Announcement no. 5/2018 - Interim Financial Report, 9M 2017/18
08 Agosto 2018 - 04:59AM
Announcement no. 5/2018 - Interim Financial Report, 9M 2017/18
9M 2017/18Interim financial report, 9M
2017/18(1 October 2017 - 30 June
2018)
Highlights
- Coloplast delivered 8% organic revenue growth in third quarter
of the 2017/18 financial year. Reported revenue in DKK was up by
8%, to DKK 4,225m. For the 9M 2017/18 reporting period, organic
revenue growth was 8%, while reported revenue in DKK was up by 6%
to DKK 12,215m.
- Organic growth rates by business area: Ostomy Care 9%,
Continence Care 9%, Urology Care 10% and Wound & Skin Care
3%.
- Chronic care continued to perform well in the third quarter,
driven in part by new products such as SenSura® Mio Convex and
SpeediCath® Flex and a positive performance in the USA with
double-digit growth.
- The Wound Care business experienced an increased momentum in
the third quarter, delivering 12% organic growth driven by Europe
and China.
- The Urology Care business continued its positive performance at
11% organic growth in the third quarter driven by the sales and
marketing investments made in the USA.
- SenSura® Mio Concave is now eligible for reimbursement and
available in nine countries. The launch remains positive, and
Coloplast’s new product segment has been well received in the
market.
- Q3 restructuring costs amounted to DKK 21m compared with DKK 3m
last year, the higher costs being partially due to the final
implementation of the plans to reduce the number of production
staff in Denmark from 700 to 400 by the end of 2017/18. The closure
of the factory at Thisted, Denmark, has been accelerated, which
added restructuring costs of about DKK 10m in the third
quarter.
- EBIT for the 9M period amounted to DKK 3,676m, a 1% decline in
DKK, for an EBIT margin of 30%, compared to 32% in the same period
of last year. However, at constant exchange rates and
adjusted for the one-off revenue adjustment relating to Veterans
Affairs in the year-earlier period, EBIT was up by 3%, equal to an
EBIT margin of 31% against 32% last year.
- ROIC after tax was 42% in the 9M 2017/18 period against 45% in
the same period of last year.
Financial guidance for
2017/18
- We now expect organic revenue growth of ~8%, up from previously
7-8%, at constant exchange rates. The change is mainly due to
expectations of a moderate effect from the patent expiry of
SpeediCath® standard catheters rather than a negative effect of DKK
50m as previously estimated. The guidance also continues to include
the effects of a comprehensive healthcare reform in Greece of up to
DKK 100m, which is expected to impact all business areas. Reported
growth in DKK is forecast unchanged at ~6%.
- We continue to expect an EBIT margin of 31-32% at constant
exchange rates and a reported EBIT margin of ~31% in DKK.
- Capital expenditure is still expected to be around DKK
700m.
- We continue to expect an effective tax rate of about 23%.
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