Coloplast A/S – Announcement no. 06/2020 – 9M Interim Financial Report, 2019/20

9M 2019/20
Interim financial report, 9M 2019/20
(01 October 2019 – 30 June 2020)                   Significant negative impact from COVID-19 in Q3 due to the decline in elective procedures and the reversal of stock building, guidance range for 2019/20 narrowedNegative organic growth of -2% in Q3. Reported revenue in DKK was down by 4% to DKK 4,419m. Year to date organic growth was 5% and reported revenue in DKK increased by 5% to DKK 13,954m.Organic growth rates by business area year to date: Ostomy Care 8%, Continence Care 7%, Interventional Urology -10% and Wound & Skin Care 2%.The Chronic Care business delivered stable underlying growth in Q3, but was adversely impacted by the reversal of the majority of the positive DKK ~150m impact from the previous stock building in mainly Europe. US and EM performed well and the situation in China in Ostomy Care normalised during Q3.The Interventional Urology business reported -10% organic growth year to date. In Q3, organic growth was -40% due to a significant decline in elective procedures in primarily the US following the COVID-19 outbreak. As elective procedures gradually resumed across the US and in most European markets, performance improved during Q3 with April down 70%, May down 45% and June down 3%.  The Wound & Skin Care business delivered 2% organic growth year to date. In Q3, organic growth was           -6% primarily due to a decline in hospital procedures and sales in China, Europe and the US Skin Care business following the COVID-19 outbreak.EBIT amounted to DKK 4,382m for the first nine months, a 7% increase, corresponding to an EBIT margin of 31% on par with last year. The development reflects strong cost control during the COVID-19 outbreak, but also sustained investments in growth opportunities and innovation.ROIC after tax before special items was 45% for the first nine months in line with last year.Executive Leadership Team expanded from four to six members to deliver on upcoming 2025 strategy centred around innovation and growth.The health and safety of the company’s employees and continuity of service to customers continue to be the key priority during these globally challenging times.Financial guidance for 2019/20On 18 March 2020 Coloplast issued revised guidance for the financial year 2019/20. With one quarter left of the financial year, Coloplast’s guidance is narrowed as follows:We expect organic revenue growth of ~4% at constant exchange rates from previously 4-6% due to a weaker outlook for the Wound & Skin Care business and the UK Chronic Care business. Due to currency fluctuations reported growth in DKK is expected to be 3-4% from previously 4-6%.We expect an EBIT margin of ~31% at constant exchange rates from previously 30-31%. The reported margin in DKK is expected to be ~31% from previously 30-31%. The EBIT margin guidance reflects additional incremental investments of up to 2% of revenue for innovation and sales and marketing initiatives and continued prudent cost management.Capital expenditure is still expected to be DKK ~950m; the effective tax rate is still expected to be ~23%. For further information, please contactInvestors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111Ellen Bjurgert
Vice President, Investor Relations
Tel. +45 4911 1800 /+45 4911 3376
Email: dkebj@coloplast.comRasmus Sørensen
Sr. Manager, Investor Relations
Tel. +45 4911 1800 /+45 4911 1786
Email: dkraso@coloplast.com
                                                                                       
Press and the media
Lina Danstrup
Sr. Media Relations Manager
Tel. 4911 2607
Email: dklina@coloplast.com Address
Coloplast A/S
Holtedam 1
DK-3050 Humlebaek
Denmark
Company reg. (CVR) no. 69749917Website
www.coloplast.comThis 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 healthcare. Our business includes Ostomy Care, Continence Care, Wound and Skin Care and Interventional Urology. We operate globally and employ about 12,000 employees.The Coloplast logo is a registered trademark of Coloplast A/S. © 2020-08.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.Attachment06_2020_9M_201920_earnings_release