Coloplast Announcement no. 07/2019 - 9M Interim Financial Report, 2018/19
Interim financial report, 9M 2018/19
(01 October 2018 - 30 June 2019)
Solid underlying performance continues in Q3
- Coloplast delivered 8% organic growth in the third quarter. Year to date organic growth was also 8% while reported revenue in DKK was up by 9% to DKK 13,321m.
- Organic growth rates by business area year to date: Ostomy Care 7%, Continence Care 8%, Interventional Urology 10% and Wound & Skin Care 9%.
- Continued strong momentum in Europe with 6% organic growth in the first three quarters, driven by all business areas.
- Positive performance within Chronic Care in the US in Q3 with double-digit growth, driven by the hydrophilic upgrade in catheters and market share gains in Ostomy Care.
- The Wound Care business delivered 8% organic growth year to date, driven by the Biatain® Silicone portfolio in Europe and in particular France and the UK.
- The Interventional Urology business delivered 10% organic growth year to date, driven by sales and marketing investments in the US.
- Improved momentum in Emerging Markets in Q3 driven by increased tender activity in Russia and solid momentum in China.
- The French reimbursement reform in Ostomy Care, Continence Care and Wound Care has been announced. For Coloplast, the price reform represents an average reduction in prices in France for Ostomy Care and Continence Care of ~9% and Wound Care of ~2%.
- The incremental investments into innovation and sales and marketing initiatives of up to 2% of revenue that were initiated in Q1 are making satisfactory progress.
- EBIT amounted to DKK 4,077m for the first nine months, a 11% increase in DKK, corresponding to an EBIT margin of 31% against 30% last year. The last volume factory in Denmark, Thisted, has now been closed and restructuring costs of DKK 43m were included in the first nine months in connection with the reduction of production staff in Denmark.
- ROIC after tax before special items was 45% in the first nine months against 42% in the same period last year.
- Coloplast is conducting an unconditional strategic review of the Interventional Urology division. The review is expected to be concluded by the end of 2019.
Financial guidance for 2018/19
- We continue to expect organic revenue growth of ~8% at constant exchange rates and a reported growth in DKK of ~9%.
- We continue to expect an EBIT margin of 30-31% at constant exchange rates and ~31% in DKK. The EBIT margin guidance reflects additional incremental investments of up to 2% of revenue for innovation and sales and marketing purposes.
- Capital expenditure is expected to be DKK ~700m.
- The effective tax rate is expected to be about ~23%.
For more information, please contact:
Investors and analysts
Executive Vice President, CFO
Tel. +45 4911 1111
Tel. +45 4911 1800 / 4911 3376
Tel. +45 4911 1800 / 4911 1786
Press and the media
Tel. +45 4911 2608
Senior Media Relations Manager
Tel. +45 4911 2607
Business 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 healthcare. Our business includes Ostomy Care, Continence Care, Wound and Skin Care and Interventional Urology. We operate globally and employ about 12,000 employees.
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All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.