Interim financial results, Q1 2021/22
1 October 2021 - 31 December 2021
Coloplast delivers a solid Q1 with 6% organic growth and 32% EBIT margin before special items. Organic growth guidance unchanged. Financial guidance for 2021/22 updated to reflect the Atos Medical acquisition.
Coloplast delivered 6% organic growth in the first quarter. Reported revenue in DKK was up by 9% to DKK 5,169 million. Organic growth rates by business area: Ostomy Care 6%, Continence Care 5%, Interventional Urology 5% and Wound & Skin Care 12%.
Chronic Care delivered a satisfactory first quarter driven by solid growth in Europe due to a normalised growth in new patients as well as continued strong performance in Emerging markets ex. China. China remains impacted by COVID-19 and weaker consumer sentiment. As expected, the US posted a slow start to the year impacted by a high baseline in Q1 last year and continued lower growth in new patients in Continence Care due to COVID-19.
Growth in the Interventional Urology business was impacted by a high baseline in Men’s Health in Q1 last year. The underlying growth was solid in Men’s and Women’s Health in the US as well as the Endourology business in Europe.
The Wound & Skin Care business delivered a strong quarter, with Wound Care delivering 17% organic growth, driven by solid momentum in Europe and the Biatain® Silicone portfolio.
EBIT before special items was DKK 1,649 million, a 7% increase from last year, corresponding to an EBIT margin before special items of 32% against 32% last year. EBIT after special items was DKK 1,615 million, a 5% increase from last year, corresponding to an EBIT margin after special items of 31% (special items were DKK 34 million related to Atos Medical).
ROIC after tax before special items was 43% against 44% last year. Diluted earnings per share (EPS) before special items increased by 8% to DKK 5.78.
In Q2 2021/22, a new share buy-back programme is expected to be launched, totalling DKK 500 million and to be completed by the end of the 2021/22 financial year.
On November 8, 2021, Coloplast announced the acquisition of Atos Medical, the global market leader in laryngectomy. Atos Medical is expected to grow 8-10% organically, with an EBITDA margin in the mid-30s level, and contribute to Coloplast’s Strive25 financial guidance of 7-9% organic growth and +30% EBIT margin.
2021/22 financial guidance updated to reflect the acquisition of Atos Medical, targeted to close on January 31, 2022.
Organic revenue growth guidance is unchanged, expected around 7% at constant exchange rates. Reported growth in DKK excluding Atos Medical is expected to be around 9% from previously around 8% due to FX movements. The impact of the Atos Medical acquisition on reported growth is expected to be around 6%-points (8 months impact). In total, reported growth in DKK is expected to be around 15%.
Reported EBIT margin before special items is expected around 31% from previously around 32%, due to around DKK 200 million in amortization charges related to the Atos Medical acquisition (8 months impact). Reported EBIT margin after special items is expected to be around 30%, impacted by special items of around DKK 150 million, related to one-off transaction and integration costs related to Atos Medical.
Capital expenditures expected to be around DKK 1.3 billion, from previously DKK 1.2 billion, increase reflecting the impact from Atos Medical capex and integration capex related to the acquisition. The effective tax rate is expected to be around 23% from previously 22-23%, reflecting impact from the Atos Medical acquisition.
Coloplast will host a conference call on Tuesday, 25 January 2022 at 15.00 CET. The call is expected to last about one hour.
To actively participate in the Q&A session please call +45 3544 5577, +44 3333 000 804 or +1 631 913 1422. The participant PIN code is 37433177#
Access the conference call webcast directly here: https://getvisualtv.net/stream/register/?coloplast-x5yv2g5dpa
For further information, please contact
Investors and analysts
Executive Vice President, CFO
Tel. +45 4911 1111
Vice President, Investor Relations
Tel. +45 4911 1800 /+45 4911 3376
Sr. Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Press and the media
Sr. Director, Communications
Tlf. 4911 2608
Company reg. (CVR) no. 69749917
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 and Skin Care and Interventional Urology. We operate globally and employ about 12,500 employees.
The Coloplast logo is a registered trademark of Coloplast A/S. © 2022-01.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.