UK's Convatec expects higher second-half margin, launches $200 million buyback

August 4 (Reuters) - British medical products maker Convatec on Tuesday forecast its second-half operating margin to be materially higher than the first half, and pointed to accelerating demand for its infusion care products.

Here are some more details: 

• Convatec said growth would accelerate in the second half of 2026 and forecast 6%-8% organic revenue growth excluding InnovaMatrix, led by stronger performance in its infusion care unit.

• Infusion Care accounts for about 19% of group revenue. It supplies disposable infusion sets used with insulin pumps for diabetes and continuous infusion therapies for conditions including Parkinson's disease.

• Convatec, which also makes catheters and drug delivery systems, narrowed its annual forecast for organic revenue growth excluding InnovaMatrix to 5.5%-6.5% from 5%-7% earlier, and still expects double-digit earnings growth.

• Convatec said it was on track to launch eight new chronic-care products across 2026 and 2027, including six this year.

• The company also announced a new $200 million share buyback programme, to be completed by the end of 2026.

• Revenue for the six months ended June 30 was $1.23 billion, up 1.8% at constant currency, while organic revenue excluding InnovaMatrix grew 5%.

• In May, Convatec had kept its 2026 guidance unchanged despite slower revenue growth in the first four months of the year and warned that higher raw material costs linked to the Iran conflict could weigh on 2027.

(Reporting by Neeshita Beura in Bengaluru; Editing by Nivedita Bhattacharjee)