GlobeNewswire

Coloplast A/S - Announcement no. 04/2023 - Interim Financial Report, 9M 2022/2023

Coloplast A/S
6 min read

In This Article:

Coloplast A/S
Coloplast A/S

9M 2022/23
Interim financial results, 9M 2022/23
1 October 2022 - 30 June 2023

Coloplast delivered Q3 organic growth of 8% and 28% EBIT margin1). Reported revenue in DKK grew 4% to 6,108 million

  • Organic growth rates by business area: Ostomy Care 8%, Continence Care 9%, Voice and Respiratory Care 9%, Wound and Skin Care 4% (Wound Care 5%), and Interventional Urology 7%.

  • Continued good momentum across regions in Chronic Care. China Ostomy Care posted double-digit growth, reflecting a lower baseline last year and fully normalised hospital access and level of procedural volumes. Strong quarter in Continence Care, with solid contribution from all product categories, including Collecting Devices where backorders have been resolved.

  • Continued solid momentum in Voice and Respiratory Care, driven by both the laryngectomy and tracheostomy businesses.

  • Growth in Wound Care was driven by double-digit growth in China, which benefited from a low baseline and normalised hospital activity. Good underlying momentum in Europe, despite continued impact from backorders, as expected.

  • Continued solid momentum in Interventional Urology with broad-based growth, against a high baseline last year.

  • EBIT1) was DKK 1,686 million, a 4% decrease from last year. The EBIT margin1,2) was 28% against 30% last year, reflecting mostly inflationary headwind on input costs. Impact from currencies in the quarter was negative.

  • Special items were an income of DKK 28 million. This includes a reversal of DKK 244 million related to Atos Medical US billing compliance, with a remaining provision of DKK 90 million. In addition, a further and final provision of DKK 200 million was made related to the Multi-District Litigation (MDL) cases in the US alleging injury from the use of transvaginal surgical mesh products. With this, Coloplast considers the MDL cases closed. Atos integration costs amounted to DKK 16 million.

9M 2022/23 organic growth of 8% and 28% EBIT margin1). Reported revenue in DKK grew 11% to DKK 18,274 million

  • Organic growth rates by business area: Ostomy Care 7%, Continence Care 7%, Voice and Respiratory Care 9% (5 months), Wound and Skin Care 6% (Wound Care 4%), and Interventional Urology 11%.

  • EBIT1) was DKK 5,131 million, up 1% from last year. The EBIT margin1,2) was 28% against 31% last year, reflecting inflationary headwind on input costs, an increase in operating expenses and DKK 159 million Atos Medical amortisation cost.

  • ROIC after tax before special items was 19% against 26% last year, negatively impacted by the Atos Medical acquisition.

On 7 July 2023, Coloplast announced the acquisition of Kerecis and as a result raised long-term growth guidance to 8-10%, from previously 7-9%. The long-term EBIT margin guidance was maintained at above 30% beyond 2024/253)

  • Kerecis is an innovative, fast-growing company with a clinically differentiated technology platform based on minimally processed fish skin and a strong commercial presence in the US. With Kerecis, Coloplast enters the high-growth, US-centric biologics wound care segment and adds a long-term growth business with strong profitability expansion potential, well positioned for long-term value creation.

  • Kerecis is expected to contribute around 1%-point to organic growth as of 2024/25, with short-term margin dilution.

  • Around 99% of Kerecis’ shareholders have agreed to sell their shares to Coloplast, and the transaction is on track to close in Q4 2022/23. The acquisition will be financed through an equity capital raise, expected to be completed in Q4 2022/23.

and

Recommended Stories