Coloplast delivers solid start to the year with 8% organic growth
5 Feb 2019
Coloplast delivered 8% organic growth and EBIT increased by 8% to DKK 1,297m, corresponding to an EBIT margin of 30%, in the first quarter of the 2018/19 financial year. The company maintains its financial guidance for 2018/19.
Coloplast delivered 8% organic revenue growth in the first three months of the 2018/19 financial year, while reported growth in Danish kroner was up by 9% to DKK 4,321m. Currency developments reduced revenue by less than 1%, and revenue from acquisitions contributed 1%.
Organic growth rates by business area were 8% in Ostomy Care, 8% in Continence Care, 9% in Interventional Urology, and 11% in Wound & Skin Care.
Looking at sales by geography, the European markets contributed with 6% growth, Other developed markets delivered 10% revenue growth, while Emerging Markets provided a 14% increase.
“We maintain solid growth rates across all geographical regions and business areas. I would like to highlight our strong performance in Europe driven by new product launches and our Wound Care business delivering 10% organic growth driven by the Biatain® Silicone portfolio in UK and France. Our organic revenue growth is twice the market growth, and we maintain our guidance for 2018/19. In short, we are off to a good start to the financial year,” says newly appointed Coloplast CEO Kristian Villumsen.
Investments in further growth
Coloplast continued its incremental investments in growth of up to 2% of revenue during the first quarter. Investments were made in innovation as well as sales and marketing initiatives across multiple markets and business areas.
In addition, Coloplast is expanding its SpeediCath® portfolio with the launch of SpeediCath® Navi. SpeediCath® Navi is a hydrophilic catheter designed specifically for Emerging Markets and it will be launched during 2019 and 2020.
“As part of our investments in Emerging Markets, we’re proud to be able to offer a product developed specifically for catheter users in this region. Our aim is to raise the standard of care and to accommodate markets with lower reimbursement. I’m confident that SpeediCath® Navi will make a big difference to our users, while giving Coloplast a strong competitive edge,” says Mr Villumsen.
Financial guidance for 2018/19
Coloplast continues to expect organic revenue growth of ~8% at constant exchange rates and a reported growth in DKK of 8-9%.
Coloplast continues to expect an EBIT margin of 30%-31% at constant exchange rates and a reported EBIT margin of ~31% in DKK.
Contacts
Lina Danstrup
Senior Media Relations Manager, Corporate Communications
+45 49 11 26 07
dklina@coloplast.com
Ellen Bjurgert
Vice President, Investor Relations
+45 49 11 33 76
dkebj@coloplast.com