Coloplast A/S - Announcement no. 02/2023 - Interim Financial Report, H1 2022/23
H1 2022/23
Interim financial results, H1 2022/23
1 October 2022 - 31 March 2023
Coloplast delivered Q2 organic growth of 8% and 28% EBIT margin1). Reported revenue in DKK was up by 10%.
- Organic growth rates by business area: Ostomy Care 6%, Continence Care 6%, Voice and Respiratory Care 9% (2 months), Wound and Skin Care 13% (Wound Care 12%), and Interventional Urology 17%.
- Solid Q2 for Chronic Care with continued good momentum across regions ex. China, which detracted from growth in Ostomy Care due to COVID-19. Towards the end of Q2, hospital access in China significantly improved, positively impacting procedural volumes. Growth in Continence Care continued to be impacted by backorders in Collecting Devices.
- Voice and Respiratory Care growth was driven by solid momentum in both the laryngectomy and tracheostomy businesses.
- Strong quarter in Wound Care, driven mainly by solid momentum in Europe, including benefit from a low baseline.
- Continued strong momentum in Interventional Urology with broad-based growth, led by the US Men’s Health business.
- EBIT1) was DKK 1,671 million, a 1% decrease from last year. The EBIT margin1,2) was 28% against 31% last year, reflecting inflationary headwind on input costs, an increase in operating expenses due to increased commercial activity levels, and DKK 53 million in amortisation costs related to the Atos Medical acquisition. Impact from currencies in the quarter was neutral.
H1 2022/23 organic growth of 8% and 28% EBIT margin1). Reported revenue in DKK was up 14% to DKK 12,166 million.
- Organic growth rates by business area: Ostomy Care 7%, Continence Care 6%, Wound and Skin Care 7% (Wound Care 4%), and Interventional Urology 14%. Voice and Respiratory Care contributed 6%-points to the reported growth (4 months).
- EBIT1) was DKK 3,445 million, up 3% from last year. The EBIT margin1,2) was 28% against 31% last year, reflecting inflationary headwind on input costs, an increase in operating expenses, impacted by increased commercial activity levels, and DKK 107 million in amortisation costs related to the Atos Medical acquisition.
- ROIC after tax before special items was 19% against 25% last year, negatively impacted by the Atos Medical acquisition.
- Free cash flow was DKK 795 million, a 13% decrease from last year (ex. acquisitions), impacted by a decline in cash flow from operating activities mainly due to an increase in net working capital and higher income tax paid.
- The Board of Directors has resolved that the company will pay a half-year interim dividend of DKK 5.00 per share, for a total dividend pay-out of DKK 1,062 million.
FY 2022/23 financial guidance – organic revenue growth is now expected around 8% in constant exchange rates, from 7-8% previously. Reported growth in DKK is now expected to be 8-9%, from previously 9-10%, due to negative impact from currencies. Consequently, the reported EBIT margin1) is now expected in the 28-29% range, from previously 28-30%.
- Reported revenue growth assumes around 2%-points negative impact from currencies, from previously negative 1%-point.
- The reported EBIT margin guidance continues to assume impact from increasing input costs, especially raw materials and electricity in Hungary, partly offset by leverage, price increases, efficiency gains, and prudent management of operating cost.
- Capital expenditures are still expected to be around DKK 1.4 billion. The effective tax rate is still expected to be around 21%.
”We deliver a solid Q2 with 8% organic growth and an EBIT margin of 28%, which is in line with our financial guidance. I am pleased to see strong growth momentum across all our business areas and regions excluding our Chinese business. China continued to be impacted by COVID-19, however, the positive developments in hospital access and patient inflow at the end of Q2 make me optimistic about our long-term growth prospects. Finally, the launch of our new male intermittent catheter, Luja™, is progressing well. The results of the first pivotal clinical study have been published, showing a significant improvement in bladder emptying compared to a competitor catheter. Luja has been launched in four markets with positive feedback and the product is expected to be available in all our key markets over the next 9 months.” says President and CEO Kristian Villumsen.
1) before special items of DKK 20 million in Q2 2022/23; DKK 33 million in H1 2022/23; around DKK 50 million expected for FY 2022/23, related to Atos Medical integration cost
2) before special items of DKK 381 million in Q2 2021/22 and DKK 415 million in H1 2021/22
Luja is a medical device for which CE-mark has been affixed. Product availability is subject to regulatory process of individual countries and is not guaranteed.
Conference call
Coloplast will host a conference call on Thursday, 11 May 2023 at 11.00 CET.
The call is expected to last about one hour.
To actively participate in the Q&A session please sign up ahead of the conference call on the link here to receive an e-mail with dial-in details Register here
Access the conference call webcast directly here: H1 22/23 conference call
For further information, please contact
Investors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111
Aleksandra Dimovska
Senior Director, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Email: dkadim@coloplast.com
Kristine Husted Munk
Senior Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 3266
Email: dkkhu@coloplast.com
Press and media
Peter Mønster
Sr. Media Relations Manager
Tel. +45 4911 2623
Email: dkpete@coloplast.com
Address
Coloplast A/S
Holtedam 1
DK-3050 Humlebaek
Denmark
Company reg. (CVR) no. 69749917
Website
www.coloplast.com
This announcement is available in a Danish and an English-language version. In the event of discrepancies, the English 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 health care. Our business includes Ostomy Care, Continence Care, Wound and Skin Care, Interventional Urology and Voice and Respiratory Care. We operate globally and employ more than 14,700 employees.
The Coloplast logo is a registered trademark of Coloplast A/S. © 2023-05.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.
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