Coloplast’s products are becoming increasingly popular with users, as reflected in growing sales and the improved earnings for the financial year 2015/2016. Full-year organic sales growth rates were 9% in Ostomy Care, the largest business area, 5% in Continence Care, 9% in Urology Care and 6% in Wound & Skin Care.
European sales were up by 6 % and Coloplast’s homecare company Charter in the UK played a key role in increasing Coloplast’s market share in the country.
“We’ve seen impressive contributions from our European subsidiaries within all business areas, not least in the UK market as Charter continuously performs well, and users increasingly favour our stoma bags, catheters and accessories,” said Coloplast CEO Lars Rasmussen.
Other developed markets produced 6% organic growth, while sales in Emerging Markets were up by 14%. There is a strong underlying demand in the US market, although distributors continued to downscale their inventories which posed a challenge. Growth rates in the US market are expected to improve in the 2016/17 financial year.
Product launches to drive future growth
This fall, Coloplast launched a new flexible catheter for men, the SpeediCath Flex, and a new series of silicone dressings, the Biatain Silicone Sizes & Shapes. Both products are expected to become future growth drivers, just like the Sensura Mio Convex stoma bag.
“I’m pleased with our full-year results. Clearly, users are welcoming the innovative products we’ve developed to make their lives easier. This makes our new product launches all the more exciting to follow, in our efforts to achieve our long-term growth targets,” said Mr Rasmussen.
The full-year EBIT was impacted by a provision of DKK 750m to cover potential settlements and costs in connection with the lawsuits in the United States alleging injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence. More than 90% of the cases are considered settled.
2016/17 guidance
For the 2016/17 financial year, Coloplast expects organic revenue growth of 7-8% at constant exchange rates and of 5-6% in DKK, with the EBIT margin expected at 33-34% at constant exchange rates and at about 33% in DKK.
For more on the full-year 2015/16 financial report, go to http://www.coloplast.com/investor-relations/announcements/2016/ (available shortly)
The Annual Report and the Corporate Responsibility Report will be released later today. For more information, go to http://www.coloplast.com/investor-relations/annual-reports/ and http://www.coloplast.com/about-coloplast/responsibility/policies/
| Financial highlights and key ratios (DKKm) |
2015/16 FY |
2014/15 FY |
Change |
| Revenue | 14,681 | 13,909 | 6% |
| EBIT before special items | 4,846 | 4,535 | 7% |
| EBIT margin before special items (constant exchange rates) | 34% | 33% | |
| EBIT margin before special items (DKK) | 33% | 33% | |
| Special items | -750 | -3,000 | - |
| EBIT | 4,096 | 1,535 | >100% |
|
Sales performance by business area DKKm |
2015/16 FY |
2014/15 FY |
Organic growth | Reported growth |
| Ostomy Care | 5,935 | 5,567 | 9% | 7% |
| Continence Care | 5,182 | 5,019 | 5% | 3% |
| Urology Care | 1,497 | 1,359 | 9% | 10% |
| Wound & Skin Care | 2,067 | 1,964 | 6% | 5% |
Financial guidance for 2016/17
| FY 2015/16 guidance | Guidance (in DKK) | |
| Sales growth | 7-8% (organic) | 5-6% |
| EBIT margin | 33-34% (at constant exchange rates) | ~33% |
| CAPEX | - | ~700 |
| Tax rate | - | ~23 |
Media contact:
Maria Lindeberg
Senior Media Relations Manager
tel. + 45 49 11 30 95
dkmalg@coloplast.com
Investor Relations:
Ellen Bjurgert
tel: + 45 49 11 33 76
dkebj@coloplast.com
