Coloplast delivers a strong full-year result and the company concludes that the Interventional Urology business remains core ...
05 November 2019 - 12:06PM
Coloplast delivers a strong full-year result and the company
concludes that the Interventional Urology business remains core to
its future value creation
Coloplast delivered 8% organic revenue growth in the
2018/19 financial year and a 9% increase in EBIT corresponding to
an EBIT margin of 31% before special items. The unconditional
strategic review of Interventional Urology has concluded that the
business remains core to the Coloplast mission and future value
creation. In the fourth quarter of the 2018/19 financial
year, Coloplast delivered 8% organic revenue growth with reported
revenue in DKK up by 9% to DKK 4,618m. This marks the company’s
tenth consecutive quarter delivering 8% organic growth. Full-year
organic revenue growth was also 8% with reported revenue in DKK up
by 9% to DKK 17,939m. Full-year ROIC after tax and before special
items was 48% against 44% last year.
- “We are delivering a strong set of results with 8% organic
growth and a 31% EBIT margin before special items. Expressed
differently, we have helped make life easier for millions of people
with intimate healthcare needs. We continue to take market share
across all regions and across all business areas, and we continue
to invest to drive both short-term growth as well as to build an
even stronger and more competitive company for the medium and long
term,” says Coloplast CEO Kristian Villumsen.
The business areas reported the following full-year organic
growth rates: Ostomy Care 7%, Continence Care 8%, Interventional
Urology 10% and Wound & Skin Care 8%.
Looking at sales by geographies, the European markets
contributed 6% growth to full-year sales, Other developed markets,
driven mainly by the USA, delivered 11% revenue growth, while
Emerging Markets provided a 12% increase.
Full-year EBIT before special items amounted to DKK 5,556m, a 9%
increase in DKK, corresponding to an EBIT-margin of 31%, which is
in line with the company guidance and on par with 2017/18.
EBIT was impacted by a further provision of DKK 400m to cover
potential settlements and costs in connection with the existing
lawsuits in the United States alleging injury resulting from the
use of transvaginal surgical mesh products. The additional
provision is made because the remaining lawsuits are taking longer
to resolve than initially expected, hence incurring higher costs.
The company has not seen an increase in the inflow of new
lawsuits.
Interventional Urology remains core to the Coloplast
mission and future value creationAn unconditional
strategic review has concluded that Interventional Urology remains
core to the Coloplast mission and future value creation. Coloplast
is fully committed to further developing the business and providing
the investment and focus required.
- “After completing a thorough review, we have firmly concluded
that the Interventional Urology business is core to our mission,
and that retaining the business is the right decision to deliver
continued shareholder value creation. Fundamentally, we observe
large, fast-growing markets and real unmet clinical needs
representing long-term growth opportunities,” says Kristian
Villumsen and continues:
- Today, the business delivers strong growth and profitability,
which is a good outset from which to invest and develop the
business further, to derive even greater long-term value.”
Financial guidance 2019/20 In line with its
long-term guidance Coloplast is guiding for 7-8% organic revenue
growth and a reported growth in DKK of 7-8% in 2019/20. The
guidance includes the effects of a comprehensive healthcare reform
in France, representing an average reduction in prices for Ostomy
Care and Continence Care of ~9% as of 1 July 2019, and Wound Care
of ~2% as of 1 June 2019. Coloplast has successfully mitigated half
of the impact. Coloplast expects an EBIT margin of ~31% at constant
exchange rates with a reported EBIT margin of ~31% in DKK. The EBIT
margin forecast reflects additional incremental investments of up
to 2% of revenue for innovation, sales, and marketing purposes.
CONTACTS Lina DanstrupSenior Media Relations
Manager, Corporate Communications+45 49 11 26
07dklina@coloplast.com |
Ellen BjurgertVice
President, Investor Relations+45 49 11 33
76dkebj@coloplast.com |
Financial highlights and key ratios
DKKm |
2018/19 |
2017/18 |
Change |
|
2018/19Q4 |
2017/18Q4 |
Change |
Revenue |
17,939 |
16,449 |
9% |
|
4,618 |
4,234 |
9% |
EBIT before special items |
5,556 |
5,091 |
9% |
|
1,479 |
1,415 |
5% |
EBIT margin before special items |
31% |
31% |
|
|
32% |
33% |
|
Special items* |
-400 |
0 |
nm |
|
-400 |
0 |
nm |
EBIT after special items |
29% |
31% |
|
|
23% |
33% |
|
Profit for the period |
3,873 |
3,845 |
1% |
|
793 |
1,039 |
-24% |
*DKK 400m as further provision to cover potential
settlements and costs in connection with the existing lawsuits in
the US alleging injury resulting from the use of transvaginal
surgical mesh products.
Sales performance by business area
DKKm |
2018/19 |
2017/18 |
Organic growth |
Reported growth |
Ostomy Care |
7,166 |
6,643 |
7% |
8% |
Continence Care |
6,459 |
5,926 |
8% |
9% |
Interventional Urology |
1,970 |
1,740 |
10% |
13% |
Wound & Skin Care |
2,344 |
2,140 |
8% |
10% |
Revenue |
17,939 |
16,449 |
8% |
9% |
(DKKm) |
2018/19Q4 |
2017/18Q4 |
Organic growth |
Reported growth |
Ostomy Care |
1,849 |
1,700 |
7% |
9% |
Continence Care |
1,649 |
1,520 |
7% |
9% |
Interventional Urology |
493 |
432 |
11% |
14% |
Wound & Skin Care |
627 |
582 |
6% |
8% |
Revenue |
4,618 |
4,234 |
8% |
9% |
Financial guidance for 2019/20
|
Guidance for 2019/20 |
Guidance for 2019/20 (DKK) |
Sales growth |
7-8% (organic) |
7-8% |
EBIT margin |
~31% (at constant exchange rates) |
~31% |
Capital expenditure |
- |
~850m |
Tax rate |
- |
~23% |
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