XCSE:COLO-B ESEF Annual Report
COLOPLAST A/S (XCSE:COLO-B)
ESEF Annual Report
2023-02-09
For: 2022-12-31
View Original
Added on
September 23, 2026
Announcement no. 01/2023
3 February 2023
1
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Q1 2022/23
Interim financial results, Q1 2022/23
1 October 2022 – 31 December 2022
• Coloplast delivered 7% organic growth in Q1. Reported revenue in DKK was up by 18%. Organic growth rates by business
area: Ostomy Care 8%, Continence Care 7%, Wound and Skin Care 1% (Wound Care -4%), and Interventional Urology 11%.
• Solid start in Chronic Care, with strong momentum in Ostomy Care across regions, ex. China. In Continence Care, backorders
in Collecting Devices continued to detract from growth, offset by strong growth in the Intermittent Catheters portfolio.
• Voice and Respiratory Care delivered high single-digit organic growth and contributed 9%-points to reported growth.
• Growth in Wound Care was impacted by a high baseline last year, continued impact from backorders, particularly in Europe,
and negative growth in China. Continued good underlying growth momentum in key European markets.
• Strong start to the year in Interventional Urology with broad-based growth, led by the Men’s Health business in the US.
• Coloplast is launching Luja™, the new male intermittent catheter with a unique Micro-hole Zone Technology, setting a new
standard for bladder emptying. The new catheter is expected to be available in key markets over the next 12 months.
• EBIT before special items was DKK 1,774 million, an 8% increase from last year. The EBIT margin before special items was
29% compared to 32% last year, reflecting increased commercial activity levels, increased costs for raw materials, energy,
and freight, as well as around DKK 54 million in amortisation costs related to the Atos Medical acquisition.
• ROIC after tax before special items was 20% compared to 43% last year, negatively impacted by the acquisition of Atos
Medical. Diluted earnings per share (EPS) before special items decreased by 7% to DKK 5.35, due to a 7% decrease in net
profit from last year. Net profit was impacted by an increase in financial expenses, driven by non-cash effect from currencies.
• Free cash flow was DKK 212 million, a 77% decrease from last year, impacted by a decline in cash flow from operating
activities, mostly due to an increase in net working capital. Net working capital for FY 2022/23 is still expected around 24%.
FY 2022/23 financial guidance – unchanged organic revenue growth of 7-8% and an EBIT margin of 28-30% before special
items. Reported revenue growth adjusted to 9-10%.
• Organic revenue growth is expected at 7-8% in constant exchange rates. Reported growth in DKK is expected at 9-10%,
from previously 11-12%. Impact from currencies is expected around -1%-point, mostly due to an unfavourable development
in the US dollar. The Atos Medical acquisition is still expected to contribute around 3%-points to reported growth (4 months).
• Reported EBIT margin before special items is still expected at 28-30%, impacted by increasing input costs, especially raw
materials and electricity in Hungary, partly offset by leverage, efficiency gains and prudent management of operating costs.
• Capital expenditures are still expected to be around DKK 1.4 billion. The effective tax rate is still expected to be around 21%.
”We deliver a solid start to the year with 7% organic growth and an EBIT margin of 29% in Q1, in line with our financial
guidance. Our Chronic Care business delivered a strong first quarter with broad-based growth excluding China. I would like to
highlight our strong performance in Ostomy Care in the US where we continue to strengthen our competitive position, latest
with a three-year renewal of our group purchasing agreement with Premier Inc. I am also pleased with our continued solid
performance in our Interventional Urology and Voice and Respiratory Care businesses. Finally, we are launching our new male
intermittent catheter Luja™, designed to reduce the risk of urinary tract infections. I am excited by what I believe Luja can do for
people using intermittent catheters as well as healthcare systems,” says President and CEO Kristian Villumsen.
Conference call
Coloplast will host a conference call on Friday, 03 February 2023 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: Q1 22/23 conference call
DK-3050 Hum lebaek
Company reg. (CVR)
no. 6974 9917
Announcement no. 01/2023
03 February 2023
2
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Financial highlights and key ratios
1 October 2021 – 31 December 2022, unaudited
Consolidated
2022/23
2021/22
Q1
Q1
Change
Income statement, DKK million
Revenue
6,105
5,169
18%
Research and development costs
-216
-205
5%
Operating profit before interest, tax, depr. and amort. (EBITDA) before special items
2,035
1,824
12%
Operating profit before interest, taxes and amortization (EBITA) before special items
1,857
1,670
11%
Operating profit (EBIT) before special items
1,774
1,649
8%
Special items
-13
-34
N/A
Operating profit (EBIT)
1,761
1,615
9%
Net financial income and expenses
-334
-58
N/A
Profit before tax
1,427
1,557
-8%
Net profit for the period
1,127
1,207
-7%
Revenue growth, %
Period growth in revenue, %
18
9
Growth break down:
Organic growth, %
7
6
Currency effect, %
2
3
Acquired operations, %
9
-
Balance sheet, DKK million
Total assets
35,221
16,188
N/A
Capital invested
28,529
11,887
N/A
Net interest-bearing debt (NIBD)
21,328
4,172
N/A
Equity end of period
5,905
6,419
-8%
Cash flow and investments, DKK million
Cash flows from operating activities
487
1,131
-57%
Cash flows from investing activities
-275
-201
37%
Investments in property, plant and equipment, gross
-198
-175
13%
Free cash flow
212
930
-77%
Cash flows from financing activities
74
-745
N/A
Key ratios
Average number of employees, FTEs¹⁾
Operating margin (EBIT margin) before special items, %
29
32
Operating margin (EBIT margin), %
29
31
Operating margin before interest, tax, depr. and amort., (EBITDA margin), %
33
35
Gearing ratio, NIBD/EBITDA before special items
2.6
0.6
Return on average invested capital before tax (ROIC), %²⁾
25
56
Return on average invested capital after tax (ROIC), %²⁾
20
43
Return on equity, %
64
66
Equity ratio, %
17
40
Net asset value per outstanding share, DKK
28
30
-7%
Share data
Share price, DKK
812
1,151
-29%
Share price/net asset value per share
29.2
38.2
-24%
Average number of outstanding shares, millions
212.4
212.8
0%
PE, price/earnings ratio
38.2
50.7
-25%
Earnings per share (EPS), diluted
5.31
5.66
-6%
Earnings per share (EPS) before special items, diluted
5.35
5.78
-7%
Free cash flow per share
1.0
4.4
-77%
¹⁾ Includes Atos Medical employees.
2)
This item is provided before special items. After special items, ROIC before tax was 25% (2021/22: 55%), and ROIC after tax was 20% (2021/22: 43%).
Announcement no. 01/2023
03 February 2023
3
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Sales performance
The Q1 organic growth was 7%. Reported revenue in DKK was up by 18% to DKK 6,105 million. Exchange rate developments
increased revenue by 2%-points, mainly related to the appreciation of the USD against DKK. Revenue from acquisitions
contributed 9%-points, as a result of the acquisition of Atos Medical in the second quarter of 2021/22.
Sales performance by business areas
DKK million
Growth composition (3 mths)
2022/23
(3 mths)
2021/22
(3 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
Ostomy Care
2,274
2,098
8%
-
0%
8%
Continence Care
1,987
1,844
7%
0%
1%
8%
Voice and Respiratory Care
480
-
n/a
n/a
n/a
n/a
Wound and Skin Care
678
648
1%
-
4%
5%
Interventional Urology
686
579
11%
-
7%
18%
Revenue
6,105
5,169
7%
9%
2%
18%
Sales performance by region
DKK million
Growth composition (3 mths)
2022/23
(3 mths)
2021/22
(3 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
European markets
3,434
2,959
5%
12%
-1%
16%
Other developed markets
1,634
1,285
9%
9%
9%
27%
Emerging markets
1,037
925
9%
2%
1%
12%
Revenue
6,105
5,169
7%
9%
2%
18%
Announcement no. 01/2023
3 February 2023
4
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Ostomy Care
Ostomy Care generated 8% organic
sales growth for the first quarter of
2022/23, with reported revenue in DKK
growing by 8% to DKK 2,274 million.
The SenSura® Mio portfolio was the
main growth contributor, followed by
the Brava® range of supporting
products. At the product level, SenSura
Mio Convex was the main growth
contributor driven by Europe, in
particular the UK and Germany, and the
US. The SenSura and Assura/Alterna®
portfolios continued to contribute to
growth in the emerging markets, where
they are being actively promoted, most
notably LATAM. Growth in the Brava
range of supporting products was driven
by the US, Germany, and the Emerging
markets region.
From a geographical perspective,
growth was broad-based with solid
contributions from Europe, especially
the UK, the US, and Emerging markets
ex. China, led by LATAM.
In the US, Coloplast continues to
advance its competitive position.
Premier Inc. has renewed Coloplast’s
group purchasing agreement. The
contract is multi-source and effective for
three years, starting April 1, 2023.
Coloplast has also won an Ostomy Care
award for Captis, a healthcare
organisation with 90+ members, under
the Vizient™ GPO umbrella. The award
is dual source for three years, starting
January 1, 2023.
Sales growth in China remained
hampered by COVID-19, which has
resulted in a continued lower level of
procedural volumes and sales in the
hospital channel. Despite the national
lifting of the COVID-19 restrictions
towards the end of Q1, hospital access
remains limited, negatively impacting
procedural volumes and growth in new
patients.
Continence Care
Continence Care generated 7% organic
sales growth for the first quarter of
2022/23, with reported revenue in DKK
growing by 8% to DKK 1,987 million.
The SpeediCath® ready-to-use
hydrophilic intermittent catheters were
the main drivers of revenue growth.
Sales growth in the SpeediCath portfolio
was broad-based across standard,
compact, and flexible catheters, and
driven mainly by Europe, in particular
France and the UK, as well as the US.
SpeediCath Flex Set, a flexible
hydrophilic catheter with a new
integrated sterile bag, has been
launched in nine markets and continues
to perform well. SpeediCath Navi, a
hydrophilic catheter specifically
designed for emerging markets and
lower priced developed markets, also
contributed to growth.
Bowel Management continued to
perform well and contributed to Q1
growth, driven by Europe. Peristeen
Plus, the newest addition to the Bowel
Management portfolio, is on track to
replace Peristeen as the standard of
care in the 20 markets where the
product has been launched.
Collecting Devices continued to detract
from growth due to the backorders on
Conveen urisheaths. The backorders
impact is expected to persist into Q2.
From a geographical perspective,
growth was driven by Europe, in
particular the UK, and the US. The
Emerging markets region also
contributed to growth, driven by
LATAM. Markets with recent
reimbursement openings, such as
Poland, Australia, Japan, and South
Korea, continued to perform well and
posted double-digit growth.
Ostomy Care
Organic growth
Reported growth
Continence
Care
Organic growth
Reported growth
8%
6%
Q1 2022/23 Q1 2021/22
8%
9%
Q1 2022/23 Q1 2021/22
7%
5%
Q1 2022/23 Q1 2021/22
8% 8%
Q1 2022/23 Q1 2021/22
Announcement no. 01/2023
03 February 2023
5
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Voice and Respiratory
Care
Voice and Respiratory Care contributed
9%-points to the reported growth in the
first quarter of the 2022/23 financial
year, with high single-digit organic
growth, in line with expectations.
Growth in the quarter was driven by
Laryngectomy, delivering high single-
digit organic growth. Tracheostomy also
contributed to growth and posted high
single-digit organic growth.
Growth in Laryngectomy, which
represents around two-thirds of
revenues, was driven by growth in
patients served in existing and new
markets, as well as an increase in
patient value driven by the Provox®
Life™ portfolio. Provox Life is Atos
Medical’s new personalized solution and
product line designed to optimize
patient’s breathing ability under
different circumstances, further enabling
24/7 use of Heat and Moisture
Exchangers (HMEs) for improved
pulmonary health. The Provox Life
portfolio is launched in 15 markets.
Growth in Tracheostomy and ENT (Ear,
Nose and Throat), which represent
around one-third of revenues, was
positively impacted by phasing.
From a geographical perspective, all
regions contributed to growth, led by
the biggest region Europe. The US also
contributed to growth, while the fastest
growing region was Emerging markets.
Voice Prosthesis registration in China
The National Medical Product
Administration (NMPA) has approved
the registration of the Provox Voice
Prosthesis in China. This completes the
registration of the laryngectomy
product portfolio and represents an
important step towards establishing a
treatment standard for laryngectomy
patients in China.
Wound and Skin Care
Wound and Skin Care generated 1%
organic sales growth in the first quarter
of 2022/23, with reported revenue in
DKK growing by 5% to DKK 678 million.
The wound care business in isolation
declined 4% in the first quarter of
2022/23.
The negative growth reflects a high
baseline in Q1 last year and continued
impact from backorders, particularly in
Europe. The backorders impact is
expected to persist into Q2.
The underlying growth momentum in
the European markets continues to be
positive, with key markets posting solid
growth in the quarter.
Sales in China continued to decline, due
to the negative impact from COVID-19
related restrictions, which have led to a
decline in procedural volumes and sales
in the hospital channel. Despite the
national lifting of the COVID-19
restrictions towards the end of the
quarter, hospital access remains limited
with continued negative impact on
procedural volumes.
The Compeed contract manufacturing
business made a solid contribution to
growth and grew double-digit, reflecting
improved consumer demand, as well as
a low baseline last year.
The skin care business, which is mostly a
US hospital business, delivered flat
growth in the first quarter. The high
level of hospital staff turnover due to
COVID-19 continues to impact
awareness of and demand for skin care
treatment solutions.
Voice and
Respiratory
Care
Acquired growth
impact
Wound and
Skin Care
Organic growth
Reported growth
9%
Q1 2022/23
1%
12%
Q1 2022/23 Q1 2021/22
5%
15%
Q1 2022/23 Q1 2021/22
Announcement no. 01/2023
03 February 2023
6
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Interventional Urology
Interventional Urology generated 11%
organic sales growth in the first quarter
of the 2022/23 financial year, with
reported revenue in DKK growing by
18% to DKK 686 million.
Growth in the quarter was nicely
balanced across business areas and
geographies, with strong contribution
from the Men’s Health business in the
US, driven by the Titan® penile implants.
The Endourology portfolio, driven by
Europe, also made a solid contribution
to growth.
From a geographical perspective, the
growth contribution in the quarter was
broad-based and driven by the US and
Europe, most notably France.
Coloplast has launched its first laser
equipment, Thulium Fiber Laser (TFL)
Drive, in key markets. The launch is off
to a good start with positive customer
feedback. With the launch Coloplast has
entered the lasers segment, worth an
estimated DKK 3 billion.
Interventional
Urology
Organic growth
Reported growth
11%
5%
Q1 2022/23 Q1 2021/22
18%
8%
Q1 2022/23 Q1 2021/22
Announcement no. 01/2023
03 February 2023
7
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Earnings
Gross profit
Gross profit was DKK 4,146 million
compared to DKK 3,530 million last
year, equivalent to a gross margin of
68%, on par with last year. The gross
margin was positively impacted by price
increases and country and product mix.
Coloplast continues to have a strong
focus on offsetting the inflationary
pressure, with 80+ pricing projects
ongoing across regions and business
areas. Atos Medical, operating leverage
and efficiency savings from Global
Operations Plan 5 also contributed
positively to the gross margin. The gross
margin also includes a positive impact
from currencies, mainly due to the
appreciation of the USD against DKK,
and the depreciation of the HUF against
DKK. Around 80% of the company’s
volumes are produced in Hungary.
The above-mentioned positive drivers
were offset by increased prices for raw
materials, energy, and transportation,
double-digit wage inflation in Hungary,
and ramp-up costs in Costa Rica.
Costs
Operating expenses amounted to DKK
2,372 million, a DKK 491 million
increase (26%) from last year. Atos
Medical contributed with DKK 290
million to operating expenses, of which
DKK 54 million were amortisation costs,
included under distribution costs.
Excluding Atos Medical, operating
expenses increased by DKK 201 million,
or 11% from last year, as expected.
Operating costs for the full year are still
expected to grow below reported
revenue in DKK (ex. acquired growth).
Distribution costs amounted to DKK
1,865 million, a DKK 373 million
increase (25%) from DKK 1,492 million
last year and were impacted by the
inclusion of Atos Medical. Distribution
costs amounted to 31% of revenue
compared to 29% last year. The higher
distribution costs reflect increased sales
and marketing activities post COVID-19
across most markets. Distribution costs
were also impacted by higher logistics
costs, due to increased freight rates,
and continued commercial investments
in Interventional Urology, consumer and
digital initiatives, and Atos Medical.
Administrative expenses amounted to
DKK 297 million, up DKK 102 million
(52%) from DKK 195 million last year,
primarily impacted by the inclusion of
Atos Medical. Administrative expenses
accounted for 5% of revenue compared
to 4% last year.
The R&D costs were DKK 216 million, a
DKK 11 million increase (5%) compared
to last year, and amounted to 4% of
revenue, on par with last year.
Other operating income and other
operating expenses amounted to a net
income of DKK 6 million, compared to a
net income of DKK 11 million last year.
Operating profit (EBIT) before special
items
EBIT before special items amounted to
DKK 1,774 million, a DKK 125 million
increase (8%) from DKK 1,649 million
last year. The EBIT margin before
special items was 29% compared to
32% last year. The EBIT margin includes
a positive impact from currencies,
mainly related to the appreciation of the
USD against DKK. The EBIT margin was
negatively impacted by the increase in
operating expenses, mainly distribution
costs, which among other include DKK
54 million in amortisation costs related
to the Atos Medical acquisition.
Special items
During Q1, Coloplast incurred special
items expenses of DKK 13 million,
related to integration costs for the Atos
Medical acquisition.
Operating profit (EBIT) after special
items
EBIT after special items was DKK 1,761
million, with an EBIT margin of 29%.
Income statement, DKK million
2022/23
Index
Revenue
6,105
118
Production costs
-1,959
120
Gross profit
4,146
117
Distribution costs
-1,865
125
Administrative expenses
-297
152
Research and development costs
-216
105
Other operating income
9
64
Other operating expenses
-3
100
Operating profit (EBIT) before special items
1,774
108
Special items
-13
N/A
Operating profit (EBIT)
1,761
109
Financial income
31
163
Financial expenses
-365
474
Profit before tax
1,427
92
Tax on profit for the period
-300
86
Net profit for the period
1,127
93
Announcement no. 01/2023
03 February 2023
8
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Financial items and tax
Financial items were a net expense of
DKK 334 million, compared to a net
expense of DKK 58 million last year. The
net expense was mostly driven by non-
cash effect from currencies, while the
cash impact from the net financial
expense was DKK 81 million. The net
expense was primarily due to net losses
on balance sheet items of DKK 182
million, impacted by the USD and SEK.
Losses on currency hedges of DKK 37
million, mainly due to the USD, and fees
of DKK 24 million also contributed to
the net expenses. Interest expenses
amounted to DKK 116 million, from
DKK 3 million last year, impacted by the
financing of the Atos Medical
acquisition. The blended interest rate for
the debt financing of Atos Medical is
now expected to be around 2.6% in FY
2022/23, from 1.9%, impacted by the
adjustment of the variable interest rate
on the 2-year bond issue.
The tax rate was 21.0%, compared to
22.5% last year, positively impacted by
the transfer of Atos Medical IP. The tax
expense amounted to DKK 300 million
against DKK 350 million last year.
Net profit
Net profit before special items was DKK
1,137 million, a DKK 96 million decrease
from DKK 1,233 million last year.
Diluted earnings per share (EPS) before
special items decreased by 7% from
DKK 5.78 last year to DKK 5.35. The
decrease was a result of a lower net
profit compared to last year, negatively
impacted by an increase in financial
expenses, driven mostly by non-cash
effect from currency, as well as interest
expenses related to the financing of the
Atos Medical acquisition.
Net profit after special items was DKK
1,127 million and diluted earnings per
share (EPS) after special items were
DKK 5.31.
Cash flows and
investments
Cash flows from operating activities
Cash flows from operating activities
amounted to DKK 487 million in the first
quarter of 2022/23, compared to DKK
1,131 million in the same period last year.
The negative development in cash flows
from operating activities was driven by
an increase in working capital.
Inventories increased due to a higher
safety stock level on raw materials, price
increases, and an increase in finished
goods due to the transfer of production
to Costa Rica. Trade receivables also had
a negative impact due to phasing. Other
payables were negatively impacted by
mesh lawsuit settlement payments in the
US and payment related to the formal
resolution of the US Veteran Affairs
matter of incorrect management of
contractual obligations. Higher income
tax paid also had a negative impact on
the cash flow.
Investments
Investments amounted to a total cash
outflow of DKK 275 million in the first
quarter of 2022/23, or around 5% of
revenue, against a DKK 201 million
outflow in the same period last year.
Free cash flow
As a result, the free cash flow was an
inflow of DKK 212 million compared to
an inflow of DKK 930 million in Q1 last
year, impacted by the decrease in cash
flow from operating activities.
Capital resources
At 31 December 2022, Coloplast had
net interest-bearing debt, including
securities, of DKK 21,328 million, against
DKK 18,091 million at 30 September
2022. The increase in net interest-
bearing debt was mainly due to the
payment of dividends in December
2022. The gearing ratio at the end of
the period was 2.6x EBITDA (before
special items).
Statement of financial
position and equity
Balance sheet
At 31 December 2022, total assets
amounted to DKK 35,221 million, an
increase of DKK 265 million compared
to 30 September 2022.
Working capital was 26% of revenue,
compared to 25% at 30 September
2022, driven by an increase in
inventories and trade receivables, as
well as a decrease in trade payables.
Inventories increased by DKK 210
million to DKK 3,397 million, impacted
by an increase in safety stock on raw
materials, price increases, and an
increase in finished goods, as explained
above. Trade receivables increased by
DKK 13 million to DKK 3,953 million.
Trade payables decreased by DKK 278
million relative to 30 September 2022
to stand at DKK 964 million, impacted
by timing.
Net working capital for the year is still
expected to be around 24% of revenue.
Equity
Equity decreased by DKK 2,387 million
relative to 30 September 2022 to DKK
5,905 million. Total comprehensive
income for the period of DKK 782
million, share-based remuneration of
DKK 11 million, and net effect of sale of
treasury shares and loss of exercised
options of DKK 5 million were offset by
the payment of dividends amounting to
DKK 3,185 million.
Treasury shares
At 31 December 2022, Coloplast’s
holding of treasury shares consisted of
3,594,679 B shares, which was 98,197
less than at 30 September 2022. The
decrease was due to exercise of share
options.
Announcement no. 01/2023
3 February 2023
9
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
1)
Metric will only be reported on a semi-annual or full-year basis.
2)
From base year 2018/19.
3)
Ambition beyond 2025 is 100% of company cars to be converted to electrical vehicles
by 2030.
4)
Employee survey conducted twice a year. Latest industry benchmark from May 2022 was 7.4.
5)
Target validated by Science-Based Targets initiative (SBTi).
6)
Lost time
injury frequency for Q1 2022/23 includes Atos Medical
7)
Four quarters rolling average
8)
Figure has been restated due to improved data quality.
All numbers are excluding Atos Medical, except Lost time injury frequency for Q1 2022/23
Update on sustainability strategy and performance
Priority
Unit
2025 Ambition
Q1
2022/23
Q1
2021/22
Change
FY
2021/22
Improving products and packaging
Recyclable packaging¹⁾
% of total
90%
-
-
-
78%
Renewable materials in packaging¹⁾
% of total
80%
-
-
-
76%
Production waste recycling
% of total
75%
74%
60%
8)
14%-p
71%
Reducing emissions
2)
Scope 1 and 2 emissions
7)
% reduction
100% reduction by 2030
2) 5)
13%
0%
13%-p
8%
Renewable energy use
7)
% of total
100%
75%
67%
8)
8%-p
72%
Electric company cars¹⁾ ³⁾
% of total
50%
-
-
-
4%
Scope 3 emissions¹⁾ (by 2030)
% reduction per product
50% reduction by 2030
2) 5)
-
-
-
9%
Business travel by air¹⁾
% reduction
10% reduction
2)
-
-
-
55%
Goods transported by air¹⁾
% of total
< 5% of total
-
-
-
3%
Responsible operations
Lost time injury frequency
6
⁾
Parts per million
2.0
2.4
2.2
8)
7%
2.4
Code of Conduct training¹⁾
% of white collars
100%
-
-
-
100%
Female senior leaders (VP+ level)¹⁾
% of total
40% by 2030
-
-
-
21%
Diverse teams¹⁾
% share of total teams
75%
-
-
-
55%
Employee satisfaction
1
⁾
4
⁾
Engagement score
Above benchmark
-
-
-
8.2
Improving products and packaging
Production waste recycling increased to
74% in Q1 2022/23, compared to 60%
in Q1 2021/22. The increase reflects
continued progress on the efforts to
scale up Coloplast’s partnership with a
recycling manufacturer in Hungary.
Through an innovative waste recycling
technology, the recycling manufacturer
uses Coloplast’s production waste as a
moulded component in rubber-based
composite products used for flooring at
schools, sport fields, railway systems or
as building isolation.
Scope 1 and 2 emissions
Renewable energy use increased to
75% of the total energy use in Q1
2022/23
(four quarters rolling average),
compared to 67% in Q1 2021/22. Q1
likewise saw progress on the absolute
emissions in scope 1 and 2, which
decreased by 13% in Q1 2022/23 (four
quarters rolling average), compared to
the base year 2018/19. Both the uptake
in renewable energy use and the
reduction in absolute scope 1 and 2
emissions were driven by the efforts to
phase out natural gas at Coloplast’s
manufacturing sites in Hungary and
China.
Solar panel installation at Coloplast US
Headquarters in Minneapolis
With the installation of solar panels on
the roof of Coloplast’s office in
Minneapolis, Minnesota, Coloplast will be
able to generate part of its electricity
on-site from a renewable energy
source. The project is expected to be
completed in February 2023.
The solar panel installation is an
example of Coloplast’s diversified
approach to green technologies for
reducing emissions and delivering on the
ambition of 100% renewable energy
use by 2025.
Production site in Cartago, Costa Rica
achieves ISO certification
Coloplast’s new production site in
Cartago, Costa Rica has received the
internationally acknowledged ISO
45001 certification for occupational
health and safety management and the
ISO 14001 certification for
environmental management.
With the addition of the Cartago site, all
Coloplast production sites (excluding
Atos Medical) are certified according to
the ISO 45001 and ISO 14001
standards. The plan to achieve
certification of Atos Medical’s
production sites in Sweden and
Germany is currently being developed.
Announcement no. 01/2023
03 February 2023
10
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Other matters
Launch of Luja™, the new male
intermittent catheter with a unique
Micro-hole Zone Technology
Coloplast is launching Luja, the first and
only intermittent catheter with a Micro-
hole Zone Technology. With Luja,
Coloplast introduces the next
generation of male intermittent
catheters, setting a new standard for
bladder emptying.
Urinary tract infections are a significant
burden for people using intermittent
catheters, as well as healthcare systems
as a whole. Luja is designed to reduce
the risk of urinary tract infections by
minimising residual urine and mucosal
microtrauma. The new catheter enables
complete bladder emptying in one free
flow – the flow only stops when the
bladder is completely emptied.
Catheterisation with Luja does not
require repositioning, as with the Micro-
hole Zone Technology mucosal suction
is reduced.
The product launch begins in February
and the new catheter is expected to be
available in key markets over the next
12 months.
Contract with the US Department of
Veterans Affairs
Coloplast has formally resolved the
matter of incorrect management of
contractual obligations related to past
agreements with the US Department of
Veterans Affairs (VA).
The situation was uncovered and
disclosed to the authorities in FY
2016/17. The impact from the matter is
in line with expectations and limited to
the one-off revenue adjustment of 90
million DKK made in FY 2016/17.
In response to the matter disclosed in
FY 2016/17, Coloplast has
strengthened its internal controls and
procedures for managing these
government contract obligations.
Coloplast has a long history of
supporting the VA and its patients and
continues to supply products to the VA
under a new contract.
For more information, please see the
annual report from FY 2016/17: FY
2016/17 annual report.
Italian payback system for medical
devices
The Italian Ministry of Health is
implementing a retroactive regional
payback system for medical devices for
the period 2015-2022. This is a
government decision to promote a
public health budget control
mechanism. The regional payback
system will be activated in the event of
exceeding an annual regional
expenditure ceiling, based on the
purchase by the regional health service.
Coloplast is closely monitoring the
development and expects to be able to
manage the financial impact within the
given guidance for FY 2022/23.
Coloplast is contesting the
implementation of the payback system
and has appealed the legal grounds of
the decision and the individual payback
requests from the regions.
War in Ukraine
Coloplast continues to monitor the war
in Ukraine closely. Our primary focus is
to keep our people safe as well as to
ensure that our around 100,000 users
in Ukraine and Russia have access to
products to manage their chronic
conditions.
Revenue exposure in Russia and
Ukraine combined is estimated to be
around 1% of group revenues in FY
2022/23, majority of which is in Russia.
Coloplast complies with all sanctions
imposed by the EU, the UN, and the US
on Russia. Medical devices are generally
not targeted by sanctions and export
controls, and as such Coloplast is able to
continue serving its users in Russia. In
Poland and Hungary, Coloplast employs
around 400 Ukrainians and our local
teams have initiated several activities to
support Ukrainian colleagues such as
transferring their families and finding
housing and jobs. Coloplast has also
donated large volumes of wound care
products to humanitarian organisations.
Announcement no. 01/2023
03 February 2023
11
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Long term financial
guidance
The long-term financial guidance for the
Strive25 strategy period running until
end 2024/25 is the following:
7-9%
Organic growth p.a.
above 30%
EBIT margin at constant
exchange rates
Key assumptions
The impact of current macroeconomic
trends and global events, especially
input costs development and COVID-19
in China, is continuously monitored and
evaluated on a short- and medium-term
basis. The financial guidance is subject
to a higher degree of uncertainty due to
the changing environment.
The addressable market in which
Coloplast operates is expected to
continue growing at 4-5% and includes
negative impact from COVID-19 in
China.
The organic revenue growth guidance
and EBIT margin guidance are
unchanged, and the assumptions laid
out in November still hold.
Revenue growth
Organic growth is expected at 7-8% in
constant currencies and assumes:
a) Limited impact from COVID-19 on
hospital activity across markets,
except for China
b) The chronic care business
excluding China is expected to
grow largely in line with the
Strive25 ambitions. The
assumptions by region include:
• Continued good momentum in
Europe
• US – sustained good
momentum in Ostomy Care
and improvement in growth in
Continence Care
• Emerging markets – broad-
based double-digit growth
excluding China
• China is expected to remain
impacted by COVID-19.
Despite the lifting of COVID-19
related restrictions, hospital
access remains limited, with a
continued negative impact on
procedural volumes. The
average value per patient is
expected to remain below pre-
COVID levels, impacted by
consumer sentiment
c) Wound and Skin Care is expected
to deliver growth above the market
in line with the Strive25 ambitions.
China is expected to remain
impacted by COVID-19. Despite the
lifting of COVID-19 related
restrictions, hospital access remains
limited, with a continued negative
impact on procedural volumes.
d) Interventional Urology is expected
to deliver high single-digit growth in
line with the Strive25 ambitions
e) Voice and Respiratory Care is
expected to grow at 8-10%, with 8
months impact on organic growth
f) Revenue exposure to Russia and
Ukraine is expected to be on par
with 2021/22 i.e., around 1% of
group revenues with a flat growth
rate in FY 2022/23
g) No current knowledge of significant
health care reforms; positive pricing
impact is expected
h) A stable supply and distribution of
products across the company;
impact from backorders in
Collecting Devices and Wound Care
expected to persist into H1
2022/23
Reported growth in DKK is expected at
9-10%, from previously 11-12%. The
updated guidance assumes around -1%
-point impact from currencies, from
previously around 1%-point, impacted
by unfavourable development in mostly
the US dollar against the DKK. The
expected contribution from the Atos
Medical acquisition to reported growth
is unchanged, around 3%-points (4
months impact).
The expectation of long-term price
pressure of up to 1% annually is
unchanged.
EBIT margin
The EBIT margin is expected at 28-30%
(before special items), and assumes:
2022/23
Financial
guidance
7-8%
Organic revenue growth at
constant exchange rates
28-30%
Reported EBIT margin (before
special items)
Around 1.4 bn
Capital expenditure in DKK
Around 21%
Effective tax rate
Announcement no. 01/2023
03 February 2023
12
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
a) Leverage effect on fixed costs and
continued efficiency improvements
through Global Operations Plan 5
b) An increase in input costs, driven
mostly by:
• Raw materials – double-digit
price increase
• Energy – cost expected to be
around double compared to
2021/22
• Wages in Hungary – double-
digit increase
c) Prudent management of operating
costs, expected to grow below
reported revenue in DKK (excluding
acquired growth)
d) Incremental investments at the
lower end of the Strive25 guidance
(up to 2% of sales in incremental
OPEX investments)
e) Full year impact of around DKK 230
million of amortisation related to
the Atos Medical acquisition
Capex
Capex is still expected to be around
DKK 1.4 billion and includes investments
in automation at volume sites in
Hungary and China as part of GOP5,
investments in new machines for
existing and new products, IT and
sustainability investments, as well as
Atos Medical capex and integration
capex.
Effective tax rate
The effective tax rate is still expected to
be around 21%, positively impacted by
the transfer of Atos Medical Intellectual
Property.
Other assumptions
The provision made to cover costs
relating to transvaginal surgical mesh
products remains subject to a degree of
estimation.
Dividend policy
The Board of Directors intends to
distribute excess liquidity to the
shareholders through dividends and
share buybacks.
The target payout ratio is 60-80% of
net profit.
Atos Medical financial
assumptions
The key financial assumptions for Atos
Medical during the Strive25 strategy
period are summarized below:
a) Organic growth is expected to be 8-
10%, with an EBITDA margin in the
mid-30s level
b) The transaction is expected to be
increasingly EPS accretive from FY
2022/23. Estimated run-rate
operational synergies of up to DKK
100 million from utilising Coloplast
infrastructure, with full impact
estimated from FY 2023/24
c) Capex integration costs of up to
DKK 150 million split over 2021/22-
2023/24, of which the vast majority
will be IT capex
d) Around 25% of the purchase value
is treated as intangibles, to be
amortised over ~15 years
e) Around DKK 50 million integration
cost in FY 2022/23, to be treated
as special items, as expected
Announcement no. 01/2023
03 February 2023
13
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Forward-looking
statements
The forward-looking statements in this
announcement, including revenue and
earnings guidance, do not constitute a
guarantee of future results and are
subject to risk, uncertainty and
assumptions, the consequences of
which are difficult to predict.
The forward-looking statements are
based on our current expectations,
estimates and assumptions and are
provided on the basis of information
available to us at the present time.
Major fluctuations in the exchange rates
of key currencies, significant changes in
the healthcare sector or major
developments in the global economy
may impact our ability to achieve the
defined long-term targets and meet our
guidance. This may impact our
company’s financial results.
Exchange rate
exposure
Our financial guidance for the 2022/23
financial year has been prepared on the
basis of the following assumptions for
the company’s principal currencies:
OVERVIEW OF EXCHANGE RATES FOR
KEY CURRENCIES AGAINST DKK
GBP
USD
HUF
Average exchange
rate 3M 2021/22
877
651
2.04
Average exchange
rate 3M 2022/23
855
729
1.81
Change in average
exchange rates for
2022/23 compared
with the same
period last year
-3%
12%
-11%
Average exchange
rate 2021/22¹⁾
878
688
1.97
Spot rate on
31 January 2023
847
686
1.91
Estimated average
exchange rate
2022/23²⁾
849
697
1.89
Change in spot
rates compared
with average
exchange rate
2021/22
-3%
1%
-4%
¹⁾ Average exchange rates for 2021/22 are
from 1 October 2021 to 30 September 2022.
²⁾ Estimated average exchange rates are
calculated as the average exchange rates for
the first three months combined with the spot
rates at 31 January 2023.
Revenue is particularly exposed to
developments in USD and GBP relative
to DKK. Fluctuations in HUF against
DKK impact the operating profit
because a substantial part of our
production, and thus of our costs, are in
Hungary, whereas our sales there are
moderate.
EFFECT OVER 12 MONTHS OF A 10%
INITIAL DROP IN EXCHANGE RATES FOR
KEY CURRENCIES (DKK MILLION)
Revenue
EBIT
USD
-490
-220
GBP
-320
-220
HUF
-
130
Announcement no. 01/2023
03 February 2023
14
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Statement by the Board of Directors and the Executive Management
Humlebæk, 3 February 2023
Executive Management
Board of Directors
Announcement no. 01/2023
03 February 2023
15
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Statement of comprehensive income
1 October – 31 December, unaudited
Consolidated
2022/23
2021/22
DKK million
Note
Q1
Q1
Index
Revenue
2
118
Production costs
-1,959
-1,639
120
Gross profit
117
Distribution costs
-1,865
-1,492
125
Administrative expenses
-297
-195
152
Research and development costs
-216
-205
105
Other operating income
64
Other operating expenses
-3
-3
100
Operating profit (EBIT) before special items
108
Special items
3
-13
-34
-
Operating profit (EBIT)
109
Financial income
4
163
Financial expenses
4
-365
-77
>200
Profit before tax
92
Tax on profit for the period
-300
-350
86
Net profit for the period
93
Remeasurements of defined benefit plans
-2
Tax on remeasurements of defined benefit plans
-6
Items that will not be reclassified to the income statement
-2
Value adjustment of currency hedging
-94
Transferred to financial items
Tax effect of hedging
-30
Currency adjustment of opening balances and other value adjustments relating to
subsidiaries
-473
Items that may be reclassified to income statement
-343
-16
Total other comprehensive income
-345
Total comprehensive income
DKK
Earnings per share (EPS)
Earnings per share (EPS), diluted
Announcement no. 01/2023
03 February 2023
16
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Statement of cash flows
1 October – 31 December, unaudited
Consolidated
2022/23
2021/22
DKK million
Note
3 mths
3 mths
Operating profit
Amortisation
Depreciation
Adjustment for other non-cash operating items
7
-73
-19
Changes in working capital
7
-501
Ingoing interest payments, etc.
Outgoing interest payments, etc.
-102
-95
Income tax paid
-880
-611
Cash flows from operating activities
Investments in intangible assets
-77
-26
Investments in land and buildings
-1
Investments in plant and machinery and other fixtures and fittings, tools and equipment
-11
-2
Investments in property, plant and equipment under construction
-186
-173
Cash flows from investing activities
-275
-201
Free cash flow
Dividend to shareholders
-3,185
-2,979
Sale of treasury shares and loss on exercised options
Financing from shareholders
-3,180
-2,972
Repayment of lease liabilities
-66
-49
Drawdown on credit facilities
Cash flows from financing activities
-745
Net cash flows
Cash and cash equivalents at 1 October
Value adjustment of cash and bank balances
-29
Net cash flows
Cash and cash equivalents at 31 December
8
The cash flow statement cannot be derived using only the published financial data.
Announcement no. 01/2023
03 February 2023
17
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Assets
At 31 December, unaudited
Consolidated
DKK million
Note
31.12.22
31.12.21
30.09.22
Intangible assets
Property, plant and equipment
Right-of-use assets
Other equity investments
Deferred tax asset
Other receivables
Non-current assets
Inventories
Trade receivables
Income tax
Other receivables
Prepayments
Marketable securities
Cash and cash equivalents
Current assets
Assets
Announcement no. 01/2023
03 February 2023
18
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Equity and liabilities
At 31 December, unaudited
Consolidated
DKK million
Note
31.12.22
31.12.21
30.09.22
Share capital
Currency translation reserve
-1,307
-380
-910
Reserve for currency hedging
-85
Proposed ordinary dividend for the year
Retained earnings
Equity
Provisions for pensions and similar liabilities
Provision for deferred tax
Other provisions
5
Bonds
6
Other payables
Lease liability
Prepayments
Non-current liabilities
Provisions for pensions and similar liabilities
Other provisions
5
Other credit institutions
Trade payables
Income tax
Other payables
Lease liability
Prepayments
Current liabilities
Equity and liabilities
Announcement no. 01/2023
03 February 2023
19
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Statement of changes in equity, current year
At 31 December, unaudited
Consolidated
Share capital
Reserves
DKK million
A shares
B shares
Currency
translation
Currency
hedging
Proposed
dividend
Retained
earnings
Total
2022/23
Equity at 1 October
-910
Net profit for the period
Other comprehensive income
-397
-78
-345
Total comprehensive income
-397
Sale of treasury shares and loss on
exercised options
Share-based payment
Dividend paid out in respect of
2021/22
-3,185
-3,185
Transactions with shareholders
-3,185
-3,169
Equity at 31 December
-1,307
Announcement no. 01/2023
03 February 2023
20
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Statement of changes in equity, last year
At 31 December, unaudited
Consolidated
Share capital
Reserves
DKK million
A shares
B shares
Currency
translation
Currency
hedging
Proposed
dividend
Retained
earnings
Total
2021/22
Equity at 1 October
-392
-41
Net profit for the period
Other comprehensive income
-44
Total comprehensive income
-44
Sale of treasury shares
Share-based payment
Dividend paid out in respect of
2020/21
-2,979
-2,979
Transactions with shareholders
-2,979
-2,961
Equity at 31 December
-380
-85
Announcement no. 01/2023
03 February 2023
21
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Key accounting policies
1 Accounting policies
Profit and loss
2 Segment information
3 Special items
4 Financial income and expenses
Assets and liabilities
5 Other provisions
6 Bonds
Cash flows
7 Specifications of cash flow from operating activities
8 Cash and cash equivalents
Other disclosures
9 Contingent liabilities
List of notes
Announcement no. 01/2023
03 February 2023
22
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Note 1
Accounting policies
The unaudited consolidated financial statements and interim report is presented in accordance with IAS 34 “Interim financial
reporting” as adopted by the EU and additional Danish disclosure requirements for listed companies. The accounting policies for
recognition and measurement applied in the preparation of the interim report are consistent with those applied in the Annual
Report 2021/22 except for new standards, amendments and interpretations that are effective from 2022/23 financial year.
Note 2
Segment information
Operating segments
The operating segments are defined on the basis of the monthly reporting to the Executive Leadership Team, which is
considered the senior operational management, and the management structure. Reporting to the Executive Leadership Team is
based on four operating segments: Chronic Care, Voice and Respiratory Care., Wound and Skin Care and Interventional Urology.
The operating segment Chronic Care covers the sale of ostomy care products and continence care products. Voice and
Respiratory Care covers the sale of laryngectomy care products and tracheostomy products, as well as R&D activities. The
operating segment Wound and Skin Care covers the sale of wound and skin care products. The operating segment
Interventional Urology covers the sale of urological products, including disposable products, as well as R&D activities.
The reporting segments are also Chronic Care, Voice and Respiratory Care, Wound and Skin Care and Interventional Urology.
The segmentation reflects the structure of reporting to the Executive Leadership Team.
The shared/non-allocated comprises support functions (production units and staff functions) and eliminations, as these functions
do not generate revenue. While costs of R&D activities for Interventional Urology and Voice and Respiratory Care are included
in the segment operating profit/loss for that segment, R&D activities for Chronic Care and Wound and Skin Care are shared
functions which are comprised in shared/non-allocated. The shared/non-allocated costs also include PPA amortisation
expenditures related to Voice and Respiratory Care.
Financial items and income tax are not allocated to the operating segments.
The Executive Leadership Team reviews each operating segment separately, applying their market contributions to earnings
and allocating resources on that basis. The market contribution is defined as external revenue less the sum of direct production
costs, distribution costs, sales costs, marketing costs and administrative expenses. Costs are allocated directly to segments.
Certain immaterial indirect costs are allocated systematically to the shared/non-allocated and the reporting segments.
The Executive Leadership Team does not receive reporting on assets and liabilities by the reporting segments. Accordingly, the
reporting segments are not measured in this respect, nor do we allocate resources on this background. No single customer
accounts for more than 10% of revenue.
Announcement no. 01/2023
03 February 2023
23
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Note 2, continued
Consolidated
Chronic Care
Interventional
Urology
Wound and Skin
Care
Voice and
Respiratory Care
Group
DKK million
2022/23
2021/22
2022/23
2021/22
2022/23
2021/22
2022/23
2021/22
2022/23
2021/22
Segment
revenue:
Ostomy Care
2,274
2,098
-
-
-
-
-
2,274
2,098
Continence Care
1,987
1,844
-
-
-
-
-
1,987
1,844
Interventional
Urology
-
-
686
579
-
-
-
686
579
Wound and Skin
Care
-
-
-
-
678
648
-
678
648
Voice and
Respiratory Care
-
-
-
-
-
-
480
-
480
-
External revenue
as per the
statement of
comprehensive
income
4,261
3,942
686
579
678
648
480
-
6,105
5,169
Costs allocated to
segment
-1,805
-1,612
-442
-355
-429
-375
-324
-
-3,000
-2,342
Segment
operating
profit/loss
2,456
2,330
244
224
249
273
156
-
3,105
2,827
Shared/non-allocated
-1,331
-1,178
Special items not included in segment operating profit/loss (see note 3)
-13
-34
Operating profit before tax (EBIT) as per the statement of comprehensive income
1,761
1,615
Net financials
-334
-58
Tax on profit/loss for the year
-300
-350
Profit/loss for the year as per the statement of comprehensive income
1,127
1,207
Note 3
Special items
DKK million
2022/23
2021/22
Expenses related to business combinations
13
34
Total
13
34
Special items contains expenses and integration costs related to business combinations.
Announcement no. 01/2023
03 February 2023
24
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Note 4
Financial income and expenses
DKK million
2022/23
2021/22
Financial income
Interest income
1
2
Interest hedges
19
-
Net exchange adjustments
-
12
Hyperinflationary adjustment of monetary position
10
4
Other financial income
1
1
Total
31
19
Financial expenses
Interest expenses
23
3
Interest expenses, lease liabilities
6
3
Interest expenses, bonds
93
-
Fair value adjustments of forward contracts transferred from other comprehensive income
37
37
Fair value adjustments of cash-based share options
-
3
Net exchange adjustments
182
-
Other financial expenses and fees
24
31
Total
365
77
Announcement no. 01/2023
03 February 2023
25
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Note 5
Other provisions
Product liability case regarding transvaginal surgical mesh products
Since 2011, Coloplast, along with a number of other major manufacturers, has been named as a defendant in individual lawsuits
in various federal and state courts around the United States alleging injury resulting from use of transvaginal surgical mesh
products designed to treat pelvic organ prolapse and stress urinary incontinence. A multidistrict litigation (MDL) was formed in
2012 in the Southern District of West Virginia to consolidate federal court cases in which Coloplast is the first named defendant.
Since the first lawsuits were filed, Coloplast has been intent on disputing the current and any future litigation and has continually
considered which strategy and other steps may serve the company’s best interests.
Against this background, Coloplast has from the start reached settlements with groups of law firms. In 2017, Judge Joseph
Goodwin issued a court order stating that plaintiffs may no longer direct claims against Coloplast in the ongoing MDL. In 2019,
the remaining cases were remanded to the relevant Courts, and on 18 December 2020 the MDL was formally closed. It is
estimated that around 99% of the former MDL cases have been settled to date.
The total amount recognised since the 2013/14 financial year for expected costs of litigation in the USA amounts to DKK 6.15
billion including legal costs (before insurance cover of DKK 0.5 billion).
The total expected expense is based on a number of estimates and assumptions and is therefore subject to uncertainty.
The remaining provision made for legal claims amounted to DKK 0.1 billion at 31 December 2022 (DKK 0.2 billion at 30
September 2022) plus DKK 0.1 billion recognised under other debt (DKK 0.3 billion at 30 September 2022). Liabilities are
classified as other debt when agreements are reached with the plaintiffs’ legal counsel and amounts and timing become known.
With reference to the prejudicial exemption in IAS 37, Coloplast will not disclose any further information about the assumptions
for the provision, including any details about current and the expected number of lawsuits and settled claims.
The disclosure of such information is believed to be detrimental to Coloplast in connection with the ongoing confidential
negotiations and could inflict financial losses on Coloplast and its shareholders.
Announcement no. 01/2023
03 February 2023
26
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Note 6
Bonds
Bonds
Coloplast has in 2021/22 raised EUR 2.2 billion in debt financing through the issuance of senior unsecured notes in an
aggregate principal amount of EUR 2.2 billion under the Coloplast Euro Medium Term Note programme. The Notes are
unconditionally and irrevocably guaranteed by Coloplast. COLOCB1 Floating Rate Note carries a coupon adjusted quarterly.
COLOCB2 carries a fixed coupon for five years, and COLOCB3 carries a fixed coupon for eight years.
COLOCB2 and COLOCB3 can be redeemed at a market price fixed on the redemption date in relation to named EUR bonds
with similar maturity
A pre-hedge was made with Interest swaps on COLOCB2 and COLOCB3 with mandatory breakage on the day the bonds are
issued to limit the financial risks. The gain of DKK 521 million has as per hedge accounting been set off in the equity and
transferred to the financial items during the lifetime of the bonds.
Short name
Currency
Amount, million
Expiry date
Coupon¹⁾
COLOCB1
EUR
650
19-05-2024
2.55
COLOCB2
EUR
850
19-05-2027
2.25
COLOCB3
EUR
700
19-05-2030
2.75
¹⁾ Fixed for COLOCB1 as per 17-11-2022. The coupon rate is set as 3M Euribor + 0.75%.
Note 7
Specifications of cash flow from operating activities
DKK million
2022/23
2021/22
Change in other provisions
-85
-30
Other non-cash operating items
12
11
Adjustment for other non-cash operating items
-73
-19
Inventories
-305
-43
Trade receivables
-145
34
Other receivables, including amounts held in escrow
-27
-24
Trade and other payables etc.
-24
96
Changes in working capital
-501
63
Announcement no. 01/2023
03 February 2023
27
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Note 8
Cash and cash equivalents
DKK million
2022
2021
Bank deposits, short term
671
642
Cash and cash equivalents at 30 December
671
642
Note 9
Contingent liabilities
Other than as set out in note 5, the Coloplast Group is a party to a few minor legal proceedings, which are not expected to
influence the Group’s future earnings.
Announcement no. 01/2023
03 February 2023
28
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Income statement, quarterly
Unaudited
Consolidated
2022/23
2021/22
DKK million
Q1
Q4
Q3
Q2
Q1
Revenue
6,105
6,059
5,849
5,502
5,169
Production costs
-1,959
-1,889
-1,801
-1,721
-1,639
Gross profit
4,146
4,170
4,048
3,781
3,530
Distribution costs
-1,865
-1,872
-1,813
-1,620
-1,492
Administrative expenses
-297
-276
-270
-264
-195
Research and development costs
-216
-217
-222
-222
-205
Other operating income
9
15
30
15
14
Other operating expenses
-3
-6
-12
-4
-3
Operating profit (EBIT) before special items
1,774
1,814
1,761
1,686
1,649
Special items
-13
-36
-20
-381
-34
Operating profit (EBIT)
1,761
1,778
1,741
1,305
1,615
Financial income
31
-29
79
50
19
Financial expenses
-365
-137
-149
-68
-77
Profit before tax
1,427
1,612
1,671
1,287
1,557
Tax on profit for the period
-300
-382
-382
-307
-350
Net profit for the period
1,127
1,230
1,289
980
1,207
DKK
Earnings per share (EPS) before special items
5.36
5.92
6.14
6.00
5.80
Earnings per share (EPS)
5.31
5.79
6.07
4.61
5.67
Earnings per share (EPS) before special items, diluted
5.35
5.92
6.13
5.99
5.78
Earnings per share (EPS), diluted
5.31
5.79
6.06
4.60
5.66
Announcement no. 01/2023
03 February 2023
29
Ostomy Care
Continence Care
Voice and Respiratory Care
Wound and Skin Care
Interventional Urology
Our mission
Making life easier for people
with intimate health care needs
Our values
Closeness... to better understand
Passion... to make a difference
Respect and responsibility... to guide us
Our vision
Setting the global standard
for listening and responding
For further information, please contact
Investors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111
Aleksandra Dimovska
Director, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Email: [email protected]
Kristine Husted Munk
Senior Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 3266
Email: [email protected]
Press and media
Peter Mønster
Sr. Media Relations Manager
Tel. +45 4911 2623
Email: [email protected]
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 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, Interventional Urology and
Voice and Respiratory Care. We operate globally and employ more than 14,500 employees.
The Coloplast logo is a registered trademark of Coloplast A/S. © 2023-02.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.
Coloplast A/S Investor Relations Comp. reg. (CVR).
Holtedam 1 Tel. +45 4911 1800 69749917
DK-3050 Humlebaek Fax +45 4911 1555
Denmark www.coloplast.com