Coloplast AS (CLPBF) Q4 2024 Earnings Call Highlights: Strong Organic Growth and Strategic ...

In This Article:

  • Organic Growth: 8% for the full year '23-'24.

  • EBIT Margin Before Special Items: 27% for the full year '23-'24.

  • Return on Invested Capital: 15% after tax and before special items.

  • Revenue Increase: DKK 2.5 billion or 10% compared to last year.

  • Gross Margin: 68% for the full year, up from 67% last year.

  • Operating Profit Before Special Items: DKK 7.3 billion, a 6% increase from last year.

  • Net Profit Before Special Items: Increased by 4% compared to last year.

  • Free Cash Flow: Inflow of DKK 1.4 billion for the full year.

  • Advanced Wound Care Growth: 10% organic growth for the full year.

  • Interventional Urology Growth: 5% for the full year.

  • Voice and Respiratory Care Growth: 11% organic growth for the full year.

  • Continence Care Growth: 8% organic growth for the full year.

  • Ostomy Care Growth: 7% organic growth for the full year.

  • Kerecis Revenue: Around DKK 1 billion for the full year.

  • Operating Cash Flow: Inflow of DKK 2.8 billion for the full year.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Coloplast AS (CLPBF) achieved 8% organic growth for the '23-'24 financial year, reflecting strong market share gains.

  • The company reported a robust EBIT margin before special items of 27% for the year, despite challenges.

  • Kerecis, a recent acquisition, delivered impressive growth of around 35%, aligning with strategic plans.

  • Significant product launches, including the Luja catheter and expansions in the SenSura Mio portfolio, are expected to drive future growth.

  • Coloplast AS (CLPBF) made progress in sustainability, with 77% of production waste recycled and a 27% reduction in Scope 1 and 2 emissions since the base year '18-'19.

Negative Points

  • The establishment of a new US distribution center led to supply disruptions and extraordinary costs, impacting financial performance.

  • Interventional urology business growth was below expectations due to competitive pressures.

  • The EBIT margin in Q4 was negatively impacted by extraordinary costs and currency fluctuations.

  • The integration of Atos Medical and other acquisitions is taking longer than anticipated, with ongoing integration costs.

  • The company faces uncertainty regarding the final LCD policy for Kerecis, which could impact future growth projections.

Q & A Highlights

Q: Can you discuss the performance of the interventional urology business, particularly in women's health, and the expectations for the slings business? A: The interventional urology business showed 7% growth in Q4, with women's health returning to growth partly due to favorable comps. However, competitive pressure is expected to continue into '24/'25, with the business anticipated to grow at mid-single digits. We do not comment on specific product groups within women's health.