Announcement no. 5/2018 - Interim Financial Report, 9M 2017/18
9M 2017/18
Interim financial report, 9M 2017/18
(1 October 2017 - 30 June 2018)
Highlights
- Coloplast delivered 8% organic revenue growth in third quarter of the 2017/18 financial year. Reported revenue in DKK was up by 8%, to DKK 4,225m. For the 9M 2017/18 reporting period, organic revenue growth was 8%, while reported revenue in DKK was up by 6% to DKK 12,215m.
- Organic growth rates by business area: Ostomy Care 9%, Continence Care 9%, Urology Care 10% and Wound & Skin Care 3%.
- Chronic care continued to perform well in the third quarter, driven in part by new products such as SenSura® Mio Convex and SpeediCath® Flex and a positive performance in the USA with double-digit growth.
- The Wound Care business experienced an increased momentum in the third quarter, delivering 12% organic growth driven by Europe and China.
- The Urology Care business continued its positive performance at 11% organic growth in the third quarter driven by the sales and marketing investments made in the USA.
- SenSura® Mio Concave is now eligible for reimbursement and available in nine countries. The launch remains positive, and Coloplast’s new product segment has been well received in the market.
- Q3 restructuring costs amounted to DKK 21m compared with DKK 3m last year, the higher costs being partially due to the final implementation of the plans to reduce the number of production staff in Denmark from 700 to 400 by the end of 2017/18. The closure of the factory at Thisted, Denmark, has been accelerated, which added restructuring costs of about DKK 10m in the third quarter.
- EBIT for the 9M period amounted to DKK 3,676m, a 1% decline in DKK, for an EBIT margin of 30%, compared to 32% in the same period of last year. However, at constant exchange rates and adjusted for the one-off revenue adjustment relating to Veterans Affairs in the year-earlier period, EBIT was up by 3%, equal to an EBIT margin of 31% against 32% last year.
- ROIC after tax was 42% in the 9M 2017/18 period against 45% in the same period of last year.
Financial guidance for 2017/18
- We now expect organic revenue growth of ~8%, up from previously 7-8%, at constant exchange rates. The change is mainly due to expectations of a moderate effect from the patent expiry of SpeediCath® standard catheters rather than a negative effect of DKK 50m as previously estimated. The guidance also continues to include the effects of a comprehensive healthcare reform in Greece of up to DKK 100m, which is expected to impact all business areas. Reported growth in DKK is forecast unchanged at ~6%.
- We continue to expect an EBIT margin of 31-32% at constant exchange rates and a reported EBIT margin of ~31% in DKK.
- Capital expenditure is still expected to be around DKK 700m.
- We continue to expect an effective tax rate of about 23%.
