Coloplast delivers 8% organic revenue growth and upgrades full-year growth expectations
03 Mayo 2018 - 5:04AM
Coloplast delivers 8% organic revenue growth and upgrades full-year
growth expectations
Coloplast delivered 8% organic revenue growth and a 31%
EBIT margin at constant exchange rates in the first six months of
its 2017/18 financial year. For the full year 2017/18, the company
now guides 7-8% organic revenue growth from previously ~7%, and
reported growth in DKK of ~6% from previously 5-6%.
Coloplast delivered 8% organic revenue growth in the second quarter
of its financial year, while reported revenue in DKK was up by 4%
to DKK 4,035m. The H1 organic revenue growth was also 8%, while
reported revenue in DKK was up by 5% to DKK 7,990m. Reported
revenue was adversely affected by the depreciation of USD and
dollar-related currencies against DKK.
EBIT amounted to DKK 2,407m for a 3% decline in DKK but a 4%
increase at constant exchange rates. The EBIT margin at constant
exchange rates was 31% against 32% in the same period last year. In
DKK, the EBIT margin was 30%, against 32% last year. The EBIT
result is in line with the company’s expectations.
- “We deliver a strong half-year result with solid growth across
our chronic care business and an increased momentum in our emerging
markets. At the same time, the SpeediCath® patent expiry has had a
smaller impact than initially anticipated. This allows us to
upgrade our full-year growth expectations, which I’m obviously very
pleased with,” said Coloplast President and CEO Lars
Rasmussen.
Organic growth rates by business area: Ostomy Care 10%,
Continence Care 9%, Urology Care 10%, and Wound & Skin Care
negative 1%. The wound care business accelerated its momentum,
delivering 8% organic growth in the second quarter despite the
continued negative effects of a comprehensive pricing reform in
Greece.
- “We’re expanding our ostomy care product portfolio by
introducing SenSura® Mio Concave, designed specifically for the
outward body profile and customized to help stoma patients avoid
leakage. It will be part of the same portfolio as SenSura® Mio
Convex, the company’s most successful launch to date. As a result,
we have very high expectations for the new product category,
SenSura® Mio Concave, which is now available and eligible for
reimbursement in seven countries,” said Mr Rasmussen.
Looking at sales by geographies, the European markets
contributed with 4% growth in H1, Other developed markets delivered
13% revenue growth, while Emerging Markets provided a 16%
increase.
Tailwind and growth ambitions in the US As part of the
plan to accelerate organic growth in the US market, Coloplast has
appointed Manu Varma as Senior Vice President of Chronic Care North
America. Former Senior Vice President Ed Veome will take on a new
role as Vice President of Sales of Chronic Care North America.
- “The US market holds great potential, and our ambition is to
continue to take market share. To that end, we are investing to
accelerate growth, which includes investing in and expanding our
North American leadership team,” said Mr Rasmussen.
Coloplast is also expanding its continence care and wound care
product portfolios in the US market by launching the SpeediCath®
Flex Coudé Pro, specifically designed for the US market, and the
entire Biatain® Silicone portfolio.
In addition, Coloplast has been chosen as the primary ostomy
care vendor at Cleveland Clinic, one of the leading hospital chains
in the USA. Coloplast will be the new main supplier of ostomy care
products to all Cleveland Clinic hospitals.
Financial guidance 2017/18 Coloplast now guides
7-8% organic revenue growth, up from previously ~7%, at constant
exchange rates. The change is primarily due to expectations that
the patent expiry of SpeediCath® standard catheters will have a
negative effect of DKK 50m instead of the previous estimate of DKK
100m and due to increased momentum in the Emerging Markets region.
The guidance continues to include the effects of a comprehensive
healthcare reform in Greece of DKK 100m, which is expected to
impact all business areas. Reported growth in DKK is expected to be
~6%, up from previously 5-6%, mainly due to developments in the
USD/DKK exchange rate. The change is due to the upgraded guidance
for organic revenue growth. Coloplast continues to expect an EBIT
margin of 31%-32% at constant exchange rates and a reported EBIT
margin of ~31% in DKK.
CONTACTS Lina
DanstrupSenior Media Relations Manager, Corporate Communications+45
49 11 26 07dklina@coloplast.com |
Ellen BjurgertDirector,
Investor Relations+45 49 11 33 76dkebj@coloplast.com |
- 2017_2018_Q2_PM_DK
- 2017_2018_Q2_PM_ENG