H1 2020/21
Interim financial results, H1 2020/21
(
Organic growth guidance maintained at 7-8% and EBIT margin guidance before special items raised from 31-32% to 32-33%.
Coloplast delivered 2% organic growth in Q2. Reported revenue in DKK was down by 1% toDKK 4,753 million . Year to date organic growth was 4% and reported revenue in DKK was flat atDKK 9,491 million due to significant FX headwinds.- Organic growth rates by business area year to date: Ostomy Care 5%, Continence Care 3%, Interventional Urology 4% and Wound &
Skin Care 1%. - The Chronic Care business in Q2 was negatively impacted by around
DKK 150 million in stock building in the comparison period and lower growth in new patients inEurope due to COVID-19, in particular in theUK . - Ostomy Care delivered 4% organic growth in Q2 lifted by solid broad-based performance in Emerging markets. Continence Care delivered flat organic growth in Q2 reflecting lower growth in new patients in
Europe and the US. - The Interventional Urology business delivered 3% organic growth in Q2. The growth was driven by the Men’s Health portfolio in the US, which continues to lead the recovery as elective procedures resume.
- The Wound and
Skin Care business delivered 1% organic growth in Q2. Wound Care alone delivered 9% organic growth in Q2 driven byEurope andChina . The Biatain® Fiber portfolio continued to contribute to growth, especially inGermany andFrance .Skin Care and in particular Contract manufacturing detracted from growth as a result of COVID-19. - EBIT before special items amounted to
DKK 3,113 million for H1 20/21, a 3% increase, and an EBIT margin before special items of 33% against 32% last year. EBIT was impacted by a furtherDKK 200 million provision for costs related to the existing lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products. - ROIC after tax before special items was 43% for the first six months against 46% in the same period last year negatively impacted by the acquisition of Nine Continents Medical in
November 2020 . Coloplast has achieved a breakthrough inHungary around waste recycling. As a result, 58% of the production waste is now recycled (41% in FY 2019/20), exceeding the 2025 target of 50%.Coloplast was awarded a contract for ostomy products withVizient, Inc. , the largest healthcare performance improvement company in the US effective as ofJuly 1, 2021 .- The Board of Directors has resolved that
Coloplast will pay a half-year interim dividend ofDKK 5.00 per share for a dividend pay-out ofDKK 1,065 million .
2020/21 organic growth guidance unchanged, EBIT margin guidance raised
- We continue to expect organic revenue growth of 7-8% at constant exchange rates. Reported growth in DKK is still expected to be 4-5%.
- We now expect a reported EBIT margin before special items of 32-33% from previously 31-32% due to efficiency gains and lower costs as a result of COVID-19. After special items of
DKK 200m the reported EBIT margin is expected to be 31-32%. - 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 62535223#.
Access the conference call webcast directly here: https://getvisualtv.net/stream/?coloplast-xu5g2qb8j5
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 2458
Email: dkadim@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.
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Attachment
- 03_2021_H1_202021_Earnings_Release
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