News and press releases

As Executive Vice President of Chronic Care, Paul Marcun will be responsible for Global Marketing, the sales regions and the innovation pipeline within Ostomy Care and Continence Care.

"I am very happy to be able to welcome Paul Marcun back to Coloplast. This time as Executive Vice President of Chronic Care and as a member of the company’s Executive Management. Paul is a strong leader and an accomplished business developer, and with him at the helm of Chronic Care, Coloplast is well-equipped for the future," says CEO Lars Rasmussen, Coloplast.

Following Paul’s appointment, Coloplast’s Executive Management team will consist of four members as of mid-January 2019: Kristian Villumsen, President & CEO, Anders Lonning-Skovgaard, EVP & CFO, Allan Rasmussen, EVP Global Operations and Paul Marcun, EVP Chronic Care. 

"I look forward to welcoming Paul back to Coloplast in a new role, and I know his former team feels the same way. Paul brings extensive sales and executive leadership experience to the role, and he knows our company and culture well," says Kristian Villumsen, Coloplast.

New leader in Chronic Care

Paul Marcun has around 20 years of experience in the medtech industry. Paul first joined Coloplast in 2015 and he has been part of Coloplast A/S’ management team for more than three years as Senior Vice President, Emerging Markets. Prior to joining Coloplast A/S, Paul served as President Eastern Europe, Middle East, Africa & India at Stryker International and Vice President Ortho-Clinical Diagnostics and Vice President Ethicon Endo Surgery & Advanced Sterilization Products at Johnson & Johnson. Paul Marcun recently served as President of Surgical Workflows at Getinge.

Paul holds a Bachelor of Veterinary Science (Hons.) from the University of Melbourne and a Master of Business Administration from the University of Technology in Sydney. Paul is an Australian and British citizen and was born in 1966. 

Coloplast delivered 8% organic revenue growth in the fourth quarter of its financial year, with reported revenue in DKK up by 6% to DKK 4,234m. Full-year organic revenue growth was also at 8%, while reported revenue in DKK was up by 6% to DKK 16,449m. While lifted by acquisitions, revenue growth measured in DKK was adversely affected by 4% due to currency developments, especially USD and ARS depreciating against DKK.

Relative to the 7% organic growth rates of the past three years, the full-year revenue growth marks a shift in momentum and an acceleration of growth in a market otherwise growing by 4-5%. Accelerating growth was indeed Coloplast’s goal when revising its long-term guidance in November 2017 with the ambition of increasing investments and accelerating growth during the period to 2019/2020 and growing at the upper end of the 7-9% range.

Full-year EBIT amounted to DKK 5,091m, a 1% increase in DKK, for an EBIT margin of 31%, compared to 32% in 2016/17. When measured at constant exchange rates and adjusted for the DKK 90m one-off revenue adjustment related to Veterans Affairs, EBIT was up by 4%, for an EBIT margin of 31% against 33% last year. The EBIT performance is in line with the company guidance and reflects an increase in innovation, sales, and marketing investments across all product categories.

“We’re delivering a strong fourth quarter performance at 8% revenue growth for the sixth quarter running, and we’re delivering highly satisfactory full-year results with growth across all regions. Even though 2017/18 was a year of investing for Coloplast, we’re still delivering solid results and we continue to grow at double the market rate. Obviously, I’m quite pleased with that,” said Coloplast CEO Lars Rasmussen.

The business areas produced the following full-year organic growth rates: Ostomy Care 9%, Continence Care 8%, Interventional Urology 10% and Wound & Skin Care 3%. A comprehensive pricing reform in Greece adversely affected the full-year growth performance in the Wound Care business.

Looking at sales by geographies, the European markets contributed 5% growth to FY sales, Other developed markets, driven mainly by the USA, delivered 11% revenue growth, while Emerging Markets provided a 14% increase.

“We’re seeing solid growth across our business areas, driven not least by our product launches and commercial investments. We will continue to invest up to 2% of revenue in innovation, sales, and marketing in 2018/19, so we can continue to develop and provide innovative products such as SenSura® Mio Concave. This new product portfolio has been very well received, and it is now available and eligible for reimbursement in ten countries. 2018/19 will be another year of investing, and in the first quarter we are launching SenSura® Mio Baby and SenSura® Mio Kids, designed specifically for premature babies and children up to 4 years,” said Mr Rasmussen.

Through the SenSura® Mio Baby and SenSura® Mio Kids portfolios, Coloplast sets a new standard for paediatric ostomy care products. The two new categories are scheduled for launch in all core markets within the next 12 months.

Financial guidance 2018/19

 Coloplast is guiding for ~8% organic revenue growth at constant exchange rates. Reported growth in DKK forecast at 8-9%. EBIT margin of 30-31% expected at constant exchange rates with a reported EBIT margin of ~31% in DKK. The EBIT margin forecast reflects additional investments of up to 2% of revenue for innovation and sales and marketing purposes.

After 30 years in Coloplast, 17 of them in Executive Management and 10 years as CEO, Lars Rasmussen has decided to resign his position as CEO of Coloplast A/S as of December 4^th, 2018.

"Succeeding Lars, who during his 10 years as CEO of Coloplast has spearheaded Coloplast’s successful transformation and development into a global, highly profitable and respected MedTech company, is a tall order. On behalf of Coloplast’s Board of Directors and Coloplast’s employees I want to thank Lars for his outstanding leadership and engagement in Coloplast through good and difficult times during his 30 years with the company," says Chairman of the Board of Directors Michael Pram Rasmussen, Coloplast.

Lars Rasmussen has been nominated by the Board of Directors to assume the role of Chairman of the Board of Directors of Coloplast A/S, succeeding Michael Pram Rasmussen who will not stand for re-election at the next Annual General Meeting on Wednesday December 5^th, 2018.

"It has been a great pleasure to work at Coloplast for more than 30 years and to serve as CEO during a period where we have been able to create one of the world’s most profitable MedTech companies. The company has undergone a transformation, and today it is a user-focused MedTech company with a strong innovation pipeline. We have launched products that make life easier for people with intimate healthcare needs, and that makes me very proud," says CEO Lars Rasmussen, Coloplast.

"I am honoured that the Coloplast Board of Directors has nominated me to become Chairman of the Board, and I look forward to taking part in the continued development of the company," says Lars Rasmussen.

Michael Pram Rasmussen has chosen not to renominate himself as Chairman of the Board of Coloplast A/S, and as a result he retires from the Board of Directors at this year’s annual general meeting.

"Since 2006 Michael Pram Rasmussen has served Coloplast as Chairman of the Board of Directors. I am very grateful for his many contributions and relentless commitment to Coloplast. I look forward to welcoming Lars Rasmussen into his new role as Chairman and to working together with him and the rest of the Board members to lead Coloplast into the future," says Deputy Chairman Niels Peter Louis-Hansen.

A new CEO in Coloplast

Effective December 4^th 2018, the Board of Directors has elected current Executive Vice President for Coloplast Chronic Care Kristian Villumsen as new CEO of Coloplast. The process to find a successor for Kristian Villumsen has been initiated. 

"With Kristian Villumsen as CEO, the company will have a strong leader, who will guarantee Coloplast’s continued competitiveness. Kristian is a talented businessman with many years of insights into the company and the industry. Together with the other members of the Executive Management, Anders Lonning-Skovgaard and Allan Rasmussen, and the rest of the organisation the company is well equipped for the future," says Lars Rasmussen.

Kristian Villumsen joined Coloplast in 2008 and since then, he has been head of Global Marketing, Region Europe and Region Emerging Markets. In 2014 the Executive Management team was expanded with two members, and Kristian Villumsen was appointed Executive Vice President of Chronic Care and he became responsible for Global Marketing, the sales regions and innovation pipeline within ostomy and continence care.

"I am both proud and humble to be offered the job as CEO of a company that year after year has delivered strong results. Coloplast has never had a stronger product portfolio and organisation and is currently standing on a very strong platform. We have a strategy towards 2020 that will ensure that we continue to take market share across regions and business areas. We will move even closer to our customers and we want to deliver clinically differentiated innovation – I can’t think of a more exciting time to be offered the job of CEO in Coloplast," says new CEO Kristian Villumsen, Coloplast.

Kristian Villumsen is a member of the Board of Directors of Chr. Hansen A/S. He holds an M.A. in Political Science from Aarhus University, Denmark, and a Master in Public Policy degree from Harvard University, US.

Coloplast delivered 8% organic revenue growth in the third quarter of its financial year, and reported revenue in DKK was also up by 8% to DKK 4,225 million. For the nine month (9M) 2017/18 reporting period, organic revenue growth was also 8%, while reported revenue in DKK was up by 6% to DKK 12,215 million.  

“The organic revenue growth is twice the market growth rate for the fifth quarter running. Solid growth continues across our business areas, driven in part by our product launches and commercial investments. The patent expiry of SpeediCath® at the end of the previous financial year has turned out to have only limited impact. This allows us to raise our full-year guidance once more, which I’m obviously quite pleased with,” said Coloplast CEO Lars Rasmussen.

Organic growth rates by business area for the 9M 2017/18 reporting period: Ostomy Care 9%, Continence Care 9%, Urology Care 10% and Wound & Skin Care 3%. The Wound Care business alone generated 12% organic growth in the third quarter.

“Our Wound Care business delivered very impressive growth in the third quarter, driven by China and stronger momentum in Europe. We’re seeing double-digit growth in our US Ostomy Care and Continence Care businesses, and our new product portfolio in Ostomy Care, the SenSura® Mio Concave, has been very well received. It is now available and eligible for reimbursement in nine countries. 2017/18 is a year of investing for Coloplast, and we’re now beginning to see the results of our investments,” said Mr Rasmussen.

Looking at sales by geographies, the European Markets contributed 5% growth to 9M sales, Other Developed Markets, driven especially by the USA, delivered 12% revenue growth, while Emerging Markets provided a 14% increase.

EBIT for the 9M period was up by 3% at constant exchange rates and adjusted for the DKK90m one-off revenue adjustment relating to Veterans Affairs, equal to an EBIT margin of 31% against 32% last year. The EBIT performance is in line with the company’s guidance and reflects an increase in sales and marketing investments across all product areas.

Financial guidance 2017/18
Coloplast now guides for ~8% organic revenue growth, up from previously 7-8%, at constant exchange rates. The upgrade is mainly due to the fact that the patent expiry of SpeediCath® standard catheters continues to have a limited effect. The guidance continues to include the effects of a comprehensive healthcare reform in Greece of DKK 100 million, which is expected to impact all business areas.

Coloplast continues to expect an EBIT margin of 31%-32% at constant exchange rates and a reported EBIT margin of ~31% in DKK.

Coloplast delivered 8% organic revenue growth in the second quarter of its financial year, while reported revenue in DKK was up by 4% to DKK 4,035m. The H1 organic revenue growth was also 8%, while reported revenue in DKK was up by 5% to DKK 7,990m. Reported revenue was adversely affected by the depreciation of USD and dollar-related currencies against DKK.

EBIT amounted to DKK 2,407m for a 3% decline in DKK but a 4% increase at constant exchange rates. The EBIT margin at constant exchange rates was 31% against 32% in the same period last year. In DKK, the EBIT margin was 30%, against 32% last year. The EBIT result is in line with the company’s expectations.

“We deliver a strong half-year result with solid growth across our Chronic Care business and an increased momentum in our Emerging Markets. At the same time, the SpeediCath® patent expiry has had a smaller impact than initially anticipated. This allows us to upgrade our full-year growth expectations, which I’m obviously very pleased with,” said CEO Lars Rasmussen.

Organic growth rates by business area: Ostomy Care 10%, Continence Care 9%, Urology Care 10%, and Wound & Skin Care negative 1%. The Wound Care business accelerated its momentum, delivering 8% organic growth in the second quarter despite the continued negative effects of a comprehensive pricing reform in Greece.

"We’re expanding our Ostomy Care product portfolio by introducing SenSura® Mio Concave, designed specifically for the outward body profile and customised to help stoma patients avoid leakage. It will be part of the same portfolio as SenSura® Mio Convex, the company’s most successful launch to date. As a result, we have very high expectations for the new product category, SenSura® Mio Concave, which is now available and eligible for reimbursement in seven countries,” said Mr Rasmussen.

Looking at sales by geographies, the European markets contributed with 4% growth in H1, Other developed markets delivered 13% revenue growth, while Emerging Markets provided a16% increase.

Tailwind and growth ambitions in the US

As part of the plan to accelerate organic growth in the US market, Coloplast has appointed Manu Varma as Senior Vice President of Chronic Care North America. Former Senior Vice President Ed Veome will take on a new role as Vice President of Sales of Chronic Care North America.

"The US market holds great potential, and our ambition is to continue to take market share. To that end, we are investing to accelerate growth, which includes investing in and expanding our North American leadership team,” said Mr Rasmussen.

Coloplast is also expanding its Continence Care and Wound Care product portfolios in the US market by launching the SpeediCath® Flex Coudé Pro, specifically designed for the US market, and the entire Biatain® Silicone portfolio.

In addition, Coloplast has been chosen as the primary ostomy care vendor at Cleveland Clinic, one of the leading hospital chains in the USA. Coloplast will be the new main supplier of ostomy care products to all Cleveland Clinic hospitals.

Financial guidance 2017/18

Coloplast now guides 7-8% organic revenue growth, up from previously ~7%, at constant exchange rates. The change is primarily due to expectations that the patent expiry of SpeediCath® standard catheters will have a negative effect of DKK 50m instead of the previous estimate of DKK 100m and due to increased momentum in the Emerging Markets region. The guidance continues to include the effects of a comprehensive healthcare reform in Greece of DKK 100m, which is expected to impact all business areas.

Reported growth in DKK is expected to be ~6%, up from previously 5-6%, mainly due to developments in the USD/DKK exchange rate. The change is due to the upgraded guidance for organic revenue growth. Coloplast continues to expect an EBIT margin of 31%-32% at constant exchange rates and a reported EBIT margin of ~31% in DKK.

All bodies are different, and it is challenging to create products that will fit the individual user. That is why Coloplast is proud to present another customised SenSura® Mio ostomy product.

While SenSura® Mio and SenSura® Mio Convex are designed to fit to the individual shapes of people with regular and inward body profiles, SenSura® Mio Concave is for people with an outward body profile. Flat and convex appliances are common, but SenSura® Mio Concave is the first concave appliance designed specifically to fit curves, bulges, and hernias.

“With the addition of SenSura® Mio Concave to the SenSura® Mio product range, we now offer the right fit to all body profiles. It is difficult to make a great fit for people with outward body profiles, but the curved star shaped baseplate can do just that. We are confident that this will make a big difference to our users and give Coloplast a strong competitive edge,” says CEO Lars Rasmussen, Coloplast.

“As market leader, we are proud to offer superior products to help improve the quality of life for our users. Our ambition is to continue to gain market share, and to do that we need innovative products like SenSura® Mio Concave,” says Mr. Rasmussen.

Coloplast is the global market leader in ostomy care products, holding 35-40% of the market.

It is Coloplast’s estimation that up to a third of ostomates have outward body shapes and could benefit from this new baseplate.

SenSura® Mio Concave will be launched in Coloplast’s key markets throughout 2018 and 2019. SenSura® Mio Concave will be available in Japan, UK, Germany, Denmark, Italy, Netherlands, and Finland from April 2018.

IncoCare is a privately owned, German direct-to consumer homecare company with regional distribution of primarily continence supplies. IncoCare was founded in 1998 and provides patients with products from several different manufacturers including Coloplast. The company has around 20 employees.

IncoCare will become part of the German Coloplast organisation, which already includes one of the largest homecare companies in Germany – SIEWA Homecare. 

“The acquisition of IncoCare is part of our strategy of pursuing inorganic opportunities to accelerate growth and to strengthen our service offering. By acquiring IncoCare we strengthen our position in Southeast Germany and ensure that more users get access to our innovative products and services,” says Coloplast CEO Lars Rasmussen.

“IncoCare is a great strategic fit. IncoCare and Coloplast were founded on the same desire to help people with intimate healthcare needs, and I look forward to welcoming IncoCare to the Coloplast family,” says Mr. Rasmussen.

The acquisition is a continuation of Coloplast’s overall ambition to secure its end users access to innovative products and services. Furthermore, the acquisition strengthens Coloplast’s position and offering in Germany, where Coloplast expects to continue to work closely with healthcare professionals and channel partners with the intent of improving overall end user outcomes.

The transaction will not impact Coloplast’s financial guidance for 17/18. The purchase price is undisclosed.

For more information on IncoCare please refer to www.incocare.de 

dkebj@coloplast.com  

Coloplast delivered 8% organic revenue growth in the first three months of the 2017/18 financial year, while reported growth in Danish kroner was up by 5% to DKK 3,955m. Reported revenue was adversely affected by the depreciation of USD and dollar-related currencies against DKK.

EBIT amounted to DKK 1,207m for a 2% decline in DKK but a 4% increase at constant exchange rates. The EBIT margin at constant exchange rates was 31% against 33% in the same period last year. In DKK, the EBIT margin was 31%, against 33% last year.

Organic growth rates by business area: Ostomy Care 9%, Continence Care 10%, Urology Care 11%, and Wound & Skin Care negative at 5%. Organic growth, particularly in the wound care business, was adversely affected by price reforms in Greece.

Looking at sales by geographies, the European markets contributed with 4% growth, Other developed markets delivered 18% revenue growth, while Emerging Markets provided a 10% increase.

“We’re delivering a solid result for the first quarter, and we are off to a good start to the financial year. We’re performing well in many of our major markets and are generally delivering strong results in Ostomy Care, Continence Care and Urology Care. As an example, we’re delivering double-digit growth, and we see continued increased momentum in the US market,” says Coloplast CEO Lars Rasmussen. 

Coloplast invests in growth
Coloplast invested in sales and marketing initiatives across multiple markets and business areas during the first quarter as part of its ambition to drive organic growth.

In addition, Coloplast is adding a new product to its ostomy care portfolio with the launch of SenSura® Mio Concave, the first ostomy care product designed specifically for people with hernias or curves. 

“We’re proud to be able to offer our users the best products in the market, and I’m confident that this new product will make a big difference to our users while giving Coloplast a strong competitive edge. Our ambition is to continue to win market share, and to do that we need innovative products like SenSura® Mio Concave,” says Mr Rasmussen.

In November 2017, Coloplast presented its new long-term financial guidance for the period to 2020. Consistent with its ambition of pursuing non-organic growth opportunities, Coloplast completed the acquisition of French direct-to-consumer home delivery company SAS Lilial in January 2018.

The transaction will strengthen Coloplast’s position and its product and service offering in France and will open for further access to payers.

Financial guidance for 2017/18
Coloplast continues to expect organic revenue growth of ~7% at constant exchange rates. Guidance for reported growth in DKK is lowered by 1pp to 5%–6% due to developments in the USD/DKK exchange rate. The guidance includes a negative effect of DKK 100m due to the patent expiry of SpeediCath® standard catheters and the effects of a comprehensive healthcare reform in Greece of DKK 100m.