9M 2019/20
Interim financial report, 9M 2019/20
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Significant negative impact from COVID-19 in Q3 due to the decline in elective procedures and the reversal of stock building, guidance range for 2019/20 narrowed
- Negative organic growth of -2% in Q3. Reported revenue in DKK was down by 4% to
DKK 4,419m . Year to date organic growth was 5% and reported revenue in DKK increased by 5% toDKK 13,954m . - Organic growth rates by business area year to date: Ostomy Care 8%, Continence Care 7%, Interventional Urology -10% and Wound &
Skin Care 2%. - The Chronic Care business delivered stable underlying growth in Q3, but was adversely impacted by the reversal of the majority of the positive DKK ~150m impact from the previous stock building in mainly
Europe . US and EM performed well and the situation inChina in Ostomy Care normalised during Q3. - The Interventional Urology business reported -10% organic growth year to date. In Q3, organic growth was -40% due to a significant decline in elective procedures in primarily the US following the COVID-19 outbreak. As elective procedures gradually resumed across the US and in most European markets, performance improved during Q3 with April down 70%, May down 45% and June down 3%.
- The Wound &
Skin Care business delivered 2% organic growth year to date. In Q3, organic growth was -6% primarily due to a decline in hospital procedures and sales inChina ,Europe and the USSkin Care business following the COVID-19 outbreak. - EBIT amounted to
DKK 4,382m for the first nine months, a 7% increase, corresponding to an EBIT margin of 31% on par with 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 45% for the first nine months in line with last year.
- Executive Leadership Team expanded from four to six members to deliver on upcoming 2025 strategy centred around innovation and growth.
- The health and safety of the company’s employees and continuity of service to customers continue to be the key priority during these globally challenging times.
Financial guidance for 2019/20
On
- We expect organic revenue growth of ~4% at constant exchange rates from previously 4-6% due to a weaker outlook for the Wound &
Skin Care business and theUK Chronic Care business. Due to currency fluctuations reported growth in DKK is expected to be 3-4% from previously 4-6%. - We expect an EBIT margin of ~31% at constant exchange rates from previously 30-31%. The reported margin in DKK is expected to be ~31% from previously 30-31%. 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 DKK ~950m; the effective tax rate is still expected to be ~23%.
Conference call 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 90177613#. A webcast will be posted on www.coloplast.com shortly after the conclusion of the conference call. |
For further information, please contact
Investors and analysts
Executive Vice President, CFO
Tel. +45 4911 1111
Ellen Bjurgert
Vice President, Investor Relations
Tel. +45 4911 1800 /+45 4911 3376
Email: dkebj@coloplast.com
Sr. Manager, Investor Relations
Tel. +45 4911 1800 /+45 4911 1786
Email: dkraso@coloplast.com
Press and the media
Lina Danstrup
Sr. Media Relations Manager
Tel. 4911 2607
Email: dklina@coloplast.com
Address
Holtedam 1
DK-3050 Humlebaek
Company reg. (CVR) no. 69749917
Website
www.coloplast.com
This announcement is available in a Danish and an English-language version. In the event of discrepancies, the Danish version shall prevail.
The
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Attachment
- 06_2020_9M_201920_earnings_release
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