Interim Financial Results for 9M 2023/24
Coloplast delivered 8% organic growth and an EBIT margin of 27% in Q3, with 11% growth in absolute EBIT. Reported revenue in DKK grew 13%, which includes a 4% contribution from Kerecis, with an underlying growth of around 35%.
- Organic growth rates by business area: Ostomy Care 8%, Continence Care 8%, Voice and Respiratory Care 11%, Advanced Wound Care 13% and Interventional Urology 2%.
- Growth in Chronic Care was broad-based across regions, including an improvement in the US Ostomy Care business. Continence Care growth was driven by intermittent catheters, including significant contributions from the male Luja catheter. The launch of the female Luja catheter is ongoing and has received positive customer feedback.
- Voice and Respiratory Care growth was driven by continued momentum in both Laryngectomy and Tracheostomy segments.
- An excellent quarter in Advanced Wound Dressings reflects continued momentum benefitting from a low baseline in Q3 last year.
- Kerecis demonstrated continued momentum and market share gains, with underlying growth in Q3 around 35% and an EBIT margin excluding PPA amortisation of approximately 10%, both aligning with expectations.
- Growth in Interventional Urology was bolstered by Men's Health, although partially offset by challenges in Women’s Health and Bladder Health, particularly impacted by supply shortages.
- EBIT reached DKK 1,870 million, marking an 11% increase from last year. The EBIT margin was 27%, slightly down from 28% last year, impacted by Kerecis, increased commercial spending, and currency fluctuations.
For the full year 2023/24, organic growth stood at 8% and EBIT margin at 27%. Reported revenue in DKK increased 10% to DKK 20,077 million.
- Organic growth rates by business area for 9M were: Ostomy Care 7%, Continence Care 8%, Voice and Respiratory Care 10%, Advanced Wound Care 10% and Interventional Urology 4%. Kerecis contributed 4% to reported growth, with underlying growth of around 35%.
- EBIT for the period was DKK 5,483 million, a 7% increase from last year. The EBIT margin was 27%, reflecting similar currency impacts and the influence of Kerecis.
- Return on Invested Capital (ROIC) post-tax before special items was 15%, decreased from 19% year on year, mainly due to the acquisition of Kerecis.
- Free cash flow was negative at DKK 186 million, primarily due to tax payments concerning Atos Medical’s IP transfer. Adjusted, free cash flow was inflow of DKK 2.3 billion.
FY 2023/24 Guidance Unchanged
- Organic revenue growth forecasted at approximately 8%. Reported growth in DKK is anticipated between 10% to 11%, with a negative impact of 1% to 2% from currency, and around 4% from Kerecis.
- The reported EBIT margin before special items is expected to range between 27% to 28%, with a dilution impact from Kerecis, including around DKK 100 million in PPA amortisation.
- Capital expenditure expectations have adjusted to about DKK 1.3 billion, with an effective tax rate anticipated at about 22%.
Kristian Villumsen, President & CEO of Coloplast, remarked on the solid Q3 performance marked by 8% organic growth and a stable EBIT margin. He highlighted the continued momentum in Chronic Care, especially within the Advanced Wound Care segment, and underscored successful new product launches like the Luja intermittent catheter, enhancing care standards for those requiring bladder management.
Conference Call
Coloplast will conduct a conference call to discuss these results. Participation is welcomed for a Q&A session.
For more information, contact:
Investors and Analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111
Aleksandra Dimovska
Vice President, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Email: dkadim@coloplast.com
Kristine Husted Munk
Senior Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 3266
Email: dkkhu@coloplast.com
Press and Media
Peter Mønster
Sr. Media Relations Manager
Tel. +45 4911 2623
Email: dkpete@coloplast.com
Address
Coloplast A/S
Holtedam 1
DK-3050 Humlebaek
Denmark
Company reg. (CVR) no. 69749917
Frequently Asked Questions
What were the organic growth rates for Coloplast in 9M 2023/24?
Coloplast reported an organic growth rate of 8% for 9M 2023/24.
How has Kerecis contributed to Coloplast's growth?
Kerecis contributed around 4% points to reported growth, with an underlying growth of about 35%.
What challenges did Coloplast face in Interventional Urology?
Interventional Urology growth faced challenges primarily related to Women's Health and supply shortages affecting Bladder Health and Surgery.
What was the EBIT margin for the period?
The EBIT margin was reported at 27%, slightly down from 28% the previous year.
How is the outlook for FY 2023/24?
The outlook remains unchanged with expected organic revenue growth of around 8% and reported growth of 10% to 11%.
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