Coloplast A/S - Interim Financial Report, Q1 2023/24

Coloplast A/S
Coloplast A/S
Coloplast A/S
5 min read

In This Article:

Q1 2023/24
Interim financial results, Q1 2023/24
1 October 2023 - 31 December 2023

Coloplast delivered a solid Q1 with 8% organic growth and an EBIT margin1) of 28%. Reported revenue in DKK grew 8% with 4%-points contribution from Kerecis (underlying growth of around 35%), offset by negative impact from currencies.

  • Organic growth rates by business area: Ostomy Care 8%, Continence Care 8%, Voice and Respiratory Care 7%, Advanced Wound Care 9% (Advanced Wound Dressings 9%) and Interventional Urology 5%.

  • Solid start in Chronic Care, driven by broad-based growth in Emerging markets and Europe. The Ostomy Care business in China posted mid-single digit growth, in line with expectations. Growth in Continence Care was driven by the intermittent catheters portfolio, including contribution from LujaTM, the new male intermittent catheter with a Micro-hole Zone Technology, which is now launched in ten markets.

  • Growth in Voice and Respiratory Care was driven by continued good momentum with high-single digit growth in both laryngectomy and tracheostomy, partly held back by product rationalisation.

  • Strong quarter in Advanced Wound Dressings, driven by broad-based growth across regions from a lower baseline in Q1 last year.

  • Kerecis is off to a good start, in line with plan. Underlying growth in Q1 was around 35%, reflecting continued market share gains. The EBIT margin excl. PPA amortisation was around 10%.

  • Interventional Urology was up against a high baseline in Q1 last year, with growth in the quarter driven by Men’s Health in the US and Endourology.

  • Coloplast is launching Biatain? Silicone Fit in the US, a new silicone foam dressing for pressure injury prevention and wound management, and Peristeen? Light in Europe, a new transanal irrigation device for people with bowel disorders.

  • EBIT1) was DKK 1,822 million, a 3% increase from last year. The EBIT margin1,2) was 28%, against 29% last year, and includes around 100 basis points negative impact from Kerecis, in line with expectations. Currencies also had a negative impact on the EBIT margin.

  • ROIC after tax before special items was 15% against 20% last year, negatively impacted by the acquisition of Kerecis.

FY 2023/24 – unchanged organic revenue growth and EBIT margin guidance

  • The organic revenue growth is still expected around 8% and continues to assume good momentum across business areas and regions. Reported growth in DKK is now expected to be around 11%, from previously around 12%, and assumes around 1%-point negative impact from currencies, mostly the USD and ARS. The impact from the acquisition of Kerecis to reported growth is still expected around 4%-points (11 months).

  • The reported EBIT margin before special items is still expected to be 27-28%. The EBIT margin includes around 100 basis points dilution from Kerecis (incl. around DKK 100 million in PPA amortisation) and negative impact from currencies.

  • Capital expenditures are still expected around DKK 1.4 billion. The effective tax rate is still expected to be around 22%.

Recommended Stories