Announcement no. 4/2018 - Interim Financial Report, H1 2017/18

H1 2017/18

Interim financial report, H1 2017/18
(1 October 2017 - 31 March 2018) 

Please see enclosed pdf.  

Highlights

• Q2 organic growth was 8%, while revenue in DKK increased by 4% to DKK 4,035m.  In the first six months organic growth was 8%, while reported revenue in Danish kroner was up by 5% to DKK 7,990m.
• Organic growth rates by business area year to date: Ostomy Care 10%, Continence Care 9%, Urology Care 10% and Wound & Skin Care -1%.
• Chronic Care continued the positive performance in the second quarter, driven by new products such as SenSura® Mio Convex and SpeediCath® Flex and positive performances in the Emerging Markets region.
• The wound care business experienced an increased sales momentum in the second quarter with 8% organic growth despite the continued negative effects of a pricing reform in Greece introduced in October 2017.
• Coloplast is expanding its Continence Care product portfolio in the US market with the May 2018 launch of SpeediCath® Flex Coudé Pro specifically designed for the US market.
• SenSura® Mio Concave is now eligible for reimbursement and available in seven countries. The introduction of Coloplast’s new product segment has been well received in the market.
• EBIT amounted to DKK 2,407m for a 3% decline in DKK but a 4% increase at constant exchange rates. The EBIT margin at constant exchange rates was 31% against 32% in the year-earlier period. In DKK, the EBIT margin was 30%, against 32% last year.
• ROIC after tax was 40% against 44% in the same period of last year.
• The Board of Directors has resolved that Coloplast will pay an interim dividend of DKK 5.00 per share for a dividend payout of DKK 1,060m.

Financial guidance for 2017/18

• We now expect organic sales growth of 7-8%, up from previously ~7%, at constant exchange rates, the change being due to expectations that the patent expiry of SpeediCath® standard catheters will only have a negative effect of DKK 50m instead of the previous estimate of DKK 100m and due to improved momentum in the Emerging Markets region. The guidance also continues to include the effects of a comprehensive healthcare reform in Greece of DKK 100m, which is expected to impact all business areas. Guidance for reported growth in DKK is now expected to be ~6% instead of the previous 5–6% mainly due to developments in the USD/DKK exchange rate.
• We continue to expect an EBIT margin of 31%-32% at constant exchange rates and a reported EBIT margin of ~31% in DKK. The EBIT margin guidance also includes the effects of the above factors.
• Capital expenditure is still expected to be around DKK 700m.
• We continue to expect an effective tax rate of about 23%.

Attachment

• 04_2018_H1_201718_Earnings_release