Coloplast A/S - Announcement no. 02/2023 - Interim Financial Report, H1 2022/23

H1 2022/23

Interim financial results, H1 2022/23

1 October 2022 - 31 March 2023

Coloplast delivered Q2 organic growth of 8% and 28% EBIT margin¹⁾. Reported revenue in DKK was up by 10%.

• Organic growth rates by business area: Ostomy Care 6%, Continence Care 6%, Voice and Respiratory Care 9% (2 months), Wound and Skin Care 13% (Wound Care 12%), and Interventional Urology 17%.
• Solid Q2 for Chronic Care with continued good momentum across regions ex. China, which detracted from growth in Ostomy Care due to COVID-19. Towards the end of Q2, hospital access in China significantly improved, positively impacting procedural volumes. Growth in Continence Care continued to be impacted by backorders in Collecting Devices.
• Voice and Respiratory Care growth was driven by solid momentum in both the laryngectomy and tracheostomy businesses.
• Strong quarter in Wound Care, driven mainly by solid momentum in Europe, including benefit from a low baseline.
• Continued strong momentum in Interventional Urology with broad-based growth, led by the US Men’s Health business.
• EBIT¹⁾ was DKK 1,671 million, a 1% decrease from last year. The EBIT margin^1,2) was 28% against 31% last year, reflecting inflationary headwind on input costs, an increase in operating expenses due to increased commercial activity levels, and DKK 53 million in amortisation costs related to the Atos Medical acquisition. Impact from currencies in the quarter was neutral.

H1 2022/23 organic growth of 8% and 28% EBIT margin¹⁾. Reported revenue in DKK was up 14% to DKK 12,166 million.

• Organic growth rates by business area: Ostomy Care 7%, Continence Care 6%, Wound and Skin Care 7% (Wound Care 4%), and Interventional Urology 14%. Voice and Respiratory Care contributed 6%-points to the reported growth (4 months).
• EBIT¹⁾ was DKK 3,445 million, up 3% from last year. The EBIT margin^1,2) was 28% against 31% last year, reflecting inflationary headwind on input costs, an increase in operating expenses, impacted by increased commercial activity levels, and DKK 107 million in amortisation costs related to the Atos Medical acquisition.
• ROIC after tax before special items was 19% against 25% last year, negatively impacted by the Atos Medical acquisition.
• Free cash flow was DKK 795 million, a 13% decrease from last year (ex. acquisitions), impacted by a decline in cash flow from operating activities mainly due to an increase in net working capital and higher income tax paid.
• The Board of Directors has resolved that the company will pay a half-year interim dividend of DKK 5.00 per share, for a total dividend pay-out of DKK 1,062 million.

FY 2022/23 financial guidance – organic revenue growth is now expected around 8% in constant exchange rates, from 7-8% previously. Reported growth in DKK is now expected to be 8-9%, from previously 9-10%, due to negative impact from currencies. Consequently, the reported EBIT margin¹⁾ is now expected in the 28-29% range, from previously 28-30%.