News and press releases

"Tommy has been with the company since 2015 and is the right person to lead our IU business going forward. He currently leads the IU Global Marketing & Innovation function, and as part of the global leadership team, he has helped bring the organisation to where it is today. Tommy is a great ambassador for Coloplast and our company values and through his collaborative spirit he has built strong relationships not just in IU but across the Coloplast Group,” says Kristian Villumsen, Coloplast’s CEO.

Tommy Johns brings 30 years of experience in the medical device industry through his careers with Medtronic, Smiths Medical and Coloplast. He began his career with Coloplast in 2015 as Vice President and General Manager, Urology Care, North America and was promoted the following year to Vice President of Global Marketing and Innovation, Interventional Urology.

"I am passionate about the work we do in Interventional Urology and I am excited to step into a new role. I look forward to leading our IU business into the future where we will bring existing and new products and solutions to more and more customers around the world. We are a purpose-driven growth business – and a great place to work," says Tommy Johns.

Tommy Johns replaces Steve Blum who has decided to retire after several successful decades in the global healthcare industry, including six years with Coloplast.

“Steve is a great leader with an impressive track record. He has successfully led the IU team through the pandemic, while simultaneously preparing the business for growth. Currently, we are seeing solid growth rates across IU and combined with the investments we have been making into innovation, the business is in a very good place. I’d like to thank Steve for his contributions to the company and wish him a happy retirement,” says Kristian Villumsen.

Contacts

 Peter Mønster
Sr. Media Relations Manager
+45 4911 2623
dkpete@coloplast.com

U.S. Press Contact 

Kate Merwin, Head of Communications
612-286-2455 
uskame@coloplast.com

Coloplast has signed a Power Purchase Agreement with Better Energy, equivalent to 9 GWh new green electricity per year over a ten-year period. The agreement ensures the construction of a new solar park of more than 50 hectares and marks an important step in Coloplast’s sustainability agenda. The solar park is expected to be to be fully operational during 2023.

The agreement positively contributes towards two of Coloplast’s sustainability targets: 

• Ensuring 100% renewable energy consumption by 2025 while supporting climate action and the expansion of additional renewable energy in society
• Reducing emissions by 100% in own operations (scope 1 & 2), which includes production, distribution, office buildings and company car fleet by 2030

“As part of our 2025 strategy, Strive25, we have made it a clear priority to run our company in a more sustainable way. This new agreement will support our ambition by delivering green power to Coloplast’s Danish sites, ensuring renewable energy for 100% of Coloplast’s electricity consumption in Denmark from 2023/24 onwards,” says Coloplast’s President & CEO, Kristian Villumsen.

An urgent need for climate action
An important prerequisite for the green energy transition is the availability of renewable, subsidy-free electricity. Through PPAs based on additionality, companies can reduce CO2 emissions and at the same time have a noticeable effect on the share of green power in the electricity grid. Better Energy welcomes Coloplast to its growing group of industry leaders and partners that have chosen to have a direct impact on the transition:

“We are in the middle of three crises in Europe: a climate crisis, a nature and biodiversity crisis and a combined energy and security crisis. On all accounts, the time for talk is over, and what is needed now are concrete actions. We are still able to affect the world and the type of future that we will live in, but it starts with our choices today. Coloplast is walking the talk with this new PPA,” says Rasmus Lildholdt Kjær, CEO of Better Energy.

For Coloplast, the agreement represents exactly that: an important step and concrete climate action, as highlighted by Nassera Ahmed, Senior Director of Sustainability at Coloplast:

“This ten-year agreement is a milestone in Coloplast’s sustainability journey. We are moving forward with our efforts to replace renewable energy certificates with PPAs and support the expansion of renewable energy in society.”

Better Energy owns and is responsible for the construction, operation, and maintenance of the coming solar park. 

Contacts

 Peter Mønster
Sr. Media Relations Manager
+45 4911 2623
dkpete@coloplast.com

Christian Bergmann Mølgaard
VP, Head of Communications
+45 2671 3634
cbm@betterenergy.dk

In Q2, Coloplast delivered 7% organic growth in Ostomy Care, 7% in Continence Care, 9% in Interventional Urology, and 6% in Wound & Skin Care. The acquisition of Atos Medical (Voice & Respiratory Care) delivered high-single digit underlying growth as expected.

“I would like to highlight the solid performance in our Chronic Care business in Europe and Emerging markets excluding China. In our US Continence Care business, we are starting to see a rebound, as growth in new patients normalised towards the end of the quarter. Our Interventional Urology business delivered strong, broad-based growth, led by the US and Men’s Health. Finally, the acquisition of Atos Medical was closed this quarter and the integration is on track. Together with our 1200 new colleagues in Atos Medical and Tracoe, I look forward to the growth journey ahead of us and to helping make life easier for people living with a neck stoma,” says Kristian Villumsen, President & CEO of Coloplast.

Looking at organic growth rates by geography in Q2, the European markets reported 5% growth, Other developed markets grew 4%, while Emerging Markets contributed with 16% growth.

“Since March, we have seen a significant acceleration in COVID-19 cases in China leading to lockdowns in several regions. Our focus is to keep our people safe while continuing to serve our customers, but the lockdowns have resulted in reduced access to hospitals and a decline in procedural volumes and sales in hospitals within Ostomy Care and Wound Care,” says Kristian Villumsen.

Consequently, Coloplast is revising the organic growth outlook for 2021/22 to 6-7% from around 7%.

Solid progress on the Clinical Performance Programme and a new catheter launch

Coloplast is progressing with its Clinical Performance Programme and the launch of their new ostomy care and catheter platforms. The pivotal study for the ostomy care platform, which was initiated to test the new skin protecting technology, was concluded this quarter, and the targeted end points were met. The platform is expected to launch in the second half of the Strive25 strategy period. The clinical study on the new catheter platform is also moving ahead according to plan and is expected to launch in 2022/23.

On April 1, Coloplast launched a new product within Continence Care, SpeediCath® Flex Set, thereby expanding the flexible catheter portfolio with a set solution. The new product range will be launched in key markets during 2022 and 2023.

War in Ukraine

 Coloplast continues to monitor the war in Ukraine closely. Our primary focus is to keep our people safe as well as to ensure that our around 100,000 users in Ukraine and Russia have access to products to manage their chronic conditions. Coloplast is present in Russia with a sales subsidiary of around 70 employees. In Ukraine, we have a representative office with 7 employees and we primarily sell products through two Ukrainian distributors.

2021/22 organic growth guidance revised, EBIT margin before special items guidance unchanged

 The organic revenue growth guidance is now expected at 6-7% at constant currencies from previously around 7% as a result of the impact of the spread of COVID-19 in China and the weaker outlook for the Chinese Ostomy Care and Wound Care businesses.

The reported growth in DKK incl. 8-month revenue impact from Atos Medical is unchanged at around 15%. The reported EBIT margin before special items is unchanged at around 31%. The reported EBIT margin after special items is now expected to be around 28-29% from previously around 30%.

EBIT is impacted by special items of around DKK 450 million, of which DKK 300 million is a further provision for 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 to settle outstanding cases is taking longer than previously anticipated. Coloplast has now settled around 99% of the multidistrict litigation (MDL) cases from previously around 98%. The remaining DKK 150 million is related to the Atos Medical acquisition.

CAPEX is unchanged around DKK 1.3bn and effective tax rate unchanged around 23%

The company’s long-term financial guidance is unchanged.

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

Aleksandra Dimovska
Director, Investor Relations
Tel. +45 4911 1800 /+45 4911 2458
dkadim@coloplast.com

Financial highlights and key ratios

*Special items expenses in Q2 amounted to DKK 381 million, of which DKK 300 million in further provision to cover potential settlements and costs in connection with lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence as explained above. The remaining DKK 81 million were related to one-off legal and advisory fees as well as integration costs in connection to the acquisition of Atos Medical.

Sales performance by business area 

Sales performance by region 

Financial highlights for the first 6 months of 2021/2022

*Special items expenses in H1 amounted to DKK 415 million, of which DKK 300 million in further provision to cover potential settlements and costs in connection with lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence as explained above. The remaining DKK 115 million were related to one-off legal and advisory fees as well as integration costs in connection to the acquisition of Atos Medical.

Financial guidance for 2021/22

Coloplast delivered 6% organic growth in Q1, while reported revenue in DKK was up by 9% to DKK 5,169 million. EBIT before special items was DKK 1,649 million, a 7% increase from last year, corresponding to an EBIT margin before special items of 32% against 32% last year. ROIC after tax before special items was 43% against 44% last year.

“We are off to a good start to the year with 6% organic growth in Q1. Despite the challenges created by the pandemic, we continue to grow across all our business areas and sales regions, which means that we continue to help more and more people with intimate healthcare needs live better lives. In Q1, we have yet again managed to keep our people safe, while continuing to serve our customers. This makes me very proud,” says Coloplast CEO Kristian Villumsen.

In Q1, Coloplast delivered 6% organic growth in Ostomy Care, 5% in Continence Care, 5% in Interventional Urology, and 12% in Wound & Skin Care. Looking at organic growth rates by geography, the European markets reported 6% growth, Other developed markets grew 5%, while Emerging markets contributed with 8% growth.

“Our Chronic Care business delivered a satisfactory first quarter driven by solid growth in Europe due to a normalised growth in new patients as well as continued strong performance in many of our Emerging markets. China remains impacted by COVID-19 and weaker consumer sentiment, and as expected the US posted a slow start to the year impacted by a high baseline in Q1 last year and continued lower growth in new patients in Continence Care due to COVID-19,” says Kristian Villumsen.

“Growth in the Interventional Urology business was impacted by a high baseline in Men’s Health, but the underlying growth was solid in the Men’s and Women’s Health businesses in the US as well as the Endourology business in Europe. Our Wound & Skin Care business delivered a very strong quarter, with Wound Care delivering 17% organic growth, driven by solid momentum in Europe and the Biatain® Silicone portfolio,” says Kristian Villumsen.

Acquisition of Atos Medical

On November 8, 2021, Coloplast announced an agreement to acquire Atos Medical, the global market leader in laryngectomy, for an enterprise value of EUR 2,155 million (DKK 16 billion).

The transaction is targeted to close on January 31, 2022, as all relevant regulatory approvals have been received. With the acquisition, Coloplast gains access to a new chronic care segment with long-term growth potential. Atos Medical will run as a separate strategic business unit operating on shared Coloplast infrastructure.

Atos Medical is expected to grow 8-10% organically, with an EBITDA margin in the mid-30s level, and will contribute to Coloplast’s Strive25 financial guidance of 7-9% organic growth and a +30% EBIT margin.

2021/22 financial guidance updated to reflect the acquisition of Atos Medical, targeted to close on January 31, 2022

Organic revenue growth guidance is unchanged, expected around 7% at constant exchange rates. Reported growth in DKK excluding Atos Medical is expected to be around 9% from previously around 8% due to FX movements. The impact of the Atos Medical acquisition on reported growth is expected to be around 6%-points (8 months impact). In total, reported growth is expected to be 15%.

The reported EBIT margin before special items is expected around 31% from previously around 32%, due to around DKK 200 million in amortisation charges related to the Atos Medical acquisition (8 months impact). The reported EBIT margin after special items is expected to be around 30%, impacted by special items of around DKK 150 million, related to one-off transaction and integration costs related to Atos Medical.

Capital expenditures expected to be around DKK 1.3 billion, from previously DKK 1.2 billion, increase reflecting the impact from Atos Medical capex and integration capex related to the acquisition. The effective tax rate is expected to be around 23% from previously 22-23%, reflecting impact from the Atos Medical acquisition. 

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

Financial highlights and key ratios

Sales performance by business area

Sales performance by region