Interim financial results, 9M 2020/21
1 October 2020 - 30 June 2021
Coloplast delivered Q3 organic growth of 11% and 33% EBIT margin. Financial guidance narrowed
- Coloplast delivered 11% organic growth in Q3. Reported revenue in DKK was up by 9% to DKK 4,835 million. Organic growth rates by business area in Q3: Ostomy Care 4%, Continence Care 5%, Interventional Urology 82% and Wound & Skin Care 17%.
- The Chronic Care business was positively impacted by improving underlying growth in Europe as well as a lower baseline. Growth was partly offset by lower growth in new patients in the US due to COVID-19, in especially Continence Care, as well as distributor destocking due to a prolonged period of lower growth in new patients. Ostomy Care delivered a softer quarter in Emerging markets due to tender phasing in the Middle East and Russia. The tenders are confirmed for delivery in Q4.
- During Q3, hospital activity increased as vaccines were rolled out and as a result growth in new patients within Ostomy Care normalised towards pre-COVID levels across markets. Growth in new patients within Continence Care is taking longer to normalise as expected, but the trend during Q3 was positive across markets.
- The Interventional Urology business delivered a strong quarter driven by broad-based recovery in elective procedures led by the US and Men’s Health, as well as a lower baseline.
- The Wound and Skin Care business delivered a solid quarter. Wound Care alone delivered 20% organic growth driven by Europe and China and strong contribution from the Biatain Silicone portfolio, as well as a lower baseline.
- EBIT was DKK 1,592 million, a DKK 224 million (16%) increase from last year, corresponding to an EBIT margin of 33% which reflects efficiency gains and lower costs due to COVID-19, partly offset by continued commercial investments.
- Diluted earnings per share (EPS) increased by 26% to DKK 5.88.
9M organic growth of 6% and 33% EBIT margin
- Coloplast delivered 6% organic growth year to date. Reported revenue in DKK was up by 3% to DKK 14,326 million. Organic growth rates by business area year to date: Ostomy Care 5%, Continence Care 4%, Interventional Urology 22% and Wound & Skin Care 6%.
- EBIT before special items amounted to DKK 4,705 million, a 7% increase from last year, corresponding to an EBIT margin before special items of 33% against 31% last year.
- ROIC after tax before special items was 43% against 45% last year, negatively impacted by last year’s acquisition of Nine Continents Medical. Diluted earnings per share (EPS) before special items increased by 17% to DKK 17.24.
2020/21 financial guidance narrowed – organic growth expected in the lower end of the 7-8% range and EBIT margin expected to be in the upper end of the 32-33% range before special items
- We now expect 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%.
- Reported EBIT margin 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 continues to be expected ~DKK 1.1 billion. The effective tax rate is still expected to be ~23%.
Coloplast will host a conference call on Wednesday, 18 August 2021 at 15.00 CEST. The call is expected to last about one hour. To actively participate in the Q&A session please call +45 3544 5577, +44 3333 000 804 or +1 631 913 1422. The participant PIN code is 87004267#. Any participants who do not wish to actively participate in the Q&A session can access the conference call as a webcast directly here: https://getvisualtv.net/stream/?coloplast-x9e5dfwgrq.
For further information, please contact
Investors and analysts
Executive Vice President, CFO
Tel. +45 4911 1111
Vice President, Investor Relations
Tel. +45 4911 1800 / +45 4911 3376
Sr. Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Press and the media
Sr. Media Relations Manager
Tel. +45 4911 2623
Company reg. (CVR) no. 69749917
This announcement is available in a Danish and an English-language version. In the event of discrepancies, the Danish version shall prevail.
Coloplast develops products and services that make life easier for people with very personal and private medical conditions. Working closely with the people who use our products, we create solutions that are sensitive to their special needs. We call this intimate health care. Our business includes Ostomy Care, Continence Care, Wound and Skin Care and Interventional Urology. We operate globally and employ about 12,500 employees.
The Coloplast logo is a registered trademark of Coloplast A/S. © 2021-08.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.
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