Close
Find your Coloplast country website

News and press releases

  • Press release
6 May 2020

Coloplast continues solid performance in Q2 with 9% organic growth

Coloplast delivered 9% organic growth and EBIT increased by 15% to DKK 1,542m, corresponding to an EBIT margin of 32%, in the second quarter of the 2019/20 financial year. The company maintains its financial guidance for 2019/20.

Read news story

Coloplast delivered 9% organic revenue growth in the second quarter of the 2019/20 financial year, while reported growth in Danish kroner was up by 10% to DKK 4,823m.

The organic revenue growth was positively impacted by stock building in primarily Europe due to the COVID-19 outbreak. Year to date organic growth was 8% and reported revenue in Danish kroner was up by 9% to DKK 9,535m.

EBIT in the second quarter amounted to DKK 1,542m, a 15% increase, corresponding to an EBIT-margin of 32% against 30% last year. ROIC after tax and before special items in the second quarter was 46% against 44% last year.

-        “In these extraordinary times, our priorities at Coloplast are clear. We want to keep our employees safe, while continuing to serve our customers. Our customers rely on our help and support, so they can continue to manage their conditions. We have implemented a multitude of new guidelines and safety measures across our company to ensure a safe and stable supply of products for users and healthcare professionals, and I am very proud of the work that is being done by our many teams across the world,” says Coloplast CEO Kristian Villumsen and continues:

-        “Looking at our results, we deliver a solid Q2. Our organic revenue growth continues to be twice the market growth, and we continue to invest in innovation and commercial initiatives to drive future market share gains and raise the standard of care for our users.”

-        “The Chronic Care business ex-China delivered solid underlying performance in Q2. We also saw a large positive impact from stock building in primarily Europe due to the COVID-19 outbreak. This is expected to gradually reverse once the situation normalises. As communicated in our revised financial guidance on 18 March 2020, the COVID-19 outbreak is also expected to have a material negative impact on the Interventional Urology business and elective procedures in primarily the US. The global outlook for Ostomy Care, Continence Care and Wound & Skin Care remains largely intact.”

In the second quarter of the 2019/20 financial year, organic growth rates by business area were 10% in Ostomy Care, 12% in Continence Care, 3% in Interventional Urology, and 4% in Wound & Skin Care.

The COVID-19 outbreak adversely affected the growth performance in Ostomy Care and Wound Care in China as well as the Interventional Urology business primarily in the US.

Looking at sales by geography for Q2, the European markets contributed with 9% growth, Other developed markets delivered 11% revenue growth, while Emerging Markets provided a 7% increase. Growth in Europe was driven by solid underlying momentum as well as stock building due to the COVID-19 outbreak.

 

COVID-19 outbreak

During the COVID-19 outbreak, the health and safety of the company’s employees and continuity of service to customers continue to be the key priorities.

Coloplast’s global production and distribution sites continue to operate at normal levels and the company is able to fully meet demand. Coloplast continues to take all necessary precautionary measures globally and will continue to comply with and support local, national and global guidelines from healthcare authorities.

The company has donated Comfeel products, cash and medical personal protective equipment across several markets to local authorities and NGOs.

 

Financial guidance for 2019/20
Coloplast continues to expect organic revenue growth of 4-6% at constant exchange rates and a reported growth in DKK of 4-6%. Coloplast continues to expect an EBIT margin of 30-31% at constant exchange rates and a reported EBIT margin of 30-31% in DKK.
Capital expenditure is now expected to be DKK ~950m vs. ~850m previously. The effective tax rate is still expected to be about ~23%

The company will pay a half-year interim dividend of DKK 5.00 per share, for a total of dividend payout of DKK 1,064m.

 

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    

 

Financial highlights and key ratios (DKKm) 

2019/20 

Q2 

2018/19 

Q2 

Change 

Revenue

4,823

4,401

10%

EBIT

1,542

1,342

15%

EBIT margin

32%

30%

 

Profit for the period

1,067

1,021

5%

 

 

Sales performance by business area  (DKKm) 

2019/20 

Q2 

2018/19 

Q2 

Organic growth 

Reported growth 

Ostomy Care

1,920

1,742

10%

10%

Continence Care

1,776

1,584

12%

12%

Interventional Urology

507

484

3%

5%

Wound & Skin Care

620

591

4%

5%

Revenue 

4,823

4,401 

9% 

10% 


Financial guidance

 

Guidance for 2019/20

Guidance for 2019/20 (DKK)

Sales growth

4-6% (organic)

4-6%

EBIT margin

30-31% (at constant exchange rates)

30-31%

Capital expenditure

-

~950m

Tax rate

-

~23%

  • Press release
18 Mar 2020

Coloplast revises full-year organic growth and EBIT margin guidance for 2019/20

Due to the impact of the COVID-19 outbreak on the Interventional Urology business and elective procedures in primarily the US, Coloplast revises its full-year organic growth guidance for 2019/20 from 7-8% to 4-6% and EBIT margin guidance from ~31% in DKK to 30-31% in DKK. The outlook for Ostomy Care, Continence Care and Wound & Skin Care remains largely intact.

Read news story

Coloplast continues to monitor the impact of the Coronavirus outbreak closely, and the company’s main priority remains the health and safety of its employees, users, customers, and communities.

“Coloplast’s full-year guidance issued on February 6, 2020, reflected the best information available at the time and assumed that the situation surrounding the COVID-19 outbreak would normalise gradually during Q2. China is slowly returning to normal conditions, but the situation has escalated globally and Coloplast now expects an impact on the Interventional Urology business, where a significant share of revenue comes from elective procedures. Consequently, Coloplast does not expect to meet the organic revenue growth guidance and EBIT margin guidance provided for the full-year,” says Coloplast CEO Kristian Villumsen.

The organic revenue growth guidance is lowered from 7-8% at constant exchange rates and a reported growth in DKK of 7-8% to an organic revenue growth guidance of 4-6% at constant exchange rates and a reported growth in DKK of 4-6%. The EBIT margin guidance is lowered from ~31% at constant exchange rates and ~31% in DKK to 30-31% at constant exchange rates and 30-31% in DKK. Capex guidance of DKK ~850m and a tax rate of 23% is unchanged.

 

Interventional Urology

Year-to-date, Coloplast has seen solid growth above the market, and the company’s financial performance has been in line with expectations. The key factor behind the lower organic growth expectations is a revised outlook for the Interventional Urology business, which represents around 10% of group sales.

As a result of the COVID-19 outbreak, elective surgeries and procedures are expected to be postponed globally, which will negatively impact the financial performance of the Interventional Urology business in the second half of the financial year. The US represents around 50% of revenues in Interventional Urology and the negative impact from a decline in elective surgeries and procedures in the US is expected to be significant. The negative revenue impact is expected to be temporary and we expect the revenue loss to be recaptured once the situation normalises.

 

Ostomy Care, Continence Care and Wound Care

On a positive note, the situation in China in the Ostomy Care and Wound Care businesses is gradually normalising. Coloplast is monitoring the situation closely across all markets and business areas. The rate of new patients in Ostomy Care, however, is expected to be negatively impacted until the situation normalises as only the most acute ostomy surgeries are taking place.

 

Operating at full capacity

Coloplast is focused on adapting our business and commercial activities to the changing situation, while continuing to service users to the best of the company’s ability. This includes a prudent focus on costs as the company navigates this difficult situation. Coloplast’s global manufacturing sites are operating as normal and in terms of production and supply chain, the company can fully meet demand.

Coloplast is taking all necessary precautionary measures at the factories and distribution centres to keep employees safe and ensure supply including temperature checks of employees and limiting external guests. Border closures are complicating deliveries across borders and Coloplast is implementing mitigating measures to handle the situation. Coloplast is acting globally to protect all employees and will continue to comply with and support local, national and global guidelines from healthcare authorities.

 

Revised financial guidance

The situation is developing rapidly and remains uncertain. The revised full-year guidance assumes that the situation in Interventional Urology gradually normalises during the second half of the financial year, as well as a stable supply and distribution of products across the company.

Coloplast will continue to monitor and assess the impact to the business and provide an update in the Interim Financial Report for H1 2019/20 scheduled to be released on May 6, 2020.

The share buyback programme totalling up to DKK 500 million, as announced on February 6, 2020, will continue as planned and the company’s dividend policy is unchanged.

 

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    

  • Press release
6 Feb 2020

Coloplast delivers solid start to the year with 8% organic growth

Coloplast delivered 8% organic growth and EBIT increased by 13% to DKK 1,472m, corresponding to an EBIT margin of 31%, in the first quarter of the 2019/20 financial year. The company maintains its financial guidance for 2019/20.

Read news story

Coloplast delivered 8% organic revenue growth in the first three months of the 2019/20 financial year, while reported growth in Danish kroner was up by 9% to DKK 4,712m.

 

EBIT amounted to DKK 1,472m, a 13% increase in DKK, corresponding to an EBIT-margin of 31% against 30% last year. ROIC after tax and before special items was 47% against 44% in the same period last year.

 

-          “We continue to deliver an organic revenue growth that is twice the market growth, driven by solid growth rates across all geographical regions and business areas. I would like to highlight our strong performance in Emerging Markets driven by China, Latin America, and Russia. Also, our Wound & Skin Care business delivered a good quarter driven by the Biatain® Silicone portfolio in Europe. In other words, we are off to a good start to the year,” says Coloplast CEO Kristian Villumsen. 

 

Organic growth rates by business area were 9% in Ostomy Care, 6% in Continence Care, 9% in Interventional Urology, and 10% in Wound & Skin Care. A comprehensive price reform in France adversely affected the growth performance in the Continence Care business.

 

Looking at sales by geography, the European markets contributed with 5% growth, Other developed markets delivered 10% revenue growth, while Emerging Markets provided a 16% increase.

Coloplast continues to invest in growth
Incremental investments of up to 2% of revenue were made in the first quarter into sales and marketing initiatives across multiple markets and business areas.

 

-          “We are investing across regions with a clear focus on China, our Emerging Markets, the US, and the UK. These markets hold great potential, and our ambition is to continue to take market share, while raising the standard of care for our users,” says Kristian Villumsen.

 

Coronavirus outbreak in China

Coloplast is monitoring the Coronavirus outbreak in China closely and taking all necessary precautions to keep the company’s 2,000 employees in Zhuhai and Beijing safe. Coloplast is collaborating fully with the Chinese authorities, and the company has, in collaboration with the authorities, donated Wound Care and Ostomy Care products to the Red Cross organisation in the Hubei Province.

Financial guidance for 2019/20
Coloplast continues to expect organic revenue growth of 7-8% at constant exchange rates and a reported growth in DKK of 7-8%. Coloplast continues to expect an EBIT margin of ~31% at constant exchange rates and a reported EBIT margin of ~31% in DKK.

The financial impact of the situation in China is uncertain. The company’s full-year guidance assumes that the situation normalises during Q2.

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

 

 

 

Financial highlights and key ratios (DKKm)

2019/20

Q1

2018/19

Q1

Change

Revenue

4,712

4,321

9%

EBIT

1,472

1,297

13%

EBIT margin

31%

30%

 

Profit for the period

1,092

991

10%

 

Sales performance by business area

(DKKm)

2019/20

Q1

2018/19

Q1

Organic growth

Reported growth

Ostomy Care

1,907

1,736

9%

10%

Continence Care

1,686

1,579

6%

7%

Urology Care

535

479

9%

12%

Wound & Skin Care

584

527

10%

11%

Revenue

4,712

4,321

8%

9%

 

Financial guidance

 

Guidance for 2019/20

Guidance for 2019/20 (DKK)

Sales growth

7-8% (organic)

7-8%

EBIT margin

~31% (at constant exchange rates)

~31%

Capital expenditure

-

~850

Tax rate

-

~23%

 

 

 

 

  • Press release
7 Jan 2020

Coloplast awarded Enterostomal Therapy products agreement with Premier Inc.

Coloplast, a global medical device company and market leader in intimate healthcare needs, has been awarded a three-year group purchasing agreement for ostomy products with Premier Inc. in the US.

Read news story

The new agreement allows Premier members access to Coloplast’s full portfolio of ostomy products, including ostomy pouches and supporting products.

“We are delighted that Premier has added us to their Enterostomal Therapy contract. Coloplast shares Premier’s core values to improve patient outcomes and provide value to its customers, and we look forward to doing exactly that for Premier’s membership,” says Senior Vice President Manu Varma, Chronic Care North America.

The agreement is multi-source and effective for three years beginning April 1, 2020. Premier is a leading healthcare improvement company, uniting an alliance of approximately 4,000 U.S. hospitals and hospital systems and more than 175,000 other providers to transform healthcare.

 

About Coloplast ostomy care products

Coloplast’s range of innovative ostomy products are designed to reduce leakage and maintain healthy skin. With the SenSura® Mio portfolio and BodyFit® Technology Coloplast has taken fit, flexibility, and comfort to a new level, creating a portfolio of innovative ostomy solutions that reduce the burden of leakage and enable users to live the life they want to lead.

In addition to product solutions, Coloplast has developed Coloplast® Care, the only patient support program option with better patient outcomes. Coloplast Care provides ostomy users access to education and tools for self-assessment and individualized support from Care Advisors. Coloplast Care provides reliable information so ostomy users can better manage their care and experience a full life.

 

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


View desktop version