News and press releases

Coloplast delivered 7% organic growth for the full year. Reported revenue in DKK was up by 5% to DKK 19,426 million. EBIT before special items amounted to DKK 6,355 million, a 9% increase from last year, corresponding to an EBIT margin before special items of 33% against 32% last year. The strong profitability performance reflects efficiency gains as well as lower spending due to COVID-19 offset by commercial investments.

“We deliver a solid set of numbers in a challenging year, which was impacted by the COVID-19 pandemic. Throughout the year, we have had clear priorities. We need to keep our people safe, continue to serve our customers, and maintain business operations. I am proud to say that so far, we have managed to navigate through the pandemic, while continuing to grow our business and take market share. This year, we helped make life easier for more than 2 million people with intimate chronic conditions”, says Coloplast CEO Kristian Villumsen and continues:

“In 2020/21, COVID-19 had a large impact on our Chronic Care business. I am, however, encouraged to see the growth in new patients recovering. Our smaller business areas, Interventional Urology and Wound & Skin Care, made a strong recovery this year as elective procedures and hospital activity resumed. Finally, the strong EBIT margin was supported by successful execution of our Global Operations Plans and prudent cost management.”

Strong performance in Q4

Coloplast delivered a strong result of 10% organic growth and an EBIT margin of 32% in the fourth quarter. In Q4, the Ostomy Care business delivered 10% organic growth, Continence Care 8%, Interventional Urology 10%, and Wound & Skin Care 15%.

“I would like to highlight a solid performance in Q4 by our Chronic Care business in Europe where growth in new patients has now approached pre-COVID levels. Emerging Markets also delivered a good quarter lifted by tender phasing as expected, while our US business returned to growth, driven by an increase in new patients. Finally, our Interventional Urology and Wound & Skin Care businesses delivered double-digit growth, contributing positively to our strong finish to the year.”

Looking at organic growth rates by geography in Q4, the European markets reported 8% growth, Other developed markets grew 7%, while Emerging markets contributed with 21% growth.

Solid progress on emissions reduction and waste recycling

Coloplast is committed to ambitious science-based climate action for a 1.5°C future. This quarter, the company submitted emission reduction targets through the Science Based Targets initiative.

On scope 1 and 2, the ambition is to become net-zero by 2025. Two key initiatives within scope 1 and 2 are 100% renewable energy used in production by 2025 and a company car fleet with 50% electric cars by 2025 and 100% electric cars by 2030.

On scope 3, Coloplast has set a target to reduce emissions per product by 50% by 2030. A key focus area to reach the target will be raw materials, which account for 67% of the total scope 3 emissions. During 2020/21, Coloplast engaged in dialogue with its raw materials suppliers to set a target for scope 3 emissions and to improve data from its raw materials.

Earlier this year, Coloplast also achieved a breakthrough in waste recycling and exceeded the company’s 2025 target of 50% by delivering 58%. Coloplast has now set a new waste recycling target of 75% by 2025.

2021/22 financial guidance
In line with its long-term guidance Coloplast is guiding for around 7% organic revenue growth and a reported growth in DKK of around 8%.

The reported EBIT margin is expected to be around 32%, impacted by normalisation of business activities, raw material price pressure, wage inflation in Hungary and continued commercial investments.

Capital expenditure is expected to be around DKK 1.2 billion. The effective tax rate is expected to be 22-23%.

The Board of Directors recommends a year-end dividend of DKK [14.00] per share. In addition to the DKK 5.00 per share, paid out in relation to the half-year results, this brings the total dividend for the year to DKK [19.00] per share, compared to DKK 18.00 per share last year.

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

Financial highlights and key ratios

**DKK 200m as further provision to cover potential settlements and costs related to 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 2021/22

With the new scheme, the Polish Ministry of Health has decided to significantly improve reimbursement for hydrophilic catheters, bringing it on par with the European standard. It will impact thousands of people living with neurogenic bladder dysfunction such as spinal cord injured or children living with spina bifida.

“We are committed to raising the standard of care for people with intimate healthcare conditions around the world. I am pleased to see that more people with neurogenic bladder dysfunction in Poland will now get access to products that will enable them to lead full and dignified lives,” says Coloplast’s CEO Kristian Villumsen.

Using hydrophilic catheters instead of uncoated catheters, the current standard in Poland, is clinically proven to reduce the risk of urinary tract infections¹ – a critical complication associated with catheterization. Coloplast looks forward to December 1^st when the improved reimbursement takes effect and the transition to hydrophilic catheters begins.

“I admire the many different groups, from patient organizations to urologists, who have put in a persistent amount of work to raise awareness of what better catheterization means for quality of life. This is a breakthrough for the thousands of adults and children living with neurogenic bladder dysfunction. Now it is our task to ensure that the transition to hydrophilic catheters is backed with the right training and care,” says Hubert Niemyjski, Country Manager of Coloplast Poland.

To support a successful transition to hydrophilic catheters, Coloplast will focus on training healthcare professionals on the correct use of hydrophilic catheters. Coloplast will also place great emphasis on educating and supporting users through the Coloplast Care programme.

Coloplast’s Access to Healthcare programme was established in 2007 and aims to raise the standard of care, provide users with a voice, and advocate for better care and reimbursement with healthcare policy makers around the world.

¹Rognoni and Tarricone BMC Urology (2017) 17:4

CONTACT

Peter Mønster

Senior Media Relations Manager, Corporate Communications

+45 49 11 26 23

dkpete@coloplast.com

The site is located in Cartago, Costa Rica, and will initially manufacture the company’s ostomy products. The new site supports Coloplast’s ambition of achieving an annual organic growth rate of 7-9% towards 2025.

-        “Our new factory in Costa Rica is another great milestone in the company’s mission to help those with intimate healthcare needs. The purpose of the factory is to meet the increasing demand by producing and supplying products that will improve the quality of life for many people worldwide,” says Kristian Villumsen, President and CEO of Coloplast.

The factory is situated near one of Coloplast’s key markets, the US, and it is the company’s first site in Central America. It is the first of two planned factories in Costa Rica. The next factory is expected to be operational in the second half of 2022. Both factories will be connected to Costa Rica’s electrical power grid, which is supplied by almost 100% renewable sources. This supports the company’s sustainability ambition of using 100% renewable energy in its own production by 2025.

-        “We have chosen to establish our next factories in Costa Rica for several reasons. Firstly, the country has qualified and highly trained labour that we can now attract. In addition, the Costa Rican authorities are very cooperative and supportive. The country also has a green electricity supply, thereby supporting our sustainability ambition. Finally, Costa Rica is close to the US, which is one of our largest growth markets,” says Allan Rasmussen, Executive Vice President, Global Operations.

In addition to members of Coloplast’s senior management, the Costa Rican President Carlos Andrés Alvarado Quesada will also be present at the inauguration of the factory. Coloplast has created more than 200 jobs in Costa Rica so far, and the company expects this number to be close to 700 by 2025. The overall investment in the two factory buildings amounts to more than half a billion Danish kroner.

Coloplast also has production facilities in Denmark, Hungary, China, France, and the US. Today, Hungary accounts for approx. 80% of the global volume production.

CONTACT

Peter Mønster

Senior Media Relations Manager, Corporate Communications

+45 49 11 26 23

dkpete@coloplast.com

Year to date organic growth was 6% and reported revenue in DKK increased by 3% to DKK 14,326 million. EBIT before special items was DKK 4,705 million in the first nine months of the financial year, corresponding to an EBIT margin before special items of 33% against 31% last year. ROIC after tax before special items was 43% and diluted earnings per share (EPS) before special items increased by 17% to DKK 17.24.

-          “COVID-19 continues to impact our business, but the situation is improving, and I am encouraged by the rollout of the vaccination programmes and the improvement in hospital access across markets. Growth in new patients within our Chronic Care business is either largely normalised at pre-covid levels or approaching normalisation. This gives me confidence that growth rates will improve going forward.” says CEO Kristian Villumsen and continues.

-          “I would like to highlight a strong quarter in Interventional Urology, led by the US and our Men’s Health business, as well as solid momentum in our Wound & Skin Care business, driven by Europe and China and a strong contribution from our Biatain Silicone portfolio. Growth in our Chronic Care business in Europe is also picking up driven by an increase in new patients, and our Emerging markets business is on track to delivering a strong year.”

-          “We continue to move forward with our 2025 strategy, Strive25, which focuses on innovation and growth, and we are making solid progress with our Clinical Performance Programme. This quarter, we have received the CE mark for our new Digital Ostomy Tool developed to avoid leakage accidents and we will soon initiate payer pilot studies in Germany and the UK. Towards the end of 2021, we will initiate a pivotal study on our new Ostomy Platform designed to reduce skin irritation – a significant issue for ostomy users. Finally, we have made solid progress on the product design and performance of our new Catheter Platform, which is now expected to launch in the first half of this strategy period.”

Organic growth rates by business area in Q3 were 4% in Ostomy Care, 5% in Continence Care, 82% in Interventional Urology, and 17% in Wound & Skin Care. Looking at organic growth rates by geography in Q3, the European markets reported 10% growth, Other developed markets contributed with 17% growth, while Emerging markets grew 8%.

Country-by-country tax reporting

Coloplast continues to demonstrate a strong commitment to sustainability initiatives and company ethics, including improved ESG reporting. Consequently, the Board of Directors has decided that Coloplast will publish country-by-country tax reporting together with the Annual Report 2020/21 on 1 November 2021.

Climate-related criteria in renumeration
Coloplast’s Board of Directors is currently discussing Executive Leadership remuneration and upon approval at this year’s Annual General Meeting climate-related criteria will be incorporated into the short-term incentive plan for 2021/22. 

2020/21 financial guidance narrowed
Coloplast now expects organic revenue growth in the lower end of the 7-8% range at constant exchange rates. Reported growth in DKK is still expected to be 4-5%.

The EBIT margin guidance before special items is now expected to be in the upper end of the 32-33% range. After special items, the reported EBIT margin is now expected to be in the upper end of the 31-32% range.

Capital expenditure is still expected to be around DKK 1.1 billion. The effective tax rate is still expected to be around 23%.

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

Financial highlights and key ratios

Sales performance by business area

Sales performance by region

Financial highlights for the first 9 months of 2020/2021

*DKK 200m as further provision to cover potential settlements and costs related to the existing lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products.

 Financial guidance for 2020/21

The company reported 2% organic growth in Q2. Reported revenue in DKK was down by 1% to DKK 4,753 million, impacted by the depreciation of the USD and a number of Emerging markets currencies against DKK. The EBIT margin was 33% before special items against 32% last year, which reflects continued strong cost control during the COVID-19 pandemic as well as sustained investments in growth opportunities and innovation. EBIT was impacted by a further DKK 200m provision for costs related to the existing lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products.

In the first six months of the financial year, organic growth was 4% and the EBIT margin was 33% before special items.

“COVID-19 continues to impact our business, but we are encouraged by the vaccination roll-out and remain committed to our priorities: We want to keep our employees safe, while continuing to serve our customers, who rely on our products and services to manage their conditions. I am proud of our teams. They have managed the pandemic with determination and discipline, says CEO Kristian Villumsen and continues.

“I would like to highlight our solid Q2 performance in Emerging Markets, led by China, and our strong momentum in Wound Care, driven by Europe and China as well as our newly launched Biatain® Fiber portfolio. Our Interventional Urology business delivered another quarter of growth driven by the Men’s Health portfolio in the US, which continues to lead the recovery as elective procedures resume.”

“As expected, our Chronic Care business was negatively impacted by COVID-19 in Q2, due to lower growth in new patients in Europe and a tough comparison period in Q2 of last year, where we saw significant stock building in Europe in the early days of the pandemic. As we head into the second half of this financial year, we expect that growth will pick up, as elective procedures and hospital activity resume in line with the vaccine roll-out.”

Organic growth rates by business area in Q2 were 4% in Ostomy Care, 0% in Continence Care, 3% in Interventional Urology, and 1% in Wound & Skin Care. Wound Care in isolation delivered 9% organic growth driven by Europe and China. The recently launched Biatain® Fiber portfolio continued to contribute to growth, especially in Germany and France.

Looking at organic growth rates by geography in Q2, the European markets reported -2% growth, Other developed markets contributed with 5% growth, while Emerging markets grew 14%.

GPO contract win in the US

In March 2021, Coloplast was awarded a contract for ostomy products with Vizient Inc., the largest healthcare performance improvement company in the US. The contract is effective as of July 1, 2021 and building on the company’s Premier GPO contract win in 2020, Coloplast will now invest in a sales force expansion to support the increased access to hospitals across the US.

Key breakthrough in Coloplast’s Sustainability strategy

In Hungary, Coloplast has found a way to recycle the company’s production waste into materials used to build playgrounds and sports fields. Consequently, the company now recycles 58% of its production waste, exceeding the 2025 ambition of 50%. A new ambition will be set and announced in connection with the company’s full-year results.

Coloplast continues to invest in innovation and growth

Coloplast continues to move forward with its new corporate strategy “Strive25 – Sustainable Growth Leadership” and the company plans to annually invest up to 2% of revenue in incremental innovation and commercial initiatives to drive growth. So far this financial year, the company has invested in innovation, sales and marketing activities in Asia, consumer and digital initiatives and Interventional Urology.

2020/21 organic growth guidance unchanged, EBIT margin guidance raised
Coloplast continues to expect organic revenue growth of 7-8% at constant exchange rates. Reported growth in DKK is still expected to be 4-5%.

The EBIT margin guidance before special items is raised from 31-32% to 32-33% due to efficiency gains and lower costs as a result of COVID-19. After special items, the reported EBIT margin is expected to be 31-32%. This is due to DKK 200m provision 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 is taking longer than anticipated. The company has now settled around 97% of all known cases.

Capital expenditure is still expected to be around DKK 1.1 billion. The effective tax rate is still expected to be around 23%.

The company will pay a half-year interim dividend of DKK 5.00 per share for a dividend

pay-out of DKK 1,065m.

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

Financial highlights and key ratios

*DKK 200m as further provision to cover potential settlements and costs related to 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 highlights for the first 6 months of 2020/2021

 Financial guidance for 2020/21

“I am excited about the agreement with Vizient and the potential it holds for our company, for Vizient members and for the many people living with an ostomy in the US. This agreement will strengthen our presence across hospitals and other healthcare organizations and enable us to provide our products and services to more and more users in the US,” says President & CEO of Coloplast, Kristian Villumsen.

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

“We are delighted that Vizient has added us to their Ostomy Products portfolio. Vizient helps their members deliver high-value care to improve patient outcomes, and as a global market leader in intimate healthcare, we look forward to supporting that mission,” says Senior Vice President Manu Varma, Chronic Care North America, Coloplast.

The agreement is effective beginning July 1, 2021. As part of the contract, SenSura® Mio Baby & Kids, products developed by Coloplast for neonates, children and teenagers, will be included in Vizient’s Preferred Pediatric Program.

Vizient serves more than half of the healthcare organizations across the country – from large integrated delivery networks and academic medical centers to community hospitals, children’s hospitals and non-acute care providers.

About Coloplast ostomy products

Coloplast’s range of innovative ostomy products is 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 manufacturer-provided patient support program with better patient outcomes supported by peer-reviewed data. Coloplast Care provides ostomy users access to product and lifestyle 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.

About Coloplast

Danish medical device company, Coloplast, develops products and services designed to make life easier for people with intimate health conditions. Coloplast listens to end-users to better understand their needs and responds by bringing the best ideas to market in the form of medical devices and service solutions.

Learn more about Vizient Inc: http://www.vizientinc.com/

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

Coloplast delivered 5% organic revenue growth in the first three months of the 2020/21 financial year. EBIT amounted to DKK 1,536m, a 4% increase, corresponding to an EBIT-margin of 32% against 31% last year.

“Our priorities have been clear throughout the pandemic. We want to keep our employees safe, while continuing to serve our customers, who rely on our products and services to manage their conditions. I am proud of the work that is being done by our many teams across the world to make sure that we continue business operations and continue to support our customers,” says Coloplast CEO Kristian Villumsen and continues:

“Despite the COVID-19 outbreak, we deliver a solid set of results in Q1. We continue to deliver organic growth across all geographical regions and business areas, which means that more and more people with personal medical conditions are getting the help and support they need to lead better lives.”

“I would like to highlight our solid performance in the US as well as our strong momentum in Emerging Markets, particularly driven by growth in China, Latin America and tender deliveries in Russia. Also, our Interventional Urology business delivered a good quarter driven by the Men’s Health portfolio in the US, which returned to growth as elective procedures continued to recover during the quarter.”

Organic growth rates by business area were 6% in Ostomy Care, 6% in Continence Care, 5% in Interventional Urology, and 1% in Wound & Skin Care. Wound Care in isolation delivered 5% organic growth driven by Europe and a return to growth in China. The recently launched Biatain® Fiber portfolio contributed positively to growth, driven by France and Germany.

Looking at sales by geography, the European markets contributed with 2% growth, Other developed markets delivered 7% revenue growth, while Emerging Markets provided a 16% increase. Growth in Europe continues to be negatively impacted by the COVID-19 outbreak due to lower growth in new patients, particularly in the UK Chronic Care business.

While Coloplast delivered 5% organic growth, reported growth in Danish kroner was up by 1% to DKK 4,738m. Reported revenue was, as expected, adversely affected by the depreciation of USD, GBP, and several emerging markets currencies, especially ARS and BRL.

ROIC after tax and before special items was 44% against 47% in the same period last year impacted by the acquisition of Nine Continents Medical in November 2020.
 

The COVID-19 pandemic

Coloplast continues to monitor developments closely across all markets 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 customer demand.

Coloplast continues to invest in innovation and growth

Coloplast continues to move forward with its new corporate strategy “Strive25 – Sustainable Growth Leadership” and yearly invest up to 2% of revenue in innovation and commercial initiatives to drive growth. So far this financial year, the company has invested in sales and marketing activities in Asia, consumer and digital initiatives, innovation, and Interventional Urology.

Financial guidance for 2020/21

In line with its long-term guidance Coloplast continues to guide for 7-8% organic revenue growth and a reported growth in DKK of 4-5%.

Coloplast continues to expect a reported EBIT margin in DKK of 31-32%. The guidance reflects additional incremental investments and continued prudent cost management.

Capital expenditure is still expected to be DKK ~1.1bn. The effective tax rate is still expected to be ~23%.

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

Financial highlights and key ratios

Sales performance by business area

Sales performance by region