XCSE:COLO-B ESEF Annual Report
COLOPLAST A/S (XCSE:COLO-B)
ESEF Annual Report
2023-05-16
For: 2023-03-31
View Original
Added on
September 23, 2026
Announcement no. 02/2023
11 May 2023
1
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
H1 2022/23
Interim financial results, H1 2022/23
1 October 2022 - 31 March 2023
Coloplast delivered Q2 organic growth of 8% and 28% EBIT margin
1)
. Reported revenue in DKK was up by 10%.
• Organic growth rates by business area: Ostomy Care 6%, Continence Care 6%, Voice and Respiratory Care 9% (2 months),
Wound and Skin Care 13% (Wound Care 12%), and Interventional Urology 17%.
• Solid Q2 for Chronic Care with continued good momentum across regions ex. China, which detracted from growth in
Ostomy Care due to COVID-19. Towards the end of Q2, hospital access in China significantly improved, positively impacting
procedural volumes. Growth in Continence Care continued to be impacted by backorders in Collecting Devices.
• Voice and Respiratory Care growth was driven by solid momentum in both the laryngectomy and tracheostomy businesses.
• Strong quarter in Wound Care, driven mainly by solid momentum in Europe, including benefit from a low baseline.
• Continued strong momentum in Interventional Urology with broad-based growth, led by the US Men’s Health business.
• EBIT
1)
was DKK 1,671 million, a 1% decrease from last year. The EBIT margin
1,2)
was 28% against 31% last year, reflecting
inflationary headwind on input costs, an increase in operating expenses due to increased commercial activity levels, and DKK
53 million in amortisation costs related to the Atos Medical acquisition. Impact from currencies in the quarter was neutral.
H1 2022/23 organic growth of 8% and 28% EBIT margin
1)
. Reported revenue in DKK was up 14% to DKK 12,166 million.
• Organic growth rates by business area: Ostomy Care 7%, Continence Care 6%, Wound and Skin Care 7% (Wound Care 4%),
and Interventional Urology 14%. Voice and Respiratory Care contributed 6%-points to the reported growth (4 months).
• EBIT
1)
was DKK 3,445 million, up 3% from last year. The EBIT margin
1,2)
was 28% against 31% last year, reflecting
inflationary headwind on input costs, an increase in operating expenses, impacted by increased commercial activity levels,
and DKK 107 million in amortisation costs related to the Atos Medical acquisition.
• ROIC after tax before special items was 19% against 25% last year, negatively impacted by the Atos Medical acquisition.
• Free cash flow was DKK 795 million, a 13% decrease from last year (ex. acquisitions), impacted by a decline in cash flow
from operating activities mainly due to an increase in net working capital and higher income tax paid.
• The Board of Directors has resolved that the company will pay a half-year interim dividend of DKK 5.00 per share, for a total
dividend pay-out of DKK 1,062 million.
FY 2022/23 financial guidance –
organic revenue growth is now expected around 8% in constant exchange rates, from 7-
8% previously. Reported growth in DKK is now expected to be 8-9%, from previously 9-10%, due to negative impact from
currencies. Consequently, the reported EBIT margin
1)
is now expected in the 28-29% range, from previously 28-30%.
• Reported revenue growth assumes around 2%-points negative impact from currencies, from previously negative 1%-point.
• The reported EBIT margin guidance continues to assume impact from increasing input costs, especially raw materials and
electricity in Hungary, partly offset by leverage, price increases, efficiency gains, and prudent management of operating cost.
• 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 Q2 with 8% organic growth and an EBIT margin of 28%, which is in line with our financial guidance. I am
pleased to see strong growth momentum across all our business areas and regions excluding our Chinese business. China
continued to be impacted by COVID-19, however, the positive developments in hospital access and patient inflow at the end of
Q2 make me optimistic about our long-term growth prospects. Finally, the launch of our new male intermittent catheter, Luja™,
is progressing well. The results of the first pivotal clinical study have been published, showing a significant improvement in
bladder emptying compared to a competitor catheter. Luja has been launched in four markets with positive feedback and the
product is expected to be available in all our key markets over the next 9 months.” says President and CEO Kristian Villumsen.
1)
before special items of DKK 20 million in Q2 2022/23; DKK 33 million in H1 2022/23; around DKK 50 million expected for FY 2022/23, related to Atos Medical integration cost
2)
before special items of DKK 381 million in Q2 2021/22 and DKK 415 million in H1 2021/22
Luja is a medical device for which CE-mark has been affixed. Product availability is subject to regulatory process of individual countries and is not guaranteed.
Company reg. (CVR)
no. 69749917
Conference call
Coloplast will host a conference call on Thursday, 11 May 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: H1 22/23 conference call
Announcement no. 02/2023
11 May 2023
2
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Financial highlights and key ratios
1 October 2022 – 31 March 2023, unaudited
Consolidated
2022/23 2021/22
2022/23 2021/22
6 mths 6 mths Change Q2 Q2 Change
Income statement, DKK million
Revenue
12,166
10,671
14% 6,061 5,502
10%
Research and development costs
-425
-427
0% -209 -222
-6%
Operating profit before interest, tax, depr. and amort. (EBITDA)
before special items
3,974
3,746
6% 1,939 1,922
1%
Operating profit before interest, taxes and amortization (EBITA)
before special items
3,612
3,422
6% 1,755 1,752
0%
Operating profit (EBIT) before special items
3,445
3,335
3% 1,671 1,686
-1%
Special items
-33
-415
N/A -20 -381
N/A
Operating profit (EBIT)
3,412
2,920
17% 1,651 1,305
27%
Net financial income and expenses
-524
-76
N/A -190 -18
N/A
Profit before tax
2,888
2,844
2% 1,461 1,287
14%
Net profit for the period
2,282
2,187
4% 1,155 980
18%
Revenue growth, %
Period growth in revenue, %
14
12
10 16
Growth break down:
Organic growth, %
8
6
8 7
Currency effect, %
0
3
-1 3
Acquired operations, %
6
3
3 6
Balance sheet, DKK million
Total assets
35,302
35,170
0% 35,302 35,170
0%
Capital invested
29,337
28,916
1% 29,337 28,916
1%
Net interest
-bearing debt (NIBD) 21,007
20,347
3% 21,007 20,347
3%
Equity end of period
7,034
7,273
-3% 7,034 7,273
-3%
Cash flow and investments, DKK million
Cash flows from
operating activities 1,176
1,381
-15% 689 250
N/A
Cash flows from investing activities
-381
-11,096
-97% -106 -10,895
-99%
Investments in property, plant and equipment, gross
-432
-409
6% -234 -234
0%
Free cash flow
795
-9,715
N/A 583 -10,645
N/A
Cash flows from financing activities
-549
9,771
N/A -623 10,516
N/A
Key ratios
Average number of employees, FTEs¹
⁾ 14,772
14,885 13,584
Operating margin (EBIT margin)
before special items, % 28
31
28 31
Operating margin (EBIT margin), %
28
27
27 24
Operating margin before interest, tax, depr. and amort., (EBITDA
margin), %
32
31
32 28
Gearing ratio,
NIBD/EBITDA before special items 2.6
2.7
2.7 2.6
Return on average invested capital before tax (ROIC), %²
⁾ 24
32
23 33
Return on average invested capital after tax (ROIC), %²
⁾ 19
25
18 25
Return on
equity, % 67
62
71 57
Equity ratio, %
20
21
20 21
Net asset value per outstanding share, DKK
33
34
-3% 33 34
-3%
Share data
Share price, DKK
902
1,025
-12% 902 1,025
-12%
Share
price/net asset value per share 27.2
29.9
-9% 27.2 29.9
-9%
Average number of outstanding shares, millions
212.4
212.7
0% 212.4 212.6
0%
PE, price/earnings ratio
41.9
49.8
-16% 41.4 55.6
-26%
Earnings per share (EPS), diluted
10.75
10.26
5% 5.44 4.60
18%
Earnings per share (EPS) before special items, diluted
10.86
11.77
-8% 5.51 5.99
-8%
Free cash flow per share
3.7
-45.7
N/A 2.7 -50.1
N/A
1
⁾ 2021/22 figures includes Atos Medical employees at the end of the period. Number of FTEs at the end of March 2023 was 14,973, compared to 14,286 FTEs at the end of March 2022.
²⁾ Before special items. After special items, ROIC before tax was 24% (2021/22: 29%), and ROIC after tax was 23% (2021/22: 22%).
Announcement no. 02/2023
11 May 2023
3
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Update on strategic priorities
In September 2020, Coloplast presented the new strategy “Strive25 – Sustainable Growth Leadership”. Below are key highlights
on the progress made during the first half of the financial year 2022/23.
Growth
US Chronic Care
Strong performance in the US Ostomy Care business,
where Coloplast continues to advance its competitive
position. Premier Inc., the second largest GPO in the US,
has renewed Coloplast’s group purchasing agreement. The
contract, which is multi-source and effective for three
years, took effect on April 1, 2023.
China reopening
Coloplast is closely monitoring the market development in
China, following the lifting of the COVID-19 restrictions,
and views the reopening as encouraging for the business
on a mid- to long-term horizon.
China remains a key strategic market for Coloplast and an
important contributor to Coloplast’s organic growth
ambition in the Strive25 period.
Sustainability
Improving products and packaging
Production waste recycling was 74% in H1 2022/23, up
10%-p from H1 2021/22. The solid progress reflects a
continued scale up of the recycling partnership in Hungary.
Reducing emissions
Scope 1 and 2 emissions were reduced by 15% in H1
2022/23, compared to the base year 2018/19, positively
impacted by the installation of electric heat pumps and
electric equipment at our production sites in Hungary and
China in an effort to phase out natural gas.
Responsible operations – employee engagement
Coloplast continues to uphold a high employee
engagement score of 8.1 in the bi-annual employee survey,
ahead of the healthcare industry benchmark of 7.6.
Innovation
Chronic Care – Clinical Performance Programme
Launch of Luja™, the new male intermittent catheter with
a Micro-hole Zone Technology, is progressing well. Luja
has been launched in four markets, with positive initial
feedback. The product is expected to be available in key
markets over the next 9 months.
The results of the first pivotal clinical study have been
published, showing a significant improvement in bladder
emptying with Luja, compared to competitor catheter.
Heylo™, the new digital leakage platform, is in pilot launch
in Germany and the UK and has been well-received by
users. The clinical studies are on track and the product is
expected to launch in 2023.
Operational efficiency
Global Operations Plan 5 – Automation programme
Due to delays caused by longer component lead times, the
timeline of the GOP5 automation programme is now
extended into Q1 2023/24, from previously end of FY
2022/23. The ambition to release around 1,000 FTEs is
unchanged.
Global Business Support and IT landscape
Positive scale effect driven by further utilization of the
Coloplast Business Centre and IT infrastructure.
The integration of Atos Medical IT and finance
infrastructure is progressing well, and the IT infrastructure
integration will be finalized in May. Coloplast remains on
track to deliver estimated run-rate operational synergies of
up to DKK 100 million, with full impact from FY 2023/24.
Announcement no. 02/2023
11 May 2023
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Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Sales performance
The organic growth was 8% in the first six months of 2022/23. Reported revenue in DKK was up by 14% to DKK 12,166 million,
with limited contribution from exchange rate developments. Revenue from acquisitions contributed 6%-points to reported
growth (4 months impact), as a result of the acquisition of Atos Medical in the second quarter of 2021/22.
Organic growth in the second quarter was 8%. Reported revenue in DKK was up by 10% to DKK 6,061 million. Exchange rate
developments decreased revenue by 1%, mainly related to depreciation of the GBP and several emerging markets currencies
against DKK. Revenue from acquisitions contributed 3%-points to reported growth.
Sales performance by business areas
DKK million Growth composition (6 mths)
2022/23
(6 mths)
2021/22
(6 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
Ostomy Care
4,478 4,207 7% - -1% 6%
Continence Care
3,951 3,721 6% 0% 0% 6%
Voice and Respiratory Care
959 298 9% 212% 1% 222%
Wound and Skin Care
1,425 1,306 7% - 2% 9%
Interventional Urology
1,353 1,139 14% - 5% 19%
Revenue
12,166 10,671 8% 6% 0% 14%
DKK million Growth composition (Q2)
2022/23
(Q2)
2021/22
(Q2)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
Ostomy Care
2,204 2,109 6% - -1% 5%
Continence Care
1,964 1,877 6% 0% -1% 5%
Voice and Respiratory Care
479 298 9% 51% 1% 61%
Wound and Skin Care
747 658 13% - 1% 14%
Interventional Urology
667 560 17% - 2% 19%
Revenue
6,061 5,502 8% 3% -1% 10%
Sales performance by region
DKK million Growth composition (6 mths)
2022/23
(6 mths)
2021/22
(6 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
European markets
6,878
6,139
6% 8% -2% 12%
Other developed markets
3,187
2,610
11% 5% 6% 22%
Emerging markets
2,101
1,922
9% 1% -1% 9%
Revenue
12,166
10,671
8% 6% 0% 14%
DKK million Growth composition (Q2)
2022/23
(Q2)
2021/22
(Q2)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
European markets
3,444
3,180
6% 4% -2% 8%
Other developed markets
1,553
1,325
13% 2% 2% 17%
Emerging markets
1,064
997
9% 1% -3% 7%
Revenue
6,061
5,502
8% 3% -1% 10%
Announcement no. 02/2023
11 May 2023
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Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Ostomy Care
Ostomy Care generated 7% organic
sales growth for the first six months of
2022/23, with reported revenue in DKK
growing by 6% to DKK 4,478 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 and Europe, in particular
Germany, and broad-based contribution
from Emerging markets ex. China.
From a geographical perspective,
growth was broad-based across
geographies with solid contributions
from Europe, especially the UK and
Germany, the US, and Emerging
markets ex. China, led by LATAM.
China detracted from growth in the first
six months of 2022/23, as expected,
negatively impacted by COVID-19
restrictions and the impact that the
lifting of the restrictions has had on the
healthcare system.
Q2 organic growth was 6% and
reported revenue in DKK increased by
5% to DKK 2,204 million.
The SenSura Mio portfolio was the main
contributor to growth. The Brava range
of supporting products also contributed
to growth in the quarter. At the product
level, SenSura Mio Convex was the main
contributor to growth driven by Europe,
most notably the UK and Germany, as
well as 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.
Revenue growth in the Brava range of
supporting products was driven by
Europe and the US, as well as Emerging
markets ex. China.
From a geographical perspective, all
regions contributed to growth, led by
Europe, especially the UK and Germany,
and the US. Growth in the Emerging
markets region was led by LATAM.
Sales in China declined, negatively
impacted by COVID-19. The lifting of
the COVID-19 restrictions resulted in a
challenging operating environment
during the quarter, with limited hospital
access negatively impacting procedural
volumes. However, hospital access
significantly improved towards the end
of the quarter, approaching pre-COVID
levels. Consequently, procedural
volumes rebounded, positively
impacting inflow of new patients.
The average value per patient remains
below pre-COVID levels as a result of
continued economic uncertainty,
negatively impacting consumer
sentiment.
2.2 billion
Reported revenue
in DKK for Q2
2022/23
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
7%
6%
H1 22/23 Q2 22/23
6%
5%
H1 22/23 Q2 22/23
7%
-1%
6%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2023
11 May 2023
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Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Continence Care
Continence Care generated 6% organic
sales growth for the first six months of
2022/23, with reported revenue in DKK
growing by 6% to DKK 3,951 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.
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 performed well and
made a solid growth contribution, driven
by the US and Europe. Peristeen Plus,
the newest addition to the portfolio, has
replaced Peristeen as the standard of
care in the 20 markets where the
product has been launched.
Collecting Devices detracted from
growth in the first six months of
2022/23, negatively impacted by
backorders on Conveen® urisheaths.
From a geographical perspective,
growth was driven by the US and
Europe, in particular the UK and
Germany. 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.
Q2 organic growth was 6% and
reported revenue in DKK increased by
5% to DKK 1,964 million.
Sales growth in Q2 was driven by solid
performance across the SpeediCath
portfolio, and more specifically compact,
standard, and flexible catheters.
Bowel Management also contributed to
growth, led by solid growth in the US.
Performance in Collecting Devices
continued to be negatively impacted by
backorders. The backorder situation on
Conveen urisheaths is now resolved,
and production will be back to full
capacity in Q3.
From a geographical perspective, all
regions contributed to growth, led by
the US, Europe, in particular the UK and
Germany, and LATAM.
2.0 billion
Reported revenue
in DKK for Q2
2022/23
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
6%
6%
H1 22/23 Q2 22/23
6%
5%
H1 22/23 Q2 22/23
6%
0%
6%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2023
11 May 2023
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Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Voice and Respiratory
Care
February 1, 2023, marked the one-year
anniversary of the completion of the
Atos Medical acquisition. The business
has continued to perform in line with
expectations, and the integration of
Atos Medical into Coloplast is
progressing well and on track to plan.
Voice and Respiratory Care delivered
reported revenue of DKK 959 million in
the first six months of 2022/23. The
Voice and Respiratory Care acquired
growth contribution to Group reported
growth was 6%-points (4 months
impact). The organic growth in the
period was high single-digit, in line with
expectations, with solid contribution
from both Laryngectomy and
Tracheostomy.
Laryngectomy delivered high single-digit
organic growth. Growth 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 15 markets.
The Provox Life portfolio is designed to
optimise patient’s breathing ability under
different circumstances, further enabling
24/7 use of Heat and Moisture
Exchangers (HMEs) for improved
pulmonary health.
Tracheostomy and ENT (Ear, Nose and
Throat) posted high single-digit organic
growth, driven by solid demand and
positive impact from forward integration
in key European markets.
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.
In Q2, Voice & Respiratory Care
became part of the Group organic
growth and generated 9% organic sales
growth. Reported revenue in Q2
amounted to DKK 479 million. Growth
in the quarter was driven by solid
momentum in both Laryngectomy and
Tracheostomy.
Growth in Laryngectomy was high
single-digit and continued to be 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 and ENT delivered
double-digit growth, with continued solid
demand and positive impact from
forward integration in key European
markets.
From a geographical perspective, all
regions continued to contribute to
growth, driven by the biggest region
Europe, as well as solid contribution
from Other developed markets, most
notably the US. Emerging markets
continued to be the fastest growing
region. Poland made a solid growth
contribution as a result of a newly
introduced reimbursement scheme for
HMEs. The new reimbursement scheme
in Poland follows a 4-years long market
access project aimed at raising the
standard of care for laryngectomy
patients.
In April, Atos Medical announced the
results of a new clinical study
demonstrating significant improvement
in pulmonary health and related
symptoms when using Provox Life. The
study adds to a growing body of
evidence which shows that the superior
humidification and breathability of
Provox Life HMEs lead to improved
clinical outcomes.
0.5 billion
Reported revenue
in DKK for Q2
2022/23
Organic growth
Acquired growth
impact
9%
9%
H1 22/23 Q2 22/23
6%
3%
H1 22/23 Q2 22/23
Announcement no. 02/2023
11 May 2023
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Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Wound and Skin Care
Wound and Skin Care generated 7%
organic sales growth in the first six
months of 2022/23, with reported
revenue in DKK growing by 9% to DKK
1,425 million.
The wound care business in isolation
delivered 4% organic growth in the first
six months of 2022/23. Performance in
the period was negatively impacted by
backorders, as expected.
The Biatain® Silicone portfolio was the
main contributor to growth. Biatain
Fiber continues to perform well and also
contributed to growth.
From a geographical perspective,
Europe was the main growth
contributor, led by Germany. The US
and Emerging markets, led by LATAM,
also contributed to growth.
Growth in China was flat in the first six
months of 2022/23, negatively
impacted by COVID-19 restrictions and
the impact that the lifting of the
restrictions has had on the healthcare
system.
The Compeed contract manufacturing
business made a strong contribution to
growth and grew double-digit.
The skin care business, which is mostly a
US hospital business, delivered flat
growth in the first six months, impacted
by hospital staff turnover, which has led
to reduced awareness and demand for
skin care treatment solutions.
Q2 organic growth for Wound & Skin
Care was 13%, while reported revenue
in DKK increased by 14% to DKK 747
million.
The wound care business delivered 12%
organic growth in Q2. Backorders
continued to hamper growth, as
expected. The backorder situation has
been resolved, and production will
gradually ramp up to full capacity in the
second half of 2022/23.
Europe was the main growth
contributor, driven mostly by solid
performance of the Biatain Silicone
portfolio in Germany, France and the
UK. Performance in Europe in the
quarter also benefitted from a low
baseline last year.
China returned to growth in the quarter
driven by significantly improved hospital
access, which led to an increase in
procedural volumes and demand for
wound care products towards the end
of the quarter.
The Compeed contract manufacturing
business contributed significantly to
growth, reflecting a healthy consumer
demand.
The Skin Care business was back to
growth, impacted by a lower baseline in
Q2 last year.
0.7 billion
Reported revenue
in DKK for Q2
2022/23
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
7%
13%
H1 22/23 Q2 22/23
9%
14%
H1 22/23 Q2 22/23
7%
2%
9%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2023
11 May 2023
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Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Interventional Urology
Interventional Urology generated 14%
organic sales growth in the first six
months of the 2022/23 financial year,
with reported revenue in DKK growing
by 19% to DKK 1,353 million.
Growth was broad-based 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
US was the main growth contributor,
followed by 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.
Q2 organic growth was 17% and
reported revenue in DKK increased by
19% to DKK 667 million.
Revenue growth in the second quarter
was driven by continued strong
momentum across business areas and
geographies, as well as positive impact
from a lower baseline in the US last year
due to COVID-19.
The US Men’s Health business was the
main growth contributor, driven by the
Titan penile implants. The Endourology
portfolio in Europe and the Women’s
Health in the US also contributed nicely
to growth.
From a geographical perspective,
growth in the quarter was driven by the
US and Europe, most notably France.
0.7 billion
Reported revenue
in DKK for Q2
2022/23
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
14%
17%
H1 22/23 Q2 22/23
19% 19%
H1 22/23 Q2 22/23
14%
5%
19%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2023
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Interventional Urology
Voice & Respiratory Care
Earnings
Gross profit
Gross profit was DKK 8,173 million
compared to DKK 7,311 million last year
and equivalent to a gross margin of
67%, compared to 69% last year. The
gross margin was negatively impacted
by raw material price increases, higher
energy and transportation costs,
double-digit wage inflation in Hungary,
as well as ramp-up costs in Costa Rica.
The above-mentioned negative drivers
were only partly offset by positive
contribution from the inclusion of Atos
Medical, price increases, country and
product mix, as well as operating
leverage and efficiency savings from the
Global Operations Plan 5. Coloplast
continues to have a strong focus on
offsetting the inflationary pressure, with
80+ pricing projects ongoing across
regions and business areas.
The gross margin included positive
contribution from currencies, mainly
related to appreciation of the USD
against DKK, partly offset by
depreciation of the GBP against DKK.
The depreciation of the HUF against
DKK also contributed positively. Around
80% of the company’s production
volumes are in Hungary.
In Q2, gross profit was DKK 4,027
million, corresponding to a Q2 gross
margin of 66% against 69% in Q2 last
year. The Q2 margin was impacted by
the above-mentioned drivers.
Contribution from currencies in the
quarter was limited, impacted by less
favourable development in the USD and
HUF against DKK. Energy costs in the
quarter posed significant headwind, as a
result of higher electricity price levels in
Hungary obtained through hedges,
which took effect in January 2023.
Cost related to backorder resolution
also posed a headwind to the gross
margin in the quarter.
Costs
Operating expenses in the first half of
the year amounted to DKK 4,728
million. Excluding impact from inorganic
operating expenses from the Atos
Medical acquisition (4 months),
operating expenses increased 9% (DKK
368 million) from last year, as expected.
Operating costs for the full year are still
expected to grow below reported
revenue in DKK (ex. acquired growth).
The increase in operating expenses
including inorganic impact from Atos
Medical was 19%.
Atos Medical contributed with DKK 570
million to operating expenses in the first
six months, of which around DKK 107
million were amortisation costs.
Distribution costs amounted to DKK
3,747 million, a DKK 635 million (20%)
increase from DKK 3,112 million last
year and were impacted by the inclusion
of Atos Medical. Distribution costs
amounted to 31% of revenue compared
to 29% last year, reflecting increased
sales and marketing activities, as well as
travel, post COVID-19. 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.
In Q2, distribution costs amounted to
DKK 1,882 million, equal to 31% of
revenue against 29% in the same period
last year.
Administrative expenses in H1
amounted to DKK 574 million, up DKK
115 million (25%) from DKK 459 million
last year, primarily impacted by the
inclusion of Atos Medical. Administrative
expenses accounted for 5% of revenue
against 4% in the same period last year.
The Q2 administrative expenses
amounted to 5% of revenue, on par
with last year.
Income statement, DKK million
2022/23 Index
Revenue
12,166
114
Production costs
-3,993 119
Gross
profit 8,173 112
Distribution costs
-3,747 120
Administrative expenses
-574 125
Research and development costs
-425 100
Other operating income
26 90
Other operating expenses
-8 114
Operating profit (EBIT) before special items
3,445 103
Special items
-33 N/A
Operating profit (EBIT)
3,412 117
Financial income
73 106
Financial expenses
-597 412
Profit before tax
2,888 102
Tax on profit for the period
-606 92
Net profit for the period
2,282 104
Announcement no. 02/2023
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The R&D costs in H1 were DKK 425
million, on par with last year’s R&D
costs of DKK 427 million. R&D costs
amounted to 3% of revenue, compared
to 4% last year, impacted by phasing.
The Q2 R&D costs amounted to DKK
209 million or 3% of revenue, compared
to 4% last year.
Other operating income and other
operating expenses amounted to a net
income of DKK 18 million, against DKK
22 million last year.
Operating profit before interest, tax,
depreciation and amortisation
(EBITDA) before special items
EBITDA before special items amounted
to DKK 3,974 million in H1, a DKK 228
million (6%) increase from DKK 3,746
million last year. The EBITDA margin
before special items was 33% compared
to 35% last year.
In Q2, EBITDA before special items was
DKK 1,939 million, a DKK 17 million
(1%) increase from the same period last
year. The EBITDA margin before special
items was 32% in Q2, against 35% last
year.
Operating profit (EBIT) before special
items
EBIT before special items amounted to
DKK 3,445 million in H1, a DKK 110
million (3%) increase from DKK 3,335
million last year. The EBIT margin
before special items was 28% compared
to 31% last year. The EBIT margin was
negatively impacted by the inflationary
headwinds on production costs and the
increase in operating expenses, mainly
distribution costs, which among other
include DKK 107 million in amortisation
costs related to the Atos Medical
acquisition. The EBIT margin includes a
positive impact from currencies, mainly
related to the appreciation of the USD
against DKK.
In Q2, EBIT before special items was
DKK 1,671 million, a DKK 15 million
(1%) decrease from the same period
last year. The EBIT margin before
special items was 28% in Q2, against
31% last year. The EBIT margin in the
quarter was impacted by the
aforementioned headwinds on
production costs and increase in
operating expenses, mainly distribution
costs.
Special items
During H1, Coloplast incurred special
items expenses of DKK 33 million
related to integration costs for the Atos
Medical acquisition, of which DKK 20
million in the second quarter.
Operating profit (EBIT) after special
items
EBIT after special items was DKK 3,412
million. The EBIT margin after special
items was 28%.
The Q2 EBIT after special items was
DKK 1,651 million, with an EBIT margin
of 27%.
Financial items and tax
Financial items were a net expense of
DKK 524 million against a net expense
of DKK 76 million last year, mostly
driven by non-cash effect from
currencies, while the cash impact
amounted to DKK 143 million.
The net expense was impacted by net
losses on balance sheet items of DKK
227 million, mostly driven by the USD.
Interest expenses were DKK 269 million
compared to DKK 19 million last year,
due to the financing of the Atos Medical
acquisition. Losses on currency hedges
of DKK 31 million, mainly due to the
USD, and fees of DKK 56 million also
contributed to the net expense. The
financial expenses were only partly
offset by financial income, mostly driven
by interest hedges of DKK 37 million.
The Q2 financial items were a net
expense of DKK 190 million, compared
to a net expense of DKK 18 million in
the same period last year, driven by the
financing of Atos Medical and net losses
on balance sheet items, as explained
above.
The blended interest rate for the debt
financing of Atos Medical is now
expected to be around 2.9% in FY
2022/23, from 2.6%, impacted by the
adjustment of the variable interest rate
on the 2-year bond issue.
The tax rate was 21%, compared to
23% last year, positively impacted by
the transfer of Atos Medical IP. The tax
expense amounted to DKK 606 million
against DKK 657 million last year.
Net profit
Net profit before special items was DKK
2,308 million, a DKK 202 million
decrease from DKK 2,510 million last
year. Diluted earnings per share (EPS)
before special items decreased by 8%
from DKK 11.77 last year to DKK 10.86.
The decrease was a result of a lower
net profit compared to last year due to
increased financial expenses, driven
mostly by non-cash effect from
currency and interest expenses related
to the financing of the Atos Medical
acquisition.
Net profit after special items was DKK
2,282 million and diluted earnings per
share (EPS) after special items were
DKK 10.75.
The Q2 net profit before special items
amounted to DKK 1,171 million, against
DKK 1,276 million last year. The diluted
Q2 earnings per share (EPS) were down
8% from last year to DKK 5.51.
The Q2 net profit after special items was
DKK 1,155 million and diluted earnings
per share (EPS) after special items were
DKK 5.44.
Announcement no. 02/2023
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Voice & Respiratory Care
Cash flows and
investments
Cash flows from operating activities
Cash flows from operating activities
amounted to DKK 1,176 million, against
DKK 1,381 million last year. The decline
in cash flows from operating activities
was driven by higher income tax paid, as
well as an increase in working capital,
mainly due to an increase in inventory, as
well as trade receivables. 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.
Investments
Investments amounted to a total cash
outflow of DKK 381 million in the first six
months of 2022/23, or around 3% of
revenue, against and outflow of DKK
11,096 million in the same period last
year, impacted by the acquisition of
Atos Medical. Capex in the first six
months of 2022/23 amounted to DKK
566 million, or around 5% of revenues,
compared to capex of DKK 470 million
last year, or around 4% of revenues.
Free cash flow
As a result, the free cash flow was an
inflow of DKK 795 million compared to
an outflow of DKK 9,715 million in the
same period last year. Adjusted for
acquisitions last year, the free cash flow
decreased by DKK 123 million (13%)
from DKK 918 million in H1 2021/22.
Capital resources
At 31 March 2023, Coloplast had net
interest-bearing debt, including
securities, of DKK 21,007 million,
against DKK 18,091 million at 30
September 2022. The increase in net
interest-bearing debt was mainly due to
the payment of dividend in December
2022. The gearing ratio at the end of
the period was 2.6x EBITDA (before
special items). The gearing ratio for the
year is expected around 2x EBITDA
(before special items).
Statement of financial
position and equity
Balance sheet
At 31 March 2023, total assets
amounted to DKK 35,302 million, an
increase of DKK 346 million compared
to 30 September 2022.
Working capital was 26% of revenue,
compared to 25% at 30 September
2022, driven mostly by an increase in
inventories, as well as a decrease in
trade payables. Inventories increased by
DKK 325 million to DKK 3,512 million,
impacted by an increase in safety stock
on raw materials, price increases, and an
increase in finished goods, as explained
above. Good development in trade
receivables, with an increase of DKK 48
million to DKK 3,988 million. Trade
payables decreased by DKK 106 million
to DKK 1,136 million, impacted by
timing. Net working capital for the year
is still expected to be around 24% of
revenue.
Equity
Equity decreased by DKK 1,258 million
compared to 30 September 2022 to
DKK 7,034 million. Total comprehensive
income for the period of DKK 1,893
million, share-based remuneration of
DKK 27 million, and net effect of sale of
treasury shares and loss of exercised
options of DKK 7 million were offset by
payment of dividends of DKK 3,185
million.
Dividends
The Board of Directors has resolved
that the company will pay a half-year
interim dividend of DKK 5.00 per share,
for a total dividend pay-out of DKK
1,062 million.
Treasury shares
At 31 March 2023, Coloplast’s holding
of treasury shares consisted of
3,588,647 B shares, which was 104,229
less than at 30 September 2022. The
decrease was due to exercise of share
options.
Return on invested capital (ROIC)
ROIC after tax before special items was
19% against 27% as of 30 September
2022. The decrease was driven by the
acquisition of Atos Medical.
Announcement no. 02/2023
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Interventional Urology
Voice & Respiratory Care
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 Q1 2022/23 was 7.6.
5)
Target validated by Science-Based Targets initiative (SBTi).
6)
Figures for H1
2022/23 includes Atos Medical
7)
Four quarters rolling average
8)
Figure has been restated due to improved data quality.
9)
Bi-annual survey result disclosed in 9M 2021/22 interim report
All numbers are excluding Atos Medical, except Lost time injury frequency and Female Senior Leaders for H1 2022/23.
Update on sustainability strategy and performance
Priority
Unit
2025 Ambition
H1
2022/23
H1
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
7)
% of total
75%
74% 64%
8)
10%-p 71%
Reducing emissions
Scope 1 and 2 emissions
7)
% reduction
100% reduction by 2030
2) 5)
15% 3% 12%-p 8%
Renewable energy use
7)
% of total
100%
76% 69%
8)
7%-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
7)
Parts per million
2.0
2.3
6)
2.3
8)
- 2.4
Code of Conduct training¹
⁾
% of white collars
100%
- - - 100%
Female senior leaders (VP+ level)¹
⁾
% of total
40% by 2030
23%
6)
20% 3%-p 21%
Diverse
teams¹⁾
% share of total teams
75%
55% 54% 1%-p 55%
Employee satisfaction
1
⁾
4
⁾
Engagement score
Above benchmark
8.1 8.2
9)
-0.1 8.2
Improving products and packaging
Production waste recycling increased to
74% in H1 2022/23 (four quarters
rolling average), compared to 64% in H1
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
76% of the total energy use in H1
2022/23
(four quarters rolling average),
compared to 69% in H1 2021/22.
The absolute scope 1 and 2 emissions
decreased by 15% in H1 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 positively impacted by
the continued efforts to phase out
natural gas at Coloplast’s
manufacturing sites in Hungary and
China.
Employee engagement survey
Coloplast’s bi-annual employee survey,
conducted in April, showed a high
employee satisfaction with an
engagement score of 8.1%. The score
lies well above the healthcare industry
benchmark and indicates that Coloplast
continues to uphold a strong employee
satisfaction across the company. In
addition, the voluntary turnover level for
H1 2022/23 remained stable and on
par with 2021/22 despite a very
dynamic labour market.
MDR – Coloplast continues to work
towards original certification plan
The European Union has adopted a
legislative amendment of the Medical
Device Regulations (MDR) to extend its
deadline. This is to allow more time to
certify medical devices under the new
framework, while securing patients’
access to medical solutions. The
amendment entails staggered deadlines
up to 2027 and 2028, dependent on
device risk classification.
Coloplast’s MDR certification activities
continue to follow the original plan,
working towards MDR readiness in
2024. Coloplast supports the MDR, as it
ensures high quality and safety
standards for medical devices on the
EU market, to the benefit of users.
Announcement no. 02/2023
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Voice & Respiratory Care
Other matters
Study shows significant improvement
in bladder emptying with Coloplast’s
Luja™ compared to competitor
catheter
Coloplast has published the results of its
first pivotal clinical study on Luja™, a
new male intermittent catheter,
designed to reduce the risk of urinary
tract infections by minimizing residual
urine and reducing bladder
microtrauma.
The study results show that Coloplast’s
new intermittent male catheter with
80+ micro-holes, Luja, achieved
complete bladder emptying in one free
flow* in 90% of catheterisations, while
Hollister’s 2-eyelet catheter, VaPro™,
achieved this in 52% of catheterisations.
All primary and secondary endpoints of
the study have been successfully met.
More specifically, the study showed:
• Catheterisation with Luja resulted
in close to zero flow-stops
compared to one flow-stop on
average with VaPro*.
• Luja achieved complete bladder
emptying* in 90% of
catheterisations, while VaPro
achieved this in 52% of
catheterisations.
• Catheterisation with Luja resulted
in a 74% less likelihood of
hematuria post-catheterisation,
compared to VaPro.
The second pivotal clinical study on Luja
has been finalized and Coloplast expects
to publish the results within the next few
months.
For more information, please see the
press release from 31 March 2023:
Study shows significant improvement in
bladder emptying with Coloplast Luja™
compared to competitor catheter
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.
Timetable for the half-year interim
dividend of DKK 5.00 per share
11 May 2023 – Declaration date
15 May 2023 – Ex-dividend date
16 May 2023 – Value date
17 May 2023 – Disbursement date
*Luja has close to zero flow stops. Complete bladder emptying is defined as <10 mL (CP353, NCT05485922). After catheterisation, both catheters emptied the bladder to low and comparable
residual volume post-catheterization levels (meaning values for both Luja and VaPro were <8 mL).
Announcement no. 02/2023
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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 the
reopening 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 the reported EBIT margin guidance
are narrowed. The underlying
assumptions laid out in November still
largely hold.
Revenue growth
Organic growth is expected around 8%
in constant currencies, from previously
7-8%, as a result of a solid growth
momentum across business areas. The
guidance assumes:
a) 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 – impact from COVID-
19 in H1 2022/23 and
expected improvement in
growth in H2 2022/23, driven
mainly by a lower baseline last
year, as well as expected
gradual improvement in inflow
of new patients, following the
improved hospital access
towards the end of Q2. The
average value per patient is
expected to remain below pre-
COVID levels, impacted by
consumer sentiment
b) Wound and Skin Care is expected
to deliver growth above the market
in line with the Strive25 ambitions.
China – impact from COVID-19 in
H1 2022/23 and expected
improvement in growth in H2
2022/23, mainly driven by a lower
baseline in 2021/22, as well as
improved hospital access and
procedural volumes.
c) Interventional Urology is expected
to deliver growth of around 10%.
d) Voice and Respiratory Care is
expected to grow at 8-10%, with 8
months impact on organic growth
e) Revenue exposure to Russia and
Ukraine is expected to be similar to
2021/22 i.e., around 1% of group
revenues, with a negative growth
contribution in FY 2022/23
f) 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.
g) A stable supply and distribution of
products across the company;
impact from backorders on
Collecting Devices in H1 2022/23
and impact from backorders in
Wound Care in the first nine months
of 2022/23
Reported growth in DKK is now
expected to be 8-9%, from previously 9-
10%. The guidance assumes negative
impact of around 2%-points due to
unfavourable development in mostly the
USD and several emerging markets
currencies against the DKK.
Contribution from the Atos Medical
acquisition to reported growth is around
3%-points (4 months impact).
2022/23
Financial
guidance
Around 8%
Organic revenue growth at
constant exchange rates
28-29%
Reported EBIT margin (before
special items)
Around 1.4 bn
Capital expenditure in DKK
Around 21%
Effective tax rate
Announcement no. 02/2023
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Interventional Urology
Voice & Respiratory Care
EBIT margin
The reported EBIT margin before
special items is now expected at 28-
29%, from previously 28-30%, and
assumes negative impact from
currencies. The remaining assumptions
are unchanged:
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. Around 60% of the
electricity consumption for H2
is hedged at around 400
EUR/MWh, and the remaining
40% will be paid at spot rates,
currently below hedged level
• 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
Special items
Around DKK 50 million in special items
expected in FY 2022/23, related to the
integration of Atos Medical.
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.
Announcement no. 02/2023
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Voice & Respiratory Care
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 6M 2021/22
883
657
2.04
Average exchange
rate 6M 2022/23
849
711
1.87
Change in average
exchange rates for
2022/23 compared
with the same
period last year
-
4%
8%
-
8%
Average exchange
rate 2021/22¹
⁾ 878
688
1.97
Spot rate on
9 May 2023
855
678
2.00
Estimated average
exchange rate
2022/23²
⁾
852
695
1.94
Change in average
exchange rates
compared with
average exchange
rate 2021/22
-
3%
1%
-
2%
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 six months combined with the spot
rates at 9 May 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),
EXCLUDING ATOS MEDICAL
Revenue EBIT
USD
-490
-220
GBP
-320
-220
HUF
- 130
Announcement no. 02/2023
11 May 2023
18
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Humlebæk, 11 May 2023
Executive Management
Board of Directors
Statement by the Board of Directors and the Executive Management
Announcement no. 02/2023
11 May 2023
19
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Statement of comprehensive income
1 October – 31 March, unaudited
Consolidated
2022/23 2021/22
2022/23 2021/22
DKK
million Note 6 mths 6 mths Index Q2
Q2
Index
Revenue
2 12,166 10,671 114
110
Production costs
-3,993 -3,360 119
-2,034
-1,721
118
Gross profit
107
Distribution costs
-3,747 -3,112 120
-1,882
-1,620
116
Administrative expenses
-574 -459 125
-277
-264
105
Research and development costs
-425 -427 100
-209
-222
94
Other operating income
113
Other operating expenses
-8 -7 114
-5
-4
125
Operating profit (EBIT) before special items
99
Special items
3 -33 -415 -
-20
-381
-
Operating profit (EBIT)
127
Financial income
4 73 69 106
84
Financial expenses
4 -597 -145 >200
-232
-68
>200
Profit before tax
114
Tax on profit for the
period
-606 -657 92
-306
-307
100
Net profit for the period
118
Remeasurements of defined benefit plans
Tax on remeasurements of defined benefit plans
-2 -10
-2
-4
Items that will not be reclassified to the income
statement
Value adjustment of currency hedging
-3
Transferred to financial items
-6
Tax effect of
hedging
-38 5
-8
-8
Currency adjustment of opening balances and
other value adjustments relating to subsidiaries
-542 289
-69
Items that may be reclassified to income
statement
-392 272
-49
Total
other comprehensive income -389 308
-44
Total comprehensive income
DKK
Earnings per share (EPS)
Earnings per share (EPS), diluted
Announcement no. 02/2023
11 May 2023
20
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Statement of cash flows
1 October – 31 March, unaudited
Consolidated
2022/23 2021/22
DKK million
Note 6 mths 6 mths
Operating profit
Amortisation
Depreciation
Adjustment for other non
-cash operating items 7 -81 172
Changes in working capital
7 -1,289 -1,086
Ingoing interest payments, etc.
Outgoing interest
payments, etc.
-155 -55
Income tax paid
-1,252 -984
Cash flows from operating activities
Investments in intangible assets
-134 -61
Investments in land and buildings
-5 -6
Investments in plant and
machinery and other fixtures and fittings, tools and equipment
-30 -11
Investments in property, plant and equipment under construction
-397 -392
Property, plant and equipment sold
Investment in other investments
-17 -
Acquisition of subsidiaries
Net sales/purchase of marketable securities
Cash flows from investing activities
-381 -11,096
Free cash flow
Dividend to shareholders
-3,185 -2,979
Acquisition of treasury shares
Sale of treasury shares and loss on exercised options
Financing from shareholders
-3,178 -3,414
Repayment of lease liabilities
-119 -107
Financing
through issuing long-term bonds
Drawdown on credit facilities
Cash flows from financing activities
-549 9,771
Net cash flows
Cash and cash equivalents at 1 October
Value adjustment of cash and bank balances
-32 15
Cash and cash equivalents, acquired operations
Net cash flows
Cash and cash equivalents at 31 March
8 628 517
The cash flow statement cannot be derived using only the published financial data.
Announcement no. 02/2023
11 May 2023
21
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Assets
At 31 March, unaudited
Consolidated
DKK million
Note 31.03.23 31.03.22 30.09.22
Intangible assets
Property, plant and equipment
Right
-of-use assets
Other equity investments
Deferred tax asset
Other receivables
Non
-current assets 25,979 27,001 26,184
Inventories
Trade receivables
Income tax
Other receivables
Prepayments
Marketable securities
Cash and
cash equivalents
Current assets
Assets
Announcement no. 02/2023
11 May 2023
22
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Equity and liabilities
At 31 March, unaudited
Consolidated
DKK million
Note 31.03.23 31.03.22 30.09.22
Share capital
Currency translation reserve
-1,381 -129 -910
Reserve for currency hedging
Proposed ordinary dividend for the year
Retained
earnings
Equity
Provisions for pensions and similar liabilities
Provision for deferred tax
Other provisions
5 198 179 258
Bonds
6 16,387 - 16,359
Other payables
Lease liability
Prepayments
Non
-current liabilities 18,835 3,086 19,328
Provisions for pensions and similar
liabilities
Other provisions
5 236 676 347
Other credit institutions
Trade payables
Income tax
Other payables
Lease liability
Prepayments
Current liabilities
Equity and liabilities
Announcement no. 02/2023
11 May 2023
23
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Statement of changes in equity, current year
At 31 March, 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
Net profit for the period
Other comprehensive income
Total comprehensive income
Sale of treasury shares and loss on
exercised options
Share
-based payment - - - - - 27 27
Dividend paid out in respect of
2021/22
Transactions with shareholders
Equity at 31 March
Announcement no. 02/2023
11 May 2023
24
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Statement of changes in equity, last year
At 31 March, 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
Net profit for the period
Other comprehensive income
Total comprehensive income
Acquisition of treasury shares
Sale of treasury shares
Share
-based payment - - - - - 24 24
Dividend paid out in respect of
2020/21
Transactions with shareholders
Equity at 31 March
Announcement no. 02/2023
11 May 2023
25
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
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. 02/2023
11 May 2023
26
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
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. 02/2023
11 May 2023
27
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
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 4,478
4,207 - - - -
- 4,478
4,207
Continence Care 3,951
3,721 - - - -
- 3,951
3,721
Interventional
Urology
- -
1,353
1,139 - -
- 1,353
1,139
Wound and Skin
Care
- - - -
1,425
1,306
- 1,425
1,306
Voice and
Respiratory Care
- - - - - -
959
298 959
298
External revenue
as per the
statement of
comprehensive
income
8,429
7,928 1,353
1,139 1,425
1,306
959
298 12,166
10,671
Costs allocated to
segment
-3,598
-3,239 -874
-740 -885
-767
-641
-206 -5,998
-4,952
Segment
operating
profit/loss
4,831
4,689 479
399 540
539
318
92 6,168
5,719
Shared/non
-allocated
-2,723
-2,384
Special items not included in segment
operating profit/loss (see note 3)
-33
-415
Operating profit before tax (EBIT) as per the statement of comprehensive income
3,412
2,920
Net financials
-524
-76
Tax on profit/loss for the year
-606
-657
Profit/loss for the
year as per the statement of comprehensive income
2,282
2,187
¹
⁾ Only eight months recognised in 2021/22.
Note 3
Special items
DKK million
2022/23 2021/22
Provisions for
litigation about transvaginal surgical mesh products 0 300
Expenses related to business combinations
33 115
Total
33 415
Special items in 2021/21 contains expenses to cover further costs to resolve the remaining claims in connection with legal
assistance related to litigation about transvaginal surgical mesh products as the process takes longer than previously
anticipated. See note 5 to the financial statements for more information about the mesh litigation.
Special items also contains expenses and integration costs related to business combinations.
Announcement no. 02/2023
11 May 2023
28
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Note 4
Financial income and expenses
DKK million
2022/23 2021/22
Financial income
Interest income
10 3
Interest hedges
37 -
Net exchange adjustments
- 57
Hyperinflationary adjustment of monetary position
24 8
Other financial income
2 1
Total
73 69
Financial expenses
Interest
expenses 64 19
Interest expenses, lease liabilities
12 7
Interest expenses, bonds
205 -
Fair value adjustments of forward contracts transferred from other comprehensive income
31 75
Fair value adjustments of cash
-based share options 2 2
Net exchange adjustments
227 -
Other financial expenses and fees
56 42
Total
597 145
Announcement no. 02/2023
11 May 2023
29
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
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 0.04 billion at 31 March 2023 (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. 02/2023
11 May 2023
30
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
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
3.45
COLOCB2
EUR
850
19-05-2027
2.25
COLOCB3
EUR
700
19-05-2030
2.75
¹
⁾ Fixed for COLOCB1 as per 16-02-2023. 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
Net gain/loss on divestment of non
-current assets -1 3
Change in other provisions
-107 144
Other non
-cash operating items 27 25
Adjustment for other non
-cash operating items -81 172
Inventories
-445 -241
Trade receivables
-232 -128
Other receivables, including amounts held in escrow
-95 -177
Trade and other payables etc.
-517 -540
Changes in working capital
-1,289 -1,086
Announcement no. 02/2023
11 May 2023
31
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Note 8
Cash and cash equivalents
DKK million
2023 2022
Bank deposits, short term
628 517
Cash and cash equivalents at 31 March
628 517
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. 02/2023
11 May 2023
32
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
Income statement, quarterly
Unaudited
Consolidated
2021/22
DKK million
Q2 Q1 Q4 Q3 Q2 Q1
Revenue
6,061
6,105
6,059
5,849 5,502
5,169
Production costs
-2,034
-1,959
-1,889
-1,801 -1,721
-1,639
Gross profit
4,027
4,146
4,170
4,048 3,781
3,530
Distribution costs
-1,882
-1,865
-1,872
-1,813 -1,620
-1,492
Administrative expenses
-277
-297
-276
-270 -264
-195
Research and development costs
-209
-216
-217
-222 -222
-205
Other operating income
17
9
15
30 15
14
Other operating expenses
-5
-3
-6
-12 -4
-3
Operating profit (EBIT) before special items
1,671
1,774
1,814
1,761 1,686
1,649
Special items
-20
-13
-36
-20 -381
-34
Operating profit (EBIT)
1,651
1,761
1,778
1,741 1,305
1,615
Financial income
42
31
-29
79 50
19
Financial expenses
-232
-365
-137
-149 -68
-77
Profit before tax
1,461
1,427
1,612
1,671 1,287
1,557
Tax on profit for the period
-306
-300
-382
-382 -307
-350
Net profit for the period
1,155
1,127
1,230
1,289 980
1,207
DKK
Earnings per share (EPS) before special items
5.51
5.36
5.92
6.14 6.00
5.80
Earnings per share (EPS)
5.44
5.31
5.79
6.07 4.61
5.67
Earnings per share (EPS) before special items, diluted
5.51
5.35
5.92
6.13 5.99
5.78
Earnings per share (EPS), diluted
5.44
5.31
5.79
6.06 4.60
5.66
Announcement no. 02/2023
11 May 2023
33
Ostomy Care
Continence Care
Wound & Skin Care
Interventional Urology
Voice & Respiratory Care
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
Senior Director, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Email: dkadim@coloplast.com
Kristine Husted Munk
Senior Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 3266
Email: dkkhu@coloplast.com
Press and media
Peter Mønster
Sr. Media Relations Manager
Tel. +45 4911 2623
Email: dkpete@coloplast.com
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 14,700 employees.
The Coloplast logo is a registered trademark of Coloplast A/S. © 2023-05.
All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.
Holtedam 1 Tel. +45 4911 1800 69749917
DK-3050 Humlebaek Fax +45 4911 1555
Denmark www.coloplast.com