Coloplast A/S - Announcement no. 03/2021 – Interim Financial Report, H1 2020/21
Interim financial results, H1 2020/21
(1 October 2020 - 31 March 2021)
Organic growth guidance maintained at 7-8% and EBIT margin guidance before special items raised from 31-32% to 32-33%.
- Coloplast delivered 2% organic growth in Q2. Reported revenue in DKK was down by 1% to DKK 4,753 million. Year to date organic growth was 4% and reported revenue in DKK was flat at DKK 9,491 million due to significant FX headwinds.
- Organic growth rates by business area year to date: Ostomy Care 5%, Continence Care 3%, Interventional Urology 4% and Wound & Skin Care 1%.
- The Chronic Care business in Q2 was negatively impacted by around DKK 150 million in stock building in the comparison period and lower growth in new patients in Europe due to COVID-19, in particular in the UK.
- Ostomy Care delivered 4% organic growth in Q2 lifted by solid broad-based performance in Emerging markets. Continence Care delivered flat organic growth in Q2 reflecting lower growth in new patients in Europe and the US.
- The Interventional Urology business delivered 3% organic growth in Q2. The growth was driven by the Men’s Health portfolio in the US, which continues to lead the recovery as elective procedures resume.
- The Wound and Skin Care business delivered 1% organic growth in Q2. Wound Care alone delivered 9% organic growth in Q2 driven by Europe and China. The Biatain® Fiber portfolio continued to contribute to growth, especially in Germany and France. Skin Care and in particular Contract manufacturing detracted from growth as a result of COVID-19.
- EBIT before special items amounted to DKK 3,113 million for H1 20/21, a 3% increase, and an EBIT margin before special items of 33% against 32% last year. EBIT was impacted by a further DKK 200 million provision for costs related to the existing lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products.
- ROIC after tax before special items was 43% for the first six months against 46% in the same period last year negatively impacted by the acquisition of Nine Continents Medical in November 2020.
- Coloplast has achieved a breakthrough in Hungary around waste recycling. As a result, 58% of the production waste is now recycled (41% in FY 2019/20), exceeding the 2025 target of 50%.
- Coloplast was awarded a contract for ostomy products with Vizient, Inc., the largest healthcare performance improvement company in the US effective as of July 1, 2021.
- The Board of Directors has resolved that Coloplast will pay a half-year interim dividend of DKK 5.00 per share for a dividend pay-out of DKK 1,065 million.
2020/21 organic growth guidance unchanged, EBIT margin guidance raised
- We continue to expect organic revenue growth of 7-8% at constant exchange rates. Reported growth in DKK is still expected to be 4-5%.
- We now expect a reported EBIT margin before special items of 32-33% from previously 31-32% due to efficiency gains and lower costs as a result of COVID-19. After special items of DKK 200m the reported EBIT margin is expected to be 31-32%.
- Capital expenditure is still expected to be around DKK 1.1 billion. The effective tax rate is still expected to be around 23%. ?
Coloplast will host a conference call on Thursday, 6 May 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 62535223#.
Access the conference call webcast directly here: https://getvisualtv.net/stream/?coloplast-xu5g2qb8j5
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 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. © 2021-05.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.