Coloplast delivered 4% organic revenue growth in the 2019/20 financial year and a 5% increase in EBIT corresponding to an EBIT margin of 32%.
The company has launched a new corporate strategy called Strive25, which is centered on innovation and growth with a clear focus on the US and China. The company's long-term financial guidance remains 7-9% organic growth p.a. and an EBIT margin of more than 30% in constant currencies.
In the fourth quarter of the 2019/20 financial year, Coloplast delivered 2% organic revenue growth with reported revenue in DKK down by 1% to DKK 4,590m. Full-year organic revenue growth was 4% with reported revenue in DKK up by 3% to DKK 18,544m.
Full-year ROIC after tax and before special items was 46%.
'We deliver a solid set of full year results despite the COVID-19 outbreak. Our priorities have been clear throughout the pandemic; we need to keep our employees safe, while continuing to serve our customers. So far, we have succeeded in mitigating the pandemic, while maintaining business continuity,' says Coloplast CEO Kristian Villumsen and continues: 'Our full year results were negatively impacted by the cancellation of elective procedures in our Interventional Urology business as well as a negative impact from the pandemic on our Wound & Skin Care business in China and on our Chronic Care business in the UK. We continue to adapt our business to the challenging situation, and we are encouraged by the largely stable underlying growth in the US and in our Emerging Markets. We deliver 4% organic growth and an EBIT margin of 32% in a year, which has been unlike any other in the history of our company.'
In the fourth quarter of the 2019/20 financial year, organic growth rates by business area were 3% in Ostomy Care, 4% in Continence Care, 0% in Interventional Urology, and -3% in Wound & Skin Care.
The fourth quarter was negatively impacted by flat growth in several countries in Europe due to limited growth in new patients due to COVID-19, especially in the UK Chronic Care business. Wound & Skin Care was adversely affected by a decline in hospital procedures in China and the wider Emerging markets region due to COVID-19. On a positive note, the newly launched Biatain Fiber wound dressing is beginning to contribute to growth in Europe.
Growth in the US Chronic Care business remained strong in Q4 and the performance in the Interventional Urology business improved significantly in Q4 compared to Q3 as elective procedures recovered in the US.
COVID-19 pandemic
Coloplast continues to monitor developments closely across all markets and business areas and continues to take all necessary precautionary measures to comply with and support local, national, and global guidelines from healthcare authorities.
The company's global manufacturing sites are operating at normal capacity in terms of production and supply chain, and the company continues to fully meet demand.
Strive25
Coloplast presented its new corporate strategy 'Strive25 - Sustainable Growth Leadership' in September. Strive25 will drive value creation through Sustainable Growth Leadership with an emphasis on innovation, US, and China. The strategy will be supported by key growth enablers including Efficiency, People & Culture, and Sustainability.
As part of the new strategy, Sustainability has become a new enterprise theme with a key focus on reducing emissions and improving products and packaging. Coloplast aims to achieve 0 emissions from scope 1 & 2 in 2025 through 100% renewable energy, 80% of our packaging should be from renewable materials and 50% of our production waste should be recycled. To achieve these targets, Coloplast will invest up to DKK 250m over the next five years.
Unparalleled efficiency continues to be driven by ambitious global operation plans. Global Operations Plan 5 (GOP5) will focus on automation in the company's production sites.
The company's long-term financial guidance for the strategy period is 7-9% organic growth p.a. and an EBIT margin of more than 30% in constant currencies.
The strategy will be supported by yearly incremental investments of up to 2% in innovation and commercial initiatives to drive growth.
Contact:
Lina Danstrup
Tel: +45 49 11 26 07
Email: dklina@coloplast.com
COLOPLAST A/S 
