Coloplast A/S - Announcement no. 07/2022 - Interim Financial Report, 9M 2021/2022

9M 2021/22

Interim financial results, 9M 2021/22

1 October 2021 - 30 June 2022

Coloplast delivered Q3 organic growth of 8% and an EBIT margin of 30%. Unchanged financial guidance for FY 2021/22, with organic growth at 6-7%, reported growth around 15%, and EBIT margin before special items of around 31%

• Coloplast delivered 8% organic growth in Q3. Reported revenue in DKK was up by 21%. Organic growth rates by business area in Q3 were: Ostomy Care 10%, Continence Care 5%, Interventional Urology 11%, and Wound & Skin Care 5% (Wound Care 4%). Voice & Respiratory Care contributed 9%-points to reported growth, with a double-digit underlying growth.
• Satisfactory Q3 for Chronic Care, with solid Ostomy Care growth across all geographies ex. China, which remains impacted by COVID-19. Growth in Continence Care was negatively impacted by backorders in Collecting Devices.
• Broad-based growth in Interventional Urology, led by the Endourology and the US Men's Health businesses.
• Contract Manufacturing and the European Wound Care business were the main growth contributors in Wound & Skin Care.
• EBIT before special items was DKK 1,761 million, an 11% increase from last year. The EBIT margin before special items was 30% against 33% last year, reflecting a normalisation of commercial activities and increasing costs for energy, raw materials, and logistics, as well as around DKK 57 million in amortisation costs related to the Atos Medical acquisition.

9M 2021/22 organic growth of 7% and 31% EBIT margin before special items.

• Coloplast delivered 7% organic growth for the first nine months of the year. Reported revenue in DKK was up by 15% to DKK 16,520 million. Organic growth rates by business area were: Ostomy Care 7%, Continence Care 6%, Interventional Urology 8%, Wound & Skin Care 7% (Wound Care alone 7%). Voice & Respiratory Care contributed 5%-points to the reported growth (contains five months of revenue impact).
• EBIT before special items amounted to DKK 5,096 million, an 8% increase from last year. The EBIT margin before special items was 31% against 33% last year, impacted by around DKK 96 million in amortisation costs related to the Atos Medical acquisition. EBIT margin after special items was 28%, impacted by DKK 435 million in special items¹⁾.
• ROIC after tax before special items was 26% against 43% last year, negatively impacted by the acquisition of Atos Medical. Diluted earnings per share (EPS) before special items increased by 4% to DKK 17.90.

FY 2021/22 financial guidance

• Organic revenue growth continues to be expected at 6-7% at constant exchange rates. Reported growth in DKK excluding Atos Medical is still expected around 9%. The impact of the Atos Medical acquisition on reported growth is still expected to be around 6%-points. In total, reported growth in DKK continues to be expected around 15%.
• Reported EBIT margin before special items is still expected around 31% and reported EBIT margin after special items is still expected at 28-29%, impacted by special items of around DKK 450 million²⁾.
• Capital expenditures are now expected to be around DKK 1.2 billion. The effective tax rate is still expected to be around 23%.

"I am very pleased with our performance in the third quarter. We deliver 8% organic growth and an EBIT margin of 30% and continue to take market share across all our sales regions and business areas. This means that we continue to help more and more people with intimate healthcare needs live better lives. I would like to highlight our strong performance in Ostomy Care, particularly in Europe and the US, as well as a solid set of growth numbers in Interventional Urology and Voice & Respiratory Care. China continues to negatively impact our growth in both Ostomy Care and Wound Care due to COVID-19 related restrictions. Outside of China, however, the growth in new patients and the level of procedures are largely back to pre-COVID levels,"says President and CEO Kristian Villumsen.

¹⁾ DKK 300 million provision for costs related to the US lawsuits alleging injury from the use of transvaginal surgical mesh products, and DKK 135 million related to the Atos Medical acquisition.
²⁾ DKK 300 million provision for costs related to the US lawsuits alleging injury from the use of transvaginal surgical mesh products. Special items related to the Atos Medical acquisition are expected to be around DKK 150 million.

Conference call

Coloplast will host a conference call on Wednesday, 17 August 2022 at 15.00 CEST. The call is expected to last about one hour.
To actively participate in the Q&A session please call [phone], [phone] or [phone]. The participant PIN code is 90611412#

Access the conference call webcast directly here: https://getvisualtv.net/stream/?coloplast-qwigcwkzzn

For further information, please contact

Investors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. [phone]

Aleksandra Dimovska
Director, Investor Relations
Tel. [phone]
Email: [e-mail]

Kristine Husted Munk
Senior Manager, Investor Relations
Tel. [phone]
Email: [e-mail]

Press and media
Peter Mønster
Sr. Media Relations Manager
Tel. [phone]
Email: [e-mail]

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 Danish 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 & Skin Care, Interventional Urology and Voice & Respiratory Care. We operate globally and employ about 14,000 employees.


The Coloplast logo is a registered trademark of Coloplast A/S. © 2022-08.

All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.

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• 07_2022_9M_Earnings_Release