May 3, 2019 / 7:07 AM / 6 months ago

UPDATE 1-ConvaTec revenue falls on weak demand in Americas

(Adds details, analyst estimates, shares)

May 3 (Reuters) - Britain’s ConvaTec Group Plc reported lower quarterly revenue on Friday as the medical products maker was hit by wilting demand in its biggest market, the Americas, while inventory troubles continued to plague the company back home.

The company launched initiatives in February to turn around its fortunes after posting “disappointing” annual results. A month later, reports emerged of potential takeover interest for the firm, whose stock had slumped more than 30 percent in 2018.

The company, which makes surgical dressings, insulin pumps, catheters and colostomy bags, said revenue from the Americas dropped 5.7 percent. Sales at its biggest unit, advanced wound care, fell about 12 percent.

Shares of the company fell 1.4 percent in early trade.

Credit Suisse analysts, however, said that while the wound care division missed consensus estimates, other divisions fared slightly better.

ConvaTec has been struggling with supply constraints, packaging recalls and a change in inventory policy by a leading customer.

“In the UK, despite some stocking initiated by the NHS (National Health Service) in preparation for Brexit, we continued to see negative year on year channel inventory movements in the quarter,” said ConvaTec.

The company, which reaffirmed its guidance for 2019, reported revenue of $430.6 million in the quarter ended March 31, compared with $458.2 million a year earlier. (Reporting by Devika Syamnath and Pushkala Aripaka in Bengaluru; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty)

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