Coloplast A/S – Interim Financial Report, 9M 2023/24

9M 2023/24
Interim financial results, 9M 2023/24
1 October 2023 – 30 June 2024

Coloplast delivered 8% organic growth and an EBIT margin¹⁾ of 27% in Q3, with 11% growth in absolute EBIT¹⁾. Reported revenue in DKK grew 13% which includes 4%-points contribution from Kerecis (underlying growth of around 35%).

Organic growth rates by business area: Ostomy Care 8%, Continence Care 8%, Voice and Respiratory Care 11%, Advanced Wound Care 13% (Advanced Wound Dressings 13%) and Interventional Urology 2%.
Growth in Chronic Care was broad-based across regions and includes an improvement in growth in the US Ostomy Care business. Continence Care growth was driven by intermittent catheters, including significant contribution from the male Luja^TM catheter. Launch of the female Luja catheter* is ongoing and has received positive customer feedback.
Voice and Respiratory Care growth was driven by continued good momentum in both Laryngectomy and Tracheostomy.
Strong quarter in Advanced Wound Dressings, reflecting continued good momentum and benefit from a lower baseline in Q3 last year.
Continued momentum and market share gains for Kerecis. Underlying growth in Q3 was around 35% and the EBIT margin excl. PPA amortisation was around 10%, both in line with plan.
Growth in Interventional Urology was driven by Men’s Health, partly offset by Women’s Health and Bladder Health and Surgery, both of which detracted from growth. Bladder Health and Surgery was negatively impacted by backorders due to supply shortages experienced by an external supplier.
EBIT¹ was DKK 1,870 million, an 11% increase from last year. The EBIT margin^1,2 was 27% against 28% last year, and includes around 100 basis points negative impact from Kerecis, as expected, an increased level of commercial spend, including costs related to product launches, and negative impact from currencies.

9M 2023/24 organic growth of 8% and 27% EBIT margin¹. Reported revenue in DKK grew 10% to DKK 20,077 million.

Organic growth rates by business area: Ostomy Care 7%, Continence Care 8%, Voice and Respiratory Care 10%, Advanced Wound Care 10% (Advanced Wound Dressings 10%) and Interventional Urology 4%. Kerecis contributed 4%-points to reported growth, with an underlying growth of around 35%, in line with expectations.
EBIT¹ was DKK 5,483 million, a 7% increase from last year. The EBIT margin^1,2 was 27% against 28% last year, and includes around 100 basis points negative impact from Kerecis, in line with expectations, and negative impact from currencies.
ROIC after tax before special items was 15% against 19% last year, negatively impacted by the acquisition of Kerecis.
Free cash flow was an outflow of DKK 186 million, impacted by income tax paid due to the extraordinary tax payment related to Atos Medical’s IP transfer in Q2. Adjusted for the tax payment, free cash flow was an inflow of DKK 2.3 billion.

FY 2023/24 guidance unchanged.

The organic revenue growth is expected to be around 8%. Reported growth in DKK is expected to be 10-11% with negative impact of 1-2%-points from currencies and around 4%-points contribution from the acquisition of Kerecis (11 months).
The reported EBIT margin before special items¹ is expected to be 27-28%. The EBIT margin includes around 100 basis points dilution from Kerecis (incl. around DKK 100 million in PPA amortisation) and negative impact from currencies.
Capital expenditures expectations adjusted to around DKK 1.3 billion. The effective tax rate is still expected around 22%.

“We deliver a solid Q3 with 8% organic growth and an EBIT margin of 27%, which is in line with our financial guidance. I want to highlight our continued good momentum in Chronic Care with broad-based growth across our regions as well as a strong performance in Q3 from our Advanced Wound Care business. I am also pleased that our newest members of the Coloplast family, Atos Medical and Kerecis, delivered another solid quarter with double-digit growth. Finally, we are making good progress with our new product launches, expanding our innovation to more and more markets. I would like to highlight our new intermittent catheter, Luja™, which is contributing well to growth in Continence Care and significantly raising the standard of care for people who need help emptying their bladder,” says Kristian Villumsen, President & CEO of Coloplast.

Conference call

Coloplast will host a conference call on Tuesday 20 August 2024 at 11.00 CET. The call is expected to last about one hour.
To actively participate in the Q&A session please sign up ahead of the conference call on the link here to receive an e-mail with dial-in details: Register here

Access the conference call webcast directly here: Coloplast – 9M 2023/24 conference call

1.before special items of DKK 36 million in Q3 2023/24 and DKK 70 million in 9M 2023/24. Total FY 2023/24 special items are expected to be around DKK 80 million related to Atos Medical integration cost. 2. before special items income of DKK 28 million in Q3 2022/23 and special items expenses of DKK 5 million in 9M 2022/23.
*Medical Device for which CE-mark has been affixed. Product availability is subject to the regulatory process of individual countries and is not guaranteed. Currently not available in the US.

For further information, please contact

Investors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111

Aleksandra Dimovska
Vice President, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Email: dkadim@coloplast.com

Kristine Husted Munk
Senior Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 3266
Email: dkkhu@coloplast.com

Press and media
Peter Mønster
Sr. Media Relations Manager
Tel. +45 4911 2623
Email: dkpete@coloplast.com

Address
Coloplast A/S
Holtedam 1
DK-3050 Humlebaek
Denmark
Company reg. (CVR) no. 69749917

Website
www.coloplast.com

This announcement is available in a Danish and an English-language version. In the event of discrepancies, the English version shall prevail.

Coloplast was founded on passion, ambition, and commitment. We were born from a nurse’s wish to help her sister and the skills of an engineer. Guided by empathy, our mission is to make life easier for people with intimate healthcare needs. Over decades, we have helped millions of people to live a more independent life and we continue to do so through innovative products and services. Globally, our business areas include Ostomy Care, Continence Care, Advanced Wound Care, Interventional Urology and Voice and Respiratory Care.

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