XCSE:COLO-B ESEF Annual Report
COLOPLAST A/S (XCSE:COLO-B)
ESEF Annual Report
2024-08-28
For: 2024-06-30
View Original
Added on
September 22, 2026
Announcement no. 03/2024
1
20 August 2024
9M 2023/24
Interim financial results, 9M 2023/24
1 October 2023 - 30 June 2024
Coloplast delivered 8% organic growth and an EBIT margin
1)
of 27% in Q3, with 11% growth in absolute EBIT
1)
. Reported
revenue in DKK grew 13% which includes 4%-points contribution from Kerecis (underlying growth of around 35%).
• Organic growth rates by business area: Ostomy Care 8%, Continence Care 8%, Voice and Respiratory Care 11%, Advanced
Wound Care 13% (Advanced Wound Dressings 13%) and Interventional Urology 2%.
• Growth in Chronic Care was broad-based across regions and includes an improvement in growth in the US Ostomy Care
business. Continence Care growth was driven by intermittent catheters, including significant contribution from the male
Luja
TM
catheter. Launch of the female Luja catheter* is ongoing and has received positive customer feedback.
• Voice and Respiratory Care growth was driven by continued good momentum in both Laryngectomy and Tracheostomy.
• Strong quarter in Advanced Wound Dressings, reflecting continued good momentum and benefit from a lower baseline in
Q3 last year.
• Continued momentum and market share gains for Kerecis. Underlying growth in Q3 was around 35% and the EBIT margin
excl. PPA amortisation was around 10%, both in line with plan.
• Growth in Interventional Urology was driven by Men’s Health, partly offset by Women’s Health and Bladder Health and
Surgery, both of which detracted from growth. Bladder Health and Surgery was negatively impacted by backorders due to
supply shortages experienced by an external supplier.
• EBIT
1
was DKK 1,870 million, an 11% increase from last year. The EBIT margin
1,2
was 27% against 28% last year, and
includes around 100 basis points negative impact from Kerecis, as expected, an increased level of commercial spend,
including costs related to product launches, and negative impact from currencies.
9M 2023/24 organic growth of 8% and 27% EBIT margin
1
. Reported revenue in DKK grew 10% to DKK 20,077 million.
• Organic growth rates by business area: Ostomy Care 7%, Continence Care 8%, Voice and Respiratory Care 10%, Advanced
Wound Care 10% (Advanced Wound Dressings 10%) and Interventional Urology 4%. Kerecis contributed 4%-points to
reported growth, with an underlying growth of around 35%, in line with expectations.
• EBIT
1
was DKK 5,483 million, a 7% increase from last year. The EBIT margin
1,2
was 27% against 28% last year, and includes
around 100 basis points negative impact from Kerecis, in line with expectations, and negative impact from currencies.
• ROIC after tax before special items was 15% against 19% last year, negatively impacted by the acquisition of Kerecis.
• Free cash flow was an outflow of DKK 186 million, impacted by income tax paid due to the extraordinary tax payment
related to Atos Medical’s IP transfer in Q2. Adjusted for the tax payment, free cash flow was an inflow of DKK 2.3 billion.
FY 2023/24 guidance unchanged.
• The organic revenue growth is expected to be around 8%. Reported growth in DKK is expected to be 10-11% with negative
impact of 1-2%-points from currencies and around 4%-points contribution from the acquisition of Kerecis (11 months).
• The reported EBIT margin before special items
1
is expected to be 27-28%. The EBIT margin includes around 100 basis
points dilution from Kerecis (incl. around DKK 100 million in PPA amortisation) and negative impact from currencies.
• Capital expenditures expectations adjusted to around DKK 1.3 billion. The effective tax rate is still expected around 22%.
"We deliver a solid Q3 with 8% organic growth and an EBIT margin of 27%, which is in line with our financial guidance. I want to
highlight our continued good momentum in Chronic Care with broad-based growth across our regions as well as a strong
performance in Q3 from our Advanced Wound Care business. I am also pleased that our newest members of the Coloplast
family, Atos Medical and Kerecis, delivered another solid quarter with double-digit growth. Finally, we are making good progress
with our new product launches, expanding our innovation to more and more markets. I would like to highlight our new
intermittent catheter, Luja™, which is contributing well to growth in Continence Care and significantly raising the standard of
care for people who need help emptying their bladder,” says Kristian Villumsen, President & CEO of Coloplast.
1. before special items of DKK 36 million in Q3 2023/24 and DKK 70 million in 9M 2023/24. Total FY 2023/24 special items are expected to be around DKK 80 million related to Atos Medical
integration cost. 2. before special items income of DKK 28 million in Q3 2022/23 and special items expenses of DKK 5 million in 9M 2022/23.
*Medical Device for which CE-mark has been affixed. Product availability is subject to the regulatory process of individual countries and is not guaranteed. Currently not available in the US.
Conference call
Coloplast will host a conference call on Tuesday, 20 August 2024 at 11.00 CEST. 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 9M 2023/24 Earnings release conference call
Announcement no. 03/2024
2
20 August 2024
Financial highlights and key ratios
1 October 2022 – 30 June 2024, unaudited
Consolidated
2023/24
2022/23
2023/24
2022/23
9 mths
9 mths
Change
Q3
Q3
Change
Income statement, DKK million
Revenue
20,077
18,274
10%
6,885
6,108
13%
Research and development costs
-694
-641
8%
-240
-216
11%
Operating profit before interest, tax, depr. and amort. (EBITDA)
before special items
6,438
5,923
9%
2,198
1,949
13%
Operating profit before interest, taxes and amortization (EBITA)
before special items
5,824
5,376
8%
1,985
1,764
13%
Operating profit (EBIT) before special items
5,483
5,131
7%
1,870
1,686
11%
Special items
-70
-5
N/A
-36
28
N/A
Operating profit (EBIT)
5,413
5,126
6%
1,834
1,714
7%
Net financial income and expenses
-621
-628
-1%
-203
-104
95%
Profit before tax
4,792
4,498
7%
1,631
1,610
1%
Net profit for the period
3,738
3,554
5%
1,274
1,272
0%
Revenue growth, %
Period growth in revenue, %
10
11
13
4
Growth break down:
Organic growth, %
8
8
8
8
Currency effect, %
-2
-1
1
-4
Acquired operations, %
4
4
4
-
Balance sheet, DKK million
Total assets
48,580
37,577
29%
48,580
37,577
29%
Capital invested
41,461
29,049
43%
41,461
29,049
43%
Net interest-bearing debt (NIBD)
23,641
21,263
11%
23,641
21,263
11%
Equity end of period
16,524
6,490
N/A
16,524
6,490
N/A
Cash flow and investments, DKK million
Cash flows from operating activities
718
2,345
-69%
1,490
1,169
27%
Cash flows from investing activities
-904
-655
38%
-350
-274
28%
Investments in property, plant and equipment, gross
-774
-696
11%
-308
-264
17%
Free cash flow
-186
1,690
N/A
1,140
895
27%
Cash flows from financing activities
183
-1,204
N/A
-1,146
-655
75%
Key ratios
Average number of employees, FTEs
16,019
14,821
16,346
15,022
Operating margin (EBIT margin) before special items, %
27
28
27
28
Operating margin (EBIT margin), %
27
28
27
28
Operating margin before interest, tax, depr. and amort., (EBITDA
margin), %
32
32
31
32
Gearing ratio, NIBD/EBITDA before special items
2.8
2.7
2.7
2.7
Return on average invested capital before tax (ROIC), %¹⁾
19
24
18
23
Return on average invested capital after tax (ROIC), %¹⁾
15
19
14
18
Return on equity, %
31
70
31
75
Equity ratio, %
34
18
34
18
Net asset value per outstanding share, DKK
73
31
N/A
73
31
N/A
Share data
Share price, DKK
837
853
-2%
837
853
-2%
Share price/net asset value per share
11.4
27.9
-59%
11.4
27.9
-59%
Average number of outstanding shares, millions
224.7
212.4
6%
224.8
212.4
6%
PE, price/earnings ratio
37.8
38.3
-1%
37.0
35.6
4%
Earnings per share (EPS), diluted
16.62
16.73
-1%
5.66
5.98
-5%
Earnings per share (EPS) before special items, diluted
16.87
16.74
1%
5.79
5.88
-2%
Free cash flow per share
-0.8
8.0
N/A
5.1
4.2
21%
1) Before special items. After special items, ROIC before tax was 19% (2022/23: 24%), and ROIC after tax was 14% (2022/23: 19%).
Announcement no. 03/2024
3
20 August 2024
Sales performance
The organic growth was 8% in the first nine months of 2023/24. Reported revenue in DKK grew 10% to DKK 20,077 million.
Revenue from acquisitions contributed 4% to reported revenue, or DKK 712 million, which includes DKK 730 million related to
the acquisition of Kerecis (nine months) and negative impact from product rationalization in Voice and Respiratory Care.
Exchange rate developments decreased revenue by 2%, mainly related to the depreciation of the USD, a basket of Emerging
markets currencies and JPY against the DKK.
Organic growth in the third quarter was 8%. Reported revenue in DKK was up by 13% to DKK 6,885 million. Revenue from
acquisitions contributed 4% to reported revenue. Exchange rate developments increased reported revenue by 1%, mainly
related to the appreciation of the USD and GBP against the DKK.
Sales performance by business areas
DKK million
Growth composition (9 mths)
2023/24
(9 mths)
2022/23
(9 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
Ostomy Care
7,095
6,724
7%
-
-1%
6%
Continence Care
6,294
5,944
8%
-
-2%
6%
Voice and Respiratory Care
1,571
1,450
10%
-1%
-1%
8%
Advanced Wound Care
3,023
2,125
10%
34%
-2%
42%
Interventional Urology
2,094
2,031
4%
-
-1%
3%
Revenue
20,077
18,274
8%
4%
-2%
10%
DKK million
Growth composition (Q3)
2023/24
(Q3)
2022/23
(Q3)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
Ostomy Care
2,432
2,246
8%
-
0%
8%
Continence Care
2,165
1,993
8%
-
1%
9%
Voice and Respiratory Care
536
491
11%
-2%
0%
9%
Advanced Wound Care
1,059
700
13%
38%
0%
51%
Interventional Urology
693
678
2%
-
0%
2%
Revenue
6,885
6,108
8%
4%
1%
13%
Sales performance by region
DKK million
Growth composition (9 mths)
2023/24
(9 mths)
2022/23
(9 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
European markets
11,037
10,404
6%
0%
0%
6%
Other developed markets
5,648
4,757
6%
15%
-2%
19%
Emerging markets
3,392
3,113
17%
-
-8%
9%
Revenue
20,077
18,274
8%
4%
-2%
10%
DKK million
Growth composition (Q3)
2023/24
(Q3)
2022/23
(Q3)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
European markets
3,758
3,526
7%
0%
0%
7%
Other developed markets
1,910
1,570
4%
17%
1%
22%
Emerging markets
1,217
1,012
16%
-
4%
20%
Revenue
6,885
6,108
8%
4%
1%
13%
Announcement no. 03/2024
4
20 August 2024
Ostomy Care
Ostomy Care generated 7% organic
sales growth for the first nine months of
2023/24, with reported revenue in DKK
growing by 6% to DKK 7,095 million.
The SenSura® Mio portfolio was the
main contributor to growth, with good
performance across the product range
which includes Convex, Concave and
Flat products. The Brava® range of
supporting products also made a solid
contribution to growth. At the product
level, SenSura Mio Convex was the main
growth contributor mostly driven by
Europe, in particular the UK and
Germany, as well as the US. The
SenSura and Assura/Alterna® portfolios
contributed to growth in Emerging
markets, where they are actively
promoted. Growth in the Brava range of
supporting products was broad-based
with solid contributions from the US,
Europe, especially the UK and Germany,
as well as Emerging markets, most
notably China.
From a geographical perspective,
growth was driven by broad-based
contribution from Emerging markets
and Europe, especially the UK.
Contribution from the US improved in
the third quarter, after being held back
by order phasing in the first half of the
year.
China posted mid-single digit growth, as
expected. Growth was positively
impacted by the normalised level of
procedural volumes, while the average
value per patient remains impacted by
consumer sentiment.
Q3 organic growth was 8%. Reported
revenue in DKK increased by 8% to DKK
2,432 million.
The SenSura Mio portfolio was the main
growth contributor in Q3, followed by
solid contribution from the Brava range
of supporting products. At the product
level, SenSura Mio Convex was the main
growth contributor driven by Europe,
most notably the UK and Germany, and
the US. The SenSura and Assura/
Alterna portfolios continued to
contribute to growth in Emerging
markets. Growth in the Brava range
was broad-based across regions.
Coloplast is strengthening its SenSura
Mio portfolio with the launch of SenSura
Mio black bags*. The launch started in
May 2024 and the first black bags
variants are now available in six
European markets.
Heylo*, a new digital leakage notification
device, has been launched in the UK
after receiving national reimbursement
in July 2024. Work to obtain
reimbursement in the second launch
market, Germany, is ongoing.
From a geographical perspective, all
regions contributed to growth, with
broad-based contributions from
Emerging markets and Europe, most
notably the UK.
Growth in the US improved in Q3, albeit
below expectations, impacted by the
establishment of a new distribution
centre for the US market. During Q3,
Coloplast established a new distribution
centre to serve its Chronic Care and
Advanced Wound Care businesses (ex.
Kerecis) in the US, which has resulted in
short-term supply disruptions, mostly
impacting Chronic Care. The situation is
expected to be resolved by the end of
Q4.
2.4 billion
Reported revenue
in DKK for Q3
2023/24
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
7%
8%
9M 23/24 Q3 23/24
6%
8%
9M 23/24 Q3 23/24
7%
-1%
6%
9M
Growth compo-
sition (9 mths)
*Medical Devices for which CE-mark has been affixed. Product availability is subject to the regulatory process of
individual countries and is not guaranteed. Currently not available in the US.
Announcement no. 03/2024
5
20 August 2024
Continence Care
Continence Care generated 8% organic
sales growth in the first nine months of
2023/24, with reported revenue in DKK
growing by 6% to DKK 6,294 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 by Europe, in particular the UK
and France, as well as the US and
Emerging markets. SpeediCath Navi, a
hydrophilic catheter specifically
designed for emerging markets and
lower priced developed markets, also
contributed nicely to growth.
Luja for men continues to be well
received by customers and made a
good contribution to growth in the first
nine months of the year.
In Bowel Care, Peristeen® Plus made a
solid contribution to growth, driven by
Europe and the US. Peristeen Light*, a
low-volume transanal irrigation device,
has been launched in five markets with
positive feedback.
Sales growth in Collecting Devices was
flat in the first nine months of 2023/24.
From a geographical perspective,
growth was broad-based. Growth in
Europe was driven by the UK and
France. The US also made a solid
contribution to growth, while growth in
Emerging markets was led by LATAM.
Markets with recent reimbursement
openings, such as Poland, Australia,
Japan, and South Korea, continued to
perform well and posted double-digit
growth.
Q3 organic growth was 8%. Reported
revenue in DKK increased by 9% to DKK
2,165 million.
Sales growth in the quarter was driven
by solid performance across the
SpeediCath portfolio with broad-based
growth across compact, standard, and
flexible catheters.
The male Luja catheter continued to
perform well and made a significant
contribution to growth in the quarter.
Luja for women* was launched in May
2024, with positive customer feedback.
The product is now available in four
markets and will be launched across all
of Coloplast’s key markets over the next
8 months.
Bowel Care also contributed to growth
in the quarter, driven by Peristeen Plus
in Europe and the US.
From a geographical perspective, all
regions contributed to growth. In
Europe, growth was driven by France
and the UK. Growth in Emerging
markets was broad-based.
In the US, growth was partly impacted
by the establishment of the new
distribution centre for the US market,
which has resulted in short-term supply
disruption as explained on page 4. The
situation is expected to be resolved by
the end of Q4.
2.2 billion
Reported revenue
in DKK for Q3
2023/24
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
8%
8%
9M 23/24 Q3 23/24
6%
9%
9M 23/24 Q3 23/24
8%
-2%
6%
9M
Growth compo-
sition (9 mths)
*Medical Devices for which CE-mark has been affixed. Product availability is subject to the regulatory process of
individual countries and is not guaranteed. Currently not available in the US.
Announcement no. 03/2024
6
20 August 2024
Voice and Respiratory
Care
Voice and Respiratory Care generated
10% organic sales growth in the first
nine months of 2023/24, driven by
double-digit growth in both
Laryngectomy and Tracheostomy.
Reported revenue in DKK grew 8% to
DKK 1,571 million. Reported revenue
growth includes negative impact of 1%-
point from product rationalisation.
In Laryngectomy, growth in the first nine
months of 2023/24 was driven by an
increase in patients served in existing
and new markets and an increase in
patient value driven by the Provox®
Life™ portfolio, Atos Medical’s new
personalised solution and product line
which has been launched in 16 markets.
In Tracheostomy, growth was driven by
solid demand and positive impact from
forward integration in key European
markets and the US.
From a geographical perspective, all
regions contributed to growth, led by
the biggest region Europe. The US also
delivered a solid contribution to growth,
while the fastest growing region was
Emerging markets. Markets with recent
reimbursement openings, such as
Poland, made a solid contribution to
growth and grew double-digit.
Q3 organic growth was 11%, driven by
continued good momentum in both
Laryngectomy and Tracheostomy.
Reported revenue in DKK increased by
9% to DKK 536 million. Reported
revenue growth included negative
impact of 2%-points from product
rationalisation.
Growth in Laryngectomy was high-
single digit in the quarter, 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.
Tracheostomy delivered double-digit
growth, with continued solid demand
and positive impact from forward
integration.
From a geographical perspective, all
regions continued to contribute to
growth, driven by the biggest region
Europe, as well as solid contribution
from the US. Emerging markets
continued to be the fastest growing
region.
0.5 billion
Reported revenue
in DKK for Q3
2023/24
Organic growth
Reported growth
Organic growth
Acquired operations
Exchange rates
Reported growth
10%
11%
9M 23/24 Q3 23/24
8%
9%
9M 23/24 Q3 23/24
10%
-1%
-1%
8%
9M
Growth compo-
sition (9 mths)
Announcement no. 03/2024
7
20 August 2024
Advanced Wound
Care
Advanced Wound Care generated 10%
organic sales growth in the first nine
months of 2023/24. Reported revenue
in DKK grew by 42% to DKK 3,023
million and includes nine months impact
from the acquisition of Kerecis.
Advanced Wound Dressings in isolation
delivered 10% organic growth in the
first nine months of 2023/24. The
Biatain® Silicone portfolio was the main
contributor to growth. Biatain Fiber
continued to perform well and also
contributed to growth. Biatain Silicone
Fit, a new silicone dressing for pressure
injury prevention and wound
management, was launched in the US in
January 2024 and has received positive
customer feedback.
From a geographical perspective,
growth was broad-based across regions.
Europe, in particular Germany, the US
and China were the main growth
contributors.
Skin Care, which is mostly a US hospital
business, made a solid contribution to
growth in the first nine months of the
year, helped by a lower baseline last
year.
The Compeed contract manufacturing
business delivered flat growth in the first
nine months of the year, impacted by a
high baseline last year.
Revenue from Kerecis for the first nine
months of the year amounted to DKK
730 million, with underlying growth of
around 35% and continued market
share gains, in line with expectations.
The in-patient channel and surgical
wounds were the main growth
contributors. From a geographical
perspective, both sales and growth were
derived from the US.
Q3 organic growth for Advanced
Wound Care was 13%, while reported
revenue in DKK increased by 51% to
DKK 1,059 million, impacted by the
acquisition of Kerecis.
Advanced Wound Dressings in isolation
delivered 13% organic growth in Q3,
reflecting continued good momentum
as well as benefit from a lower baseline
in Q3 last year. Growth in the quarter
also included benefit from timing of
orders in Germany.
The Biatain Silicone portfolio continued
to be the main growth contributor.
From a geographical perspective,
growth was driven by Europe, most
notably Germany, as well as solid
contribution from Emerging markets.
The Skin Care business and the
Compeed contract manufacturing
business both posted solid growth in the
quarter.
Q3 revenue from Kerecis amounted to
DKK 269 million, with underlying growth
of around 35%, in line with expectations.
Growth in the quarter continued to be
driven by the in-patient channel and
surgical wounds. Impact from the draft
Local Coverage Determination (LCD)
policy announced in April 2024 is so far
immaterial. As part of the consultation
period, which ended on 8 June 2024,
Coloplast submitted a rich portfolio of
clinical evidence and feedback from
clinicians, to support Kerecis in getting
back on the covered list of products. We
continue to expect a final LCD policy to
be announced in the second half of
2024.
1.1 billion
Reported revenue
in DKK for Q3
2023/24
Organic growth
Reported growth
Organic growth
Acquired operations
Exchange rates
Reported growth
10%
13%
9M 23/24 Q3 23/24
42%
51%
9M 23/24 Q3 23/24
10%
34%
-2%
42%
9M
Growth compo-
sition (9 mths)
Announcement no. 03/2024
8
20 August 2024
Interventional Urology
Interventional Urology generated 4%
organic sales growth for the first nine
months of 2023/24. Reported revenue
in DKK grew by 3% to DKK 2,094
million.
The Men’s Health business in the US
was the main growth contributor, driven
by the Titan® penile implants. The
Endourology portfolio, primarily driven
by Europe, also made a solid
contribution to growth. Thulium Fiber
Laser Drive, Coloplast’s laser equipment
launched in FY 2022/23, contributed
nicely to growth in the first nine months
of the year. The Women’s Health
business detracted from growth, as
expected, negatively impacted by
competitive pressure. The Bladder
Health and Surgery business also
detracted from growth, negatively
impacted by backorders, which
emerged from supply shortages
experienced by an external supplier.
From a geographical perspective, the
US was the main growth contributor.
Q3 organic growth was 2%. Reported
revenue in DKK increased by 2% to DKK
693 million.
The Men’s Health business in the US
continued to perform well and was the
main growth contributor, driven by the
Titan penile implants. The Endourology
portfolio also contributed to growth,
driven by Thulium Fiber Laser Drive.
Growth in the quarter was negatively
impacted by continued competitive
pressure in Women’s Health, which
detracted from growth. The Bladder
Health and Surgery business also
detracted from growth in the quarter,
negatively impacted by backorders. The
backorder situation is expected to
improve in Q4.
From a geographical perspective, the
US continued to be the main growth
contributor.
0.7 billion
Reported revenue
in DKK for Q3
2023/24
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
4%
2%
9M 23/24 Q3 23/24
3%
2%
9M 23/24 Q3 23/24
4%
-1%
3%
9M
Growth compo-
sition (9 mths)
Announcement no. 03/2024
9
20 August 2024
Earnings
Gross profit
Gross profit in the first nine months of
the year was DKK 13,629 million,
compared to DKK 12,196 million last
year, corresponding to a gross margin
of 68% compared to 67% last year. The
gross margin was positively impacted by
a decrease in freight rates, raw material
prices, energy costs, price increases, and
country and product mix. The gross
margin also included baseline benefit of
around 40 basis points from the Italian
pay-back reform provision which was
accounted for during 2022/23. The
inclusion of Kerecis had a positive
impact on the gross margin of around
100 basis points, in line with
expectations.
The above-mentioned positive drivers
were partly offset by double-digit wage
inflation in Hungary and ramp-up costs
in Costa Rica. Currencies also had a
negative impact on the gross margin,
related mostly to the depreciation of the
USD and a basket of Emerging markets
currencies against the DKK and
appreciation of the HUF against the
DKK. Around 75% of the company’s
production volumes are in Hungary.
In Q3, gross profit was DKK 4,648
million, corresponding to a gross margin
of 68% against 66% in Q3 last year. The
Q3 margin was impacted by the above-
mentioned drivers and also includes
neutral contribution from country and
product mix. Kerecis contributed around
100 basis points to the gross margin, as
expected, while currencies had a
negative impact.
In July 2024, Coloplast hedged around
70% of its expected electricity
consumption in Hungary for calendar
year 2025 at a price of around 100
EUR/MWh, compared to hedges at a
price of around 150 EUR/MWh which
are in place for 2024.
Costs
Operating expenses in the first nine
months of the year amounted to DKK
8,146 million, a DKK 1,081 million
increase (15%) from last year. Excluding
impact from inorganic operating
expenses from the Kerecis acquisition
(nine months), operating expenses
increased 5% or DKK 383 million from
last year, in line with expectations.
Kerecis contributed with DKK 698
million to operating expenses in the first
nine months of 2023/24, of which DKK
77 million were amortisation costs.
Operating expenses in Q3 amounted to
DKK 2,778 million, a DKK 441 million
increase (19%) from last year. Excluding
impact from inorganic operating
expenses from the Kerecis acquisition,
operating expenses in Q3 increased by
8%. Kerecis contributed with DKK 251
million to operating expenses, of which
DKK 26 million PPA amortisation.
Distribution costs amounted to DKK
6,533 million, a DKK 920 million (16%)
increase from DKK 5,613 million last
year and were mainly impacted by the
inclusion of Kerecis (incl. PPA
amortisation costs), as well as an
increased level of commercial activities.
Distribution costs amounted to 33% of
revenue compared to 31% last year.
In Q3, distribution costs amounted to
DKK 2,251 million, equal to 33% of
revenue against 31% in Q3 last year,
impacted by the inclusion of Kerecis and
commercial activities, including activities
related to product launches. The
quarter also includes impact from
extraordinary costs related to the
establishment of the new distribution
centre in the US. These extraordinary
costs are expected to continue into Q4.
Administrative expenses in the first nine
months of the year amounted to DKK
959 million, up DKK 123 million (15%)
Income statement, DKK million
2023/24
Index
Revenue
20,077
110
Production costs
-6,448
106
Gross profit
13,629
112
Distribution costs
-6,533
116
Administrative expenses
-959
115
Research and development costs
-694
108
Other operating income
56
144
Other operating expenses
-16
114
Operating profit (EBIT) before special items
5,483
107
Special items
-70
N/A
Operating profit (EBIT)
5,413
106
Financial income
152
138
Financial expenses
-773
105
Profit before tax
4,792
107
Tax on profit for the period
-1,054
112
Net profit for the period
3,738
105
Announcement no. 03/2024
10
20 August 2024
from DKK 836 million last year, primarily
impacted by the inclusion of Kerecis.
Administrative expenses accounted for
5% of revenue, on par with last year.
The Q3 administrative expenses
amounted to DKK 300 million or 4% of
revenue, on par with last year.
The R&D costs in the first nine months
of the year were DKK 694 million,
compared to DKK 641 million last year,
and were mostly impacted by the
inclusion of Kerecis. R&D costs
amounted to 3% of revenue, against 4%
last year.
The Q3 R&D costs amounted to DKK
240 million or 3% of revenue, compared
to 4% last year.
Other operating income and other
operating expenses in the first nine
months of the year amounted to a net
income of DKK 40 million, against a net
income of DKK 25 million last year.
Operating profit before interest, tax,
depreciation and amortisation
(EBITDA) and before special items
EBITDA before special items amounted
to DKK 6,438 million in the first nine
months of the year, a DKK 515 million
(9%) increase from DKK 5,923 million
last year. The EBITDA margin before
special items was 32%, on par with last
year.
In Q3, EBITDA before special items was
DKK 2,198 million, a DKK 249 million
(13%) increase from Q3 last year. The
EBITDA margin before special items
was 32%, on par with last year.
Operating profit (EBIT) before special
items
EBIT before special items in the first nine
months of the year amounted to DKK
5,483 million, a DKK 352 million (7%)
increase from DKK 5,131 million last
year. The EBIT margin before special
items was 27% compared to 28% last
year. The EBIT margin was mostly
impacted by the inclusion of Kerecis,
which had a negative impact on the
EBIT margin of around 100 basis points
(incl. PPA amortization), in line with
expectations. The EBIT margin also
included negative impact from
currencies of around 100 basis points,
mostly related to the depreciation of the
USD and a basket of Emerging markets
currencies against the DKK and the
appreciation of the HUF against the
DKK.
In Q3, EBIT before special items was
DKK 1,870 million, a DKK 184 million
(11%) increase from last year. The EBIT
margin before special items was 27%
compared to 28% last year, and
includes around 100 basis points
negative impact from the inclusion of
Kerecis and around 50 basis points
negative impact from currencies.
Special items
During the first nine months of the year,
Coloplast incurred special items
expenses of DKK 70 million, related to
integration costs for the Atos Medical
acquisition, of which DKK 36 million in
the third quarter.
Operating profit (EBIT) after special
items
EBIT after special items was DKK 5,413
million in the first nine months of the
year, a DKK 287 million (6%) increase
from last year. The EBIT margin after
special items was 27%.
The Q3 EBIT after special items was
DKK 1,834 million, a DKK 120 (7%)
increase from last year, with an EBIT
margin of 27%.
Financial items and tax
Financial items were a net expense of
DKK 621 million against a net expense
of DKK 628 million last year.
The net expense was impacted by
interest expenses of DKK 578 million
compared to DKK 433 million last year,
mostly related to the financing of the
Atos Medical acquisition. Net losses on
balance sheet items of DKK 109 million
also contributed to the net expense,
mostly driven by the devaluation of the
ARS in December 2023. The financial
expenses were only partly offset by
financial income of DKK 152 million.
The Q3 financial items were a net
expense of DKK 203 million compared
to a net expense of DKK 104 million in
the same period last year, driven by
interest expenses mostly related to the
financing of Atos Medical.
The tax rate was 22%, compared to
21% last year. The tax rate continued to
include positive impact from the transfer
of Atos Medical’s Intellectual Property.
The tax expense was DKK 1,054 million
compared to DKK 944 million last year.
Coloplast’s long-term expectations for a
tax rate of around 23% beyond
2023/24 are unchanged.
Net profit
Net profit before special items was DKK
3,793 million in the first nine months of
the year, a DKK 235 million increase
from DKK 3,558 million last year.
Diluted earnings per share (EPS) before
special items were DKK 16.87, or a 1%
increase from last year and include
impact from the equity raise in August
2023. Net profit after special items was
DKK 3,738 million and diluted EPS after
special items were DKK 16.62.
The Q3 net profit before special items
amounted to DKK 1,302 million, against
DKK 1,250 million last year. EPS before
special items were down 2% from last
year to DKK 5.79. The Q3 net profit
after special items was DKK 1,274
million and diluted EPS after special
items were DKK 5.66.
Cash flows and
investments
Cash flows from operating activities
Cash flows from operating activities
amounted to an inflow of DKK 718
million, against DKK 2,345 million last
year. The development in cash flows
Announcement no. 03/2024
11
20 August 2024
from operating activities was impacted
by higher income tax paid, due to the
extraordinary tax payment related to the
transfer of Atos Medical’s Intellectual
Property paid in Q2, with a net impact of
DKK 2.5 billion. The payment will be
offset by reduced tax payments the
following years, starting in FY 2023/24.
The negative impact on cash flow from
income tax paid was only partly offset by
increase in operating profit and
improvement in changes in working
capital, driven by a favourable
development in mostly inventories.
Investments
Net investments amounted to DKK 904
million in the first nine months of
2023/24 or around 5% of revenue,
compared with DKK 655 million last
year, and include impact from
investments in the new manufacturing
site in Portugal.
Free cash flow
As a result, the free cash flow was an
outflow of DKK 186 million compared to
an inflow of DKK 1,690 million in the
same period last year. Adjusted for the
extraordinary tax payment related to the
transfer of Atos Medical’s Intellectual
Property, the free cash flow was an
inflow of DKK 2.3 billion, or an increase of
DKK 0.6 billion compared to the same
period last year.
Capital resources
At 30 June 2024, Coloplast had net
interest-bearing debt, including
securities, of DKK 23,641 million, against
DKK 18,660 million at 30 September
2023. The increase was mostly driven
by net interest-bearing debt raised to
cover the extraordinary tax payment
related to the transfer of Atos Medical’s
Intellectual Property. The gearing ratio
at the end of the period was 2.8x
EBITDA (before special items). Coloplast
is committed to deleveraging and
bringing the gearing ratio down to
between 1x-2x EBITDA by 2024/25.
Statement of financial
position and equity
Balance sheet
At 30 June 2024, total assets amounted
to DKK 48,580 million, an increase of
DKK 421 million compared to 30
September 2023.
Working capital was 27% of revenue,
compared to 26% at 30 September
2023. Inventories increased by DKK 154
million to DKK 3,676 million. Trade
receivables increased by DKK 520
million to DKK 4,835 million, impacted
by timing and country sales mix, while
trade payables decreased by DKK 110
million to DKK 1,184 million.
Coloplast’s working capital-to-sales ratio
in FY 2023/24 is now expected to be
around 26%, from previously around
25%. The long-term working capital-to-
sales ratio is unchanged and expected to
be around 24%.
Equity
Equity decreased by DKK 775 million
compared to 30 September 2023 to
DKK 16,524 million. Total
comprehensive income for the period of
DKK 3,640 million, net effect of sale of
treasury shares and loss of exercised
options of DKK 250 million and share-
based remuneration of DKK 55 million
were offset by payment of dividends of
DKK 4,720 million.
Treasury shares
At 30 June 2024, Coloplast’s holding of
treasury shares consisted of 3,159,941
B shares, which was 379,587 less than
30 September 2023. The decrease was
due to exercise of share options.
Return on invested capital (ROIC)
ROIC after tax before special items was
15% against 17% as of 30 September
2023, impacted by the acquisition of
Kerecis.
Announcement no. 03/2024
12
20 August 2024
Update on sustainability strategy and performance
Priority
Unit
2025 Ambition
9M
2023/24
9M
2022/23
Change
FY
2022/23
Improving products and packaging
Recyclable packaging
1)
% of total
90%
-
-
-
72%
Renewable materials in packaging
1)
% of total
80%
-
-
-
66%
Production waste recycling
5)
% of total
75%
75%
74%
1%-p
75%
Reducing emissions
Scope 1 and 2 emissions
5)
% reduction
100% reduction by 2030
2) 4)
19%
15%
4%-p
10%
Renewable energy use
5)
% of total
100%
84%
76%
8%-p
78%
Electric company cars
1)
% of total
100% by 2030
-
-
-
8%
Scope 3 emissions
1)
(by 2030)
% reduction per product
50% reduction by 2030
2) 4)
-
-
-
8%
Business travel by air
1)
% reduction
10% reduction
2)
-
-
-
41%
Goods transported by air
1)
% of total
< 5% of total
-
-
-
2%
Responsible operations
Lost time injury frequency
5)
Parts per million
2.0
2.5
2.4
0.1
2.6
Code of Conduct training
1)
% of white collars
100%
-
-
-
99%
Female senior leaders (VP+ level)
1)
% of total
40% by 2030
-
-
-
26%
Diverse teams
1) 6)
% share of total teams
75%
-
-
-
54%
Employee satisfaction
1) 3) 6)
Engagement score
Above benchmark
8.1
8.1
-
8.1
Improving products and packaging
Coloplast continued to recycle 75% of
the production waste in 9M 2023/24
5
, in
line with the 2025 ambition and driven
by our partnership with a recycling
manufacturer in Hungary. As we ramp
up manufacturing in Costa Rica, we
continue to look for new use cases of
production waste here, as well as at our
site in China.
Scope 1 and 2 emissions
The absolute scope 1 and 2 emissions
decreased by 19% in 9M 2023/24
5
,
compared to the base year 2018/19.
The reduction in absolute scope 1 and 2
emissions was positively impacted by
the shift from natural gas to more
sustainable district heating at our
Danish sites in Humlebæk and Mørdrup.
Renewable energy use increased to 84%
of the total energy use in 9M 2023/24
5
,
compared to 76% in 9M 2022/23,
impacted by aforementioned shift to
district heating at Coloplast’s Danish
sites.
Responsible operations
In 9M 2023/24, the lost time injury
frequency was 2.5 ppm, showing an
improvement compared to H1 2023/24
where LTIs reached 2.9 ppm. We
continue to set activities in motion to
address LTIs in order to reach the
ambition of 2.0 ppm by 2025.
Coloplast receives EcoVadis silver
medal
Coloplast has received its first EcoVadis
rating with a score placing Coloplast
among the top 14% of all rated
companies, triggering a silver medal.
EcoVadis' rating of ESG topics is a
widely recognised tool to assess value
chain impacts and is requested on a
number of hospital tenders, especially in
European markets. The rating serves as
a recognition of Coloplast’s commitment
to sustainability as a key enterprise
theme and a point of competitive
differentiation. Coloplast has received
the silver medal based on transparent
reporting on quantitative sustainability
targets and deployment of actions,
which support our sustainability
ambition, notably on efforts to reduce
emissions.
All figures are excluding Kerecis.
1) Metric will only be reported on a semi-annual or full-year basis. 2) From base year 2018/19. 3) Employee survey conducted twice a year. Latest
industry benchmark from Q2 2023/24 was 7.8. 4) Target validated by Science-Based Targets initiative (SBTi). 5) Four quarters rolling average.
6) ‘Diverse teams’ and ‘Employee satisfaction’ for 9M 2022/23 and FY 2022/23 excludes Atos Medical.
Announcement no. 03/2024
13
20 August 2024
Other matters
CMS announces final coding decision
for intermittent urinary catheters*
On 16 August 2024, the US Centers for
Medicare & Medicaid Services (CMS)
announced a final coding decision for
intermittent urinary catheters. With the
final decision, three new codes are being
established, dedicated to hydrophilic
intermittent catheters. The fee for the
new codes is mapped to appropriate
existing codes, resulting in unchanged
fee schedules for the new codes. The
coding changes will be implemented as
of 1 January 2026.
Coloplast welcomes the decision by the
CMS to establish dedicated codes for
hydrophilic intermittent catheters which
will benefit patients, ensuring they get
the products that best fit their needs.
Hydrophilic catheters account for more
than 70% of Coloplast’s US intermittent
catheter sales. We expect the change in
coding to help more patients get treated
with hydrophilic catheters over time.
*The final decision is available here: Centers for Medicare & Medicaid Services’ (CMS’) Healthcare Common Procedure
Coding System (HCPCS) Level II Final Coding, Benefit Category and Payment Determinations
Announcement no. 03/2024
14
20 August 2024
Long-term financial
guidance
8-10%
Organic growth p.a.
above 30%
EBIT margin beyond 2024/25
(at constant exchange rates)
The long-term organic growth guidance
includes around 1%-point accretion
from Kerecis as of FY 2024/25. For the
remaining Strive25 strategic period
running until end of 2024/25, the EBIT
margin is expected to remain
below 30% and assumes dilution of
around 100 basis points p.a. from
Kerecis (including PPA amortisation).
For financial assumptions on Kerecis,
please refer to: Kerecis acquisition
Key assumptions
unchanged
Current macroeconomic and industry-
specific trends are continuously
monitored and their potential impact on
our business is evaluated on an ongoing
basis. As such, the financial guidance is
subject to a higher degree of
uncertainty.
The addressable market in which
Coloplast operates is expected to
continue growing at 4-5%.
The financial guidance is unchanged,
and the assumptions laid out in
November 2023 still largely hold.
Revenue growth
Organic growth is expected around 8%
in constant currencies with the following
assumptions:
a. Chronic Care:
o Continued solid momentum in
Europe and Emerging markets
ex. China, in line with the
Strive25 ambitions
o Improvement in growth in China,
however, China is not expected
to return to the Strive25
ambition of double-digit growth,
due to continued impact from
average value per patient which
remains hindered by consumer
sentiment
o US Chronic Care – growth
expected to be second half
weighted, due to impact from
order phasing in the US ostomy
care business in H1 2023/24
b. Advanced Wound Care is expected
to deliver growth above the market
c. Interventional Urology is expected
to deliver mid-single digit growth,
impacted by softer momentum in
the Women’s Health business
d. Voice and Respiratory Care is
expected to grow at 8-10%
e. No current knowledge of significant
health care reforms; positive pricing
impact is expected. The expectation
of long-term price pressure of up to
1% annually is unchanged
f. A stable supply and distribution of
products across the company
Reported growth in DKK is expected to
be 10-11%, which includes around 4%-
points contribution from the Kerecis
acquisition (11 months) and negative
impact from currencies of around 1-2%-
points.
EBIT margin
The reported EBIT margin before
special items is expected at 27-28%,
and includes the following assumptions:
a. Input costs development:
o Raw materials – mid single-digit
price increase
o Tailwind from total energy costs
of around DKK 100 million on
the gross margin
o Tailwind from freight cost
o Wages in Hungary – double-digit
increase, similar to 2022/23
b. One-off baseline benefit of ~40 basis
points from the Italian pay-back
reform provision which was included
in the FY 2022/23 gross margin
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. Benefit from operational synergies
related to integration of Atos
Medical on Coloplast infrastructure
f. Negative impact from Kerecis of
around 100 basis points, which
includes around DKK 100 million in
PPA amortisation
g. Negative impact from currencies of
around 70 basis points
Special items of around DKK 80 million,
related to the Atos Medical integration.
2023/24
Financial
guidance
Around 8
%
Organic revenue growth
at constant exchange rates
27-28
%
Reported EBIT margin
(before special items)
Around 1.3 bn
Capital expenditure in DKK
Around 22
%
Effective tax rate
Announcement no. 03/2024
15
20 August 2024
Capex adjusted to DKK 1.3 billion from
previously DKK 1.4 billion and includes
investments in the new manufacturing
site in Portugal, investments in new
machines for existing and new products,
IT and sustainability investments, as well
as Atos Medical integration capex.
Effective tax rate is expected to be
around 22%, positively impacted by the
transfer of Atos Medical Intellectual
Property.
Dividend policy
The Board of Directors intends to
distribute excess liquidity to the
shareholders through dividends and
share buybacks, with a target payout
ratio of 60-80% of net profit.
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 2023/24
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 9M 2022/23
851
702
1,91
Average exchange
rate 9M 2023/24
869
691
1,93
Change in average
exchange rates for
2023/24 compared
with the same
period last year
2%
-2%
1%
Average exchange
rate 2022/23¹⁾
855
698
1,92
Spot rate on
15 August 2024
871
677
1,89
Estimated average
exchange rate
2023/24²⁾
868
689
1,92
Change in
estimated average
exchange rates
compared with
average exchange
rate 2022/23
2%
-1%
0%
¹⁾ Average exchange rates for 2022/23 are
from 1 October 2022 to 30 September 2023.
²⁾ Estimated average exchange rates are
calculated as the average exchange rates for
the first nine months combined with the spot
rates at 15 August 2024.
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
-710
-220
GBP
-350
-220
HUF
-
130
Announcement no. 03/2024
16
20 August 2024
Executive Management
Executive Vice President
Board of Directors
Announcement no. 03/2024
17
20 August 2024
Statement of comprehensive income
1 October – 30 June, unaudited
Consolidated
2023/24
2022/23
2023/24
2022/23
DKK million
Note
9 mths
9 mths
Index
Q3
Q3
Index
Revenue
2
110
113
Production costs
-6,448
-6,078
106
-2,237
-2,085
107
Gross profit
112
116
Distribution costs
-6,533
-5,613
116
-2,251
-1,866
121
Administrative expenses
-959
-836
115
-300
-262
115
Research and development costs
-694
-641
108
-240
-216
111
Other operating income
144
131
Other operating expenses
-16
-14
114
-4
-6
67
Operating profit (EBIT) before special items
107
111
Special items
3
-70
-5
-
-36
-
Operating profit (EBIT)
106
107
Financial income
4
138
92
Financial expenses
4
-773
-738
105
-237
-141
168
Profit before tax
107
101
Tax on profit for the period
-1,054
-944
112
-357
-338
106
Net profit for the period
105
100
Remeasurements of defined benefit plans
-3
-7
-1
-12
Tax on remeasurements of defined benefit plans
-1
-2
Items that will not be reclassified to the income
statement
-4
-6
-3
-9
Value adjustment of currency hedging
-74
-58
Transferred to financial items
-70
-52
-83
Tax effect of hedging
-30
Currency adjustment of opening balances and
other value adjustments relating to subsidiaries
-61
-1,300
-758
Tax effect of currency adjustment, assets in
foreign currency
Items that may be reclassified to income
statement
-94
-1,179
-787
Total other comprehensive income
-98
-1,185
-796
Total comprehensive income
DKK
Earnings per share (EPS)
Earnings per share (EPS), diluted
Announcement no. 03/2024
18
20 August 2024
Statement of cash flows
1 October – 30 June, unaudited
Consolidated
2023/24
2022/23
DKK million
Note
9 mths
9 mths
Operating profit
Amortisation
Depreciation
Adjustment for other non-cash operating items
6
-41
-166
Changes in working capital
6
-1,256
-1,314
Ingoing interest payments, etc.
Outgoing interest payments, etc.
-666
-611
Income tax paid
-3,773
-1,511
Cash flows from operating activities
Investments in intangible assets
-128
-161
Investments in land and buildings
-6
-6
Investments in plant and machinery and other fixtures and fittings, tools and equipment
-45
-69
Investments in property, plant and equipment under construction
-723
-621
Property, plant and equipment sold
Investment in other investments
-13
-17
Company divestment
Net sales/purchase of marketable securities
Cash flows from investing activities
-904
-655
Free cash flow
-186
Dividend to shareholders
-4,720
-4,247
Sale of treasury shares and loss on exercised options
Financing from shareholders
-4,470
-4,213
Repayment of lease liabilities
-191
-180
Expiry of issued bonds
-4,848
Financing through debt funding
Drawdown on credit facilities
Cash flows from financing activities
-1,204
Net cash flows
-3
Cash and cash equivalents at 1 October
Value adjustment of cash and bank balances
-17
-45
Cash and cash equivalents, disposed operations
-4
Net cash flows
-3
Cash and cash equivalents at 30 June
7
The cash flow statement cannot be derived using only the published financial data.
Announcement no. 03/2024
19
20 August 2024
Assets
At 30 June, unaudited
Consolidated
DKK million
Note
30.06.24
30.06.23
30.09.23
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
Cash and cash equivalents
Current assets
Assets
Announcement no. 03/2024
20
20 August 2024
Equity and liabilities
At 30 June, unaudited
Consolidated
DKK million
Note
30.06.24
30.06.23
30.09.23
Share capital
Currency translation reserve
-1,634
-2,139
-1,579
Reserve for currency hedging
Proposed ordinary dividend for the period
Retained earnings
Equity
Provisions for pensions and similar liabilities
Provision for deferred tax
Other provisions
Bonds
5
Other credit institutions
Other payables
Lease liability
Prepayments
Non-current liabilities
Provisions for pensions and similar liabilities
Other provisions
Bonds
5
Other credit institutions
Trade payables
Income tax
Other payables
Lease liability
Prepayments
Current liabilities
Equity and liabilities
Announcement no. 03/2024
21
20 August 2024
Statement of changes in equity, current year
At 30 June, unaudited
Consolidated
Share capital
Reserves
DKK million
A shares
B shares
Currency
translation
Currency
hedging
Proposed
dividend
Retained
earnings
Total
2023/24
Equity at 1 October
-1,579
Net profit for the period
Other comprehensive income
-55
-113
-98
Total comprehensive income
-55
-113
Sale of treasury shares and loss on
exercised options
Share-based payment
Tax on share-based payment, etc.
-1
-1
Interim dividend paid out in respect of
2023/24
-1,125
-1,125
Dividend paid out in respect of
2022/23
-3,595
-3,595
Transactions with shareholders
-4,720
-4,415
Equity at 30 June
-1,634
Announcement no. 03/2024
22
20 August 2024
Statement of changes in equity, last year
At 30 June, 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
-1,229
-77
-1,185
Total comprehensive income
-1,229
Sale of treasury shares and loss on
exercised options
Share-based payment
Interim dividend paid out in respect of
2022/23
-1,062
-1,062
Dividend paid out in respect of
2021/22
-3,185
-3,185
Transactions with shareholders
-4,247
-4,171
Equity at 30 June
-2,139
Announcement no. 03/2024
23
20 August 2024
Key accounting policies
1 Accounting policies
Profit and loss
2 Segment information
3 Special items
4 Financial income and expenses
Assets and liabilities
5 Bonds
Cash flows
6 Specifications of cash flow from operating activities
7 Cash and cash equivalents
Other disclosures
8 Contingent liabilities
9 Acquisitions
List of notes
Announcement no. 03/2024
24
20 August 2024
Note 1
Accounting policies
The financial statements in this report is prepared in accordance with IAS 34 “Interim financial reporting” as adopted by the EU
and additional Danish disclosure requirements for interim reports of listed companies. The accounting policies for recognition
and measurement applied in the preparation of the financial statements in this report are consistent with those applied in the
Annual Report 2022/23.
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 five operating segments: Chronic Care, Voice and Respiratory Care, Interventional Urology, Advanced Wound
Dressings and Biologics.
The segment Chronic Care covers the sale of ostomy care products and continence care products. The segment Voice and
Respiratory Care covers the sale of laryngectomy and tracheostomy products. The segment Interventional Urology covers the
sale of urological products, including disposable products. The segment Advanced Wound Dressings covers the sale of wound
and skin care products and Compeed contract manufacturing. The segment Biologics represents a new segment, obtained
through the acquisition of Kerecis, covering the sale of tissue-based products. The segmentation reflects the structure of
reporting to the Executive Leadership Team.
The shared/non-allocated costs comprises support functions (production units and staff functions) and eliminations, as these
functions do not generate revenue. While the costs of R&D for Interventional Urology, Voice and Respiratory Care and Biologics
are included in the segment operating profit/loss for the above-mentioned segments, R&D activities for Chronic Care and
Advanced Wound Dressings are shared functions which are included in shared/non-allocated functions. The shared/non-
allocated costs also include PPA amortisation expenditures related to Voice and Respiratory Care and Biologics. 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. 03/2024
25
20 August 2024
Note 2, continued
DKK million
Chronic Care
Voice and
Respiratory
Care
Interventional
Urology
Advanced
Wound
Dressings
Biologics
Group
2023/24
Segment revenue:
Ostomy Care
7,095
-
-
-
-
7,095
Continence Care
6,294
-
-
-
-
6,294
Voice and Respiratory Care
-
1,571
-
-
-
1,571
Interventional Urology
-
-
2,094
-
-
2,094
Advanced Wound Care
-
-
-
2,293
730
3,023
External revenue as per the
statement of comprehensive
income
13,389
1,571
2,094
2,293
730
20,077
Costs allocated to segment
-5,607
-1,017
-1,353
-1,404
-653
-10,034
Segment operating profit/loss
7,782
554
741
889
77
10,043
Shared/non-allocated
-4,560
Special items not included in segment operating profit/loss (see note 3)
-70
Operating profit before tax (EBIT) as per the statement of comprehensive income
5,413
Net financials
-621
Tax on profit/loss for the period
-1,054
Profit/loss for the period as per the statement of comprehensive income
3,738
DKK million
Chronic Care
Voice and
Respiratory
Care
Interventional
Urology
Advanced
Wound
Dressings
Biologics
Group
2022/23
Segment revenue:
Ostomy Care
6,724
-
-
-
-
6,724
Continence Care
5,944
-
-
-
-
5,944
Voice and Respiratory Care
-
1,450
-
-
-
1,450
Interventional Urology
-
-
2,031
-
-
2,031
Advanced Wound Care
-
-
-
2,125
-
2,125
External revenue as per the
statement of comprehensive
income
12,668
1,450
2,031
2,125
-
18,274
Costs allocated to segment
-5,361
-961
-1,316
-1,323
-
-8,961
Segment operating profit/loss
7,307
489
715
802
-
9,313
Shared/non-allocated
-4,182
Special items not included in segment operating profit/loss (see note 3)
-5
Operating profit before tax (EBIT) as per the statement of comprehensive income
5,126
Net financials
-628
Tax on profit/loss for the period
-944
Profit/loss for the period as per the statement of comprehensive income
3,554
Announcement no. 03/2024
26
20 August 2024
Note 3
Special items
DKK million
2023/24
2022/23
Provisions for litigation about transvaginal surgical mesh products
-
200
Reversal of provision related to business combinations
-
-244
Expenses related to business combinations
70
49
Total
70
5
Special items contains expenses related to integration costs for the Atos Medical acquisition.
Last year special items contained DKK 200 million further and final provision related to the MDL lawsuits in the US alleging injury
from the use of transvaginal surgical mesh products. See note 5 of the financial statements for more information. Furthermore,
special items contained an income of DKK 244 million related to Atos Medical US billing compliance. The exposure and related
provision had been reassessed and the provision at 30 June 2023 was reduced to DKK 90 million.
Note 4
Financial income and expenses
DKK million
2023/24
2022/23
Financial income
Interest income
71
26
Fair value adjustments of forward contracts transferred from other comprehensive income
14
-
Interest hedges
56
56
Hyperinflationary adjustment of monetary position
10
25
Other financial income
1
3
Total
152
110
Financial expenses
Interest expenses
215
119
Interest expenses, lease liabilities
24
18
Interest expenses, bonds
363
314
Fair value adjustments of forward contracts transferred from other comprehensive income
-
4
Fair value adjustments of cash-based share options
1
1
Net exchange adjustments
109
223
Other financial expenses and fees
61
59
Total
773
738
Announcement no. 03/2024
27
20 August 2024
Note 5
Bonds
Bonds
Coloplast has outstanding senior unsecured notes in an aggregate principal amount of EUR 1.5 billion under the Coloplast Euro
Medium Term Note programme. The Notes are unconditionally and irrevocably guaranteed by Coloplast. COLOCB2 and
COLOCB3 carries a fixed coupon until expiry date.
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 in 2021/22 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
Coupon
COLOCB2
EUR
850
19-05-2027
2.25
COLOCB3
EUR
700
19-05-2030
2.75
COLOCB1 was repaid as per 19-05-2024.
Note 6
Specifications of cash flow from operating activities
DKK million
2023/24
2022/23
Net gain/loss on divestment of non-current assets
-2
1
Change in other provisions
-95
-210
Other non-cash operating items
56
43
Adjustment for other non-cash operating items
-41
-166
Inventories
-251
-504
Trade receivables
-576
-335
Other receivables, including amounts held in escrow
-5
-21
Trade and other payables etc.
-424
-454
Changes in working capital
-1,256
-1,314
Announcement no. 03/2024
28
20 August 2024
Note 7
Cash and cash equivalents
DKK million
2024
2023
Bank deposits, short term
887
855
Cash and cash equivalents at 30 June
887
855
Note 8
Contingent liabilities
The Coloplast Group is a party to a few minor legal proceedings, which are not expected to influence the Group’s future
earnings.
Note 9
Acquisitions
On 31 August 2023 Coloplast acquired all shares and voting rights of Kerecis hf. and its subsidiaries at a cash consideration of
DKK 7,923 million. At the end of 2022/23, the initial accounting for goodwill, intellectual property rights, other intangible assets
and deferred tax assets and liabilities remained provisional. The consideration based on the performance of Kerecis in 2023/24
was assessed at a very high level in the purchase price allocation. During 2023/24, the assumptions were reassessed, and a
reduction of the consideration was recognized at a value of DKK 523 million. The reduction was offset by a corresponding
amount to goodwill.
For further information regarding the acquisition and the provisional purchase price allocation please refer to the note 32 in the
Annual Report for 2022/23.
Announcement no. 03/2024
29
20 August 2024
Income statement, quarterly
Unaudited
Consolidated
2023/24
2022/23
DKK million
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Revenue
6,885
6,586
6,606
6,226
6,108
6,061
6,105
Production costs
-2,237
-2,109
-2,102
-2,094
-2,085
-2,034
-1,959
Gross profit
4,648
4,477
4,504
4,132
4,023
4,027
4,146
Distribution costs
-2,251
-2,152
-2,130
-1,905
-1,866
-1,882
-1,865
Administrative expenses
-300
-324
-335
-279
-262
-277
-297
Research and development costs
-240
-221
-233
-231
-216
-209
-216
Other operating income
17
18
21
17
13
17
9
Other operating expenses
-4
-7
-5
-20
-6
-5
-3
Operating profit (EBIT) before special items
1,870
1,791
1,822
1,714
1,686
1,671
1,774
Special items
-36
-19
-15
-69
28
-20
-13
Operating profit (EBIT)
1,834
1,772
1,807
1,645
1,714
1,651
1,761
Financial income
34
36
82
81
37
42
31
Financial expenses
-237
-201
-335
-199
-141
-232
-365
Profit before tax
1,631
1,607
1,554
1,527
1,610
1,461
1,427
Tax on profit for the period
-357
-355
-342
-298
-338
-306
-300
Net profit for the period
1,274
1,252
1,212
1,229
1,272
1,155
1,127
DKK
Earnings per share (EPS) before special items
5.79
5.63
5.45
5.72
5.88
5.51
5.36
Earnings per share (EPS)
5.66
5.57
5.39
5.47
5.99
5.44
5.31
Earnings per share (EPS) before special items, diluted
5.79
5.63
5.45
5.72
5.88
5.51
5.35
Earnings per share (EPS), diluted
5.66
5.57
5.39
5.47
5.98
5.44
5.31
Announcement no. 03/2024
30
20 August 2024
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
Vice President, 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
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
The Coloplast logo is a
registered trademark of
Coloplast A/S. © 2024-08
All rights reserved Coloplast A/S,
3050 Humlebaek, Denmark.