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Interim financial results, H1 2021/22
(1 October 2021 - 31 March 2022)
Coloplast delivers a solid Q2 with 7% organic growth and 31% EBIT margin before special items. Organic growth guidance is revised to 6-7% from around 7% due to the impact of COVID-19 in China. Guidance for reported growth and EBIT margin before special items unchanged.
Coloplast delivered 7% organic growth in Q2. Reported revenue in DKK was up by 16%. Organic growth rates by business area in Q2 were: Ostomy Care 7%, Continence Care 7%, Interventional Urology 9%, and Wound & Skin Care 6%. Voice & Respiratory Care contributed 6%-points to reported growth, and delivered a high-single digit underlying growth as expected.
Satisfactory Q2 for Chronic Care, driven by solid growth in Europe and Emerging markets, ex. China, which remains impacted by COVID-19. Growth in new patients in the US Continence Care normalised towards the end of the quarter.
Growth in the Interventional Urology business was broad-based, led by the US and Men’s Health and positively impacted by a strong recovery in elective procedure volumes in the US towards the end of the quarter.
The Wound & Skin Care business delivered a solid quarter, driven by double-digit growth in Contract Manufacturing, due to a low baseline. Wound Care grew 2%, impacted by a high baseline in Europe and softness in China due to COVID-19.
EBIT before special items was DKK 1,686 million, a 7% increase from last year, corresponding to an EBIT margin before special items of 31% against 33% last year. EBIT was impacted by DKK 381 million in special items. DKK 300 million are related to further provision for the remaining lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products, as the process is taking longer than previously anticipated, including delays due to COVID-19. Around 99% of the MDL cases have been settled. The remaining DKK 81 million special items are related to the Atos Medical acquisition.
H1 2021/22 organic growth of 6% and 31% EBIT margin before special items.
Coloplast delivered 6% organic growth in H1. Reported revenue in DKK was up by 12% to DKK 10,671 million. Organic growth rates by business area were: Ostomy Care 6%, Continence Care 6%, Interventional Urology 7%, Wound & Skin Care 9%. Voice & Respiratory Care contributed 3%-points to the reported growth in H1.
EBIT before special items amounted to DKK 3,335 million, a 7% increase from last year, corresponding to an EBIT margin before special items of 31% against 33% last year. EBIT was impacted by DKK 415 million in special items1).
ROIC after tax before special items was 25% against 43% last year, negatively impacted by the acquisition of Atos Medical. Diluted earnings per share (EPS) before special items increased by 4% to DKK 11.77.
The Board of Directors has resolved that Coloplast will pay a half-year interim dividend of DKK 5.00 per share for a total dividend pay-out of DKK 1,062 million.
Organic revenue growth for FY 2021/22 is revised to 6-7% from previously around 7%. Reported growth guidance of around 15% and EBIT margin guidance before special items of around 31% are unchanged.
Organic revenue growth is now expected at 6-7%, from previously around 7% at constant exchange rates, impacted by the recent COVID-19 outbreak in China, where the current lockdowns have resulted in reduced access to hospitals and a decline in procedural volumes, leading to a weaker outlook for the Chinese Ostomy Care and Wound Care businesses.
Reported growth in DKK excluding Atos Medical is still expected at around 9%. The impact of the Atos Medical acquisition on reported growth is still expected at around 6%-points. In total, reported growth in DKK is still expected at around 15%.
Reported EBIT margin before special items is still expected around 31% and reported EBIT margin after special items is now expected at 28-29% from previously around 30%, impacted by special items of around DKK 450 million2).
Capital expenditures still expected to be around DKK 1.3 billion. The effective tax rate still expected to be around 23%.
1) DKK 300 million provision for costs related to the US lawsuits alleging injury from the use of transvaginal surgical mesh products, and DKK 115 million related to the Atos Medical acquisition.
2) Includes DKK 300 million provision for costs related to the US lawsuits alleging injury from the use of transvaginal surgical mesh products. Special items related to the Atos Medical acquisition are unchanged and expected around DKK 150 million.
Coloplast will host a conference call on Thursday, 5 May 2022 at 15.00 CEST. The call is expected to last about one hour.
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 29624222#
Access the conference call webcast directly here: https://getvisualtv.net/stream/register/?coloplast-oupgacaz5x
For further information, please contact
Investors and analysts
Executive Vice President, CFO
Tel. +45 4911 1111
Vice President, Investor Relations
Tel. +45 4911 1800 /+45 4911 3376
Director, Investor Relations
Tel. +45 4911 1800 /+45 4911 2458
Press and media
Sr. Media Relations Manager
Tel. +45 4911 2623
Company reg. (CVR) no. 69749917
This announcement is available in a Danish and an English-language version. In the event of discrepancies, the Danish version shall prevail.
Coloplast develops products and services that make life easier for people with very personal and private medical conditions. Working closely with the people who use our products, we create solutions that are sensitive to their special needs. We call this intimate health care. Our business includes Ostomy Care, Continence Care, Wound & Skin Care, Interventional Urology and Voice & Respiratory Care. We operate globally and employ about 14,000 employees.
The Coloplast logo is a registered trademark of Coloplast A/S. © 2022-05.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.