H1 2022/23
Interim financial results, H1 2022/23
- Organic growth rates by business area: Ostomy Care 6%, Continence Care 6%, Voice and Respiratory Care 9% (2 months), Wound and
Skin Care 13% (Wound Care 12%), and Interventional Urology 17%. - Solid Q2 for Chronic Care with continued good momentum across regions ex.
China , which detracted from growth in Ostomy Care due to COVID-19. Towards the end of Q2, hospital access inChina significantly improved, positively impacting procedural volumes. Growth in Continence Care continued to be impacted by backorders in Collecting Devices. - Voice and Respiratory Care growth was driven by solid momentum in both the laryngectomy and tracheostomy businesses.
- Strong quarter in Wound Care, driven mainly by solid momentum in
Europe , including benefit from a low baseline. - Continued strong momentum in Interventional Urology with broad-based growth, led by the US Men’s Health business.
- EBIT1) was
DKK 1,671 million , a 1% decrease from last year. The EBIT margin1,2) was 28% against 31% last year, reflecting inflationary headwind on input costs, an increase in operating expenses due to increased commercial activity levels, andDKK 53 million in amortisation costs related to theAtos Medical acquisition. Impact from currencies in the quarter was neutral.
H1 2022/23 organic growth of 8% and 28% EBIT margin1). Reported revenue in DKK was up 14% to
- Organic growth rates by business area: Ostomy Care 7%, Continence Care 6%, Wound and
Skin Care 7% (Wound Care 4%), and Interventional Urology 14%. Voice and Respiratory Care contributed 6%-points to the reported growth (4 months). - EBIT1) was
DKK 3,445 million , up 3% from last year. The EBIT margin1,2) was 28% against 31% last year, reflecting inflationary headwind on input costs, an increase in operating expenses, impacted by increased commercial activity levels, andDKK 107 million in amortisation costs related to theAtos Medical acquisition. - ROIC after tax before special items was 19% against 25% last year, negatively impacted by the
Atos Medical acquisition. - Free cash flow was
DKK 795 million , a 13% decrease from last year (ex. acquisitions), impacted by a decline in cash flow from operating activities mainly due to an increase in net working capital and higher income tax paid. - The Board of Directors has resolved that the company will pay a half-year interim dividend of
DKK 5.00 per share, for a total dividend pay-out ofDKK 1,062 million .
FY 2022/23 financial guidance – organic revenue growth is now expected around 8% in constant exchange rates, from 7-8% previously. Reported growth in DKK is now expected to be 8-9%, from previously 9-10%, due to negative impact from currencies. Consequently, the reported EBIT margin1) is now expected in the 28-29% range, from previously 28-30%.
- Reported revenue growth assumes around 2%-points negative impact from currencies, from previously negative 1%-point.
- The reported EBIT margin guidance continues to assume impact from increasing input costs, especially raw materials and electricity in
Hungary , partly offset by leverage, price increases, efficiency gains, and prudent management of operating cost. - Capital expenditures are still expected to be around
DKK 1.4 billion . The effective tax rate is still expected to be around 21%.
”We deliver a solid Q2 with 8% organic growth and an EBIT margin of 28%, which is in line with our financial guidance. I am pleased to see strong growth momentum across all our business areas and regions excluding our Chinese business.
1) before special items of
2) before special items of
Luja is a medical device for which CE-mark has been affixed. Product availability is subject to regulatory process of individual countries and is not guaranteed.
Conference call
The call is expected to last about one hour.
To actively participate in the Q&A session please sign up ahead of the conference call on the link here to receive an e-mail with dial-in details Register here
Access the conference call webcast directly here: H1 22/23 conference call
For further information, please contact
Investors and analysts
Executive Vice President, CFO
Tel. +45 4911 1111
Senior Director, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Email: dkadim@coloplast.com
Senior Manager, Investor Relations
Tel. +45 4911 1800 / +45 4911 3266
Email: dkkhu@coloplast.com
Press and media
Peter Mønster
Sr. Media Relations Manager
Tel. +45 4911 2623
Email: dkpete@coloplast.com
Address
Holtedam 1
DK-3050 Humlebaek
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.
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Attachment
- 02_2023_H1_2022-23_Earnings_Release
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