Due to the impact of the COVID-19 outbreak on the Interventional Urology business and elective procedures in primarily the US,
- “Coloplast’s full-year guidance issued on
February 6, 2020 , reflected the best information available at the time and assumed that the situation surrounding the COVID-19 outbreak would normalise gradually during Q2.China is slowly returning to normal conditions, but the situation has escalated globally andColoplast now expects an impact on the Interventional Urology business, where a significant share of revenue comes from elective procedures. Consequently,Coloplast does not expect to meet the organic revenue growth guidance and EBIT margin guidance provided for the full-year,” saysColoplast CEOKristian Villumsen .
The organic revenue growth guidance is lowered from 7-8% at constant exchange rates and a reported growth in DKK of 7-8% to an organic revenue growth guidance of 4-6% at constant exchange rates and a reported growth in DKK of 4-6%. The EBIT margin guidance is lowered from ~31% at constant exchange rates and ~31% in DKK to 30-31% at constant exchange rates and 30-31% in DKK. Capex guidance of DKK ~850m and a tax rate of 23% is unchanged.
Interventional Urology
Year-to-date,
As a result of the COVID-19 outbreak, elective surgeries and procedures are expected to be postponed globally, which will negatively impact the financial performance of the Interventional Urology business in the second half of the financial year. The US represents around 50% of revenues in Interventional Urology and the negative impact from a decline in elective surgeries and procedures in the US is expected to be significant. The negative revenue impact is expected to be temporary and we expect the revenue loss to be recaptured once the situation normalises.
Ostomy Care, Continence Care and Wound Care
On a positive note, the situation in
Operating at full capacity
Revised financial guidance
The situation is developing rapidly and remains uncertain. The revised full-year guidance assumes that the situation in Interventional Urology gradually normalises during the second half of the financial year, as well as a stable supply and distribution of products across the company.
The share buyback programme totalling up to
CONTACTS
Lina Danstrup
Senior Media Relations Manager, Corporate Communications
+45 49 11 26 07
dklina@coloplast.com
Ellen Bjurgert
Vice President, Investor Relations
+45 49 11 33 76
dkebj@coloplast.com
Attachment
Coloplast revises full-year organic growth and EBIT margin guidance for 2019_2020
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