Coloplast A/S - Full-Year Financial Results 2023/24

2023/24

Announcement of full-year financial results

1 October 2023 - 30 September 2024

Coloplast delivered Q4 organic growth of 8% and an EBIT margin¹ of 26%, which was negatively impacted by extraordinary costs and currencies. Reported revenue in DKK grew 12% with 3%-pts contribution from the Kerecis acquisition (two months).

• Organic growth rates by business area: Ostomy Care 6%, Continence Care 10%, Voice and Respiratory Care 12%, Advanced Wound Care 10% (Advanced Wound Dressings 4%) and Interventional Urology 7%.
• Growth in Chronic Care was broad-based and includes improvement in growth in the US which benefited from the resolution of the supply disruptions. Ostomy Care growth was held back by Emerging markets, reflecting a higher baseline in Q4 last year. Continence Care growth was broad-based across segments and includes significant contribution from Luja*.
• Voice and Respiratory Care growth was driven by continued good momentum in both Laryngectomy and Tracheostomy.
• Growth in Advanced Wound Care reflects one-month organic contribution from Kerecis and double-digit growth in Skin Care in Q4, partly offset by lower growth in the dressings segment due to higher baseline and order phasing in Germany.
• Continued market share gains for Kerecis, with underlying growth of around 35% and an EBIT margin ex. PPA amortisation of around 10%, in line with plan. A new RCT**(Odinn) was published, showing superior healing of severe DFUs** with Kerecis.
• Interventional Urology growth was driven by Men's Health and Endourology, as well as a return to growth in Women's Health.
• EBIT¹ was DKK 1,803 million, a 5% increase from last year. The EBIT margin^1,2 was 26% against 28% last year and includes around 100 basis points negative impact from Kerecis, as expected, extraordinary costs related to the establishment of the US distribution centre of around DKK 45 million and negative impact from currencies.
• Executive Leadership Team expanded to match growth platforms in focus for the upcoming 2030 strategy.
  
  

FY 2023/24 organic growth of 8% and 27% EBIT margin¹. Reported revenue in DKK grew 10% to DKK 27,030 million.

• Organic growth rates by business area: Ostomy Care 7%, Continence Care 8%, Voice and Respiratory Care 11%, Advanced Wound Care 10% (Advanced Wound Dressings 8%) and Interventional Urology 5%. Kerecis contributed 4%-points to reported growth, with an underlying growth of around 35%, in line with expectations.
• EBIT¹ was DKK 7,286 million, a 6% increase from last year. The EBIT margin^1,2 was 27% against 28% last year, mostly impacted by the dilution from Kerecis of around 100 basis points, as expected, and negative impact from currencies.
• ROIC after tax before special items was 15% against 17% last year, negatively impacted by the acquisition of Kerecis. Diluted earnings per share (EPS)¹ decreased by 1% to DKK 22.34, impacted by the equity raise in August 2023.
• Free cash flow was an inflow of DKK 1.4 billion and includes impact from the extraordinary tax payment related to Atos Medical's IP transfer in Q2. Adjusted for the tax payment, the free cash flow was an inflow of DKK 3.9 billion.
• The Board of Directors recommends a year-end dividend of DKK 17.00 per share, which brings the total dividend for the year to DKK 22.00 per share, compared to DKK 21.00 per share last year.

FY 2024/25 guidance of 8-9% organic growth and an EBIT margin before special items of around 28%.

• Organic growth assumes continued good momentum and around 1%-point contribution from Kerecis. Reported growth in DKK is expected to be 8-9% with neutral impact from currencies.
• The reported EBIT margin³ assumes benefit from lower inflationary pressure on input costs, margin improvement initiatives in Advanced Wound Care (ex. Kerecis), around 100 basis points dilution from Kerecis and neutral impact from currencies.
• Capital expenditures are expected to be around DKK 1.4 billion. The effective tax rate is expected around 22%.

"We deliver a solid full-year result in line with our financial guidance. I want to highlight our strong, broad-based performance in Chronic Care with a solid contribution from our new intermittent catheter platform Luja, which has been our most successful launch in Continence Care to date. We also saw improved growth in the US in our fourth quarter, benefiting from the now resolved supply disruptions, which have, however, had an impact on our margin. Finally, I am pleased to see that our two newest members of the Coloplast family, Atos Medical and Kerecis, continue to deliver double-digit growth, helping more and more people with intimate healthcare needs live more dignified lives," says Kristian Villumsen, CEO of Coloplast

Conference call

Coloplast will host a conference call on Tuesday 4 November 2024 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: Coloplast - FY 2023/24 conference call

1. before special items income of DKK 104 million in Q4 2023/24 and income of DKK 34 million in FY 2023/24. 2. before special items expenses of DKK 69 million in Q4 2022/23 and special items expenses of DKK 74 million in FY 2022/23. 3. FY 2024/25 special items expected to be an expense of around DKK 130 million.
*Luja female is a medical device for which CE-mark has been affixed. Product availability is subject to the regulatory process of individual countries and is not guaranteed. Luja female is currently not available in the US. **RCT= randomised controlled trial; DFUs=Diabetic Foot Ulcers

For further information, please contact

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

Aleksandra Dimovska
Vice President, 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 English version shall prevail.

Coloplast was founded on passion, ambition, and commitment. We were born from a nurse's wish to help her sister and the skills of an engineer. Guided by empathy, our mission is to make life easier for people with intimate healthcare needs. Over decades, we have helped millions of people to live a more independent life and we continue to do so through innovative products and services. Globally, our business areas include Ostomy Care, Continence Care, Advanced Wound Care, Interventional Urology and Voice and Respiratory Care.

The Coloplast logo is a registered trademark of Coloplast A/S. © 2024-11.

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