In addition to solid organic revenue growth, EBIT increased by 13% to DKK 1,438m, corresponding to an EBIT margin of 31%, in the third quarter of the 2018/19 financial year. The company maintains its financial guidance for 2018/19.
In the third quarter of its financial year, Coloplast delivered 8% organic revenue growth, and reported revenue in DKK was up by 9% to DKK 4,599 million. This is mainly due to a favourable development in USD against DKK. For the 9M 2018/19 reporting period, organic revenue growth was also 8%, while reported revenue in DKK was up by 9% to DKK 13,321 million.
“We see strong performance in Europe driven by all business areas, double-digit growth in the US, and improved momentum in Emerging Markets driven by solid performance in China. Finally, I would like to highlight our 8% organic growth, year to date, in our Wound Care business and our double-digit growth, year to date, in the Interventional Urology business,” says CEO Kristian Villumsen, Coloplast, and continues:
“We deliver solid growth rates across all business areas, driven by our product launches and commercial investments, and we continue to invest in commercial initiatives to drive future growth.”
Organic growth rates by business area in the third quarter were 8% in Ostomy Care, 7% in Continence Care, 10% in Interventional Urology, and 7% in Wound & Skin Care.
Looking at sales by geographies in the third quarter, the European markets contributed with 5% growth, Other developed markets delivered 12% revenue growth, and Emerging Markets provided a 14% increase.
EBIT amounted to DKK 4,077m for the first nine months, an 11% increase in DKK, corresponding to an EBIT margin of 31% against 30% last year. ROIC after tax before special items was 45% in the first nine months against 42% in the same period last year.
French price reform
Following a reimbursement review, the French Ministry of Health has published new classifications and prices within Ostomy Care, Continence Care, and Wound Care in France. For Coloplast, the price reform represents an average reduction in prices in France for Ostomy Care and Continence Care of ~9% as of 1 July 2019, and Wound Care of ~2% as of 1 June 2019.
Unchanged financial guidance for 2018/19
Coloplast continues to expect organic revenue growth of ~8% at constant exchange rates and a reported growth in DKK of ~9%.
Coloplast continues to expect an EBIT margin of 30-31% at constant exchange rates and a reported EBIT margin of ~31% in DKK.
Financial highlights and key ratios (DKKm)
Profit for the period
Sales performance by business area
Wound & Skin Care
Guidance for 2018/19
Guidance for 2018/19 (DKK)
30-31% (at constant exchange rates)