Coloplast A/S : - Announcement no. 01/2020 – Interim Financial Report, Q1 2019/20



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 [phone], [phone] or [phone]. 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. [phone]

Ellen Bjurgert
Vice President
Investor Relations
Tel. [phone]
E-mail [e-mail]

Rasmus Sørensen
Senior Manager
Investor Relations
Tel. [phone]
E-mail [e-mail]

Press and the media
Dennis Kaysen
Director
Corporate Communications
Tel. [phone]
E-mail [e-mail]

Lina Danstrup
Senior Media Relations Manager
Corporate Communications
Tel. [phone]
E-mail [e-mail]

Address
Coloplast A/S
Holtedam 1
DK-3050 Humlebaek
Denmark
Business reg. (CVR) no. 69749917

Website
www.coloplast.com

Attachment

• 01_2020_Q1_201920_earnings_release

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