News and press releases

Founded in 2014, Nine Continents Medical, Inc. is a privately held company that has developed an innovative solution for over-active bladder (OAB), a condition characterised by a range of symptoms including the need to urinate more frequently, increased urgency, incontinence or leakage, and a need to urinate at night. The device is an implantable tibial nerve stimulator (ITNS), a miniaturised, self-powered unit placed in the lower leg under local anaesthesia during a short, minimally invasive procedure. The solution requires no patient activation, recharging or recurring doctor visits, and builds on the clinically proven mode of action of percutaneous tibial nerve stimulation, which is an OAB treatment available on the market today.

Coloplast’s ambition is that clinical studies will demonstrate that patients receiving this solution can live a more normal life with significantly reduced symptoms. We expect to begin pivotal studies in 2021, with the ambition to obtain premarket approval for a Class III device in the US and EU market approvals in the 2024-2025 timeframe.

Today, +80 million people globally suffer from OAB symptoms. About 40% of the OAB patient population seek treatment and of those about 3 million patients globally are candidates for 3rd line therapies like the solution developed by Nine Continents.

The acquisition of Nine Continents and entry into the OAB segment fits with Coloplast’s strategy to pursue organic and inorganic growth opportunities in the Interventional Urology business and aligns with Coloplast’s mission and strategic direction to bring innovative solutions to the market.

“I am excited about the prospects of the Nine Continents device and pleased to confirm our commitment to the Interventional Urology business with this acquisition in the large OAB market. There is a large group of patients in the US and abroad suffering from OAB, and with Nine Continents’ innovative, minimally invasive device we hope to help these people live a better life,” says Kristian Villumsen, President & CEO of Coloplast.

The acquisition is debt financed using existing credit facilities, and Coloplast’s dividend policy is unchanged. The acquisition has no impact on Coloplast’s long-term guidance of 7-9% organic growth p.a. and more than 30% EBIT margin in constant currencies. Operational costs until commercialisation are included in Coloplast’s annual incremental commercial investments of up to 2% of revenues.

For questions about the transaction, please contact
Ellen Bjurgert, Vice President, Investor Relations
+45 49 11 33 76
dkebj@coloplast.com

For general media inquiries, please contact
Lina Danstrup, Senior Media Relations Manager
+45 4911 2607
dklina@coloplast.com

In the fourth quarter of the 2019/20 financial year, Coloplast delivered 2% organic revenue growth with reported revenue in DKK down by 1% to DKK 4,590m. Full-year organic revenue growth was 4% with reported revenue in DKK up by 3% to DKK 18,544m.
Full-year ROIC after tax and before special items was 46%.

“We deliver a solid set of full year results despite the COVID-19 outbreak. Our priorities have been clear throughout the pandemic; we need to keep our employees safe, while continuing to serve our customers. So far, we have succeeded in mitigating the pandemic, while maintaining business continuity,” says Coloplast CEO Kristian Villumsen and continues:

 “Our full year results were negatively impacted by the cancellation of elective procedures in our Interventional Urology business as well as a negative impact from the pandemic on our Wound & Skin Care business in China and on our Chronic Care business in the UK. We continue to adapt our business to the challenging situation, and we are encouraged by the largely stable underlying growth in the US and in our Emerging Markets. We deliver 4% organic growth and an EBIT margin of 32% in a year, which has been unlike any other in the history of our company.”

In the fourth quarter of the 2019/20 financial year, organic growth rates by business area were 3% in Ostomy Care, 4% in Continence Care, 0% in Interventional Urology, and -3% in Wound & Skin Care.

The fourth quarter was negatively impacted by flat growth in several countries in Europe due to limited growth in new patients due to COVID-19, especially in the UK Chronic Care business. Wound & Skin Care was adversely affected by a decline in hospital procedures in China and the wider Emerging markets region due to COVID-19. On a positive note, the newly launched Biatain Fiber wound dressing is beginning to contribute to growth in Europe.

Growth in the US Chronic Care business remained strong in Q4 and the performance in the Interventional Urology business improved significantly in Q4 compared to Q3 as elective procedures recovered in the US.

COVID-19 pandemic

Coloplast continues to monitor developments closely across all markets and business areas and continues to take all necessary precautionary measures to comply with and support local, national, and global guidelines from healthcare authorities.   

The company’s global manufacturing sites are operating at normal capacity in terms of production and supply chain, and the company continues to fully meet demand.

Strive25
Coloplast presented its new corporate strategy “Strive25 – Sustainable Growth Leadership” in September. Strive25 will drive value creation through Sustainable Growth Leadership with an emphasis on innovation, US, and China. The strategy will be supported by key growth enablers including Efficiency, People & Culture, and Sustainability.

As part of the new strategy, Sustainability has become a new enterprise theme with a key focus on reducing emissions and improving products and packaging. Coloplast aims to achieve 0 emissions from scope 1 & 2 in 2025 through 100% renewable energy, 80% of our packaging should be from renewable materials and 50% of our production waste should be recycled. To achieve these targets, Coloplast will invest up to DKK 250m over the next five years.

Unparalleled efficiency continues to be driven by ambitious global operation plans. Global Operations Plan 5 (GOP5) will focus on automation in the company’s production sites.

The company’s long-term financial guidance for the strategy period is 7-9% organic growth p.a. and an EBIT margin of more than 30% in constant currencies.

The strategy will be supported by yearly incremental investments of up to 2% in innovation and commercial initiatives to drive growth.  

Financial guidance for 2020/21
In line with its long-term guidance Coloplast is guiding for 7-8% organic revenue growth and a reported growth in DKK of 4-5%.  

Coloplast expects a reported EBIT margin in DKK of 31-32%, and the guidance reflects additional incremental investments of up to 2% of revenue for innovation, sales, and marketing initiatives and continued prudent cost management.  
Capital expenditure is expected to be DKK ~1.1bn. The effective tax rate is expected to be ~23%.

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

*DKK 400m as further provision to cover potential settlements and costs in connection with the existing lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products.

Sales performance by business area 

Sales performance by region

Financial guidance for 2020/21

Founded in 2018, Minneapolis-based Francis Medical is a privately held company committed to developing minimally invasive urological cancer treatments. The foundation of the company is a tribute to and legacy of the inventor’s father, Francis Hoey, whose life was ended by prostate cancer with treatments that had harsh implications on his normal daily living.

The platform technology utilises water vapour energy to ablate targeted cancerous tissue while preserving surrounding structures, potentially minimizing the side effects often experienced with other cancer treatments.

The investment fits with Coloplast’s strategy to pursue organic and inorganic growth opportunities in the Interventional Urology business. Francis Medical in particular and the prostate cancer segment in general align with the Interventional Urology’s strategic direction, bringing innovative solutions to the urology market.

“We are proud to be supporting life-changing technologies in growing urology segments.  As part of our long-term strategy we are exploring multiple areas for investment and growth, and we are excited about providing solutions in Men’s Health segments like prostate cancer,” said Steve Blum, President of Interventional Urology.

Coloplast is dedicated to making life easier for people with intimate healthcare needs and advancing the treatment of prostate cancer supports that mission. The investment in Francis Medical will help the company continue to develop their minimally invasive solution and help Coloplast Interventional Urology continue to grow its presence in the market with customers and patients.

“There is a large unmet need for patients seeking treatment alternatives with fewer side effects than radiation or a radical prostatectomy. We are working to address that unmet need and are excited to have the support of a leader in urology like Coloplast to improve the treatment of prostate cancer,” said Mike Kujak, CEO of Francis Medical.

For more information on Francis Medical please refer to www.francismedical.com.

Global press contact

Lina Danstrup, Senior Media Relations Manager

+45 4911 2607

dklina@coloplast.com   

Ellen Bjurgert, Vice President, Investor Relations

+45 49 11 33 76

dkebj@coloplast.com

Coloplast reported negative organic growth of -2% in the third quarter and reported revenue in DKK was down by 4% to DKK 4,419m. Year to date organic growth was 5% and reported revenue in DKK increased by 5% to DKK 13,954m.

For the first nine months of the 2019/20 financial year, EBIT amounted to DKK 4,382m, a 7% increase, corresponding to an EBIT margin of 31%. The development reflects strong cost control during the COVID-19 outbreak as well as sustained investments in growth opportunities and innovation. ROIC after tax before special items was 45% for the first nine months, which is in line with last year.

-          “The COVID-19 outbreak had a material negative impact on elective procedures and our Interventional Urology business in the US in the third quarter. Looking ahead, we are encouraged by the pace at which elective procedures resumed across the quarter and we have reinitiated investments into the business,” says Coloplast CEO Kristian Villumsen and continues:

-          “Overall, our Chronic Care business continues to deliver a solid underlying performance, however, the quarter was adversely impacted by stock reversal in Europe. Due to the prolonged lockdown in the UK, we have seen a decline in new patients resulting in lower growth in both Ostomy and Continence Care. On a positive note, China returned to growth, and North America and our Emerging Markets region continue to deliver solid results.”

-          “Our priorities at Coloplast remain clear. We need to keep our employees safe, while continuing to serve our customers. At the same time, we are moving ahead with our 2025 strategy that will be announced at our Capital Markets Day in September. To set ourselves up to deliver our 2025 strategy, we are expanding our Executive Leadership Team and I look forward to presenting the team and our new strategy in September.”

In the third quarter of the 2019/20 financial year, organic growth rates by business area were 4% in Ostomy Care, 4% in Continence Care, -40% in Interventional Urology, and -6% in Wound & Skin Care.

The COVID-19 outbreak adversely affected the growth performance in Interventional Urology with a significant decline in elective procedures primarily in the US. Performance improved across Q3 as elective procedures gradually resumed across the US and most of the European markets.

The Wound & Skin Care business was adversely affected by a decline in hospital procedures resulting in a decline in sales in China, Europe and the US following the COVID-19 outbreak.

Looking at sales by geography for Q3, the European markets reported -4% organic growth, Other developed markets reported -6% organic growth, while Emerging Markets reported a 9% organic growth increase.

COVID-19 outbreak

Coloplast continues to monitor developments closely across all markets and business areas and continues to take all necessary precautionary measures to comply with and support local, national, and global guidelines from healthcare authorities.

The company continues to focus on adapting the business to the challenging situation, and in the absence of face-to-face meetings, new digital tools have been developed and news ways of engaging with healthcare professionals have been introduced.

Narrowed financial guidance for 2019/20
Coloplast expects organic revenue growth of ~4% at constant exchange rates from previously 4-6% and a reported growth in DKK of 3-4% from previously 4-6%.

Coloplast expects an EBIT margin of ~31% at constant exchange rates from previously 30-31% and a reported EBIT margin in DKK of ~31% from previously 30-31%.

Capital expenditure is still expected to be DKK ~950m. The effective tax rate is still expected to be ~23%.

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

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    

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    

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

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.