Q1 2019/20
Interim financial report, Q1 2019/20
(01 October 2019 - 31 December 2019)
Coloplast delivers solid start to the year, guidance for 2019/20 maintained
- Coloplast delivered 8% organic growth in the first quarter. Reported revenue in DKK was up by 9% to DKK 4,712m.
- Organic growth rates by business area: Ostomy Care 9%, Continence Care 6%, Interventional Urology 9% and Wound & Skin Care 10%.
- Chronic Care delivered a solid performance in the first quarter, driven by satisfactory momentum in Europe despite the negative impact from the French price reform and a solid quarter for Emerging markets.
- In the US Ostomy business, Coloplast has been awarded a three-year group purchasing agreement for ostomy products with Premier Inc beginning April 1, 2020.
- Solid momentum in Emerging markets with 16% organic growth in the first quarter, driven in particular by Ostomy Care and strong performance in China, Latin America and timing of tenders in Russia.
- The Wound and Skin Care business delivered 10% organic growth in the first quarter. Wound Care delivered 8% organic growth driven by the Biatain® Silicone portfolio in Europe and Skin Care delivered a solid start to the year.
- The Interventional Urology business delivered 9% organic growth, driven by the Men’s Health and Women’s Health portfolios in the US.
- Incremental investments of up to 2% of revenue were made in the first quarter into sales and marketing initiatives across multiple markets and business areas.
- EBIT amounted to DKK 1,472m for Q1, a 13% increase, corresponding to an EBIT margin of 31% against 30% last year. The comparative period included restructuring costs of DKK 17m.
- ROIC after tax before special items was 47% for Q1 against 44% in the same period last year.
- In Q2 19/20, a new share buyback programme is expected to be launched, totalling DKK 500m and to be completed by the end of the 2019/20 financial year.
Financial guidance for 2019/20
- We continue to expect organic revenue growth of 7-8% at constant exchange rates and a reported growth in DKK of 7-8%.
- We continue to expect an EBIT margin of ~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 initiatives.
- Coloplast is monitoring the Coronavirus outbreak in China closely. The financial impact of the situation is uncertain. Our full year guidance assumes that the situation normalises during Q2.
- Capital expenditure is still expected to be DKK ~850m.
- The effective tax rate is still expected to be about ~23%.
Conference call
Coloplast will host a conference call on 6 February 2020 at 15.00 CET. The call is expected to last about one hour. To attend the conference call, call +45 3272 7518, +44 (0) 203 0095710 or +1 917 720 0178. Conference call reference number is 6398101.
A webcast will be posted on www.coloplast.com shortly after the conclusion of the conference call. |
For more information, please contact:
Investors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111
Ellen Bjurgert
Vice President
Investor Relations
Tel. +45 4911 1800 / 4911 3376
E-mail dkebj@coloplast.com
Rasmus Sørensen
Senior Manager
Investor Relations
Tel. +45 4911 1800 / 4911 1786
E-mail dkraso@coloplast.com
Press and the media
Dennis Kaysen
Director
Corporate Communications
Tel. +45 4911 2608
E-mail dkdk@coloplast.com
Lina Danstrup
Senior Media Relations Manager
Corporate Communications
Tel. +45 4911 2607
E-mail dklina@coloplast.com
Address
Coloplast A/S
Holtedam 1
DK-3050 Humlebaek
Denmark
Business reg. (CVR) no. 69749917
Website
www.coloplast.com