Coloplast A/S - Announcement no. 03/2020 - Revised Guidance
18 März 2020 - 11:02PM
Coloplast A/S - Announcement no. 03/2020 - Revised Guidance
Due to the impact of the COVID-19
outbreak on the Interventional Urology business and elective
procedures in primarily the US, Coloplast revises full-year organic
growth guidance for 2019/20 from 7-8% to 4-6% and EBIT margin
guidance from ~31% in DKK to 30-31% in DKK. The global outlook for
Ostomy Care, Continence Care and Wound & Skin Care remains
largely intact.
As Coloplast closely monitors the impact of the coronavirus
outbreak, the top priority remains the health and safety of the
company’s employees, users, customers and communities.
Coloplast’s full-year guidance issued on February 6, 2020
reflected the best information available at the time and assumed
that the situation surrounding the COVID-19 outbreak normalised
during Q2. China is slowly returning to normal conditions, but the
situation has escalated globally and Coloplast now expects an
impact on the Interventional Urology business where a significant
share of revenues results from elective procedures.
The organic revenue growth guidance is lowered from 7-8% at
constant exchange rates and a reported growth in DKK of 7-8% to an
organic revenue growth guidance of 4-6% at constant exchange rates
and a reported growth in DKK of 4-6%. The EBIT margin guidance is
lowered from ~31% at constant exchange rates and ~31% in DKK to
30-31% at constant exchange rates and 30-31% in DKK. Capex guidance
of DKK ~850m and tax rate of 23% is unchanged.
Year-to-date, Coloplast has seen solid growth above the market,
and the company’s financial performance has been in line with
expectations. The key factor behind the lower organic growth
expectations is a revised outlook for the Interventional Urology
business, which represents around 10% of group sales. As a result
of the COVID-19 outbreak, elective surgeries and procedures are
expected to be postponed globally which is expected to negatively
impact the financial performance of the Interventional Urology
business in the second half of the financial year. The US
represents around 50% of revenues in Interventional Urology and the
negative impact from a decline in elective surgeries and procedures
in the US is expected to be significant. The negative revenue
impact is expected to be temporary and we expect the revenue loss
to be recaptured once the situation normalises.
On a positive note, the situation in China in the Ostomy Care
and Wound Care businesses is slowly normalising. Coloplast is
monitoring the situation closely across all markets and business
areas and does not currently expect to see a further material
negative impact on the Ostomy Care, Continence Care and Wound Care
businesses. The rate of new patients in Ostomy Care however is
expected to be negatively impacted until the situation normalises
as only the most acute ostomy surgeries are taking place.
Coloplast is focused on adapting our business and commercial
activities to the changing situation, while continuing to service
users to the best of the company’s ability. This includes a prudent
focus on costs as the company navigates this difficult situation.
Coloplast’s global manufacturing sites are operating as normal and
in terms of production and supply chain, the company is able to
fully meet demand. Coloplast is taking all necessary precautionary
measures at the factories and distribution centres to keep
employees safe and ensure supply including temperature checks of
employees and limiting external guests. Border closures are
complicating deliveries across borders and Coloplast is
implementing mitigating measures to handle the situation. Coloplast
is acting globally to protect all employees and will continue to
comply with and support local, national and global guidelines from
healthcare authorities.
The situation is developing rapidly and remains uncertain. The
revised full year guidance assumes that the situation in
Interventional Urology gradually normalises during the second half
of the financial year, as well as a stable supply and distribution
of products across the company.Coloplast will continue to monitor
and assess the impact to the business and provide an update in our
Interim Financial Report for H1 2019/20 scheduled to be released on
May 6, 2020.
The share buyback programme totalling up to DKK 500 million, as
announced on February 6, 2020 will continue as planned and the
company’s dividend policy is unchanged.
Conference call Coloplast will host a
conference call tomorrow, March 18, 2020 at 8:00 CET. The call is
expected to last 30 minutes. To ensure the best quality of the call
please connect to the webcast here:
https://edge.media-server.com/mmc/p/y58dbmcw. Please only dial-in
by phone in case you want to ask questions: +45 80717045, +44 (0)
203 0095709 or +1 646 787 1226 and use pin code 6374409. The
webcast will be posted on www.coloplast.com shortly after the
conclusion of the conference call.
Kristian
VillumsenPresident & CEO
For more information, please contact:
Investors and analysts Anders Lonning-SkovgaardExecutive
Vice President, CFO Tel. +45 4911 1111
Ellen BjurgertVice President, Investor Relations Tel. +45 4911
1800 / 4911 3376 E-mail dkebj@coloplast.com
Rasmus SørensenSenior Manager, Investor Relations Tel. +45 4911
1800 / 4911 1786 E-mail dkraso@coloplast.com
Press and the mediaLina DanstrupSenior Media Relations
Manager, Corporate CommunicationsTel. +45 4911 2607E-mail
dklina@coloplast.com
Websitewww.coloplast.com
AddressColoplast A/SHoltedam 1DK-3050 HumlebækDenmark
Business 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 healthcare. Our business includes Ostomy Care,
Continence Care, Wound and Skin Care and Interventional Urology. We
operate globally and employ about 12,000 employees.
The Coloplast logo is a registered trademark of
Coloplast A/S. © 2020-03.All rights reserved Coloplast A/S, 3050
Humlebaek, Denmark.
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