Q1 2020/21
Interim financial results, Q1 2020/21
(
Coloplast delivered 5% organic growth in the first quarter. Reported revenue in DKK was up by 1% toDKK 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 theUK 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 byEurope and a return to growth inChina . The recently launched Biatain® Fiber portfolio contributed positively to the growth, driven byFrance andGermany .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 inRussia . - 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%.
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 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
Ellen Bjurgert
Vice President, Investor Relations
Tel. +45 4911 1800 /+45 4911 3376
Email: dkebj@coloplast.com
Press and media
Peter Mønster
Sr. Media Relations Manager
Tel. +45 4911 2623
Email: dkpete@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
- 01_2021_Q1_202021_Earnings_Release
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