Coloplast A/S - Announcement no. 01/2021 – Interim Financial Report, Q1 2020/21
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Interim financial results, Q1 2020/21
(1 October 2020 - 31 December 2020)
Coloplast delivers a good start to the year, guidance for 2020/21 maintained
- Coloplast delivered 5% organic growth in the first quarter. Reported revenue in DKK was up by 1% to DKK 4,738 million. Exchange rate developments decreased revenue by 4% due to a significant decrease in the value of USD, GBP and several emerging markets currencies, in particular ARS and BRL.
- Organic growth rates by business area for the first quarter: Ostomy Care 6%, Continence Care 6%, Interventional Urology 5% and Wound & Skin Care 1%.
- Chronic Care delivered a satisfactory first quarter, primarily driven by solid growth in Emerging markets and the US. Growth in Europe continues to be negatively impacted by the COVID-19 outbreak due to lower growth in new patients, particularly in the UK Chronic business.
- The Interventional Urology business delivered 5% organic growth, driven by the Men’s Health portfolio in the US, which returned to growth as elective procedures continued to recover during Q1.
- The Wound and Skin Care business delivered 1% organic growth in the first quarter. Wound Care in isolation delivered 5% organic growth driven by Europe and a return to growth in China. The recently launched Biatain® Fiber portfolio contributed positively to the growth, driven by France and Germany. Skin Care and Contract manufacturing detracted from growth due to lower demand as a result of COVID-19.
- Solid momentum in Emerging markets with 16% organic growth in the first quarter, driven by Ostomy Care and solid performance in China and LATAM as well as phasing of tender deliveries in Russia.
- EBIT amounted to DKK 1,536 million for Q1, a 4% increase, corresponding to an EBIT margin of 32% against 31% last year. The development reflects strong cost control during the COVID-19 outbreak, but also sustained investments in growth opportunities and innovation.
- ROIC after tax before special items was 44% for Q1 against 47% in the same period last year impacted by the acquisition of Nine Continents Medical in November 2020.
- The health and safety of the company’s employees and continuity of service to customers continue to be the key priority during the pandemic.
- In Q2 2020/21, a new share buy-back programme is expected to be launched, totalling DKK 500 million and to be completed by the end of the 2020/21 financial year.
Financial guidance for 2020/21 unchanged
- We continue to expect organic revenue growth of 7-8% at constant exchange rates. Reported growth in DKK is expected to be 4-5%.
- We continue to expect a reported margin in DKK of 31-32%. The EBIT margin guidance reflects additional incremental investments of up to 2% of revenue for innovation and sales and marketing initiatives and continued prudent cost management.
- 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 Tuesday, 2 February 2021 at 15.00 CET. 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 91604730#.
Access the conference call webcast directly here: https://getvisualtv.net/stream/?coloplast-x5anj9jpn2
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
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. © 2021-02.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.
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