Interim Financial Results for 9M 2023/24
Coloplast achieved an 8% organic growth rate and maintained an EBIT margin of 27% in Q3, resulting in an 11% increase in absolute EBIT. Reported revenue in DKK rose by 13%, which includes a 4% contribution from Kerecis, while the underlying growth stands at approximately 35%.
- Organic growth rates by business area were as follows: Ostomy Care 8%, Continence Care 8%, Voice and Respiratory Care 11%, Advanced Wound Care 13%, and Interventional Urology 2%.
- The Chronic Care segment saw widespread growth across regions, particularly with improvements in the US Ostomy Care business. Continence Care growth was fueled by intermittent catheters, notably the male Luja catheter, which has made a significant impact. The launch of the female Luja catheter is ongoing and has received positive feedback from customers.
- Growth in Voice and Respiratory Care was supported by ongoing success in both the Laryngectomy and Tracheostomy segments.
- Advanced Wound Dressings had an outstanding quarter, benefiting from a low baseline in Q3 of the previous year.
- Kerecis continued to show strong momentum and gain market share, achieving an underlying growth rate of around 35% in Q3, with an EBIT margin of approximately 10% excluding PPA amortisation, both of which align with expectations.
- Interventional Urology growth was enhanced by Men's Health, although this was somewhat offset by challenges in Women’s Health and Bladder Health, particularly due to supply shortages.
- EBIT reached DKK 1,870 million, reflecting an 11% increase compared to last year. The EBIT margin was 27%, slightly down from 28% last year, influenced by Kerecis, increased commercial spending, and currency fluctuations.
For the full year 2023/24, organic growth was 8% with an EBIT margin of 27%. Reported revenue in DKK increased by 10%, totaling DKK 20,077 million.
- For the 9M period, organic growth rates by business area 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 around 35%.
- EBIT for this period was DKK 5,483 million, marking a 7% increase from the previous year. The EBIT margin remained at 27%, reflecting similar currency impacts and the influence of Kerecis.
- The Return on Invested Capital (ROIC) post-tax before special items was 15%, down from 19% year-on-year, primarily due to the acquisition of Kerecis.
- Free cash flow was negative at DKK 186 million, mainly due to tax payments related to Atos Medical’s IP transfer. When adjusted, free cash flow showed an inflow of DKK 2.3 billion.
FY 2023/24 Guidance Unchanged
- Organic revenue growth is forecasted to be approximately 8%. Reported growth in DKK is expected to be between 10% and 11%, with a negative impact of 1% to 2% from currency fluctuations and around 4% from Kerecis.
- The reported EBIT margin before special items is anticipated to range from 27% to 28%, factoring in dilution from Kerecis, which includes about DKK 100 million in PPA amortisation.
- Capital expenditure expectations have been adjusted to around DKK 1.3 billion, with an effective tax rate projected at approximately 22%.
Kristian Villumsen, President & CEO of Coloplast, commented on the strong performance in Q3, highlighting the 8% organic growth and stable EBIT margin. He emphasized the ongoing momentum in Chronic Care, particularly within the Advanced Wound Care segment, and noted the successful introduction of new products like the Luja intermittent catheter, which enhances care for individuals requiring bladder management.
Conference Call
Coloplast will host a conference call to discuss these results, and participation is encouraged for a Q&A session.
For further information, please reach out to:
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 approximately 4 percentage points to reported growth, with an underlying growth rate of around 35%.
What challenges did Coloplast face in Interventional Urology?
Interventional Urology growth encountered 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 anticipated between 10% and 11%.
