Coloplast Finance B.V. - Interim Financial Report, Q1 2024/25

2024/25

Interim financial results, Q1 2024/25

1 October 2024 - 31 December 2024

Coloplast delivered 8% organic growth and an EBIT margin¹ of 27% in Q1, in line with expectations. Reported revenue in DKK grew 6% and included negative impact from the divestment of Skin Care and currencies.

• Organic growth rates by business area: Ostomy Care 7%, Continence Care 7%, Voice and Respiratory Care 11%, Advanced Wound Care 12% and Interventional Urology 1%.
• Growth in Chronic Care was driven by solid contributions from Europe and the US, while growth in Emerging markets was impacted by a high baseline last year. In Continence Care, Luja™ was the main contributor to growth. 
• Voice and Respiratory Care growth was driven by continued good momentum in both Laryngectomy and Tracheostomy.
• Advanced Wound Dressings delivered 6% growth in the quarter, driven by Europe. In December 2024, Coloplast divested its Skin Care portfolio to simplify business operations and improve profitability in Advanced Wound Care. 
• Kerecis delivered 32% growth, reflecting continued market share gains, and an EBIT margin ex. PPA amortisation of 12%, as expected. Kerecis was included on the list for Diabetic Foot Ulcers on the final Local Coverage Determination policy announced on 14 November 2024. The implementation date for the final policy has been updated to 13 April 2025.
• Growth in Interventional Urology was negatively impacted by a voluntary product recall in Bladder Health and Surgery (around DKK 25 million in Q1), partly offset by solid performance in Endourology. The product recall is expected to impact Q2 with around DKK 15 million. Sales of the affected products will resume during February.
  
• EBIT¹ was DKK 1,912 million, a 5% increase from last year. The EBIT margin^1,2 was 27% against 28% last year and includes a higher level of commercial and logistics costs, including around DKK 20 million extraordinary costs related to the establishment of the US distribution centre, and negative impact from currencies.
• The ordinary tax rate in Q1 was 22%, while the effective tax rate amounted to 41% due to an extraordinary expense related to transfer of Kerecis’s Intellectual Property (IP) from Iceland to Denmark to ensure consistency with Coloplast’s tax model. The IP transfer will result in a tax payment in Iceland impacting cash flows in FY 2026/27 at the earliest, to be fully offset by reduced tax payments in Denmark starting in FY 2024/25.
• Adjusted³ net profit before special items was DKK 1,438 million, a DKK 214 million increase from last year. Adjusted³ diluted earnings per share (EPS) before special items increased by 17% to DKK 6.38. Including the impact from the Kerecis IP transfer, the net profit before special items was DKK 1,102 million, while EPS before special items decreased by 10% to DKK 4.89.
  
• Adjusted³ ROIC after tax before special items was 15%, on par with last year. Including the impact from the Kerecis IP transfer, ROIC after tax and before special items was 11%.
  
  

FY 2024/25 guidance on organic growth of 8-9% and on EBIT margin before special items of around 28% unchanged.

• Organic growth assumes continued good momentum, around 1%-point contribution from Kerecis and improvement in growth in Interventional Urology in H2.
• Reported growth in DKK is now expected around 7%, from previously 8-9%, and includes around 1.5%-points negative impact from the Skin Care divestment (10 months) and neutral impact from currencies.
• The reported EBIT margin before special items⁴ assumes benefit from lower inflationary pressure on input costs and benefit from profitability improvement initiatives in Advanced Wound Care, around 100 basis points dilution from Kerecis and limited positive impact from currencies.
• Capital expenditures are still expected to be around DKK 1.4 billion. The ordinary tax rate is still expected around 22%, however, the effective tax rate is now expected to be around 40% due to the extraordinary impact from the Kerecis IP transfer. The long-term tax rate expectations of around 23% are unchanged.

“We delivered a Q1 as expected with 8% organic growth and an EBIT margin of 27%. I want to highlight a good start to the year in Chronic Care in Europe and the US, including a significant contribution to growth from our new intermittent catheter platform Luja™, offsetting softer numbers in Emerging Markets as well as our Interventional Urology business this quarter. Finally, I am pleased to see that our two recent acquisitions, Atos Medical and Kerecis, continue to deliver double-digit growth, raising the standard of care for many more people living with intimate healthcare needs,” says President & CEO Kristian Villumsen. 

<sup>1. before special items expenses of DKK 74 million in Q1 2024/25. 2. before special items expenses of DKK 15 million in Q1 2023/24. 3. Adjusted for the impact from the Kerecis IP transfer.
4. FY 2024/25 special items expected to be an expense of around DKK 130 million.</sup>  

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: dkadim@coloplast.com

Simone Dyrby Helvind
Senior Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 2981
Email: dksdk@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 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 Care, Interventional Urology and Voice and Respiratory Care.

The Coloplast logo is a registered trademark of Coloplast A/S. © 2025-02.

All rights reserved Coloplast A/S, 3050 Humlebaek, Denmark.

Attachment

• 01_2025_Q1_2024-25_Earnings_release