Coloplast A/S Reports Year-End Performance and Future Projections
Coloplast A/S has announced remarkable results for the fiscal year 2023/24, showcasing an organic growth rate of 8% alongside a noteworthy EBIT margin of 27%. The reported revenue increased by 10%, totaling DKK 27,030 million. These achievements underline Coloplast's robust market strategies and commitment to ongoing innovation.
Business Area Growth Rates
Analyzing the organic growth rates across various business segments, the company reported:
- Ostomy Care at 7%
- Continence Care at 8%
- Voice and Respiratory Care at 11%
- Advanced Wound Care at 10% (with Advanced Wound Dressings specifically at 8%)
- Interventional Urology at 5%
Additionally, Kerecis, a recent addition to Coloplast’s family, contributed 4 percentage points to reported growth with an impressive underlying growth rate of approximately 35%, aligning with company forecasts.
Financial Highlights from 2023/24
Coloplast recorded an EBIT of DKK 7,286 million, reflecting a 6% year-over-year increase despite facing challenges such as currency fluctuations and the impact of the Kerecis acquisition. The EBIT margin slightly dipped from 28% to 27%, mainly influenced by these factors.
Furthermore, the return on invested capital (ROIC) after tax was reported as 15%, a decrease from the previous year’s 17%. This shift results from the incorporation of Kerecis into the financial fold. Diluted earnings per share (EPS) witnessed a modest decline of 1%, settling at DKK 22.34, largely due to an equity raise conducted during the year.
Free Cash Flow and Shareholder Returns
The company experienced a free cash flow inflow of DKK 1.4 billion, which includes effects from an extraordinary tax payment concerning Atos Medical’s IP transfer. Adjusted for this payment, the free cash flow boasts an impressive inflow of DKK 3.9 billion.
In terms of shareholder returns, the Board of Directors has proposed a year-end dividend of DKK 17.00 per share. Consequently, the total dividend for the fiscal year stands at DKK 22.00 per share, an increase from DKK 21.00 per share the prior year, reflecting Coloplast’s commitment to returning value to shareholders.
Sustainability Initiatives and Targets
Coloplast's dedication to sustainability is evident. The company has increased production waste recycling to 77% in the current fiscal year, surpassing the 2025 target of 75%. This success is aided by a recycling partnership in Hungary and enhancements in recycling practices at the company's facilities in Costa Rica.
Moreover, the company has achieved a 27% reduction in Scope 1 and 2 emissions from the baseline year of 2018/19, attributed to substantial energy efficiency improvements and strategic shifts towards electric vehicle usage within their company car fleet. The frequency of workplace injuries has also shown positive progress, dropping from 2.6 ppm in FY 2022/23 to 2.1 ppm in the latest fiscal year.
Future Expectations for FY 2024/25
Looking ahead, Coloplast anticipates organic growth of 8-9% for FY 2024/25, driven by continued momentum and an estimated 1 percentage point contribution from Kerecis. The company's reported growth is projected to align similarly at 8-9%, with a neutral impact from currency fluctuations.
The expected EBIT margin for the upcoming year stands at around 28%, benefiting from reduced inflationary pressures and cost improvement measures in the Advanced Wound Care segment, excluding Kerecis. Additionally, capital expenditures are estimated to reach about DKK 1.4 billion, with an expected effective tax rate hovering around 22%.
Contact Information
For inquiries or further information regarding Coloplast A/S, the following contacts are available:
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
Frequently Asked Questions
What was the organic growth for Coloplast in 2023/24?
The organic growth for Coloplast A/S in FY 2023/24 was reported at 8%.
How much was the EBIT for FY 2023/24?
The EBIT for Coloplast A/S in FY 2023/24 was DKK 7,286 million.
What is the expected organic growth for FY 2024/25?
Coloplast A/S anticipates an organic growth rate of 8-9% for FY 2024/25.
Who can I contact for investor relations?
For investor-related inquiries, you can contact Anders Lonning-Skovgaard, the Executive Vice President and CFO, at +45 4911 1111.
What are Coloplast's sustainability targets?
Coloplast aims for a production waste recycling rate of 75% by 2025 and has already surpassed this target with a current rate of 77%.
