Coloplast delivered 8% organic growth and EBIT increased by 8% to DKK 1,297m, corresponding to an EBIT margin of 30%, in the first quarter of the 2018/19 financial year. The company maintains its financial guidance for 2018/19.
Coloplast delivered 8% organic revenue growth in the first three months of the 2018/19 financial year, while reported growth in Danish kroner was up by 9% to DKK 4,321m. Currency developments reduced revenue by less than 1%, and revenue from acquisitions contributed 1%.
Organic growth rates by business area were 8% in Ostomy Care, 8% in Continence Care, 9% in Interventional Urology, and 11% in Wound & Skin Care.
Looking at sales by geography, the European markets contributed with 6% growth, Other developed markets delivered 10% revenue growth, while Emerging Markets provided a 14% increase.
- “We maintain solid growth rates across all geographical regions and business areas. I would like to highlight our strong performance in Europe driven by new product launches and our Wound Care business delivering 10% organic growth driven by the Biatain® Silicone portfolio in UK and France. Our organic revenue growth is twice the market growth, and we maintain our guidance for 2018/19. In short, we are off to a good start to the financial year,” says newly appointed Coloplast CEO Kristian Villumsen.
Investments in further growth
Coloplast continued its incremental investments in growth of up to 2% of revenue during the first quarter. Investments were made in innovation as well as sales and marketing initiatives across multiple markets and business areas.
In addition, Coloplast is expanding its SpeediCath® portfolio with the launch of SpeediCath® Navi. SpeediCath® Navi is a hydrophilic catheter designed specifically for Emerging Markets and it will be launched during 2019 and 2020.
- “As part of our investments in Emerging Markets, we’re proud to be able to offer a product developed specifically for catheter users in this region. Our aim is to raise the standard of care and to accommodate markets with lower reimbursement. I’m confident that SpeediCath® Navi will make a big difference to our users, while giving Coloplast a strong competitive edge,” says Mr Villumsen.
Financial guidance for 2018/19
Coloplast continues to expect organic revenue growth of ~8% at constant exchange rates and a reported growth in DKK of 8-9%.
Coloplast continues to expect an EBIT margin of 30%-31% at constant exchange rates and a reported EBIT margin of ~31% in DKK.
| CONTACTS Lina Danstrup Senior Media Relations Manager, Corporate Communications +45 49 11 26 07 dklina@coloplast.com |
| Ellen Bjurgert Vice President, Investor Relations +45 49 11 33 76 dkebj@coloplast.com |
| Financial highlights and key ratios (DKKm) | 2018/19 Q1 | 2017/18 Q1 | Change |
| Revenue | 4,321 | 3,955 | 9% |
| EBIT | 1,297 | 1,207 | 7% |
| EBIT margin (in DKK) | 30% | 31% | |
| Profit for the period | 991 | 940 | 5% |
| Sales performance by business area (DKKm) | 2018/19 Q1 | 2017/18 Q1 | Organic growth | Reported growth |
| Ostomy Care | 1,736 | 1,613 | 8% | 8% |
| Continence Care | 1,579 | 1,435 | 8% | 10% |
| Urology Care | 479 | 434 | 9% | 11% |
| Wound & Skin Care | 527 | 473 | 11% | 11% |
| Revenue | 4,321 | 3,955 | 8% | 9% |
| Financial guidance | Guidance for 2018/19 | Guidance for 2018/19 (DKK) |
| Sales growth | ~8% (organic) | 8-9% |
| EBIT margin | 30-31% (at constant exchange rates) | ~31% |
| Capital expenditure | - | ~750 |
| Tax rate | - | ~23% |
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