Coloplast delivered 8% organic growth and EBIT increased by 12% to DKK 1,342m, corresponding to an EBIT margin of 30%, in the second quarter of the 2018/19 financial year. The company raises its expectations for reported growth in DKK from previously 8-9% to ~9% for 2018/19.
Coloplast delivered 8% organic growth in the second quarter. Year to date organic growth was also 8% and reported revenue in Danish kroner was up by 9% to DKK 8,722m. This is mainly due to a positive development in USD against DKK, and currency developments increased revenue by 1% in the second quarter.
In the second quarter, the organic growth rates by business area were 6% in Ostomy Care, 9% in Continence Care, 10% in Interventional Urology, and 9% in Wound & Skin Care.
Looking at sales by geography in the second quarter, the European markets contributed with 6% growth, Other developed markets delivered 10% revenue growth, while Emerging Markets provided a 11% increase.
The incremental investments into innovation and sales and marketing initiatives of up to 2% of revenue that were initiated in Q1 are progressing according to plan.
EBIT amounted to DKK 2,639m for the first six months, a 10% increase in DKK, corresponding to an EBIT margin of 30% on par with the same period last year.
Important win in the US
Coloplast is the new primary ostomy supplier for Kindred at Home, a home health agency with more than 700 locations throughout 41 states. With an estimated market share of ~5%, Kindred at Home is the largest home health agency in the US.
Financial guidance for 2018/19
Coloplast continues to expect organic revenue growth of ~8% at constant exchange rates and now a reported growth in DKK of ~9% from previously 8-9%.
Coloplast continues to expect an EBIT margin of 30%-31% at constant exchange rates and a reported EBIT margin of ~31% in DKK.
Capital expenditure is now expected to be DKK ~700m from previously DKK ~750m, and we continue to expect the effective tax rate to be ~23%.
CONTACTS
Lina Danstrup
Senior Media Relations Manager, Corporate Communications
+45 49 11 26 07
dklina@coloplast.com
Ellen Bjurgert
Vice President, Investor Relations
+45 49 11 33 76
dkebj@coloplast.com
Financial highlights and key ratios (DKKm) | 2018/19 Q2 | 2017/18 Q2 | Change |
Revenue | 4,401 | 4,035 | 9% |
EBIT | 1,342 | 1,200 | 12% |
EBIT margin (in DKK) | 30% | 30% | |
Profit for the period | 1,021 | 918 | 11% |
Financial highlights and key ratios (DKKm) | 2018/19 H1 | 2017/18 H1 | Change |
Revenue | 8,722 | 7,990 | 9% |
EBIT | 2,639 | 2,407 | 10% |
EBIT margin (in DKK) | 30% | 30% | |
Profit for the period | 2,012 | 1,858 | 8% |
Sales performance by business area (DKKm) | 2018/19 H1 | 2017/18 H1 | Organic growth | Reported growth |
Ostomy Care | 3,478 | 3,250 | 7% | 7% |
Continence Care | 3,163 | 2,875 | 8% | 10% |
Urology Care | 963 | 859 | 9% | 12% |
Wound & Skin Care | 1,118 | 1,006 | 10% | 11% |
Revenue | 8,722 | 7,990 | 8% | 9% |
Financial guidance | Guidance for 2018/19 | Guidance for 2018/19 (DKK) |
Sales growth | ~8% (organic) | ~9% from previously 8-9% |
EBIT margin | 30-31% (at constant exchange rates) | ~31% |
Capital expenditure | - | ~700 from previously ~750 |
Tax rate | - | ~23% |
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