Coloplast A/S - Interim Financial Report, Q1 2023/24

Q1 2023/24
Interim financial results, Q1 2023/24
1 October 2023 - 31 December 2023

Coloplast delivered a solid Q1 with 8% organic growth and an EBIT margin¹⁾ of 28%. Reported revenue in DKK grew 8% with 4%-points contribution from Kerecis (underlying growth of around 35%), offset by negative impact from currencies.

• Organic growth rates by business area: Ostomy Care 8%, Continence Care 8%, Voice and Respiratory Care 7%, Advanced Wound Care 9% (Advanced Wound Dressings 9%) and Interventional Urology 5%.
• Solid start in Chronic Care, driven by broad-based growth in Emerging markets and Europe. The Ostomy Care business in China posted mid-single digit growth, in line with expectations. Growth in Continence Care was driven by the intermittent catheters portfolio, including contribution from Luja^TM, the new male intermittent catheter with a Micro-hole Zone Technology, which is now launched in ten markets.
• Growth in Voice and Respiratory Care was driven by continued good momentum with high-single digit growth in both laryngectomy and tracheostomy, partly held back by product rationalisation.
• Strong quarter in Advanced Wound Dressings, driven by broad-based growth across regions from a lower baseline in Q1 last year.
• Kerecis is off to a good start, in line with plan. Underlying growth in Q1 was around 35%, reflecting continued market share gains. The EBIT margin excl. PPA amortisation was around 10%.
• Interventional Urology was up against a high baseline in Q1 last year, with growth in the quarter driven by Men’s Health in the US and Endourology.
• Coloplast is launching Biatain Silicone Fit in the US, a new silicone foam dressing for pressure injury prevention and wound management, and Peristeen Light in Europe, a new transanal irrigation device for people with bowel disorders.
• EBIT¹⁾ was DKK 1,822 million, a 3% increase from last year. The EBIT margin^1,2) was 28%, against 29% last year, and includes around 100 basis points negative impact from Kerecis, in line with expectations. Currencies also had a negative impact on the EBIT margin.
• ROIC after tax before special items was 15% against 20% last year, negatively impacted by the acquisition of Kerecis.

FY 2023/24 – unchanged organic revenue growth and EBIT margin guidance