $ 27.1 millones a $ 527.1 millones (2022: $500.0 millón), with the increase in adjusted gross profit of $75.1 million more than offsetting the increase in adjusted operating expenses of $47.0 million. These are explained in the adjusted net profit commentary section. A reconciliation of adjusted EBITDA to the closest IFRS measure is provided in the Non-IFRS financial information section on pages 21 to 26.
Free cash flow to capital
Free cash flow to capital increased by $138.1 million to $325.5 million (2022: $187.4 millón), largely driven by a significantly lower working capital outflow (resulting in a movement year-on-year of $90.5 million), the increase in adjusted EBITDA of $27.1 million as explained above, a reduction in capital expenditure spend of $15.0 million and a reduction in cash tax paid of $17.0 million. These were partly offset by an increase in adjusting cash outflow items of $8.4 million, of which details are provided in the Non-IFRS financial information section on page 25.
The Group invested $129.2 million in capital expenditure (2022: $144.2 million) to increase manufacturing capacity and automation and improve information technology and digital tools.
The adjusted working capital outflow of $8.1 million (2022: $98.6 million outflow) improved significantly year-on-year, with increased inventory levels of $53.9 million on an adjusted basis largely offset by a $30.2 million decrease in trade and other receivables, a $10.5 million increase in trade and other payables and a $7.8 million reduction in restricted cash.
Increased inventory levels reflected strategic decisions to continue to build supply chain resilience across the Group, which was achieved in the first half of the year. There was a modest decline in inventory in the second half of the year.
The decrease in trade and other receivables reflected improving cash collections, coupled with a receivables financing arrangement entered by the Group during the year to normalise receivable terms for certain major customers, equating to $27.4 million, and favourable movements in the mark-to-market valuation of derivative financial assets.
The increase in trade and other payables of $10.5 million reflected standardisation of supplier payment terms implemented in the year as part of our simplification and productivity initiatives, coupled with some favourable timing impacts which will partly reverse in 2024. The increase was partially offset by a decrease in derivative financial liabilities as a result of the mark-to-market valuation at the year end.
Conversión de efectivo operativo1 was 83.7% (2022: 59.5%). The increase in the ratio primarily reflected the significantly lower working capital outflow as commented on above. Further details are provided in the Non-IFRS financial information section.
1. The previous ratio called 'Adjusted cash conversion', calculated as Operating cash flow/Adjusted EBITDA, has been replaced by 'Operating cash conversion' and is now calculated as Operating cash flow/Adjusted operating profit. The Directors consider that this change results in consistency of cash flow measures and provides improved definition, clarity and insight.
Flujo de caja libre a capital
Free cash flow to equity increased by $123.0 million to $228.3 millones (2022: $105.3 millón). This was driven by an increase in free cash flow to capital of $138.1 million as explained above and a decrease in the amortisation of financing fees of $3.8 million. These favourable movements were partly offset by higher finance expense payments of $15.7 million due to higher market interest rates.
Equity cash conversion2 fue del 83.3% (2022: 41.0%).
2. A new measure has been introduced. 'Equity cash conversion' is calculated as Free cash flow to equity/Adjusted net profit. The Directors consider that this change results in consistency of cash flow measures and provides improved definition, clarity and insight.
Endeudamiento y deuda neta
2023 | 2022 | |
$m | $m | |
Préstamos | (1,226.9) | (1,211.9) |
Pasivos por arrendamiento | (85.5) | (88.3) |
Préstamos totales, incluidos pasivos por arrendamiento | (1,312.4) | (1,300.2) |
Efectivo y equivalentes de efectivo | 97.6 | 143.8 |
Préstamos totales, incluidos pasivos por arrendamiento, neto de efectivo | (1,214.8) | (1,156.4) |
Deuda neta (excluidos los pasivos por arrendamiento) | (1,129.3) | (1,068.1) |
Deuda neta (excluyendo arrendamientos)/EBITDA ajustado | 2.1 | 2.1 |
As at 31 December 2023, the Group's cash and cash equivalents were $97.6 million (31 December 2022 $143.8 million) and the debt outstanding on borrowings (net of deferred financing fees) was $1,226.9 million (31 December 2022: $1,211.9 million).
The Group's banking facilities comprise of a multicurrency revolving credit facility of $950.0 million and a term loan of $250.0 million. In November 2023, the Group extended the term of its multicurrency revolving credit facility by an additional year and this is now committed to November 2028. The term loan remains committed to November 2027.
The Group's $500.0 million senior unsecured notes, issued in October 2021, remain in place with maturity in October 2029.
Al 31 de diciembre de 2023, quedaban sin utilizar $459.4 millones de la línea de crédito revolvente en múltiples monedas. Esto, combinado con efectivo de $97.6 millones, proporcionó al Grupo una liquidez total de $557.0 millones al 31 de diciembre de 2023 (31 de diciembre de 2022: $616.6 millones). De esto, $21.1 millones se mantuvieron en territorios donde existen restricciones relacionadas con la repatriación (31 de diciembre de 2022: $19.2 millones).
The Group ended the period with total borrowings, including IFRS 16 lease liabilities, of $1,312.4 million (2022: $1,300.2 million). Offsetting cash of $97.6 million (2022: $143.8 million) and excluding lease liabilities, net debt was $1,129.3 million (2022: $1,068.1 million), equivalent to 2.1x adjusted EBITDA (2022: 2.1x adjusted EBITDA). For further information on borrowings see Note 11 - Borrowings to the Condensed Consolidated Financial Statements.
pactos
Al 31 de diciembre de 2023, el Grupo cumplía con todos los convenios financieros y no financieros asociados con la deuda pendiente del Grupo.
El Grupo tiene dos convenios financieros, que son el apalancamiento neto y la cobertura de intereses, cada uno de los cuales se define, en su caso, dentro de la documentación del préstamo. La siguiente tabla resume los umbrales y la posición de los convenios más restrictivos del Grupo al 31 de diciembre de 2023 y 2022.
Apalancamiento neto máximo del convenio | Actual covenant net leverage | Cobertura mínima de intereses del pacto1 | Actual covenant interest cover1 | |
31 de diciembre 2023 | 3.50x | 2.30x | 3.5x | 7.0x |
31 de diciembre 2022 | 3.50x | 2.28x | 3.5x | 9.9x |
*Interest cover is adjusted EBITDA/interest expense (net) and net leverage is net debt/adjusted EBITDA in accordance with the definitions contained in underlying borrowing documentation and are not the same as the definitions of these measures presented in the Non-IFRS financial information section on pages 21 to 26 and applied in the commentary in this Financial review.
Posición financiera del grupo
2023 | 2022 | Cambios | |
Al 31 de diciembre | $m | $m | $m |
Activos intangibles y fondo de comercio | 2,234.1 | 2,149.5 | 84.6 |
Otros activos no corrientes | 609.6 | 553.2 | 56.4 |
Efectivo y equivalentes de efectivo | 97.6 | 143.8 | (46.2) |
Otros activos corrientes | 772.4 | 745.5 | 26.9 |
los activos totales | 3,713.7 | 3,592.0 | 121.7 |
Pasivo circulante | (536.4) | (533.1) | (3.3) |
Pasivos no corrientes | (1,484.6) | (1,449.2) | (35.4) |
Equidad | (1,692.7) | (1,609.7) | (83.0) |
Total patrimonio y pasivos | (3,713.7) | (3,592.0) | (121.7) |
Activos intangibles y fondo de comercio
Intangible assets and goodwill increased by $84.6 million to $2,234.1 million (2022: $2,149.5 million). This increase was primarily driven by intangible assets and goodwill arising from the acquisitions during the year of $162.7 million, combined with intangible asset additions of $37.6 million and the net effect of foreign exchange of $38.9 million, being partially offset by the in-year amortisation of intangible assets of $154.6 million.
No triggers of impairments were identified during 2023.
Otros activos no corrientes
Other non-current assets, including property, plant and equipment (PP&E), right-of-use assets (ROU assets), investment in financial assets, deferred tax assets, restricted cash and other assets increased by $56.4 million to $609.6 million (2022: $553.2 million). The increase reflected the continued investment in our manufacturing facilities, with additions in PP&E of $97.3 million and the net effect of foreign exchange of $16.5 million being partly offset by depreciation of $37.5 million and impairments of $2.7 million.
Included within other non-current assets was the investment made in the preference shares of BlueWind Medical in 2022. The fair value at 31 December 2023 decreased to $22.9 million (2022: $30.7 million) due to a downgrade in revised forecasts as a result of delays in obtaining regulatory approvals, with the movement taken to Other Comprehensive Income. Restricted cash reduced by $2.0 million primarily due to movements in amounts held in escrow arising from the Group's acquisitions, whilst ROU assets reduced by $4.7 million.
Activos corrientes excluyendo efectivo y equivalentes de efectivo
Current assets, excluding cash and cash equivalents, increased by $26.9 million to $772.4 million (2022: $745.5 million), primarily driven by an increase in inventories of $59.2 million. Excluding a foreign exchange effect of $9.8 million, inventory increased on a reported basis by $49.4 million and was largely to build resilience across the Group. This was partly offset by reductions in trade and other receivables of $5.6 million (net of foreign exchange effect of $9.8 million), current tax receivable of $8.2 million, derivative financial assets of $12.8 million and restricted cash of $5.7 million.
Derivative financial assets decreased by $12.8 million due to movements in the mark-to-market valuations at the year end, whilst restricted cash fell by $5.7 million, driven by movements in cash held in escrow that arose from the Group's acquisitions.
Pasivo circulante
Current liabilities increased modestly by $3.3 million to $536.4 million (2022: $533.1 million), with an increase in trade and other payables of $42.1 million largely offset by decreases in derivative financial liabilities of $15.8 million, provisions of $16.5 million and current tax payable of $6.9 million.
Trade and other payables increased due to an extension to supplier payment terms following standardisation as part of our simplification and productivity initiatives, coupled with some favourable timing impacts which will partly reverse in 2024. Derivative financial liabilities decreased due to movements in the mark-to-market valuations at the year end.
Overall, provisions increased by $1.7 million, with provisions amounts less than one year decreasing by $16.5 million and amounts greater than one year increasing by $18.2 million. The overall increase was primarily due to an increase in restructuring provisions of $3.7 million offset by a reduction in contingent consideration payable of $2.0 million. Refer to Note 13 - Provisions to the Condensed Consolidated Financial Statements for further commentary.
Pasivos no corrientes
Non-current liabilities increased by $35.4 million to $1,484.6 million (2022: $1,449.2 million). This included an increase in non-current borrowings of $15.0 million, an increase in provisions of $18.2 million (see comments in current liabilities above) and an increase in deferred tax liabilities of $5.0 million primarily due to deferred tax recognised on the acquisition of Starlight Science Limited in the year.
These were partially offset by a reduction in lease liabilities of $3.2 million, as a result of the office footprint optimisation programme that commenced in 2023 as part of our simplification and productivity initiatives.
Preocupación continua
In preparing their assessment of going concern, the Directors considered available cash resources, access to committed undrawn funding, financial performance and forecast performance, including continued implementation of the FISBE strategy, together with the Group's financial covenant compliance requirements and principal risks and uncertainties.
Management also applied the same severe but plausible downside scenarios utilised in the preparation of the Viability statement. Under each scenario, the Group retained significant liquidity and covenant headroom throughout the going concern period, i.e. 12 months from the date of this report. A reverse stress test, before corporate level mitigations, was also considered to demonstrate what reduction in revenue would be required in the next 12 months to create conditions which may lead to a potential covenant breach. For a breach of covenants to occur in the next 12 months, before corporate mitigation, the Group would need to experience a sustained revenue reduction of more than 10% across all categories and markets. This was considered implausible given the Group's strong global market position, diversified portfolio of products and the corporate mitigations available to the Board and management.
Accordingly, the Directors continue to adopt the going concern basis in preparing the Condensed Consolidated Financial Statements.
Entorno de control financiero
The Group closely monitors the financial and IT general control environment (in respect of those IT controls that have an implication on the financial processes) using a formal control programme to confirm the effectiveness of key reporting and IT controls across our global operations, including self-certifications from control owners. Compliance was high throughout the year.
The Internal Controls team acts as the second of line of defence monitoring the controls framework, including monitoring responses, undertaking random sample testing of responses to supporting evidence and reviewing all notified financial and IT control failures to ensure that appropriate mitigating actions are taken to safeguard against risk of material financial misstatement.
Independent assurance on the control framework is given by the Internal Audit team, including key controls in their reviews of specific markets and GBS. In addition, key controls in the framework were tested by the external audit team as part of their controls reliance approach in 2023.
In response to the developments in corporate governance in the UK, the scope of the formal control programme was extended to include key non-financial metrics reported in the ARA, notably the ESG metrics currently in scope for limited assurance.
Información financiera no IFRS
Non-IFRS financial information or alternative performance measures (APMs) are those measures used by the Board and management on a day-to-day basis in their assessment of profit and performance and comparison between periods. The adjustments applied to IFRS measures reflect the effect of certain cash and non-cash items that the Board believes distort the understanding of the quality of earnings and cashflows as, by their size or nature, they are not considered part of the core operations of the business. Adjusted measures also form the basis of performance measures for remuneration, e.g. adjusted operating profit.
Cabe señalar que las APM del Grupo pueden no ser comparables con otras medidas denominadas de manera similar utilizadas por otras empresas y no deben considerarse de forma aislada o como un sustituto de las medidas equivalentes calculadas y presentadas de acuerdo con las NIIF.
In determining whether an item should be presented as an allowable adjustment to IFRS measures, the Group considers items which are significant either because of their size or their nature and arise from events that are not considered part of the core operations of the business. These tend to be one-off events but may still cross more than one accounting period. Recurring items may be considered, particularly in respect of the amortisation of acquisition-related intangibles assets. If an item meets at least one of these criteria, the Board, through the Audit and Risk Committee, then exercises judgement as to whether the item should be classified as an allowable adjustment to IFRS performance measures.
El efecto fiscal de los ajustes se refleja en el gasto fiscal ajustado para eliminar el impacto fiscal de la utilidad neta ajustada y las ganancias por acción ajustadas.
Amortización de activos intangibles relacionados con adquisiciones
The Group's strategy is to grow both organically and through acquisition, with acquisitions being targeted to strengthen our position in key geographies and/or business categories or which provide access to new technology. The nature of the businesses acquired includes the acquisition of significant intangible assets, which are required to be amortised. The Board and management regard the amortisation as a distortion to the quality of earnings and it has no cash implications in the year. The amortisation also distorts comparability with peer groups where such assets may have been internally generated and, therefore, not reflected on their balance sheet. Amortisation of acquisition-related intangible assets is, by its nature, a recurring adjustment.
Actividades relacionadas con la adquisición
Costs directly related to potential and actual strategic transactions which have been executed, aborted or are in-flight are deemed adjusting items.
Acquisition-related costs relate to deal costs, integration costs and earn-out adjustments, including the discounting impact which are incurred directly as a result of the Group undertaking or pursuing an acquisition. Deal costs are wholly attributable to the deal, including legal fees, due diligence fees, bankers' fees/commissions and other direct costs incurred as a result of the actual or potential transaction. Integration costs are wholly attributable to the integration of the target and based on integration plans presented at the point of acquisition, including the cost of retention of key people where this is in excess of normal compensation, redundancy of target staff and early lease termination payments.
Las medidas ajustadas en relación con las adquisiciones también incluyen los costos de acuerdos abortados.
Actividades relacionadas con la desinversión
Divestiture-related activities comprise the gains or losses resulting from disposal or divestment of a business as a result of a sale, major business change or restructuring programme. These include write-down of non-current assets, provisions to recognise inventories at realisable value, provisions for costs of exiting contracts and associated legal fees, and any other directly attributable costs. Any income from the ultimate disposal of a business or subsidiary is included in the gain or loss.
Adjusted measures in relation to divestitures also include aborted deal costs.
Deterioro de activos
Deterioros, cancelaciones y ganancias y pérdidas de programas definidos y cuando el Grupo considera que las circunstancias de tal evento no reflejan el desempeño comercial normal del negocio o cuando las transacciones se relacionan con activos intangibles relacionados con adquisiciones donde la amortización ya está excluida del cálculo de medidas ajustadas.
Beneficios por terminación y costos relacionados
Termination benefits and other related costs arise from material, one-time Group-wide initiatives to reduce the ongoing cost base and improve efficiency in the business, including divestitures from non-strategic activities. The Board considers each project individually to determine whether its size and nature warrants separate disclosure. Qualifying items are limited to termination benefits (including retention) without condition of continuing employment in respect of major Group-wide change programmes. Where discrete qualifying items are identified these costs are highlighted and excluded from the calculation of adjusted measures. Due to their nature, these adjusted costs may span more than one year.
Otros elementos de ajuste
Other adjusting items relate to material, one-time initiatives which are part of the Group's strategy to improve productivity in the business and optimise cash flows. The Board considers each project individually to determine whether its size and nature warrants separate disclosure. Qualifying costs are limited to directly attributable costs of the initiatives and any realignment costs. Due to the nature of the initiatives, these adjusted costs may span more than one year.
Crecimiento orgánico de ingresos
Organic revenue growth represents the change in organic revenue year on year. Organic revenue represents reported revenue, as determined under IFRS, and excludes the impact of acquisitions, divestitures and currency exchange movements.
Medidas de flujo de efectivo
Operating cash flow is the net cash generated from operations, as determined under IFRS, less capital expenditure. Free cash flow to capital is defined as operating cash flow less tax paid. Free cash flow to equity reflects how effectively we are converting the profit we generate into cash (after accounting for working capital, capital investments, adjusting items, tax and interest).
Refer to page 25 for details on how these measures are calculated.
Reconciliation of reported earnings to adjusted earnings for the years ended 31 December 2023 and 2022
Año terminado el 31 de diciembre de 2023 | Ingresos | Beneficio bruto | Los costos de operación | Beneficio operativo | Gastos financieros, neto | Movimiento del valor razonable de la contraprestación contingente | Non-operating income, net | PBT | Impuesto sobre la renta | Beneficio neto |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Como se informó | 2,142.4 | 1,200.6 | (937.9) | 262.7 | (75.5) | (24.6) | 4.8 | 167.4 | (37.1) | 130.3 |
Amortización de intangibles adquiridos | - | 110.4 | 25.8 | 136.2 | - | - | - | 136.2 | (32.6) | 103.6 |
Costos relacionados con la adquisición | - | 1.5 | 6.8 | 8.3 | - | 24.6 | - | 32.9 | (1.4) | 31.5 |
Divestiture-related costs/(income) | - | 3.6 | (1.8) | 1.8 | - | - | (3.9) | (2.1) | 0.7 | (1.4) |
Beneficios por terminación y costos relacionados | - | 2.1 | 7.4 | 9.5 | - | - | - | 9.5 | (2.0) | 7.5 |
Otros elementos de ajuste | - | 2.5 | 10.8 | 13.3 | - | - | - | 13.3 | (3.2) | 10.1 |
Ajustes totales incluyendo efecto fiscal | - | 120.1 | 49.0 | 169.1 | - | 24.6 | (3.9) | 189.8 | (38.5) | 151.3 |
Otras partidas fiscales discretas | - | - | - | - | - | - | - | (7.5) | (7.5) | |
Equilibrado | 2,142.4 | 1,320.7 | (888.9) | 431.8 | (75.5) | - | 0.9 | 357.2 | (83.1) | 274.1 |
Amortización | 18.4 | |||||||||
Depreciación | 60.2 | |||||||||
Deterioro/baja de activos | 2.1 | |||||||||
Pagos basados en acciones | 14.6 | |||||||||
EBITDA ajustado |
|
|
| 527.1 |
Año terminado el 31 de diciembre de 2022 | Ingresos | Beneficio bruto | Los costos de operación | Beneficio operativo | Gastos financieros, neto | Movimiento del valor razonable de la contraprestación contingente | Non-operating (expense), net | PBT | Impuesto sobre la renta | Beneficio neto |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Como se informó1 | 2,072.5 | 1,103.9 | (896.6) | 207.3 | (52.1) | (45.1) | (28.2) | 81.9 | (19.0) | 62.9 |
Amortización de intangibles adquiridos | - | 111.6 | 19.7 | 131.3 | - | - | - | 131.3 | (29.2) | 102.1 |
Costos relacionados con la adquisición1 | - | 8.7 | 8.2 | 16.9 | - | 45.1 | - | 62.0 | (3.5) | 58.5 |
Costos relacionados con la desinversión | - | 16.6 | 23.1 | 39.7 | - | - | 14.2 | 53.9 | (7.8) | 46.1 |
Beneficios por terminación y costos relacionados | - | 4.8 | 2.3 | 7.1 | - | - | - | 7.1 | (1.2) | 5.9 |
Deterioro de activos | - | - | 1.4 | 1.4 | - | - | - | 1.4 | - | 1.4 |
Ajustes totales incluyendo efecto fiscal | - | 141.7 | 54.7 | 196.4 | - | 45.1 | 14.2 | 255.7 | (41.7) | 214.0 |
Otras partidas fiscales discretas | - | - | - | - | - | - | - | (20.1) | (20.1) | |
Equilibrado | 2,072.5 | 1,245.6 | (841.9) | 403.7 | (52.1) | - | (14.0) | 337.6 | (80.8) | 256.8 |
Amortización | 16.1 | |||||||||
Depreciación | 61.8 | |||||||||
Deterioro/baja de activos | 1.7 | |||||||||
Pagos basados en acciones | 16.7 | |||||||||
EBITDA ajustado |
|
|
| 500.0 |
1. The comparatives have been re-presented, as outlined in Note 1.5 to the Financial Statements.
Adjusted operating profit margin of 20.2% (2022: 19.5%) is calculated as adjusted operating profit of $431.8 million (2022: $403.7 million) divided by revenue of $2,142.4 million (2022: $2,072.5 million). A reconciliation of adjusted operating profit to its closest IFRS measure is shown in the table above.
Reconciliation of reported operating costs to adjusted operating costs for the years ended 31 December 2023 and 31 December 2022
2023 |
| 2022 | |||||||||
DAKOTA DEL SUR | GEORGIA | I + D | Otro | Los costos de operación |
| DAKOTA DEL SUR | GEORGIA | I + D | Otro | Los costos de operación | |
$m | $m | $m | $m | $m |
| $m | $m | $m | $m | $m | |
Como se informó | (612.5) | (212.9) | (110.0) | (2.5) | (937.9) |
| (575.9) | (214.9) | (92.0) | (13.8) | (896.6) |
Amortización de intangibles adquiridos | - | 19.8 | 6.0 | - | 25.8 |
| - | 19.7 | - | - | 19.7 |
Costos relacionados con la adquisición | - | 6.8 | - | - | 6.8 |
| - | 8.2 | - | - | 8.2 |
Divestiture-related costs/(income) | (1.0) | (0.4) | - | (0.4) | (1.8) |
| 9.0 | 1.7 | 12.4 | 23.1 | |
Deterioro de activos | - | - | - | - | - |
| - | - | - | 1.4 | 1.4 |
Beneficios por terminación y costos relacionados | 1.6 | 5.7 | 0.1 | - | 7.4 |
| 2.0 | 0.3 | - | - | 2.3 |
Otros elementos de ajuste | - | 7.9 | - | 2.9 | 10.8 |
| - | - | - | - | - |
Equilibrado | (611.9) | (173.1) | (103.9) | - | (888.9) |
| (564.9) | (185.0) | (92.0) | - | (841.9) |
Reconciliation of reported basic and diluted earnings per share to adjusted earnings per share for the years ended 31 December 2023 and 31 December 2022
2023 | Ajustado 2023 | 2022 | Ajustado 2022 | |
$m | $m | $m | $m | |
Beneficio neto atribuible a los accionistas del Grupo | 130.3 | 274.1 | 62.9 | 256.8 |
Número | Número | |||
Promedio básico ponderado de acciones ordinarias en circulación | 2,038,653,228 | 2,023,839,657 | ||
Promedio ponderado diluido de acciones ordinarias en circulación | 2,052,589,260 | 2,040,247,468 | ||
Centavos por acción | Centavos por acción | Centavos por acción | Centavos por acción | |
Ganancias básicas por acción | 6.4 | 13.4 | 3.1 | 12.7 |
Ganancias diluidas por acción | 6.3 | 13.4 | 3.1 | 12.6 |
Adjusted diluted EPS has increased by 6.1% and is calculated as adjusted diluted EPS for the current period less adjusted diluted EPS for the prior year, divided by the prior year adjusted diluted EPS. This is calculated on actual unrounded numbers.
Reconciliation of Operating cash flow, Free cash flow to capital, Free cash flow to equity
Año terminado el 31 de diciembre | ||
| 2023 | 2022 |
| $m | $m |
Efectivo neto generado por operaciones | 490.6 | 384.5 |
Less: acquisition of property, plant and equipment and intangible assets | (129.2) | (144.2) |
Flujo de caja operativo1 | 361.4 | 240.3 |
Impuesto pagado | (35.9) | (52.9) |
Free cash flow to capital1 | 325.5 | 187.4 |
Intereses netos pagados | (65.6) | (49.9) |
Pago de pasivos por arrendamiento | (22.7) | (20.7) |
Amortización de la comisión de financiación | (2.8) | (6.6) |
Foreign exchange (loss) on cash and borrowings | (6.7) | (4.9) |
Ingresos por venta de propiedades, planta y equipo | 0.6 | - |
Flujo de caja libre a capital1 | 228.3 | 105.3 |
1. The cash flow measures have also been simplified. 'Net cash for cash conversion' has been renamed 'Operating cash flow' and 'Free cash flow (post-tax)' has been renamed 'Free cash flow to capital'. In addition, a new measure has been introduced, 'Free cash flow to equity' (as defined in the table above). The Directors consider that these changes result in consistency of cash flow measures and provide improved definition, clarity and insight.
Free cash flow to equity has increased by 116.8% to $228.3 million (2022: $105.3 million) and is calculated as the movement in free cash flow to equity year-on-year divided by the free cash flow to equity in the prior year. A reconciliation of free cash flow to equity to its closest IFRS measure is shown in the table above.
Reconciliation of reported and adjusted working capital movement
Año terminado el 31 de diciembre | ||
| 2023 | 2022 |
| $m | $m |
Reported working capital movement | (1.3) | (62.5) |
Increase/(decrease) in respect of acquisitions and divestitures | 3.1 | (39.2) |
(Decrease)/increase in termination benefits | (6.1) | 3.1 |
(Decrease) in respect of other adjusting items | (3.8) | - |
Movimiento de capital de trabajo ajustado | (8.1) | (98.6) |
Cash outflows from adjusting items
Año terminado el 31 de diciembre | ||
| 2023 | 2022 |
| $m | $m |
Ajustes por adquisiciones y desinversiones | (13.6) | (5.0) |
Beneficios por terminación y ajustes de costos relacionados | (3.4) | (10.2) |
Otros elementos de ajuste | (6.6) | - |
Cash outflows from adjusting items | (23.6) | (15.2) |
Conversión de flujo de caja
Año terminado el 31 de diciembre | ||
2023 | 2022 | |
$m | $m | |
Conversión de efectivo operativo1 | 83.7% | 59.5% |
|
| |
Equity cash conversion1 | 83.3% | 41.0% |
1. 'Adjusted cash conversion', previously calculated as Operating cash flow/Adjusted EBITDA, has been replaced by 'Operating cash conversion' and is calculated as Operating cash flow/Adjusting operating profit. In addition, a new measure has been introduced. 'Equity cash conversion' is calculated as Free cash flow to equity/Adjusted net profit. The Directors consider that these changes result in consistency of cash flow measures and provide improved definition, clarity and insight.
Estados financieros consolidados condensados
Cuenta de resultados consolidada
Por el año terminado el 31 de diciembre de 2023
2023 | 2022 | ||
Notas | $m | $m | |
Ingresos | 2 | 2,142.4 | 2,072.5 |
El costo de ventas | (941.8) | (968.6) | |
Beneficio bruto | 1,200.6 | 1,103.9 | |
Gastos de venta y distribución | (612.5) | (575.9) | |
gastos generales y administrativos | (212.9) | (214.9) | |
Gastos de investigación y desarrollo. | (110.0) | (92.0) | |
Otros gastos operacionales | 3 | (2.5) | (13.8) |
Beneficio operativo | 262.7 | 207.3 | |
Ingresos financieros | 4 | 5.2 | 5.5 |
Gastos financieros1 | 4 | (80.7) | (57.6) |
Movimiento del valor razonable de la contraprestación contingente1 | 13 | (24.6) | (45.1) |
Non-operating income/(expense), net1 | 5 | 4.8 | (28.2) |
Beneficio antes de impuestos sobre la renta | 167.4 | 81.9 | |
Ingreso por gastos de impuesto | 6 | (37.1) | (19.0) |
Beneficio neto | 130.3 | 62.9 | |
Ganancias por acción | |||
Utilidad básica por acción (centavos por acción) | 6.4 ¢ | 3.1 ¢ | |
Utilidad diluida por acción (centavos por acción) | 6.3 ¢ | 3.1 ¢ |
1 The comparatives have been re-presented as outlined in Note 1.5 to the Condensed Consolidated Financial Statements.
Todos los montos son atribuibles a los accionistas del Grupo y se derivan en su totalidad de operaciones continuas.
Declaración consolidada de ingreso comprensivo
Por el año terminado el 31 de diciembre de 2023
2023 | 2022 | ||
Notas | $m | $m | |
Beneficio neto |
| 130.3 | 62.9 |
Partidas que no serán reclasificadas posteriormente a la Cuenta de Resultados Consolidada |
|
| |
Remedición de planes de pensión de beneficios definidos, neto de impuestos | (0.2) | 8.4 | |
Fair value movement on equity investments | 9 | (7.8) | - |
Partidas que pueden ser reclasificadas posteriormente a la Cuenta de Resultados Consolidada |
| ||
Conversión de moneda extranjera | 54.9 | (113.6) | |
Realización de ajustes de conversión acumulados | - | 12.2 | |
Porción efectiva de cambios en el valor razonable de las coberturas de flujos de efectivo | 12 | 0.7 | (7.7) |
Cambios en el valor razonable de las coberturas de flujos de efectivo reclasificadas a la Cuenta de Resultados Consolidada | 12 | (0.8) | 16.5 |
Costos de cobertura | 12 | (0.5) | (1.1) |
Impuesto sobre la renta respecto de las partidas que pueden ser reclasificadas | 0.1 | 2.4 | |
Otros ingresos / (gastos) integrales | 46.4 | (82.9) | |
Total de ingresos / (gastos) integrales |
| 176.7 | (20.0) |
Todos los montos son atribuibles a los accionistas del Grupo y se derivan en su totalidad de operaciones continuas.
Estado de Situación Financiera Consolidado
Al 31 de diciembre de 2023
2023 | 2022 | ||
Notas | $m | $m | |
Activos | |||
Activos no corrientes | |||
Propiedad, planta y equipo. | 473.8 | 400.4 | |
Activos por derecho de uso | 74.7 | 79.4 | |
Activos intangibles1 | 935.3 | 924.9 | |
Goodwill1 | 1,298.8 | 1,224.6 | |
Inversión en activos financieros | 9 | 22.9 | 30.7 |
Activos por impuestos diferidos | 6 | 21.2 | 26.6 |
Activos financieros derivados | 12 | - | 0.2 |
Efectivo restringido | 5.3 | 7.3 | |
Otras cuentas por cobrar no corrientes | 11.7 | 8.6 | |
2,843.7 | 2,702.7 | ||
Activos circulantes |
| ||
Los inventarios | 396.1 | 336.9 | |
Cuentas comerciales y otras cuentas por cobrar1 | 333.7 | 339.3 | |
Impuesto corriente por cobrar1 | 16.5 | 24.7 | |
Activos financieros derivados | 12 | 13.6 | 26.4 |
Efectivo restringido | 12.5 | 18.2 | |
Efectivo y equivalentes de efectivo | 97.6 | 143.8 | |
870.0 | 889.3 | ||
los activos totales |
| 3,713.7 | 3,592.0 |
Patrimonio y pasivos |
|
|
|
Pasivo circulante |
|
|
|
Comerciales y otras cuentas a pagar | 388.7 | 346.6 | |
Pasivos por arrendamiento | 20.7 | 20.3 | |
Impuesto corriente por pagar | 26.6 | 33.5 | |
Pasivos financieros derivados | 12 | 16.7 | 32.5 |
Provisiones | 13 | 83.7 | 100.2 |
536.4 | 533.1 | ||
Pasivos no corrientes |
| ||
Préstamos | 11 | 1,226.9 | 1,211.9 |
Pasivos por arrendamiento | 64.8 | 68.0 | |
Pasivos por impuestos diferidos | 88.2 | 83.2 | |
Provisiones | 13 | 71.3 | 53.1 |
Pasivos financieros derivados | 12 | 0.9 | 0.3 |
Otros pasivos no corrientes | 32.5 | 32.7 | |
1,484.6 | 1,449.2 | ||
Pasivos totales | 2,021.0 | 1,982.3 | |
Activos netos | 1,692.7 | 1,609.7 | |
Equidad |
| ||
Capital social | 251.5 | 250.7 | |
Compartir premium | 181.0 | 165.7 | |
Acciones propias | (0.6) | (1.5) | |
Déficit retenido | (888.7) | (892.2) | |
Reserva de fusión | 2,098.9 | 2,098.9 | |
Reserva de traducción acumulada | (122.2) | (177.1) | |
Otras reservas | 172.8 | 165.2 | |
Equidad total | 1,692.7 | 1,609.7 | |
|
| ||
Total patrimonio y pasivos | 3,713.7 | 3,592.0 |
1 The comparatives have been re-presented as outlined in Note 1.5 to the Condensed Consolidated Financial Statements.
Estado de cambios en el patrimonio neto consolidado
Por el año terminado el 31 de diciembre de 2023
Capital social | Compartir premium | Acciones propias | Déficit retenido | Reserva de fusión | Reserva de traducción acumulada | Otras reservas | Total | ||
| Notas | $m | $m | $m | $m | $m | $m | $m | $m |
Al 1 de enero de 2022 | 247.0 | 142.3 | (2.2) | (842.0) | 2,098.9 | (75.7) | 126.5 | 1,694.8 | |
Beneficio neto | - | - | - | 62.9 | - | - | - | 62.9 | |
Otros (gastos) / ingresos integrales: | |||||||||
Ajuste por conversión de moneda extranjera, neto de impuestos | - | - | - | - | - | (113.6) | - | (113.6) | |
Realización de ajustes de conversión acumulados | - | - | - | - | - | 12.2 | - | 12.2 | |
Remedición de planes de pensión de beneficios definidos, neto de impuestos | - | - | - | - | - | - | 8.4 | 8.4 | |
Cambios en el valor razonable de las coberturas de flujos de efectivo, neto de impuestos | - | - | - | - | - | - | 10.1 | 10.1 | |
Otros (gastos) / ingresos integrales | - | - | - | - | - | (101.4) | 18.5 | (82.9) | |
Total (gastos) / ingresos integrales | - | - | - | 62.9 | - | (101.4) | 18.5 | (20.0) | |
Dividendos pagados | - | - | - | (88.1) | - | - | - | (88.1) | |
Dividendo Scrip | 1.1 | 23.4 | - | (24.5) | - | - | - | - | |
Asignación de acciones al Fideicomiso de Beneficios para Empleados | 2.6 | - | (2.6) | - | - | - | - | - | |
Pagos basados en acciones | - | - | - | - | - | - | 16.6 | 16.6 | |
Compartir adjudicaciones otorgadas | - | - | 3.3 | - | - | - | 2.9 | 6.2 | |
Beneficio de impuestos diferidos en exceso de los pagos basados en acciones | - | - | - | - | - | - | 0.2 | 0.2 | |
Transferencia entre reservas | - | - | - | (0.5) | - | - | 0.5 | - | |
Al 31 de diciembre de 2022 | 250.7 | 165.7 | (1.5) | (892.2) | 2,098.9 | (177.1) | 165.2 | 1,609.7 | |
Beneficio neto | - | - | - | 130.3 | - | - | - | 130.3 | |
Otros (gastos) / ingresos integrales: |
|
|
|
|
|
|
|
| |
Ajuste por conversión de moneda extranjera, neto de impuestos | - | - | - | - | - | 54.9 | - | 54.9 | |
Remedición de planes de pensión de beneficios definidos, neto de impuestos | - | - | - | - | - | - | (0.2) | (0.2) | |
Cambios en el valor razonable de las coberturas de flujos de efectivo, neto de impuestos | - | - | - | - | - | - | (0.5) | (0.5) | |
Cambios en el valor razonable de las inversiones de capital | 9 | - | - | - | - | - | - | (7.8) | (7.8) |
Otros ingresos / (gastos) integrales | - | - | - | - | - | 54.9 | (8.5) | 46.4 | |
Total de ingresos / (gastos) integrales | - | - | - | 130.3 | - | 54.9 | (8.5) | 176.7 | |
Dividendos pagados | 8 | - | - | - | (110.7) | - | - | - | (110.7) |
Dividendo Scrip | 8 | 0.8 | 15.3 | - | (16.1) | - | - | - | - |
Pagos basados en acciones | - | - | - | - | - | - | 14.5 | 14.5 | |
Compartir adjudicaciones otorgadas | - | - | 0.9 | - | - | - | 1.5 | 2.4 | |
Beneficio de impuestos diferidos en exceso de los pagos basados en acciones | - | - | - | - | - | - | 0.1 | 0.1 | |
Al 31 de diciembre de 2023 | 251.5 | 181.0 | (0.6) | (888.7) | 2,098.9 | (122.2) | 172.8 | 1,692.7 |
Estado consolidado de flujos de efectivo
Por el año terminado el 31 de diciembre de 2023
|
| 2023 | 2022 |
Notas | $m | $m | |
flujos de efectivo por actividades operacionales |
|
| |
Beneficio neto | 130.3 | 62.9 | |
Ajustes para |
|
| |
Depreciación de propiedades, planta y equipo | 37.5 | 39.7 | |
Depreciación de activos por derecho de uso | 22.7 | 22.1 | |
Amortización de activos intangibles | 154.6 | 147.4 | |
Impuesto sobre la renta | 6 | 37.1 | 19.0 |
Non-operating (income)/expense, net1 | 5 | (9.6) | 26.5 |
Movimiento del valor razonable de la contraprestación contingente | 13 | 24.6 | 45.1 |
Costos financieros, neto1 | 4 | 75.5 | 52.1 |
Pagos basados en acciones | 14.6 | 16.7 | |
Deterioro/baja de activos intangibles | - | 6.3 | |
Deterioro/baja de propiedades, planta y equipo | 2.7 | 9.2 | |
Deterioro/amortización de activos por derecho de uso | 1.9 | - | |
| |||
Variación de activos y pasivos: |
| ||
Los inventarios | (49.4) | (36.3) | |
Cuentas comerciales y otras cuentas por cobrar | 18.7 | (54.3) | |
Activos financieros derivados | 11.5 | (9.3) | |
Otras cuentas por cobrar no corrientes | (1.1) | 3.0 | |
Efectivo restringido | 7.8 | (11.8) | |
Comerciales y otras cuentas a pagar1 | 21.1 | 14.7 | |
Pasivos financieros derivados | (13.4) | 20.7 | |
Provisiones 1 | 4.8 | 9.8 | |
Otras cuentas por pagar no corrientes1 | (1.3) | 1.0 | |
Efectivo neto generado por operaciones | 490.6 | 384.5 | |
Interés recibido | 5.2 | 5.5 | |
Pago interesado | (70.8) | (55.4) | |
Pago de la contraprestación contingente derivada de adquisiciones | 13 | (21.7) | - |
Impuestos a la renta pagados | (35.9) | (52.9) | |
Efectivo neto generado por actividades operativas |
| 367.4 | 281.7 |
| |||
Flujos de efectivo de actividades de inversión |
|
| |
Adquisición de propiedades, planta y equipo y activos intangibles | (129.2) | (144.2) | |
Ingresos por venta de propiedades, planta y equipo | 0.6 | - | |
Adquisiciones, neto de efectivo adquirido. | 10 | (84.4) | (123.3) |
Pago de la contraprestación contingente derivada de adquisiciones | 13 | (73.0) | (50.0) |
Net cash inflow/(outflow) arising from divestitures | 0.3 | (0.1) | |
Inversión en activos financieros | 9 | - | (30.7) |
Efectivo neto utilizado en actividades de inversión |
| (285.7) | (348.3) |
Flujos de efectivo de actividades de financiación |
|
| |
Reembolso de préstamos | - | (842.5) | |
Producto de préstamos | 11 | 9.4 | 714.2 |
Pago de pasivos por arrendamiento | (22.7) | (20.7) | |
Dividendos pagados | 8 | (110.7) | (88.1) |
Efectivo neto utilizado en actividades de financiación. |
| (124.0) | (237.1) |
Cambio neto en efectivo y equivalentes de efectivo |
| (42.3) | (303.7) |
Efectivo y equivalentes de efectivo al inicio del año | 143.8 | 463.4 | |
Efecto de las variaciones del tipo de cambio sobre el efectivo y equivalentes de efectivo | (3.9) | (15.9) | |
Efectivo y equivalentes de efectivo al final del año | 97.6 | 143.8 |
1 The comparatives have been re-presented as outlined in Note 1.5 to the Condensed Consolidated Financial Statements.
1. Base de preparación
1.1 Información general
Convatec Group Plc (the Company) is a public limited company incorporated in the United Kingdom under the Companies Act of 2006. The Company's registered office is 7th Floor 20 Eastbourne Terrace, London, W2 6LG, United Kingdom.
The Company and its subsidiaries (collectively, the Group) are a global medical products and technologies group focused on therapies for the management of chronic conditions, with leading market positions in advanced wound care, ostomy care, continence care and infusion care.
The announcement is based on the Group's Consolidated Financial Statements which have been prepared in accordance with United Kingdom adopted international accounting standards and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The Financial Statements are presented in US dollars (USD), reflecting the profile of the Group's revenue and operating profit, which are primarily generated in US dollars and US dollar-linked currencies. All values are rounded to $0.1 million except where otherwise indicated.
La información financiera establecida en este anuncio no constituye las cuentas estatutarias del Grupo para el año terminado el 31 de diciembre de 2023 y 2022, pero se deriva de esas cuentas. Las cuentas estatutarias de 2022 se han entregado al Registrador de Empresas y las de 2023 se entregarán después de la Asamblea General Anual de la Compañía. Los informes del auditor sobre las cuentas de 2023 y 2022 no tenían salvedades, no llamaban la atención sobre ningún asunto a modo de énfasis sin calificar su informe y no contenían una declaración en virtud de la sección 498(2) o (3) de la Ley de Sociedades de 2006.
1.2 Juicios contables críticos y fuentes clave de incertidumbre en la estimación
The preparation of financial statements, in conformity with United Kingdom adopted international accounting standards and International Financial Reporting Standards (IFRS), requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported value of assets and liabilities, income and expense. Actual results may differ from these estimates or judgements of likely outcome. Management regularly reviews, and revises as necessary, the accounting judgements that significantly impact the amounts recognised in the Consolidated Financial Statements and the sources of estimation uncertainty that are considered to be key estimates due to their potential to give rise to material adjustments in the Group's Consolidated Financial Statements within the next financial year.
In preparing the Consolidated Financial Statements, no critical accounting judgements have been identified. Management have identified one key source of estimation uncertainty in respect of the provision for contingent consideration on acquisitions. The nature of the uncertainty arises from both the estimation of the undiscounted amounts expected to be paid and the estimation of the timing of discrete payments.
The underlying drivers of the contingent consideration are determined in accordance with the contractual terms of the purchase agreements for each relevant acquisition and may vary depending on the amounts or timing of product revenues (including future revenues, which are inherently uncertain), particularly when it relates to products which are relatively new to market or not yet launched), the future achievement of regulatory clearance for new products, or other uncertainties deriving from the purchase agreement, which may be subject to negotiation. The Group estimates provisions for contingent consideration based on information available at the balance sheet date that includes forecasts that run up to 20 years into the future and expectations of when future events that trigger payments will happen. Future payment forecasts are discounted to present value in accordance with the requirements of NIC 37 Provisiones, Pasivos Contingentes y Activos Contingentes.
Actual results may differ from estimates or there may be delays to estimated timetables for regulatory clearances which would lead to a change in estimate of provisions for contingent consideration and may vary materially within the next financial year. At 31 December 2023 the discounted estimate of provisions for contingent consideration was $138.0 million (see Note 10 - Acquisitions). Management has determined that a reasonable possible range of discounted outcomes within the next financial year is $50.0 million to $156.0 million.
1.3 Empresa en marcha
As discussed in the Financial review on pages 9 to 20, the overall financial performance of the business remains strong with a robust liquidity position.
As at 31 December 2023, the Group held cash and cash equivalents of $97.6 million (31 December 2022: $143.8 million), and borrowings of $1,226.9 million (31 December 2022: $1,211.9 million). The borrowings as at 31 December 2023 comprised of senior notes of $500.0 million, term loan of $250.0 million, and drawn multicurrency revolving credit facilities of $490.6 million, net of unamortised financing fees of $13.7 million. During the year, the term of the $950.0 million multicurrency revolving credit facility was extended by an additional year and is now committed to November 2028. The term loan and senior notes remain repayable in 2027 and 2029 respectively. $459.4 million of the multicurrency revolving credit facilities remained undrawn as at 31 December 2023, which together with cash and cash equivalents of $97.6 million, provided the Group with total liquidity of $557.0 million as at that date (2022: $616.6 million). The principal financial covenants remain unchanged and as at 31 December 2023, the Group was in compliance with its financial covenants.
In preparing their assessment of going concern, the Directors have considered available cash resources, financial performance and forecast performance, including strategy delivery, together with the Group's financial covenant compliance requirements and principal risks and uncertainties. The Directors have used cash flow forecasts and actual performance in 2023, the Board approved 2024 budget and longer-term strategic plan as foundations. The forecasts reflected the full potential funding requirements in relation to the remaining estimated contingent consideration payable in relation to the Group's acquisitions. The Directors have considered a going concern period to 31 December 2025, which is at least 12 months from the date of approval of the Consolidated Financial Statements.
Accordingly, at the time of approving these Consolidated Financial Statements, the Directors have a reasonable expectation that the Group and the Company will have adequate liquid resources to meet their respective liabilities as they become due and will be able to sustain its business model, strategy and operations and remain solvent for a period of at least 12 months from 5 March 2024.
1.4 Normas contables
Nuevas normas, interpretaciones y modificaciones aplicadas por primera vez
El 1 de enero de 2023, el Grupo adoptó las siguientes modificaciones que son obligatoriamente efectivas para el período que comienza el 1 de enero de 2023:
· Información a revelar sobre políticas contables (Modificaciones a la NIC 1 y al Documento de práctica de las NIIF 2);
· Definición de Estimaciones Contables (Modificaciones a la NIC 8);
· Impuesto Diferido Relacionado con Activos y Pasivos que surgen de una Transacción Única (Modificaciones a la NIC 12);
· IFRS 17 - Insurance contracts; and
· International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12).
La adopción durante el ejercicio de las modificaciones e interpretaciones no ha tenido un impacto significativo en los Estados Financieros Consolidados.
Aparte de estos cambios, las políticas contables establecidas en las Notas han sido aplicadas consistentemente a los dos años presentados en estos Estados Financieros Consolidados.
Nuevas normas, interpretaciones y enmiendas aún no efectivas
Hay una serie de normas, modificaciones a las normas e interpretaciones que han sido emitidas por el IASB que son efectivas en períodos contables futuros que el Grupo ha decidido no adoptar anticipadamente.
Las siguientes modificaciones son efectivas para el período que comienza el 1 de enero de 2024:
· NIIF 16 Arrendamientos (Modificación - Responsabilidad en una venta con arrendamiento posterior);
· NIC 1 Presentación de Estados Financieros (Modificación - Clasificación de Pasivos como Corrientes o No Corrientes); y
· IAS 1 Presentation of Financial Statements (Amendment - Non-current liabilities with Covenants).
El Grupo actualmente está evaluando el impacto de estas nuevas normas y modificaciones contables y no cree que tengan un impacto material en el Grupo.
Otras interpretaciones y modificaciones
Además de estas normas emitidas, hay una serie de otras interpretaciones, modificaciones y recomendaciones de proyectos de mejora anual que se han emitido pero que aún no han entrado en vigencia y que aún no han sido adoptadas por el Grupo porque la aplicación aún no es obligatoria o no son relevantes. para el Grupo.
1.5 Prior year re-presentation
Certain line items in the primary statements have been disaggregated to provide greater clarity, and accordingly, the corresponding 2022 comparative amounts have been re-presented for consistency and comparability between periods.
Within the Consolidated Income Statement, the fair value movement of contingent consideration has been presented separately. The 2022 comparative amount includes $15.6 million that was previously included within finance expense, and $29.5 million previously included within non-operating income/(expense), net.
Within the Consolidated Statement of Financial Position, intangible assets of $924.9 million and goodwill of $1,224.6 million are now disclosed separately; and current tax receivable of $24.7 million is disclosed separately from trade and other receivables.
Within the Consolidated Statement of Cash Flows, trade and other payables and other non-current payables have been re-presented to separately disclose the cash impact of movements in provisions of $9.8 million.
There is no impact on net profit, net assets, cash flows or any subtotals presented previously.
2. Ingresos e información segmentaria
El Directorio considera que el negocio del Grupo es una entidad de un solo segmento dedicada al desarrollo, fabricación y venta de productos, servicios y tecnologías médicas. Las funciones de I+D, fabricación y soporte central se gestionan globalmente para el Grupo, apoyando todas las categorías de ventas. Los ingresos se gestionan tanto por categoría como por región. Esta nota presenta el desempeño y las actividades del Grupo como un solo segmento.
Las páginas 4 a 5 de la Revisión del Director Ejecutivo brindan más detalles sobre los ingresos por categoría. |
During the year ended 31 December 2023, management reassessed its Chief Operating Decision Maker (CODM) and determined that Convatec's Executive Leadership Team (CELT) is now the CODM and no longer the Chief Executive Officer. The CODM is the function that allocates resources and evaluates the Group's global product portfolios on a revenue basis and evaluates profitability and associated investment on an enterprise-wide basis due to shared infrastructures and support functions between the categories. The financial information provided to CELT for decision-making purposes is produced on both a category and geographic basis. Resources are allocated on a Group-wide basis, with a focus on both category and the key markets but primarily based on the merits of individual proposals. The change in CODM does not impact the Group's single segment assessment.
Ingresos por categoría
The Group generates revenue across four major product categories. The following chart sets out the Group's revenue for the year ended 31 December by category:
2023 | 2022 | |
| $m | $m |
Cuidado avanzado de heridas | 695.3 | 620.7 |
Cuidado de la ostomía | 608.3 | 583.0 |
Cuidado de la continencia | 457.2 | 425.4 |
Cuidado de la infusión | 370.9 | 341.1 |
Ingresos excluyendo salida de atención hospitalaria | 2,131.7 | 1,970.2 |
Ingresos por salida de atención hospitalaria1 | 10.7 | 102.3 |
Total | 2,142.4 | 2,072.5 |
1. Following the exit of hospital care in 2022, effective from 1 January 2023, Flexi-SealTM, our faecal management system, moved from the Continence & Critical Care category to the Ostomy Care category. The remaining industrial sales, predominantly continence-related supplies for B2B customers, moved from Infusion Care to Continence Care. Continence & Critical Care has been renamed to Continence Care. The 2022 comparatives have been re-presented to reflect these changes and to separately disclose revenue associated with the hospital care exit.
Información geográfica
Mercados geográficos
The following chart sets out the Group's revenue by geographic market in which third party customers are located:
2023 | 2022 | |
| $m | $m |
Europa | 647.8 | 688.6 |
Norteamérica | 1,186.0 | 1,090.3 |
Resto del mundo (RoW)1 | 308.6 | 293.6 |
Total | 2,142.4 | 2,072.5 |
1. Rest of World (RoW) comprises all countries in Asia Pacific, Latin America (including Mexico and the Caribbean), the Middle East (including Turkey) and Africa.
3. Otros gastos operativos
Los otros gastos operativos fueron los siguientes:
2023 | 2022 | |
$m | $m | |
Deterioro de activos intangibles | - | 1.4 |
Deterioro de propiedades, planta y equipo y activos por derecho de uso | 2.5 | 12.4 |
2.5 | 13.8 |
Other operating expenses in the year consisted of $2.9 million of impairments in respect of property, plant and equipment and right-of-use assets as a result of the Group's transformation projects, offset by $0.4 million reversal of property, plant and equipment that was impaired in 2022 from the hospital care exit. The $13.8 million in the year ended 31 December 2022 related to the impairments of property, plant and equipment and intangible assets arising from the exit from hospital care and industrial sales-related activities.
4. Ingresos y gastos financieros
Finance expenses arise from interest on the Group's borrowings and lease liabilities. Finance income arises from interest earned on investment of surplus cash. |
Los costos financieros, netos por el año terminado el 31 de diciembre fueron como sigue:
| 2023 | 2022 |
| $m | $m |
Ingresos financieros | ||
Ingresos por intereses sobre efectivo y equivalentes de efectivo | 5.2 | 5.5 |
Ingresos financieros totales | 5.2 | 5.5 |
| ||
Gastos financieros |
| |
Gastos por intereses sobre préstamos | (75.2) | (46.4) |
Otros cargos relacionados con la financiación1 | (7.2) | (8.2) |
Gastos por intereses en derivados de tipos de interés | - | (1.4) |
Gastos por intereses sobre pasivos por arrendamiento | (3.5) | (3.3) |
Interés capitalizado2 | 5.4 | 2.0 |
Otros costos financieros | (0.2) | (0.3) |
Gasto financiero total | (80.7) | (57.6) |
Costos financieros, neto | (75.5) | (52.1) |
1. Other financing-related fees include the amortisation of deferred financing fees associated with the multicurrency revolving credit facilities, term loan facilities and senior notes.
2. Capitalised interest was calculated using the Group's weighted average interest rate over the year of 5.7% (2022: 3.4%), and will be treated as tax deductible.
5. Non-operating income/(expense), net
Non-operating income/(expense), net was as follows:
2023 | 2022 | ||
| Notas | $m | $m |
Ganancia / (pérdida) cambiaria neta1 | 3.7 | (13.5) | |
Realización de ajustes de conversión acumulados | - | (12.2) | |
(Loss)/gain on foreign exchange forward contracts | 12 | (4.3) | 15.8 |
Gain/(loss) on foreign exchange cash flow hedges | 12 | 0.8 | (16.5) |
Gain/(loss) on divestiture2 | 3.9 | (2.0) | |
Otros ingresos no operativos | 0.7 | 0.2 | |
Non-operating income/(expense), net3 |
| 4.8 | (28.2) |
1. The foreign exchange gain in 2023 primarily relate to the foreign exchange impact on intercompany transactions, including loans transacted in non-functional currencies. The Group uses foreign exchange forward contracts to manage these exposures in accordance with the Group's foreign exchange risk management policy.
2. As part of the hospital care exit, the UnoMeter? trademarks were sold during the year, resulting in a gain of $3.9 million (2022: loss of $2.0 million arose from the sale of a subsidiary as part of the hospital care exit).
3. Of the total net non-operating expense, $4.8 million (2022: $1.7 million) relates to mark-to-market derivatives, the cash flow impact of which has been shown within the changes in working capital section of the Consolidated Statement of Cash Flows.
6. Income taxes
La nota a continuación establece los cargos por impuestos corrientes y diferidos, que juntos componen el gasto por impuestos total en el Estado de Resultados Consolidado. |
Impuestos 6.1
El gasto por impuesto sobre beneficios del Grupo es la suma del total del gasto por impuesto corriente y diferido.
2023 | 2022 | |
$m | $m | |
Impuesto corriente |
| |
Fiscalidad en el extranjero | 46.1 | 46.8 |
Ajuste a años anteriores | (5.5) | (2.0) |
Gasto total por impuestos corrientes | 40.6 | 44.8 |
Impuesto diferido |
| |
Originación y reversión de diferencias temporarias | 2.0 | (3.7) |
Cambio en las tasas impositivas | 1.6 | (3.2) |
Ajuste a años anteriores | (4.5) | 1.2 |
Beneficio de pérdidas fiscales previamente no reconocidas | (2.6) | (20.1) |
Beneficio total de impuestos diferidos | (3.5) | (25.8) |
Ingreso por gastos de impuesto | 37.1 | 19.0 |
The adjustment to prior years included a net tax benefit of $15.1 million following the successful resolution of an uncertain tax position.
In 2022, the deferred tax movement included a benefit of $20.1 million in respect of the recognition of previously unrecognised tax losses in the US following the acquisition of Triad Life Sciences Inc.
6.2 Conciliación de la tasa impositiva efectiva
El tipo impositivo efectivo para el ejercicio finalizado el 31 de diciembre de 2023 fue del 22.2 %, en comparación con el 23.2 % del ejercicio finalizado el 31 de diciembre de 2022.
Conciliación de impuestos con la tasa legal del Reino Unido
La siguiente tabla concilia la ganancia del Grupo antes de impuestos sobre la renta a la tasa legal del Reino Unido con el gasto total del impuesto sobre la renta del Grupo:
2023 | 2022 | |||
$m | $m | |||
Beneficio antes de impuestos sobre la renta | 167.4 |
| 81.9 | |
|
| |||
Beneficio antes de impuestos sobre la renta multiplicado por la tasa del impuesto de sociedades en el Reino Unido del 23.52 % (2022: 19.0 %) | 39.4 |
| 15.6 | |
Diferencia entre las tasas impositivas del Reino Unido y del extranjero1 | 1.6 |
| 3.0 | |
Artículos no deducibles/no imponibles | 7.2 |
| 14.4 | |
Change in recognition of deferred tax assets | 2.6 |
| 1.0 | |
Reconocimiento de activos por impuestos diferidos de EE. UU. previamente no reconocidos | (2.6) |
| (20.1) | |
Movimiento en la provisión para posiciones fiscales inciertas | (17.5) |
| 2.5 | |
Otro2 | 6.4 |
| 2.6 | |
Gasto por impuesto sobre beneficios y tipo impositivo efectivo | 37.1 | 22.2% | 19.0 | 23.2% |
1. Esto incluye cambios en las tasas impositivas basadas en la legislación sustancialmente promulgada en varias jurisdicciones fiscales al 31 de diciembre.
2. Includes tax on unremitted earnings and prior year adjustments.
El Grupo tiene operaciones en todo el mundo y, por lo tanto, está sujeto a varios factores que pueden afectar los cargos fiscales futuros, principalmente los niveles y la combinación de rentabilidad en diferentes jurisdicciones fiscales, las regulaciones de precios de transferencia, las tasas impositivas impuestas y las reformas del régimen fiscal. El cálculo del gasto fiscal del Grupo implica un grado de estimación y juicios respecto de determinadas partidas cuyo tratamiento fiscal no puede determinarse definitivamente hasta que no se haya alcanzado una resolución con la autoridad fiscal competente, en concreto en materia tributaria abierta y de precios de transferencia. Debido al alto volumen de transacciones entre compañías, el modelo comercial en evolución del Grupo y la creciente complejidad en la interacción entre múltiples leyes y regulaciones fiscales, los precios de transferencia requieren juicio para determinar la asignación adecuada de ganancias entre jurisdicciones. El Grupo evaluó el impacto de los cambios en curso en el modelo operativo del Grupo, la documentación de respaldo para las posiciones de impuestos y precios de transferencia, los desafíos existentes de las autoridades fiscales y la probabilidad de nuevos desafíos por parte de las autoridades fiscales.
The Group continues to believe it has made adequate provision for uncertain tax positions on open issues in accordance with IFRIC 23 Uncertainty over Income Tax Treatments. The ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of discussions with relevant tax authorities or, where applicable, appeal proceedings. The movement includes resolutions of uncertain tax positions in the year.
The Group is monitoring tax reforms driven by the OECD's BEPS Pillar One and Pillar Two to reform international taxation rules. The Group has assessed the potential tax impact based on OECD model rules and draft and substantively enacted legislation in jurisdictions in which the Group operates and expects the tax impact to not be material in the foreseeable future. The United Kingdom enacted Pillar Two rules in the UK Finance (No.2) Act 2023 in 2023. This has no impact on the Group's results for the year ended 31 December 2023. The Group has applied the temporary exception as detailed in the IASB announcement "International Tax Reform - Pillar Two Model Rules", which amended IAS 12 Income Taxes, and therefore has not recognised nor disclosed information about deferred tax assets and liabilities related to Pillar Two income taxes.
7. Beneficio por acción
Basic earnings per share is calculated based on the Group's net profit for the year attributable to shareholders divided by the weighted average number of ordinary shares in issue during the year. The weighted average number of shares is net of shares purchased by the Group and held as own shares.
Diluted earnings per share take into account the dilutive effect of all outstanding share options priced below the market price in arriving at the number of shares used in its calculation. | |||
2023 | 2022 |
| |
Net profit attributable to the shareholders of the Group ($m) | 130.3 | 62.9 |
|
Basic weighted average ordinary shares in issue (number) | 2,038,653,228 | 2,023,839,657 |
|
Dilutive impact of share awards (number) | 13,936,032 | 16,407,811 |
|
Diluted weighted average ordinary shares in issue (number) | 2,052,589,260 | 2,040,247,468 |
|
Utilidad básica por acción (centavos por acción) | 6.4¢ per share | 3.1¢ per share |
|
Utilidad diluida por acción (centavos por acción) | 6.3¢ per share | 3.1¢ per share |
|
The calculation of diluted earnings per share does not contain any share options that were non-dilutive for the year (2022: 404,241), because the average market price of the Group's ordinary shares exceeded the exercise price (2022: the exercise price exceeded the average market price of the Group's ordinary shares).
8. Dividendos
Los dividendos pagados y propuestos fueron los siguientes:
Peniques por acción | Centavos por acción | Total | Asentado en efectivo | Liquidado vía scrip | No de acciones de scrip emitidas | |
|
|
| $m | $m | $m |
|
Dividendo final 2021 | 3.161 | 4.154 | 77.8 | 58.9 | 18.9 | 7,192,010 |
Dividendo a cuenta 2022 | 1.410 | 1.717 | 34.8 | 29.2 | 5.6 | 2,107,103 |
Pagado en 2022 | 4.571 | 5.871 | 112.6 | 88.1 | 24.5 | 9,299,113 |
Dividendo final 2022 | 3.657 | 4.330 | 92.4 | 87.7 | 4.7 | 1,717,549 |
Dividendo a cuenta 2023 | 1.380 | 1.769 | 34.4 | 23.0 | 11.4 | 4,199,962 |
Pagado en 2023 | 5.037 | 6.099 | 126.8 | 110.7 | 16.1 | 5,917,511 |
Dividendo complementario 2023 propuesto | 3.517 | 4.460 | 91.4 |
|
|
|
The Company previously operated a scrip dividend scheme, allowing shareholders to elect to receive their dividend in the form of new fully paid ordinary shares. During 2023, the Board took the decision to terminate the scrip dividend option.
El dividendo final propuesto para 2023, que se distribuirá el 23 de mayo de 2024 a los accionistas inscritos en el registro al cierre de operaciones el 26 de abril de 2024, se basa en el capital social emitido y totalmente pagado al 31 de diciembre de 2023 y está sujeto a la aprobación de los accionistas. en la Junta General Anual del 16 de mayo de 2024. El dividendo se declarará en dólares estadounidenses y se pagará en libras esterlinas al tipo de cambio elegido de $1.268/£1.00 determinado el 5 de marzo de 2024.
The interim and final dividends for 2023 give a total dividend for the year of 6.229 cents per share (2022: 6.047 cents per share).
9. Inversión en activos financieros
The investment is in relation to the Group's investment in BlueWind Medical Limited in 2022 and the Group considers this investment to be strategic in nature and it is not held for trading.
The Group made an irrevocable election on initial recognition to designate the investment at fair value through other comprehensive income (FVOCI). It was initially recorded at fair value plus transaction costs and will be remeasured at subsequent reporting dates to fair value. The fair value of the investment at 31 December 2023 was $22.9 million (31 December 2022: $30.7 million), with the movement of $7.8 million taken to the Statement of Other Comprehensive Income, within the 'Fair value movement on equity investments' line. No dividends were recognised during the period.
In line with IFRS 13 Fair Value Measurement, this investment has been classified as Level 3 in the fair value hierarchy as its measurement is derived from significant unobservable inputs by reference to available information, including the current market value of similar instruments, recent financing rounds and discounted cash flows of the underlying net assets.
The fair value of the investment has been determined by using an average of three valuation methodologies, those being the precedent transaction method, the income approach method and the probability-weighted expected return model. The table below summarises the various methodologies used by the Group to fair value the investment, the inputs and the sensitivities applied.
10. Adquisiciones
During the year to 31 December 2023, the Group completed the acquisitions of: (1) Starlight Science Limited (Starlight), a pre-commercial UK-based company. (2) A Better Choice Medical Supply LLC (ABCMS), a US-based intermittent catheter provider. (3) All American Medical Supply Corp (AAMS), a New York home supplier of urinary catheters and compression stockings. This note provides details of the transactions and the acquisition accounting that has been recorded to reflect the fair value of assets acquired and liabilities assumed as well as the intangible assets and goodwill recognised upon acquisition. This note also provides details of any fair value changes identified post-acquisition in respect of previous acquisitions that the Group has completed. |
Starlight Science Limited (luz de las estrellas)
On 18 April 2023, the Group completed its acquisition of 100% of the share capital of Starlight Science Limited (Starlight), a UK-based company owned by 30 Technology Limited. The acquisition of Starlight included the anti-infective nitric-oxide technology platform and new product pipeline, which complements the Group's Advanced Wound Care portfolio and strengthens the Group's ability to provide best-in-class solutions for patients.
In addition to the initial consideration of $56.7 million (£45.3 million), the sellers may earn contingent consideration up to a maximum of $163.9 million (£131.0 million), in the form of (i) milestone payment of $58.8 million (£47.0 million) due upon regulatory clearances in the US and Europe; and (ii) earnout payments based on sales of products over the lifetime of the acquired patents, with the maximum earnout capped at $105.1 million (£84.0 million).
The provisional discounted fair value of the contingent consideration at the date of acquisition was $66.7 million, discounted at 19.1%. Following completion of acquisition accounting, any changes in the fair value of the contingent consideration will be recorded in the Consolidated Income Statement in accordance with the Group's accounting policies.
A Better Choice Medical Supply LLC (ABCMS)
On 5 July 2023, the Group completed its acquisition of 100% of the share capital of A Better Choice Medical Supply LLC (ABCMS), a US-based intermittent catheter provider, to further strengthen the Group's Home Service Group. The company was founded in 2008 and is based out of White Lake, Michigan. The consideration for the acquisition was $26.6 million which included $3.0 million of deferred consideration paid into escrow. There is no earn out associated with this acquisition.
All American Medical Supply Corp (AAMS)
On 4 October 2023, the Group completed its acquisition of 100% of the share capital of All American Medical Supply Corp (AAMS), New York-focused home supplier of urinary catheters and compression stockings, to further strengthen the Group's Home Service Group. The company was founded in 2009 and is based out of Long Island, New York. The consideration for the acquisition was $1.5 million which included $0.3 million of deferred consideration paid into escrow. There is no earn out associated with this acquisition.
Activos adquiridos y pasivos asumidos
Each of the transactions meet the definition of a business combination and have been accounted for under the acquisition method of accounting. The following table summarises the provisional fair values of the assets acquired and liabilities assumed as at the acquisition dates:
Luz de las estrellas | ABCMS | All American | Total | |
Provisional | Provisional | Provisional | Provisional | |
| $m | $m | $m | $m |
Activos no corrientes |
|
|
|
|
Propiedad, planta y equipo | 0.4 | - | - | 0.4 |
Activos por derecho de uso | 1.3 | 0.3 | - | 1.6 |
Activos intangibles | 112.5 | 4.3 | - | 116.8 |
Activos circulantes | - | |||
Cuentas comerciales y otras cuentas por cobrar | 0.1 | 0.6 | 0.1 | 0.8 |
Efectivo y equivalentes de efectivo | - | 0.2 | - | 0.2 |
Total activos adquiridos | 114.3 | 5.4 | 0.1 | 119.8 |
|
|
|
|
|
Pasivo circulante |
|
|
|
|
Comerciales y otras cuentas a pagar | (0.1) | (0.2) | - | (0.3) |
Pasivos por arrendamiento | (0.2) | - | - | (0.2) |
Pasivos no corrientes | - | |||
Pasivos por arrendamiento | (1.1) | (0.3) | - | (1.4) |
Pasivos por impuestos diferidos | (12.5) | - | - | (12.5) |
Pasivos totales asumidos | (13.9) | (0.5) | - | (14.4) |
Activos netos adquiridos | 100.4 | 4.9 | 0.1 | 105.4 |
Goodwill | 23.0 | 21.5 | 1.4 | 45.9 |
Total | 123.4 | 26.4 | 1.5 | 151.3 |
Contraprestación inicial en efectivo | 56.7 | 23.5 | 1.2 | 81.4 |
Consideración de compra diferida pagada en depósito en garantía1 | - | 3.0 | 0.3 | 3.3 |
Ajuste de capital de trabajo2 | - | (0.1) | - | (0.1) |
Consideración contingente | 66.7 | - | - | 66.7 |
Consideración total | 123.4 | 26.4 | 1.5 | 151.3 |
Análisis de salida de caja en el Estado de Flujos de Efectivo Consolidado
Luz de las estrellas | ABCMS | All American | Total | |
Provisional | Provisional | Provisional | Provisional | |
| $m | $m | $m | $m |
Contraprestación inicial en efectivo | 56.7 | 23.5 | 1.2 | 81.4 |
Consideración de compra diferida pagada en depósito en garantía1 | - | 3.0 | 0.3 | 3.3 |
Ajuste de capital de trabajo2 | - | (0.1) | - | (0.1) |
Efectivo y equivalentes de efectivo adquiridos | - | (0.2) | - | (0.2) |
Flujo de salida de efectivo neto de adquisiciones, neto de efectivo adquirido | 56.7 | 26.2 | 1.5 | 84.4 |
1. $3.0 million for the acquisition of ABCMS and $0.3 million for the acquisition of All American was paid on closing into escrow as security and indemnity by the sellers for their obligations under the Merger Agreements. The escrow amounts are expected to be released within 2 years of the respective acquisition dates, subject to terms specified in the Merger Agreements.
2. This is the Group's calculation of the working capital adjustment and forms part of the initial consideration. The final amount was determined in accordance with the terms of the Merger Agreement and was finalised and paid by the reporting date.
The fair values of the assets acquired and liabilities assumed are provisional at 31 December 2023. The Group will finalise these amounts as it obtains the information necessary to complete the measurement process. Any changes resulting from facts and circumstances that existed as of the acquisition dates may result in retrospective adjustments to the provisional amounts recognised at the acquisition date. The Group will finalise these amounts no later than one year from the acquisition dates.
The provisional fair value of trade and other receivables amounted to $0.8 million, with a gross contractual amount of $0.9 million. At the acquisition date, the Group's best estimate of the contractual cash flows expected not be collected amounted to $0.1 million.
The goodwill recorded, which is not deductible for tax purposes, represents the cost savings, operating synergies and future growth opportunities expected to result from combining the operations of the acquisitions with those of the Group.
The Starlight acquisition is included in the Advanced Wound Care CGU group, whilst ABCMS and AAMS are included in the Continence Care CGU group.
Costos relacionados con la adquisición
The Group incurred $6.2 million of acquisition-related costs directly related to the acquisitions completed or aborted in the year ended 31 December 2023, primarily in respect of legal and advisers' fees. The acquisition-related costs have been recognised in general and administrative expenses in the Consolidated Income Statement.
Ingresos y ganancias
As Starlight is in a pre-commercial state, there is no revenue to date. The loss for the period from the acquisition date to 31 December 2023 was $2.5 million, before recognising acquisition-related intangible asset amortisation charges of $6.0 million. If the acquisition had been completed at 1 January 2023, reported Group revenue would have remained unchanged and the Group profit for the period would have been $0.6 million lower for the year ended 31 December 2023, before recognising acquisition-related intangible asset amortisation additional charges of $6.0 million.
The revenue of ABCMS for the period from the acquisition date to 31 December 2023 was $3.5 million and net profit for the period was $1.6 million, before recognising acquisition-related intangible asset amortisation charges of $0.7 million. If the acquisition had been completed on 1 January 2023, reported Group revenue would have been $4.3 million higher and Group profit for the year would have been $0.8 million higher, before recognising acquisition-related intangible asset amortisation charges of $0.7 million.
The revenue of AAMS for the period from the acquisition date to 31 December 2023 was $0.9 million and net profit for the period was $0.4 million. No intangible assets were identified during the purchase price allocation therefore there is no acquisition-related intangible asset amortisation charge. If the acquisition had been completed at 1 January 2023, reported Group revenue would have been $0.7 million higher and net profit would have remained unchanged.
Valor razonable de la contraprestación contingente a la fecha de presentación
Contingent consideration arising on business combinations is classified as a recurring fair value measurement within Level 3 of the fair value hierarchy, in line with IFRS 13 Fair Value Measurements. Key unobservable inputs in respect of the Group's acquisitions include actual results, management forecasts and an appropriate discount rate.
As at 31 December 2023, the discounted fair value of the contingent consideration payable in respect of the Group's acquisitions was $138.0 million (2022: $140.0 million).
Management has determined that the potential range of undiscounted outcomes at 31 December 2023 is between $52.4 million and $265.4 million, from a maximum undiscounted amount of $354.2 million.
The table below shows an indicative basis of the sensitivity to the income statement and balance sheet at 31 December 2023.
| Pronóstico de ventas |
| Tasa de descuento | ||||||
5% | 10% | - 5% | - 10% |
| 1% | 2% | - 1% | - 2% | |
Increase/(decrease) in financial liability and loss/(gain) in income statement | 8.3 | 16.9 | (8.3) | (16.5) | (2.3) | (4.4) | 2.4 | 5.0 |
11. Préstamos
Las fuentes de endeudamiento del Grupo con fines de financiación y liquidez se derivan de notas senior y líneas de crédito, incluida una línea de crédito renovable comprometida. |
La deuda del Grupo a 31 de diciembre es la siguiente:
2023 | 2022 | |||
| Año de | Valor nominal | Valor nominal | |
Moneda | madurez | $m | $m | |
Facilidad de crédito revolvente1 | USD/Euro | 2028 | 490.6 | 477.2 |
Préstamo a plazo | USD | 2027 | 250.0 | 250.0 |
Notas senior | USD | 2029 | 500.0 | 500.0 |
Préstamos que devengan intereses |
|
| 1,240.6 | 1,227.2 |
Tasas de financiación2 |
|
| (13.7) | (15.3) |
Valor contable total de los préstamos | 1,226.9 | 1,211.9 | ||
| ||||
Porción corriente de préstamos | - | - | ||
Porción no corriente de la deuda | 1,226.9 | 1,211.9 |
1. Included within the Revolving Credit Facility was ?100.0 million ($110.4 million) and £8.0 million ($8.2 million) at 31 December 2023 (2022: ?145.0 million ($155.2 million)), representing 22.5% of RCF debt denominated in Euros, 2.1% of RCF debt denominated in GBP and 75.4% denominated in US dollars.
2. Financing fees of $13.7 million (2022: $15.3 million) related to the remaining unamortised fees incurred on the credit facilities of $7.8 million (2022: $8.4 million) and on the senior notes of $5.9 million (2022: $6.9 million).
Facilidades de credito
The credit facilities held by the Group are committed and available for the refinancing of certain existing financial indebtedness and general corporate purposes. The Group's bank credit facility of $1.2 billion, which was refinanced in November 2022, comprises of a $250.0 million term loan and a $950.0 million multicurrency revolving credit facility. As at 31 December 2023, the term loan was fully drawn and $490.6 million of the revolving credit facility was drawn, with $459.4 million undrawn. During the year, the Group extended the term of its multicurrency revolving credit facility by an additional year and this is now committed to November 2028 (originally committed for a five-year term to November 2027). Transaction costs directly attributable to the extension have been capitalised and are amortised over the term of the facility using the effective interest rate method. The term loan remains committed for a five-year term to November 2027.
Notas senior
Unsecured senior notes of $500.0 million are subject to an interest cover financial covenant as defined in the indentures which is a minimum of 2.0 times, with testing required annually at 31 December on the last 12 calendar months' financial performance.
Pactos financieros
Los principales convenios financieros se basan en una deuda neta permitida a EBITDA ajustado por convenio1 cover test de ratio e interés tal y como se define en el contrato de línea de crédito. Las pruebas se requieren semestralmente, en junio y diciembre, con base en el desempeño financiero de los últimos 12 meses. A 31 de diciembre de 2023, la deuda neta permitida a EBITDA ajustado por convenio1 la relación era como máximo de 3.50 veces y la cobertura de intereses como mínimo de 3.50 veces, plazos definidos en el contrato de crédito. De acuerdo con el acuerdo de líneas de crédito, la deuda neta a EBITDA ajustado por convenio1 relación puede aumentar hasta un máximo de 4.00 veces para adquisiciones o inversiones permitidas.
El Grupo cumplía con todos los convenios financieros y no financieros al 31 de diciembre de 2023, con un margen de maniobra disponible significativo en los convenios financieros (superior a $ 603.3 millones de margen de endeudamiento sobre deuda neta a EBITDA ajustado por convenio1[ 2 ]).
Excluding the impact of interest rate swaps, the weighted average interest rate on borrowings for the year ended 31 December 2023 was 5.7% (2022: 3.4%). The increase in the weighted average interest rate was due to rising underlying reference base rates on debt with floating rates.
Préstamos medidos a valor razonable
Las notas senior cotizan y su valor razonable al 31 de diciembre de 2023 de $ 450.1 millones (2022: $ 430.8 millones) se obtuvo de datos de mercado cotizados y, por lo tanto, se clasifican como una medición de Nivel 1 en la jerarquía de valor razonable según la NIIF 13. Mediciones del valor razonable. Para los otros préstamos del Grupo, el valor razonable se basa en los flujos de efectivo descontados utilizando una tasa de préstamo actual y se clasifica como una medición de Nivel 2. Al 31 de diciembre de 2023, el valor razonable estimado de los otros préstamos del Grupo era de $774.9 millones (2022: $762.4 millones).
12. Instrumentos financieros
Un instrumento financiero derivado es un contrato que deriva su valor del desempeño de una variable subyacente, como las tasas de cambio o las tasas de interés. El Grupo utiliza instrumentos financieros derivados para gestionar el riesgo de tipo de cambio y de tipo de interés que surge de sus operaciones y financiación. Los instrumentos financieros derivados utilizados por el Grupo son los contratos a plazo de tipo de cambio y los swaps de tipos de interés.
El Grupo utiliza contratos de permuta financiera de tipos de interés, designados como coberturas de flujos de efectivo, para gestionar su exposición a la variabilidad en las salidas de efectivo futuras previstas atribuibles a los cambios en los tipos de interés de las líneas de crédito comprometidas del Grupo. |
The Group holds interest rate swap agreements to fix a proportion of variable interest on US dollar and EURO denominated debt, in accordance with the Group's risk management policy. The interest rate swaps are designated as hedging instruments in a cash flow hedging relationship.
De acuerdo con la política del Grupo, el Grupo utiliza contratos de divisas a plazo, designados como coberturas de flujo de efectivo, para cubrir ciertas transacciones previstas de divisas de terceros. Cuando se ingresa un compromiso, se toma un enfoque por niveles al cubrir la exposición cambiaria, asegurando que no se cubra más del 100% de la exposición de la transacción. Las divisas cubiertas por los contratos de divisas a plazo son el dólar estadounidense, el franco suizo, la libra esterlina, la corona danesa y el yen japonés.
El Grupo utiliza además contratos de divisas y swaps clasificados como FVTPL para administrar la exposición a corto plazo de divisas.
Coberturas de flujo de efectivo
Los valores razonables se basan en los valores de mercado de instrumentos equivalentes al 31 de diciembre. El siguiente cuadro presenta las permutas financieras de tipo de interés vigentes del Grupo, que fueron designadas como coberturas de flujos de efectivo a 31 de diciembre:
|
| 2023 | 2022 | ||||
Moneda | Fecha efectiva | Fecha de vencimiento | Cantidad teórica | Valor razonable1 Activos Pasivos) | Cantidad teórica | Valor razonable1 Activos Pasivos) | |
|
|
|
| $m | $m | $m | $m |
Intercambio de tasa de interés flotante a fija LIBOR a 3 meses | USD | 24 de enero 2020 | 24 de enero 2023 | - | - | 275.0 | 2.0 |
Intercambio de tasa de interés variable a fija SOFR a 6 meses | USD | 23 de enero 2023 | 23 de enero 2024 | 90.0 | 0.4 | 90.0 | 0.2 |
Intercambio de tasa de interés variable a fija SOFR a 6 meses | USD | 23 de enero 2023 | 23 de julio del 2024 | 40.0 | 0.1 | 40.0 | - |
Intercambio de tasa de interés variable a fija SOFR a 6 meses | USD | 23 de enero 2023 | 23 de enero 2025 | 50.0 | 0.2 | 50.0 | (0.3) |
Intercambio de tasa de interés variable a fija SOFR a 6 meses | USD | Agosto 3 2023 | Agosto 3 2024 | 50.0 | - | - | - |
Intercambio de tasa de interés variable a fija SOFR a 6 meses | USD | Agosto 3 2023 | 3 2025 febrero | 50.0 | - | - | - |
Intercambio de tasa de interés variable a fija SOFR a 6 meses | USD | Agosto 3 2023 | Agosto 4 2025 | 50.0 | - | - | - |
6 Month term EURIBOR Float to Fixed Interest Rate Swap | EUR | 29 septiembre 2023 | 29 septiembre 2024 | 55.2 | (0.2) | - | - |
Intercambio de tasa de interés variable a fija SOFR a 6 meses | USD | 29 septiembre 2023 | 29 septiembre 2025 | 40.0 | (0.5) | - | - |
1. The fair values of the interest rate swaps were disclosed in non-current derivative financial liabilities, current derivative financial liabilities and current derivative assets in the Consolidated Statement of Financial Position. There was no ineffectiveness recognised in the Consolidated Income Statement.
Contratos a plazo de divisas
La siguiente tabla presenta los contratos a plazo de tipo de cambio vigentes del Grupo valuados a FVTPL y los contratos a plazo de tipo de cambio designados como coberturas de flujo de efectivo, revelados en activos y pasivos financieros derivados corrientes, al 31 de diciembre:
| 2023 | 2022 | ||||
Término | Cantidad teórica | Valor razonable activos/ (pasivos) |
| Cantidad teórica | Valor razonable activos/ (pasivos) | |
|
| $m | $m |
| $m | $m |
Contratos de cambio de divisas | ? 3 months | 453.0 | 8.0 |
| 996.6 | 21.3 |
Contratos de tipo de cambio a plazo de moneda extranjera designados como coberturas de flujo de efectivo | ? 12 months | 195.9 | 4.4 |
| 72.7 | 3.1 |
Activos financieros derivados | 648.9 | 12.4 |
| 1,069.3 | 24.4 | |
|
|
| ||||
Contratos de cambio de divisas | ? 3 months | 760.7 | (15.2) |
| 703.7 | (30.2) |
Contratos de tipo de cambio a plazo de moneda extranjera designados como coberturas de flujo de efectivo | ? 12 months | 53.3 | (1.3) |
| 132.8 | (2.3) |
Pasivos financieros derivados |
| 814.0 | (16.5) |
| 836.5 | (32.5) |
During the year ended 31 December 2023, the Group realised a net loss of $4.3 million (2022: $15.8 million gain) on foreign exchange forward contracts designated as FVTPL in Note 5 - Non-operating income/(expenses), net in the Consolidated Income Statement.
Impacto de la cobertura en otro resultado integral
La siguiente tabla presenta el impacto de la cobertura en otros resultados integrales:
2023 | 2022 | ||
$m | $m | ||
Reconocido en otros resultados integrales: |
| ||
Porción efectiva de cambios en el valor razonable de coberturas de flujos de efectivo: |
| ||
Swaps de tasas de interés | (1.3) | 3.3 | |
Contratos de tipo de cambio a plazo de moneda extranjera designados como coberturas de flujo de efectivo | 2.0 | (11.0) | |
Cambios en el valor razonable de las coberturas de flujos de efectivo reclasificadas a la Cuenta de Resultados Consolidada | (0.8) | 16.5 | |
Costo de cobertura | (0.5) | (1.1) | |
Total |
| (0.6) | 7.7 |
13. Provisiones
A provision is an obligation recognised when there is uncertainty over the timing or amount that will be paid. Provisions recognised by the Group are primarily in respect of restructuring, decommissioning, dilapidations, legal liabilities and contingent consideration. The contingent consideration provision recognised by the Group is in respect of acquisitions and includes amounts contingent on future events such as development milestones and sales performance. |
El movimiento de las provisiones es el siguiente:
Dilapidaciones | Reestructuración | Legal | Consideración contingente | Total | |
$m | $m | $m | $m | $m | |
1 de enero de 2023 | 2.8 | 10.3 | 0.2 | 140.0 | 153.3 |
Contraprestación contingente de adquisiciones | - | - | - | 66.7 | 66.7 |
Con cargo al estado de resultados | 1.0 | 13.9 | 0.4 | - | 15.3 |
Movimiento del valor razonable de la contraprestación contingente | - | - | - | 24.6 | 24.6 |
Liberado al estado de resultados | - | (2.2) | - | - | (2.2) |
Utilizado | (1.3) | (8.3) | - | (94.7) | (104.3) |
Divisas | (0.1) | 0.3 | - | 1.4 | 1.6 |
31 de diciembre 2023 | 2.4 | 14.0 | 0.6 | 138.0 | 155.0 |
Current |
|
|
|
| 83.7 |
No corriente |
|
|
|
| 71.3 |
The expected payment profile of the discounted provisions at 31 December was as follows:
2023 | 2022 | |
$m | $m | |
Dentro de 1 año | 83.7 | 100.2 |
2 a 5 años | 58.8 | 53.1 |
Más de 5 años | 12.5 | - |
Total | 155.0 | 153.3 |
Disposiciones de dilapidación
Las provisiones por deterioro se refieren a las obligaciones contractuales, al vencimiento de un contrato de arrendamiento, de devolver las propiedades arrendadas en las condiciones especificadas en los contratos de arrendamiento individuales.
Provisiones de reestructuración
Restructuring provisions are in respect of the Group's strategic transformation activities. All restructuring provisions are supported by detailed plans and a valid expectation has been raised in those affected as required by the Group's accounting policy.
Provisión legal
The legal provision of $0.6 million is in respect of ongoing cases. Legal issues are often subject to uncertainties over the timing and the final amounts of any settlement.
Consideración contingente
As at 31 December 2023, the discounted fair value of the contingent consideration payable in respect of the Group's acquisitions was $138.0 million. During the year, contingent consideration of $66.7 million was recognised in respect of the Starlight acquisition and payments of $94.7 million were made in respect of the Triad Life Sciences acquisition ($73.0 million recognised within cash flows from investing activities and $21.7 million recognised within cash flows from operating activities in the Consolidated Statement of Cash Flows). The net charge to the income statement in respect of changes in the fair value of contingent consideration (based on the best estimates of the amounts payable as at 31 December 2023) was $24.6 million. In addition, there was a foreign exchange movement of $1.4 million from the re-translation of non-USD denominated balances.
Refer to Note 10 - Acquisitions for further details.
14. Compromisos y contingencias
Compromisos de capital
Al 31 de diciembre de 2023, el Grupo tenía compromisos no cancelables para la compra de propiedad, planta y equipo, software capitalizado y desarrollo por $ 22.3 millones (2022: $ 39.3 millones).
Pasivos contingentes
Other than disclosed elsewhere in these financial statements, there were no contingent liabilities recognised as at 31 December 2023 and 31 December 2022.
15. Acontecimientos posteriores
El Grupo ha evaluado los hechos posteriores hasta el 5 de marzo de 2024, fecha de aprobación de las Cuentas Anuales Consolidadas por el Consejo de Administración.
On 5 March 2024, the Board proposed the final dividend in respect of 2023 subject to shareholder approval at the Annual General Meeting on 16 May 2024, to be distributed on 23 May 2024. See Note 8- Dividends to the Condensed Consolidated Financial Statements for further details.
16. Responsibility statement of the directors on the Annual Report
La Declaración de responsabilidad a continuación se ha preparado en relación con el Informe anual de 2023. Ciertas partes del mismo no están incluidas en este anuncio.
Confirmamos a nuestro leal saber y entender:
· The Financial Statements, prepared in accordance with United Kingdom adopted international accounting standards which have been prepared in accordance with United Kingdom adopted international accounting standards and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), give a true and fair view of the assets, liabilities, financial position and profit and loss of the Company and the undertakings included in the consolidation taken as a whole;
· El Informe Estratégico incluye una revisión fiel de la evolución y desempeño del negocio y de la situación de la Sociedad y de los compromisos incluidos en la consolidación en su conjunto, junto con una descripción de los principales riesgos e incertidumbres a los que se enfrentan; y
· El Informe Anual y los Estados Financieros, tomados en su conjunto, son justos, equilibrados y comprensibles y proporcionan la información necesaria para evaluar el desempeño, el modelo de negocio y la estrategia del Grupo y de la Compañía.
Esta Declaración de Responsabilidad fue aprobada por el Consejo de Administración el 5 de marzo de 2024 y está firmada en su nombre por:
Karim Bitar Jonny Mason
Chief Executive Officer Chief Financial Officer
5 de marzo de 2024 5 de marzo de 2024
[ 1 ] Convatec Executive Leadership Team and their direct reports, excluding administrative support
1. Covenant-adjusted EBITDA is calculated based on terms as defined in the credit facilities agreement. This is different to adjusted EBITDA, which is an alternative performance measure (APM) as disclosed on pages 21 to 26..
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