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  • Press release
5 May 2022

Coloplast delivers a solid Q2 with 7% organic growth and a 31% EBIT margin and revises full year organic growth guidance to 6-7% from ~7% while maintaining reported growth guidance of ~15% and reported EBIT margin guidance of ~31% before special items

Reported revenue in DKK was up by 16% in Q2. EBIT before special items was DKK 1,686 million, a 7% increase from last year, corresponding to an EBIT margin before special items of 31% against 33% last year.

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In Q2, Coloplast delivered 7% organic growth in Ostomy Care, 7% in Continence Care, 9% in Interventional Urology, and 6% in Wound & Skin Care. The acquisition of Atos Medical (Voice & Respiratory Care) delivered high-single digit underlying growth as expected.

“I would like to highlight the solid performance in our Chronic Care business in Europe and Emerging markets excluding China. In our US Continence Care business, we are starting to see a rebound, as growth in new patients normalised towards the end of the quarter. Our Interventional Urology business delivered strong, broad-based growth, led by the US and Men’s Health. Finally, the acquisition of Atos Medical was closed this quarter and the integration is on track. Together with our 1200 new colleagues in Atos Medical and Tracoe, I look forward to the growth journey ahead of us and to helping make life easier for people living with a neck stoma,” says Kristian Villumsen, President & CEO of Coloplast.

Looking at organic growth rates by geography in Q2, the European markets reported 5% growth, Other developed markets grew 4%, while Emerging Markets contributed with 16% growth.

“Since March, we have seen a significant acceleration in COVID-19 cases in China leading to lockdowns in several regions. Our focus is to keep our people safe while continuing to serve our customers, but the lockdowns have resulted in reduced access to hospitals and a decline in procedural volumes and sales in hospitals within Ostomy Care and Wound Care,” says Kristian Villumsen.

Consequently, Coloplast is revising the organic growth outlook for 2021/22 to 6-7% from around 7%.

 

Solid progress on the Clinical Performance Programme and a new catheter launch

Coloplast is progressing with its Clinical Performance Programme and the launch of their new ostomy care and catheter platforms. The pivotal study for the ostomy care platform, which was initiated to test the new skin protecting technology, was concluded this quarter, and the targeted end points were met. The platform is expected to launch in the second half of the Strive25 strategy period. The clinical study on the new catheter platform is also moving ahead according to plan and is expected to launch in 2022/23.

On April 1, Coloplast launched a new product within Continence Care, SpeediCath® Flex Set, thereby expanding the flexible catheter portfolio with a set solution. The new product range will be launched in key markets during 2022 and 2023.

 

War in Ukraine

 Coloplast continues to monitor the war in Ukraine closely. Our primary focus is to keep our people safe as well as to ensure that our around 100,000 users in Ukraine and Russia have access to products to manage their chronic conditions. Coloplast is present in Russia with a sales subsidiary of around 70 employees. In Ukraine, we have a representative office with 7 employees and we primarily sell products through two Ukrainian distributors.

 

2021/22 organic growth guidance revised, EBIT margin before special items guidance unchanged

 The organic revenue growth guidance is now expected at 6-7% at constant currencies from previously around 7% as a result of the impact of the spread of COVID-19 in China and the weaker outlook for the Chinese Ostomy Care and Wound Care businesses.

The reported growth in DKK incl. 8-month revenue impact from Atos Medical is unchanged at around 15%. The reported EBIT margin before special items is unchanged at around 31%. The reported EBIT margin after special items is now expected to be around 28-29% from previously around 30%.

EBIT is impacted by special items of around DKK 450 million, of which DKK 300 million is a further provision for costs related to the existing lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products. The increased provision is driven by further legal advisory costs as the process to settle outstanding cases is taking longer than previously anticipated. Coloplast has now settled around 99% of the multidistrict litigation (MDL) cases from previously around 98%. The remaining DKK 150 million is related to the Atos Medical acquisition.

CAPEX is unchanged around DKK 1.3bn and effective tax rate unchanged around 23%

The company’s long-term financial guidance is unchanged.

 

  

CONTACTS

Peter Mønster
Senior Media Relations Manager, Corporate Communications
+45 49 11 26 23
dkpete@coloplast.com

 

Ellen Bjurgert
Vice President, Investor Relations
+45 49 11 33 76
dkebj@coloplast.com

 

Aleksandra Dimovska
Director, Investor Relations
Tel. +45 4911 1800 /+45 4911 2458
dkadim@coloplast.com

 

 

Financial highlights and key ratios

 DKKm 

2021/22 – Q2 

2020/21 – Q2  

Change 

Revenue

5,502

4,753

16%

EBIT before special items

1,686

1,577

7%

EBIT margin before special items

31%

33%

-2%-pts

Special items*

-381

-200

N/A

EBIT after special items

1,305

1,377

-5%

EBIT margin after special items

24%

29%

-5%-pts

Net profit

980

1,130

-13%

 

*Special items expenses in Q2 amounted to DKK 381 million, of which DKK 300 million in further provision to cover potential settlements and costs in connection with lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence as explained above. The remaining DKK 81 million were related to one-off legal and advisory fees as well as integration costs in connection to the acquisition of Atos Medical.

 

Sales performance by business area 

DKKm 

2021/22 – Q2 

2020/21 – Q2 

Organic growth 

Reported growth 

Ostomy Care

2,109

1,936

7%

9%

Continence Care

1,877

1,719

7%

9%

Interventional Urology

560

495

9%

13%

Wound & Skin Care

658

603

6%

9%

Voice & Respiratory Care

298

-

N/A

N/A

Net revenue

5,502

4,753

7%

16%

 


Sales performance by region
 

DKKm

2021/22 – Q2

2020/21 – Q2

Organic growth

Reported growth

European markets

3,180

2,768

5%

15%

Other developed markets

1,325

1,143

4%

16%

Emerging markets

997

842

16%

18%

Net revenue

5,502

4,753

7%

16%

 

 

Financial highlights for the first 6 months of 2021/2022

DKKm

2021/22 – 6mths

2020/21 – 6mths

Change

Revenue

10,671

9,491

12%

EBIT before special items

3,335

3,113

7%

EBIT margin before special items

31%

33%

-2%-pts

Special items*

-415

-200

N/A

EBIT after special items

2,920

2,913

0%

EBIT margin after special items

27%

31%

-4%-pts

Net profit

2,187

2,266

-3%

 

*Special items expenses in H1 amounted to DKK 415 million, of which DKK 300 million in further provision to cover potential settlements and costs in connection with lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence as explained above. The remaining DKK 115 million were related to one-off legal and advisory fees as well as integration costs in connection to the acquisition of Atos Medical.

 

Financial guidance for 2021/22

Financial guidance

 

Guidance for 2021/22

Guidance for 2021/22 (DKK)

Sales growth

6-7% (organic) from previously around 7%

Around 15%

EBIT margin before special items

-

Around 31%

EBIT margin after special items

-

28-29% from previously around 30%

Capital expenditure

-

1.3 billion

Tax rate

-

Around 23%



  • Press release
25 Jan 2022

Coloplast delivers solid start to the year with 6% organic growth in Q1 and a 32% EBIT margin before special items

The company is updating its financial guidance for 2021/22 to reflect the Atos Medical acquisition, which is targeted to close on January 31, 2022. Organic revenue growth guidance is unchanged, expected around 7% at constant exchange rates. Reported growth in DKK is expected to be around 15% from previously around 8% due to positive currency movements and including 8 months of Atos Medical revenue. The reported EBIT margin before special items is expected to be around 31% from previously around 32% due to around DKK 200 million in amortisation charges related to the Atos Medical acquisition.

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Coloplast delivered 6% organic growth in Q1, while reported revenue in DKK was up by 9% to DKK 5,169 million. EBIT before special items was DKK 1,649 million, a 7% increase from last year, corresponding to an EBIT margin before special items of 32% against 32% last year. ROIC after tax before special items was 43% against 44% last year.

“We are off to a good start to the year with 6% organic growth in Q1. Despite the challenges created by the pandemic, we continue to grow across all our business areas and sales regions, which means that we continue to help more and more people with intimate healthcare needs live better lives. In Q1, we have yet again managed to keep our people safe, while continuing to serve our customers. This makes me very proud,” says Coloplast CEO Kristian Villumsen.

In Q1, Coloplast delivered 6% organic growth in Ostomy Care, 5% in Continence Care, 5% in Interventional Urology, and 12% in Wound & Skin Care. Looking at organic growth rates by geography, the European markets reported 6% growth, Other developed markets grew 5%, while Emerging markets contributed with 8% growth.

“Our Chronic Care business delivered a satisfactory first quarter driven by solid growth in Europe due to a normalised growth in new patients as well as continued strong performance in many of our Emerging markets. China remains impacted by COVID-19 and weaker consumer sentiment, and as expected the US posted a slow start to the year impacted by a high baseline in Q1 last year and continued lower growth in new patients in Continence Care due to COVID-19,” says Kristian Villumsen.

“Growth in the Interventional Urology business was impacted by a high baseline in Men’s Health, but the underlying growth was solid in the Men’s and Women’s Health businesses in the US as well as the Endourology business in Europe. Our Wound & Skin Care business delivered a very strong quarter, with Wound Care delivering 17% organic growth, driven by solid momentum in Europe and the Biatain® Silicone portfolio,” says Kristian Villumsen.

 

Acquisition of Atos Medical

On November 8, 2021, Coloplast announced an agreement to acquire Atos Medical, the global market leader in laryngectomy, for an enterprise value of EUR 2,155 million (DKK 16 billion).

The transaction is targeted to close on January 31, 2022, as all relevant regulatory approvals have been received. With the acquisition, Coloplast gains access to a new chronic care segment with long-term growth potential. Atos Medical will run as a separate strategic business unit operating on shared Coloplast infrastructure.

Atos Medical is expected to grow 8-10% organically, with an EBITDA margin in the mid-30s level, and will contribute to Coloplast’s Strive25 financial guidance of 7-9% organic growth and a +30% EBIT margin.

 

2021/22 financial guidance updated to reflect the acquisition of Atos Medical, targeted to close on January 31, 2022

Organic revenue growth guidance is unchanged, expected around 7% at constant exchange rates. Reported growth in DKK excluding Atos Medical is expected to be around 9% from previously around 8% due to FX movements. The impact of the Atos Medical acquisition on reported growth is expected to be around 6%-points (8 months impact). In total, reported growth is expected to be 15%.

The reported EBIT margin before special items is expected around 31% from previously around 32%, due to around DKK 200 million in amortisation charges related to the Atos Medical acquisition (8 months impact). The reported EBIT margin after special items is expected to be around 30%, impacted by special items of around DKK 150 million, related to one-off transaction and integration costs related to Atos Medical.

Capital expenditures expected to be around DKK 1.3 billion, from previously DKK 1.2 billion, increase reflecting the impact from Atos Medical capex and integration capex related to the acquisition. The effective tax rate is expected to be around 23% from previously 22-23%, reflecting impact from the Atos Medical acquisition. 

 

CONTACTS

Dennis Kaysen
Senior Director, Corporate Communications
+45 49 11 26 08
dkdk@coloplast.com

 

Ellen Bjurgert
Vice President, Investor Relations
+45 49 11 33 76
dkebj@coloplast.com

 

 

Financial highlights and key ratios

 DKKm 

2021/22 – Q1  

2020/21 – Q1  

Change 

Revenue

5,169

4,738

9%

EBIT before special items

1,649

1,536

7%

EBIT margin before special items

32%

32%

 

Special items

-34

-

 

EBIT after special items

1,615

1,536

5%

EBIT margin after special items

31%

32%

 

Net profit for the period

1,207

1,136

6%

 

 

Sales performance by business area

DKKm 

2021/22 - Q1 

2020/21 - Q1 

Organic growth 

Reported growth 

Ostomy Care

2,098

1,932

6%

9%

Continence Care

1,844

1,705

5%

8%

Interventional Urology

579

536

5%

8%

Wound & Skin Care

648

565

12%

15%

Net revenue 

5,169 

4,738 

6% 

9% 



Sales performance by region

DKKm

2021/22 – Q1

2020/21 – Q1

Organic growth

Reported growth

European markets

2,959

2,737

6%

8%

Other developed markets

1,285

1,174

5%

9%

Emerging Markets

925

827

8%

12%

Net revenue

5,169

4,738

6%

9%

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