Coloplast A/S – Announcement no. 05/2020 – Interim Financial Report, H1 2019/20

H1 2019/20
Interim financial report, H1 2019/20
(01 October 2019 – 31 March 2020)
            Solid performance continues in Q2 impacted by COVID-19 outbreak and stock building in primarily Europe, guidance for 2019/20 maintainedColoplast delivered 9% organic growth in the second quarter. Reported revenue in DKK was up by 10% to DKK 4,823m. Year to date organic growth was 8% and reported revenue in DKK was up by 9% to DKK 9,535m.Organic growth rates by business area year to date: Ostomy Care 9%, Continence Care 9%, Interventional Urology 6% and Wound & Skin Care 7%.During the COVID-19 outbreak, the health and safety of the company’s employees and continuity of service to customers continue to be the key priority. Coloplast’s global production and distribution sites continue to operate at normal levels and the company is able to fully meet demand.Chronic Care delivered a strong performance in the second quarter, driven by stable underlying growth ex-China and a positive impact of DKK ~150m from stock building in primarily Europe by distributors and end-users following the outbreak. This is expected to gradually reverse when the situation normalises.The Wound and Skin Care business delivered 7% organic growth year to date. In Q2, Wound Care delivered negative 2% organic growth due to the COVID-19 outbreak in China and cancellation of procedures.The Interventional Urology business delivered 6% organic growth year to date. In Q2, organic growth was 3% and as expected adversely impacted by a temporary decline in elective procedures in primarily the US due to the COVID-19 outbreak.EBIT amounted to DKK 3,014m for the first six months, a 14% increase, corresponding to an EBIT margin of 32% against 30% last year. The comparison period included restructuring costs of DKK 27m.ROIC after tax before special items was 46% for the first six months against 44% last year.The Board of Directors has resolved that Coloplast will pay a half-year interim dividend of DKK 5.00 per share for a dividend pay-out of DKK 1,064m.Effective 5 May 2020, Coloplast has established a sponsored level 1 ADR programme in the US.Financial guidance for 2019/20We continue to expect organic revenue growth of 4-6% at constant exchange rates and a reported growth in DKK of 4-6%.We continue to expect an EBIT margin of 30-31% at constant exchange rates and 30-31% in DKK. The EBIT margin guidance reflects additional incremental investments of up to 2% of revenue for innovation and sales and marketing initiatives and prudent cost management due to the COVID-19 outbreak.As communicated in Company Announcement no. 03/2020 of 18 March 2020, the COVID-19 outbreak is expected to have a material negative impact on the Interventional Urology business and elective procedures in primarily the US in the second half of the year and in particular in Q3. The global outlook for Ostomy Care, Continence Care and Wound & Skin Care remains largely intact.Capital expenditure is now expected to be DKK ~950m vs. ~850m previously to ensure sufficient production capacity for new and existing products.The effective tax rate is still expected to be ~23%.
For more information, please contact:
Investors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111Ellen Bjurgert
Vice President
Investor Relations
Tel. +45 4911 1800 / 4911 3376
E-mail dkebj@coloplast.comRasmus Sørensen
Senior Manager
Investor Relations
Tel. +45 4911 1800 / 4911 1786
E-mail dkraso@coloplast.comPress and the media
Lina Danstrup
Senior Media Relations Manager
Corporate Communications
Tel. +45 4911 2607
E-mail dklina@coloplast.comAddress
Coloplast A/S
Holtedam 1
DK-3050 Humlebaek
Denmark
Business reg. (CVR) no. 69749917Website
www.coloplast.comAttachment05_2020_H1_201920_earnings_release