Announcement no. 02/2024
1
7 May 2024
H1 2023/24
Interim financial results, H1 2023/24
1 October 2023 - 31 March 2024
Coloplast delivered a solid Q2 with 8% organic growth and an EBIT margin
1)
of 27%. Reported revenue in DKK grew 9%
with 4%-points contribution from Kerecis (underlying growth of around 35%), partly offset by currencies.
• Organic growth rates by business area: Ostomy Care 7%, Continence Care 8%, Voice and Respiratory Care 13%, Advanced
Wound Care 8% (Advanced Wound Dressings 8%) and Interventional Urology 5%.
• Continued good momentum in Chronic Care. Ostomy Care growth was driven by broad-based contribution from Emerging
markets and Europe, compensating for lower growth in the US which was held back by order phasing and now expected to
be H2 weighted. Continence Care growth was driven by intermittent catheters, including good contribution from Luja
TM
.
• Voice and Respiratory Care had a strong Q2, driven by double-digit growth in both laryngectomy and tracheostomy.
• Growth in Advanced Wound Dressings was broad-based across regions, driven by the Biatain® Silicone portfolio.
• Continued strong momentum and market share gains for Kerecis. Underlying growth in the quarter was around 35%, in line
with plan. The EBIT margin excl. PPA amortisation was around 10%.
• Interventional Urology growth was driven by Men’s Health and Endourology, while Women’s Health detracted from growth.
• EBIT
1
was DKK 1,791 million, a 7% increase from last year. The EBIT margin
1,2
was 27% against 28% last year, and includes
around 100 basis points negative impact from Kerecis, as expected, and negative impact from currencies.
• Coloplast is expanding its Luja™ portfolio with the launch of Luja for women* as of May 2024. Heylo™*, a digital leakage
notification system, has been granted national reimbursement in the UK as of 1 July 2024. Coloplast is also significantly
expanding its SenSura Mio ostomy range with SenSura Mio in black* and a broader convexity offering*, as of May 2024.
• LCD** draft policy for skin substitutes announced on 25 April, related to ~20% of Kerecis revenue. Kerecis is considered to
not meet a clinical qualification introduced in the draft policy and is therefore not included on the covered list. A 2023
clinical study by Lantis et al. providing relevant, high-quality evidence of the efficacy and performance of Kerecis’ fish skin
will be submitted in the consultation period, ending on 8 June. The financial assumptions on Kerecis are unchanged.
H1 2023/24 organic growth of 8% and an EBIT margin
1
of 27%. Reported revenue in DKK grew 8% to DKK 13,192 million.
• Organic growth rates by business area: Ostomy Care 7%, Continence Care 8%, Voice and Respiratory Care 10%, Advanced
Wound Care 8% (Advanced Wound Dressings 8%) and Interventional Urology 5%. Kerecis contributed to reported growth
with 4%-points and underlying growth of around 35%, in line with expectations.
• EBIT
1
was DKK 3,613 million, a 5% increase from last year. The EBIT margin
1,2
was 27% against 28% last year, and includes
around 100 basis points negative impact from Kerecis, in line with expectations, and negative impact from currencies.
• ROIC after tax before special items was 15% against 19% last year, negatively impacted by the acquisition of Kerecis.
• Free cash flow was an outflow of DKK 1.3 billion, impacted by income tax paid due to extraordinary tax payment related to
Atos Medical’s Intellectual Property transfer. Adjusted for the tax payment, free cash flow was an inflow of DKK 1.2 billion.
• The company will pay half-year interim dividend of DKK 5.00 per share, for a total dividend pay-out of DKK 1,125 million.
FY 2023/24 organic growth and reported EBIT margin guidance unchanged. Reported revenue growth adjusted to 10-11%.
• The organic revenue growth is still expected to be around 8%. Reported growth in DKK is now expected to be 10-11%,
from previously around 11%, and includes negative impact of 1-2%-points from currencies, from previously around 1%-
point. Contribution from the acquisition of Kerecis to reported growth is still expected to be around 4%-points (11 months).
• The reported EBIT margin before special items
1
is still expected to be 27-28%. The EBIT margin includes around 100 basis
points dilution from Kerecis (incl. around DKK 100 million in PPA amortisation) and negative impact from currencies.
• Capital expenditures are still expected around DKK 1.4 billion. The effective tax rate is still expected to be around 22%.
“We deliver a solid second quarter with 8% organic growth and an EBIT margin of 27%, which is in line with our financial
guidance. I would like to highlight a strong Q2 performance in our Chronic Care and Advanced Wound Care businesses as well
as solid contributions from our newest members of the Coloplast family, Atos Medical and Kerecis, both of which deliver double-
digit growth in Q2. In Continence Care, our new intermittent catheter for men, Luja™, is contributing well to growth, and we are
now expanding our platform with the launch of Luja™ for women. In Ostomy Care, we have now received reimbursement in the
UK on Heylo™, the world’s first digital leakage notification system. We are also strengthening our SenSura® Mio portfolio in
Ostomy Care with two new launches. I believe these launches will help drive our future growth and make a real difference to
people living with intimate chronic conditions worldwide.” says Kristian Villumsen, President and CEO of Coloplast
1. before special items of DKK 19 million in Q2 2023/24 and DKK 34 million in H1 2023/24. Total FY 2023/24 special items are still expected to be around DKK 50 million related to Atos
Medical integration cost. 2. before special items of DKK 20 million in Q2 2022/23 and DKK 33 million in H1 2022/23.
*CE-marked medical device. Product availability is subject to regulatory process of individual countries and is not guaranteed. Currently not available in the US. **Local Coverage Determination
Conference call
Coloplast will host a conference call on Tuesday, 7 May 2024 at 9.00 CEST. 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: Coloplast H1 2023/24 conference call
Announcement no. 02/2024
2
7 May 2024
Financial highlights and key ratios
1 October 2022 – 31 March 2024, unaudited
Consolidated
2023/24
2022/23
2023/24
2022/23
6 mths
6 mths
Change
Q2
Q2
Change
Income statement, DKK million
Revenue
13,192
12,166
8%
6,586
6,061
9%
Research and development costs
-454
-425
7%
-221
-209
6%
Operating profit before interest, tax, depr. and amort. (EBITDA)
before special items
4,240
3,974
7%
2,110
1,939
9%
Operating profit before interest, taxes and amortization (EBITA)
before special items
3,838
3,612
6%
1,906
1,755
9%
Operating profit (EBIT) before special items
3,613
3,445
5%
1,791
1,671
7%
Special items
-34
-33
N/A
-19
-20
N/A
Operating profit (EBIT)
3,579
3,412
5%
1,772
1,651
7%
Net financial income and expenses
-418
-524
-20%
-165
-190
-13%
Profit before tax
3,161
2,888
9%
1,607
1,461
10%
Net profit for the period
2,464
2,282
8%
1,252
1,155
8%
Revenue growth, %
Period growth in revenue, %
8
14
9
10
Growth break down:
Organic growth, %
8
8
8
8
Currency effect, %
-3
0
-3
-1
Acquired operations, %
4
6
4
3
Balance sheet, DKK million
Total assets
48,140
37,792
27%
48,140
37,792
27%
Capital invested
41,120
29,337
40%
41,120
29,337
40%
Net interest-bearing debt (NIBD)
23,624
21,007
12%
23,624
21,007
12%
Equity end of period
16,200
7,034
N/A
16,200
7,034
N/A
Cash flow and investments, DKK million
Cash flows from operating activities
-772
1,176
N/A
-2,560
689
N/A
Cash flows from investing activities
-554
-381
45%
-287
-106
N/A
Investments in property, plant and equipment, gross
-466
-432
8%
-230
-234
-2%
Free cash flow
-1,326
795
N/A
-2,847
583
N/A
Cash flows from financing activities
1,329
-549
N/A
2,806
-623
N/A
Key ratios
Average number of employees, FTEs
15,930
14,772
15,989
14,885
Operating margin (EBIT margin) before special items, %
27
28
27
28
Operating margin (EBIT margin), %
27
28
27
27
Operating margin before interest, tax, depr. and amort., (EBITDA
margin), %
32
32
32
32
Gearing ratio, NIBD/EBITDA before special items
2.8
2.6
2.8
2.7
Return on average invested capital before tax (ROIC), %¹⁾
18
24
18
23
Return on average invested capital after tax (ROIC), %¹⁾
15
19
14
18
Return on equity, %
31
67
32
71
Equity ratio, %
34
19
34
19
Net asset value per outstanding share, DKK
72
33
N/A
72
33
N/A
Share data
Share price, DKK
932
902
3%
932
902
3%
Share price/net asset value per share
12.9
27.2
-53%
12.9
27.2
-53%
Average number of outstanding shares, millions
224.6
212.4
6%
224.7
212.4
6%
PE, price/earnings ratio
42.5
41.9
1%
41.8
41.4
1%
Earnings per share (EPS), diluted
10.96
10.75
2%
5.57
5.44
2%
Earnings per share (EPS) before special items, diluted
11.08
10.86
2%
5.63
5.51
2%
Free cash flow per share
-5.9
3.7
N/A
-12.7
2.7
N/A
1) Before special items. After special items, ROIC before tax was 18% (2022/23: 24%), and ROIC after tax was 14% (2022/23: 23%).
Announcement no. 02/2024
3
7 May 2024
Update on strategic priorities
In September 2020, Coloplast presented the new strategy “Strive25 – Sustainable Growth Leadership”. Below are key highlights
on the progress made during the first half of the financial year 2023/24.
*CE-marked medical device. Product availability is subject to regulatory process of individual countries and is not guaranteed. Currently not available in the US.
Growth
Atos Medical:
- Strong performance in H1 2023/24 with 10% growth
and contributions from both the laryngectomy and
tracheostomy businesses.
- Long-term opportunities to drive sustained 8-10%
growth and an EBITDA margin in the mid-30s.
Kerecis:
- Strategic fit confirmed, providing Coloplast with a
differentiated technology and a footprint in the
attractive US-centric biologics wound care segment,
while Kerecis gains access to Coloplast’s global
infrastructure for expansion beyond the US.
- H1 2023/24 performance on track, with ~35%
underlying growth and continued market share gains,
and an EBIT margin ex. PPA amortisation of ~10%.
- Expected organic growth accretion of around 1%-point
as of 2024/25 and EPS accretion as of 2026/27.
Innovation
Luja™, a new intermittent catheter with a Micro-hole
Zone Technology:
- Launch of Luja for men in key markets concluded;
product available in 13 countries.
- Launch of Luja for women* initiated in May 2024 in
Denmark and Italy; expected to launch across all key
markets over the next 12 months.
Ostomy Care:
- Heylo™* has been granted national reimbursement in
the UK as of 1 July 2024.
- SenSura® Mio range signinficantly expanded with the
launch of SenSura Mio range in black*, as well as a
broader convexity offering*, both initiated in May 2024.
Biatain® Silicone Fit, a new silicone foam dressing, and
Peristeen® Light*, a new transanal irrigation device, were
both launched in Q2 2023/24.
Sustainability
Improving products and packaging
In H1 2023/24 we continued to recycle 75% of our
production waste, in line with our 2025 ambition, while
continuing to look for new use cases for our waste.
Reducing emissions
Scope 1 and 2 emissions decreased by 16% in H1
2023/24 vs. base year 2018/19, positively impacted by the
phasing out of natural gas at our Danish sites, partly offset
by Atos Medical. Excluding Atos Medical, scope 1 and 2
emissions decreased by 19%.
Responsible operations – employee engagement
Maintained high employee engagement score of 8.1 (out
of 10) in the bi-annual employee survey, ahead of the
healthcare industry benchmark of 7.8.
Operational efficiency
Global Operations Plan 6
- The process to establish a new manufacturing site in
Portugal is on track. The site, expected to be operational
in 2026 and with an investment level of around DKK 700
million, will be largest to date and removes the need for
additional sites until 2029/30.
- Procurement programme to drive cost efficiencies
initiated; on track to deliver savings and support long-
term EBIT margin guidance of more than 30%.
Global Business Support and IT landscape
- Solid progress on the Atos Medical integration, with
latest achievements in Japan, Australia and New
Zealand, which were merged into the Coloplast legal
entities in Q2 2024. On track to deliver estimated run-
rate operational synergies of up to DKK 100 million.
Announcement no. 02/2024
4
7 May 2024
Sales performance
The organic growth was 8% in the first six months of 2023/24. Reported revenue in DKK was up by 8% to DKK 13,192 million.
Revenue from acquisitions contributed 4%-points, or DKK 451 million to reported growth, of which DKK 461 million were related
to the acquisition of Kerecis (six months impact). Exchange rate developments decreased revenue by 3%-points, mainly related
to the depreciation of the USD and ARS against the DKK.
Organic growth in the second quarter was 8%. Reported revenue in DKK was up by 9% to DKK 6,586 million. Exchange rate
developments decreased revenue by 3%-points, mainly related to the depreciation of the USD, JPY and a basket of Emerging
markets currencies against the DKK. Revenue from acquisitions contributed 4%-points to reported growth.
* The sum of organic growth, acquired operations and exchange rates might not match total reported growth due to rounding of numbers
Sales performance by business areas*
DKK million
Growth composition (6 mths)
2023/24
(6 mths)
2022/23
(6 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth*
Ostomy Care
4,663
4,478
7%
-
-3%
4%
Continence Care
4,129
3,951
8%
-
-3%
5%
Voice and Respiratory Care
1,035
959
10%
-1%
-1%
8%
Advanced Wound Care
1,964
1,425
8%
32%
-2%
38%
Interventional Urology
1,401
1,353
5%
-
-1%
4%
Revenue
13,192
12,166
8%
4%
-3%
8%
DKK million
Growth composition (Q2)
2023/24
(Q2)
2022/23
(Q2)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
Ostomy Care
2,281
2,204
7%
-
-3%
4%
Continence Care
2,062
1,964
8%
-
-3%
5%
Voice and Respiratory Care
527
479
13%
-2%
-1%
10%
Advanced Wound Care
1,018
747
8%
31%
-3%
36%
Interventional Urology
698
667
5%
-
0%
5%
Revenue
6,586
6,061
8%
4%
-3%
9%
Sales performance by region
DKK million
Growth composition (6 mths)
2023/24
(6 mths)
2022/23
(6 mths)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth*
European markets
7,279
6,878
5%
0%
1%
6%
Other developed markets
3,738
3,187
7%
14%
-4%
17%
Emerging markets
2,175
2,101
17%
-
-13%
4%
Revenue
13,192
12,166
8%
4%
-3%
8%
DKK million
Growth composition (Q2)
2023/24
(Q2)
2022/23
(Q2)
Organic
growth
Acquired
operations
Exchange
rates
Reported
growth
European markets
3,714
3,444
7%
0%
1%
8%
Other developed markets
1,810
1,553
4%
14%
-1%
17%
Emerging markets
1,062
1,064
15%
-
-15%
0%
Revenue
6,586
6,061
8%
4%
-3%
9%
Announcement no. 02/2023
5
7 May 2024
Ostomy Care
Ostomy Care generated 7% organic
sales growth for the first half of
2023/24, with reported revenue in DKK
growing by 4% to DKK 4,663 million.
The SenSura® Mio portfolio was the
main contributor to growth, with good
performance across the product range
which includes Convex, Concave and
Flat products. The Brava® range of
supporting products also made a solid
contribution to growth. At the product
level, SenSura Mio Convex was the main
growth contributor driven by Europe, in
particular the UK and Germany, as well
as the US. The SenSura and
Assura/Alterna® portfolios contributed
to growth in Emerging markets, where
they are actively promoted. Growth in
the Brava range of supporting products
was broad-based with solid
contributions from Europe, especially
the UK, the US, as well as Emerging
markets, mostly notably China.
From a geographical perspective,
growth was driven by good contribution
from Europe, especially the UK and
Germany, and broad-based growth in
Emerging markets. Growth in the US
was held back by order phasing in the
first half of the year and is now
expected to be second half weighted.
China posted mid-single digit growth, as
expected, positively impacted by the
normalised level of procedural volumes.
The average value per patient remains
impacted by consumer sentiment.
Q2 organic growth was 7% and
reported revenue in DKK increased by
4% to DKK 2,281 million.
The SenSura Mio portfolio was the main
contributor to growth in the quarter,
followed by the Brava range of
supporting products, which also made a
solid contribution to growth. At the
product level, SenSura Mio Convex was
the main growth contributor driven by
Europe, most notably the UK and
Germany, and the US. The SenSura and
Assura/Alterna portfolios continued to
contribute to growth in the Emerging
markets. Revenue growth in the Brava
range of supporting products was driven
by Emerging markets, most notably
China and LATAM, as well as solid
contributions from Europe and the US.
From a geographical perspective,
growth was driven by Emerging
markets, led by China and LATAM, and
Europe, led by the UK and Germany. In
the US, growth was impacted by order
phasing, however, the underlying
demand continues to be strong.
China posted high-single digit growth in
the quarter, in line with expectations.
Growth in Q2 was positively impacted
by the normalised level of procedural
volumes and included benefit from a low
baseline last year.
2.3 billion
Reported revenue
in DKK for Q2
2023/24
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
7% 7%
H1 23/24 Q2 23/24
4%
4%
H1 23/24 Q2 23/24
7%
-3%
4%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2024
6
7 May 2024
Continence Care
Continence Care generated 8% organic
sales growth in the first half of 2023/24,
with reported revenue in DKK growing
by 5% to DKK 4,129 million.
The SpeediCath® ready-to-use
hydrophilic intermittent catheters were
the main drivers of revenue growth.
Sales growth in the SpeediCath portfolio
was broad-based across standard,
compact and flexible catheters, and
driven by Europe, in particular the UK
and France, as well as the US and
Emerging markets. SpeediCath Navi, a
hydrophilic catheter specifically
designed for emerging markets and
lower priced developed markets, also
contributed nicely to growth.
Luja for men is now available in 13
markets, with latest launches in France,
Austria and Belgium as of April 2024.
The product continues to be well
received by customers and made a solid
contribution to growth in the first half of
the year.
In Bowel Care, Peristeen® Plus
continued to perform well and made a
solid contribution to growth, driven by
Europe and the US.
Sales growth in Collecting Devices was
flat in the first half of 2023/24.
From a geographical perspective,
growth was broad-based, with solid
contributions from Europe, led by the
UK and France. The US also made a
solid contribution to growth, while
growth in Emerging markets was led by
LATAM. Markets with recent
reimbursement openings, such as
Poland, Australia, Japan, and South
Korea, continued to perform well and
posted double-digit growth.
Q2 organic growth was 8% and
reported revenue in DKK increased by
5% to DKK 2,062 million.
Sales growth in the quarter was driven
by solid performance across the
SpeediCath portfolio with broad-based
growth across compact, standard, and
flexible catheters.
The male Luja cathether continued to
perform well and made a solid
contribution to growth in the quarter.
Bowel Care also contributed to growth
in Q2, driven by Peristeen Plus in
Europe. Peristeen Light*, Coloplast’s
new low-volume transanal irrigation
device has been launched in two
markets with positive feedback.
Collecting Devices detracted from
growth in the quarter, impacted by
baseline.
From a geographical perspective
growth was broad-based with solid
contribution across regions, led by
Europe, in particular the UK and France.
The US also made a solid contribution
to growth, while growth in Emerging
markets was led by LATAM.
2.1 billion
Reported revenue
in DKK for Q2
2023/24
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
8%
8%
H1 23/24 Q2 23/24
5%
5%
H1 23/24 Q2 23/24
8%
-3%
5%
H1
Growth compo-
sition (6 mths)
*CE-marked medical device. Product availability is subject to regulatory process of individual countries and is not guaranteed. Currently not available in the US.
Announcement no. 02/2024
7
7 May 2024
Voice and Respiratory
Care
Voice and Respiratory Care generated
10% organic sales growth in the first
half of 2023/24, with reported revenue
in DKK growing 8% to DKK 1,035
million. Growth in the period was driven
by double-digit growth in both
Laryngectomy and Tracheostomy.
Reported growth in the first half of the
year included negative impact of 1%-
point from product rationalisation.
The double-digit growth in
laryngectomy in the first half of
2023/24 was driven by an increase in
patients served in existing and new
markets and an increase in patient value
driven by the Provox® Life™ portfolio,
Atos Medical’s new personalised
solution and product line which has
been launched in 16 markets.
The double-digit growth in
tracheostomy was driven by solid
demand and positive impact from
forward integration in key European
markets and the US.
From a geographical perspective, all
regions contributed to growth, led by
the biggest region Europe. The US also
delivered a solid contribution to growth,
while the fastest growing region was
Emerging markets. Markets with recent
reimbursement openings, such as
Poland, made a solid contribution to
growth and grew double-digit.
Q2 organic growth was 13% and
reported revenue in DKK increased by
10% to DKK 527 million. Growth in the
quarter was driven by continued solid
momentum in both Laryngectomy and
Tracheostomy. Reported growth in the
quarter included negative impact of 2%-
points from product rationalisation.
Growth in Laryngectomy was double-
digit and continued to be driven by
growth in patients served in existing and
new markets, as well as an increase in
patient value driven by the Provox Life
portfolio.
Tracheostomy delivered double-digit
growth, with continued solid demand
and positive impact from forward
integration.
From a geographical perspective, all
regions continued to contribute to
growth, driven by the biggest region
Europe, as well as solid contribution
from the US. Emerging markets
continued to be the fastest growing
region.
0.5 billion
Reported revenue
in DKK for Q2
2023/24
Organic growth
Reported growth
Organic growth
Acquired operations
Exchange rates
Reported growth
10%
13%
H1 23/24 Q2 23/24
8%
10%
H1 23/24 Q2 23/24
10%
-1%
-1%
8%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2024
8
7 May 2024
Advanced Wound
Care
Advanced Wound Care generated 8%
organic sales growth in the first half of
2023/24. Reported revenue in DKK
grew by 38% to DKK 1,964 million and
includes six months impact from the
acquisition of Kerecis.
Advanced Wound Dressings in isolation
delivered 8% organic growth in the first
six months. The Biatain® Silicone
portfolio was the main contributor to
growth. Biatain Fiber continued to
perform well and also contributed to
growth.
From a geographical perspective,
growth was broad-based across regions,
with Europe, in particular Germany, the
US and China as main growth
contributors.
Skin Care, which is mostly a US hospital
business, made a solid contribution to
growth in the first half of the year,
helped by a lower baseline in the same
period last year.
The Compeed contract manufacturing
detracted from growth in the first half of
the year, impacted by a high baseline in
the same period last year.
Kerecis’ revenue for the first half of the
year amounted to DKK 461 million, with
solid underlying growth of around 35%
and continued market share gains, in
line with expectations. The in-patient
channel and surgical wounds were the
main growth contributors. From a
geographical perspective, both sales
and growth were derived from the US.
Q2 organic growth for Advanced
Wound Care was 8%, while reported
revenue in DKK increased by 36% to
DKK 1,018 million, impacted by the
acquisition of Kerecis.
Advanced Wound Dressings in isolation
delivered 8% organic growth in Q2. The
Biatain Silicone portfolio was the main
contributor to growth. Biatain Silicone
Fit, a new silicone dressing for pressure
injury prevention and wound
management, was launched in the US in
January 2024 and has received positive
customer feedback.
From a geographical perspective,
Europe was the main growth
contributor, driven by Germany. The US
and Emerging markets, driven by China,
also made solid contributions to growth
in Q2.
The Skin Care business posted solid
growth in the quarter and benefited
from a lower baseline last year.
The Compeed contract manufacturing
business posted flat growth in Q2,
reflecting a high baseline last year.
Q2 revenue for Kerecis amounted to
DKK 232 million, with underlying growth
of around 35%, in line with expectations.
Growth in the quarter continued to be
driven by the in-patient channel and
surgical wounds.
1.0 billion
Reported revenue
in DKK for Q2
2023/24
Organic growth
Reported growth
Organic growth
Acquired operations
Exchange rates
Reported growth
8%
8%
H1 23/24 Q2 23/24
38%
36%
H1 23/24 Q2 23/24
8%
32%
-2%
38%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2024
9
7 May 2024
Interventional Urology
Interventional Urology generated 5%
organic sales growth for the first half of
2023/24, against a high baseline in the
same period last year. Reported
revenue in DKK grew by 4% to DKK
1,401 million.
The Men’s Health business in the US,
driven by the Titan® penile implants,
was the main contributor to growth. The
Endourology portfolio, primarily driven
by Europe, also made a solid
contribution to growth. Thulium Fiber
Laser Drive, Coloplast’s laser equipment
launched in FY 2022/23 contributed
nicely to growth in the first half of the
year. The Women’s Health business was
flat compared to the same period last
year and was negatively impacted by
competitive pressure.
From a geographical perspective, the
US was the main growth contributor.
Q2 organic growth was 5%, against a
high baseline in Q2 last year. Reported
revenue in DKK increased by 5% to DKK
698 million.
Growth in Q2 was driven by continued
good momentum in the US Men’s
Health business, driven by the Titan
penile implants. The Endourology
portfolio, including Thulium Fiber Laser
Drive, also contributed to growth, driven
by Europe. The Women’s Health
business detracted from growth in the
quarter, impacted by competitive
pressure.
From a geographical perspective, the
US was the main growth contributor,
followed by Europe, most notably
France.
0.7 billion
Reported revenue
in DKK for Q2
2023/24
Organic growth
Reported growth
Organic growth
Exchange rates
Reported growth
5%
5%
H1 23/24 Q2 23/24
4%
5%
H1 23/24 Q2 23/24
5%
-1%
4%
H1
Growth compo-
sition (6 mths)
Announcement no. 02/2024
10
7 May 2024
Earnings
Gross profit
Gross profit in the first half of the year
was DKK 8,981 million, compared to
DKK 8,173 million last year,
corresponding to a gross margin of 68%
compared to 67% last year. The gross
margin was positively impacted by a
decrease in freight rates and energy
costs, price increases, country and
product mix, as well as a baseline
benefit of around 40 basis points from
the Italian pay-back reform provision
which was accounted for during
2022/23. The inclusion of Kerecis had a
positive impact on the gross margin of
around 100 basis points, in line with
expectations.
The above-mentioned positive drivers
were partly offset by raw material price
increases, double-digit wage inflation in
Hungary and ramp-up costs in Costa
Rica. Currencies also had a negative
impact on the gross margin, related
mostly to the depreciation of the USD
and ARS against the DKK and
appreciation of the HUF against the
DKK. Around 75% of the company’s
production volumes are in Hungary.
In Q2, gross profit was DKK 4,477
million, corresponding to a Q2 gross
margin of 68% against 66% in Q2 last
year. The Q2 margin was impacted by
the above-mentioned drivers and
includes positive impact from the
inclusion of Kerecis of around 100 basis
points and negative impact from
currencies.
Costs
Operating expenses in the first half of
the year amounted to DKK 5,368
million, a DKK 640 million increase
(14%) from last year. Excluding impact
from inorganic operating expenses from
the Kerecis acquisition (six months)
operating expenses increased 4%, or
DKK 194 million from last year, and
include impact from company-wide
salary increases as of 1 January 2024.
Kerecis contributed with DKK 447
million to operating expenses in the first
six months of 2023/24, of which DKK 51
million were amortisation costs.
Distribution costs amounted to DKK
4,282 million, a DKK 535 million (14%)
increase from DKK 3,747 million last
year and were mainly impacted by the
inclusion of Kerecis (incl. PPA
amortisation costs), as well as an
increased level of commercial activities.
Distribution costs amounted to 32% of
revenue compared to 31% last year.
In Q2, distribution costs amounted to
DKK 2,152 million, equal to 33% of
revenue against 31% in Q2 last year,
impacted by the inclusion of Kerecis.
Administrative expenses in the first half
of the year amounted to DKK 659
million, up DKK 85 million (15%) from
DKK 574 million last year, primarily
impacted by the inclusion of Kerecis.
Administrative expenses accounted for
5% of revenue, on par with last year.
The Q2 administrative expenses
amounted to 5% of revenue, on par
with last year.
The R&D costs in the first half of the
year were DKK 454 million, compared
to DKK 425 million last year, and were
mostly impacted by the inclusion of
Kerecis. R&D costs amounted to 3% of
revenue, on par with last year.
The Q2 R&D costs amounted to DKK
221 million or 3% of revenue, on par
with last year.
Other operating income and other
operating expenses in the first half of
the year amounted to a net income of
DKK 27 million, against a net income of
DKK 18 million last year.
Income statement, DKK million
2023/24
Index
Revenue
13,192
108
Production costs
-4,211
105
Gross profit
8,981
110
Distribution costs
-4,282
114
Administrative expenses
-659
115
Research and development costs
-454
107
Other operating income
39
150
Other operating expenses
-12
150
Operating profit (EBIT) before special items
3,613
105
Special items
-34
N/A
Operating profit (EBIT)
3,579
105
Financial income
118
162
Financial expenses
-536
90
Profit before tax
3,161
109
Tax on profit for the period
-697
115
Net profit for the period
2,464
108
Announcement no. 02/2024
11
7 May 2024
Operating profit before interest, tax,
depreciation and amortisation
(EBITDA) and before special items
EBITDA before special items amounted
to DKK 4,240 million in the first half of
the year, a DKK 266 million (7%)
increase from DKK 3,974 million last
year. The EBITDA margin before special
items was 32% against 33% last year.
In Q2, EBITDA before special items was
DKK 2,110 million, a DKK 171 million
(9%) increase from Q2 last year. The
EBITDA margin before special items
was 32% in Q2, on par with last year.
Operating profit (EBIT) before special
items
EBIT before special items in the first half
of the year amounted to DKK 3,613
million, a DKK 168 million (5%) increase
from DKK 3,445 million last year. The
EBIT margin before special items was
27% compared to 28% last year. The
EBIT margin was mostly impacted by
the inclusion of Kerecis, which had a
negative impact on the EBIT margin of
around 100 basis points (including PPA
amortization), in line with expectations.
The EBIT margin also included negative
impact from currencies of around 110
basis points, mostly related to the
depreciation of the USD and ARS
against the DKK and the appreciation of
the HUF against the DKK.
In Q2, EBIT before special items was
DKK 1,791 million, a DKK 120 million
(7%) increase from last year. The EBIT
margin before special items was 27% in
Q2, against 28% last year, and includes
around 100 basis points negative
impact from the inclusion of Kerecis and
around 100 basis points negative
impact from currencies, related to the
depreciation of the USD, JPY and a
basket of Emerging markets currencies
against the DKK, as well as the
appreciation of the HUF against the
DKK.
Special items
During the first half of the year,
Coloplast incurred special items
expenses of DKK 34 million, related to
integration costs for the Atos Medical
acquisition, of which DKK 19 million in
the second quarter.
Operating profit (EBIT) after special
items
EBIT after special items was DKK 3,579
million in the first half of the year, a DKK
167 million (5%) increase from last year.
The EBIT margin after special items was
27%.
The Q2 EBIT after special items was
DKK 1,772 million, with an EBIT margin
of 27%.
Financial items and tax
Financial items were a net expense of
DKK 418 million against a net expense
of DKK 524 million last year.
The net expense was impacted by
interest expenses of DKK 374 million
compared to DKK 269 million last year,
mostly related to the financing of the
Atos Medical acquisition. Net losses on
balance sheet items of DKK 100 million
also contributed to the net expense,
mostly driven by the devaluation of the
ARS in December 2023. The financial
expenses were only partly offset by
financial income of DKK 118 million.
The Q2 financial items were a net
expense of DKK 165 million compared
to a net expense of DKK 190 million in
the same period last year, driven by
interest expenses mostly related to the
financing of Atos Medical.
The tax rate was 22%, compared to
21% last year. The tax rate continued to
include positive impact from the transfer
of Atos Medical’s Intellectual Property.
The tax expense was DKK 697 million
compared to DKK 606 million last year.
Coloplast’s long-term expectations for a
tax rate of around 23% are unchanged.
Net profit
Net profit before special items was DKK
2,491 million in the first half of the year,
a DKK 183 million increase from DKK
2,308 million last year. Diluted earnings
per share (EPS) before special items
were DKK 11.08, or a 2% increase from
last year and include impact from the
equity raise in August 2023. Net profit
after special items was DKK 2,464
million and diluted earnings per share
(EPS) after special items were DKK
10.96.
The Q2 net profit before special items
amounted to DKK 1,267 million, against
DKK 1,171 million last year. The diluted
Q2 earnings per share (EPS) before
special items were up 2% from last year
to DKK 5.63.
The Q2 net profit after special items was
DKK 1,252 million and diluted earnings
per share (EPS) after special items were
DKK 5.57.
Cash flows and
investments
Cash flows from operating activities
Cash flows from operating activities
amounted to an outflow of DKK 772
million, against a positive cash flow from
operating activities of DKK 1,176 million
last year. The development in cash flows
from operating activities was mostly
driven by higher income tax paid, due to
the extraordinary tax payment related to
the transfer of Atos Medical’s Intellectual
Property paid in Q2, with a net impact of
DKK 2.5 billion. The payment will be
offset by reduced tax payments the
following years, starting in FY 2023/24.
The negative impact on cash flow from
income tax paid was only partly offset by
improvement in changes in working
capital, driven by a favourable
development in mostly inventories, and
an increase in operating profit.
Investments
Net investments amounted to DKK 554
million in the first six months of 2023/24
or around 4% of revenue, compared
with DKK 381 million last year.
Announcement no. 02/2024
12
7 May 2024
Free cash flow
As a result, the free cash flow was an
outflow of DKK 1,326 million compared
to an inflow of DKK 795 million in the
same period last year. Adjusted for the
extraordinary tax payment related to the
transfer of Atos Medical’s Intellectual
Property, the free cash flow was an
inflow of DKK 1.2 billion.
Capital resources
At 31 March 2024, Coloplast had net
interest-bearing debt, including
securities, of DKK 23,624 million, against
DKK 18,660 million at 30 September
2023. The increase was mostly driven
by net interest-bearing debt raised to
cover the extraordinary tax payment
related to the transfer of Atos Medical’s
Intellectual Property. The gearing ratio
at the end of the period was 2.8x
EBITDA (before special items).
As part of the financing of the Atos
Medical acquisition, Coloplast issued a
2-year bond of EUR 650 million,
expiring on 19 May 2024. Coloplast has
secured the refinancing of the 2-year
bond through a committed term loan.
The impact of the refinancing of the 2-
year bond is already accounted for in
Coloplast’s net financial items
assumptions for FY 2023/24.
Coloplast is committed to deleveraging
and bringing the gearing ratio down to
between 1x-2x EBITDA by 2024/25.
Statement of financial
position and equity
Balance sheet
At 31 March 2024, total assets
amounted to DKK 48,140 million, a
decrease of DKK 19 million compared to
30 September 2023.
Working capital was 26% of revenue, on
par with 30 September 2023.
Inventories increased by DKK 40 million
to DKK 3,562 million. Trade receivables
increased by DKK 326 million to DKK
4,641 million, impacted by timing, while
trade payables decreased by DKK 68
million to DKK 1,226 million.
Coloplast’s long-term working capital-to-
sales ratio is unchanged and expected to
be around 24%, while the working
capital-to-sales ratio in FY 2023/24 is
expected to be around 25%.
Kerecis earnout
On 31 August 2023, Coloplast acquired
all shares and voting rights of Kerecis hf.
and its subsidiaries at a cash
consideration of DKK 7,923 million. At
the end of 2022/23, the initial
accounting for goodwill, intellectual
property rights, other intangible assets
and deferred tax assets and liabilities
remained provisional. During 2023/24,
the assumptions were reassessed, and a
reduction of the consideration was
recognized at a value of DKK 523
million. The reduction was offset by a
corresponding amount to goodwill.
Equity
Equity decreased by DKK 1,099 million
compared to 30 September 2023 to
DKK 16,200 million. Total
comprehensive income for the period of
DKK 2,208 million, net effect of sale of
treasury shares and loss of exercised
options of DKK 249 million and share-
based remuneration of DKK 39 million
were offset by payment of dividends of
DKK 3,595 million.
Treasury shares
At 31 March 2024, Coloplast’s holding
of treasury shares consisted of
3,159,941 B shares, which was 379,587
less than 30 September 2023. The
decrease was due to exercise of share
options.
Return on invested capital (ROIC)
ROIC after tax before special items was
15% against 17% as of 30 September
2023, impacted by the acquisitions of
Kerecis.
Announcement no. 02/2024
13
7 May 2024
Update on sustainability strategy and performance
Priority
Unit
2025 Ambition
H1
2023/24
H1
2022/23
Change
FY
2022/23
Improving products and packaging
Recyclable packaging
1)
% of total
90%
-
-
-
72%
Renewable materials in packaging
1)
% of total
80%
-
-
-
66%
Production waste recycling
5)
% of total
75%
75%
74%
1%-p
75%
Reducing emissions
Scope 1 and 2 emissions
5)
% reduction
100% reduction by 2030
2) 4)
16%
15%
1%-p
10%
Renewable energy use
5)
% of total
100%
82%
76%
6%-p
78%
Electric company cars
1)
% of total
100% by 2030
-
-
-
8%
Scope 3 emissions
1)
(by 2030)
% reduction per product
50% reduction by 2030
2) 4)
-
-
-
8%
Business travel by air
1)
% reduction
10% reduction
2)
-
-
-
41%
Goods transported by air
1)
% of total
< 5% of total
-
-
-
2%
Responsible operations
Lost time injury frequency
5)
Parts per million
2.0
2.9
2.3
0.6
2.6
Code of Conduct training
1)
% of white collars
100%
-
-
-
99%
Female senior leaders (VP+ level)
1)
% of total
40% by 2030
29%
23%
6%-p
26%
Diverse teams
1) 6)
% share of total teams
75%
51%
55%
-4%-p
54%
Employee satisfaction
1) 3) 6)
Engagement score
Above benchmark
8.1
8.1
-
8.1
Improving products and packaging
Production waste recycling increased to
75% in H1 2023/24
5
, on par with FY
2022/23 and in line with our 2025
ambition, driven by our partnership with
a recycling manufacturer in Hungary.
We continue to look for new use cases of
our production waste, especially at our
sites in Costa Rica and China.
Scope 1 and 2 emissions
The absolute scope 1 and 2 emissions
decreased by 16% in H1 2023/24
5
,
compared to the base year 2018/19.
The reduction in absolute scope 1 and 2
emissions was positively impacted by
the shift from natural gas to more
sustainable district heating at our
Danish sites in Humlebæk and Mørdrup,
partly offset by the inclusion of Atos
Medical. Excluding Atos Medical, scope
1 and 2 emissions decreased by 19% in
H1 2023/24.
Renewable energy use increased to 82%
of the total energy use in H1 2023/24
5
,
compared to 76% in H1 2022/23,
impacted by aforementioned shift to
district heating at Coloplast’s Danish
sites. The transfer to district heating
supports Coloplast’s ambition of 100%
renewable energy by 2025 and
contributes to the development of a
local distribution network to facilitate
wider usage of more sustainable
heating.
Responsible operations
In H1 2023/24, the lost time injury
frequency was 2.9 ppm, compared to
2.3 ppm in H1 2022/23. We continue to
set activities in motion to address LTIs.
The aim is to reach all employees
through global engagement activities to
increase safety awareness and safe
behaviours, in order to reach our
ambition of 2.0 ppm by 2025.
Employee engagement survey
Coloplast’s bi-annual employee survey,
conducted in March, showed a high
employee satisfaction with an
engagement score of 8.1 (out of 10), on
par with 2022/23. The score exceeds
the healthcare industry benchmark and
indicates that Coloplast consistently
upholds a strong employee satisfaction
across the company. The voluntary
turnover level also remains stable and
on par with 2022/23.
All figures are excluding Kerecis.
1) Metric will only be reported on a semi-annual or full-year basis. 2) From base year 2018/19. 3) Employee survey conducted twice a year. Latest
industry benchmark from Q2 2023/24 was 7.8. 4) Target validated by Science-Based Targets initiative (SBTi). 5) Four quarters rolling average.
6) ‘Diverse teams’ and ‘Employee satisfaction’ for H1 2022/23 and FY 2022/23 excludes Atos Medical.
Announcement no. 02/2024
14
7 May 2024
Other matters
Launch of Luja™ for women*
Coloplast expands its Luja portfolio with
the launch of a new intermittent
catheter with Micro-hole Zone
Technology for female users. The
catheter enables complete bladder
emptying in one free flow
1
to reduce the
risk of urinary tract infections
2
.
Urinary tract infections remain a major
concern and challenge for men and
women using catheters
3
. Flow stops and
blockage of conventional catheter
eyelets during catheterisation may risk
leaving residual urine behind in the
bladder, which raises the risk of bacteria
growth and is a well-known UTI risk
factor
2
. The new intermittent catheter
for women has 50+ micro-holes** and is
designed to reduce flow stops and
mucosal suction during catheterisation.
The performance of Luja for women is
supported by two clinical studies. The
studies found that the catheter enables
complete bladder emptying in one free
flow without having to reposition the
catheter
1
. The studies also found that
women reported no discomfort when
using Luja.
The new catheter for women is
designed with the user and environment
in mind. The catheter is made with 28%
less plastic than Coloplast’s SpeediCath®
Compact Eve and has a 22% reduced
carbon footprint
4
. The product
container is also recyclable
5
.
Luja for women will launch across all
Coloplast’s key markets over the next
12 months, starting with two markets in
May 2024.
Ostomy care portfolio strengthened
with three product launches
Heylo*, a digital leakage notification
device, has been granted national
reimbursement in the UK as of 1 July
2024. Heylo is the world's first digital
leakage notification system, designed to
help users feel more in control and bring
peace of mind. The product consists of a
sensor layer that is used together with
the ostomy appliance, a transmitter that
is connected to the user’s smartphone,
and an app that notifies the user at the
first sign of leakage. Work to obtain
reimbursement in the second launch
market, Germany, is ongoing.
To provide more choice to people with a
stoma, Coloplast is significantly
expanding its SenSura Mio range with
SenSura Mio ostomy bags in black*.
Until now, ostomy bags have mostly
come in traditional colours, with black
bags being niche and only available in a
limited number of countries. With the
launch, Coloplast is introducing black
ostomy bags to many more markets.
The first variants of the SenSura Mio
range in black will be introduced in key
markets over the next six months,
starting with five markets in May 2024.
Coloplast is also broadening its offering
in the convex segment with the launch
of SenSura Mio Convex Soft with Flex
coupling*, which will be introduced in
key markets over the next nine months,
starting with two markets in May 2024.
Meet the Management event
Coloplast will host a Meet the
Management event on 6 June 2024 in
Denmark. Registration deadline for in-
person participation is 17 May 2024.
Please find further details on the
following link: Coloplast Meet the
Management 2024.
Timetable for half-year interim
dividend of DKK 5.00 per share
7 May 2024 – Declaration date
13 May 2024 – Ex-dividend date
14 May 2024 – Value date
15 May 2024 – Disbursement date
Proposed LCDs for Skin Substitute
Grafts/Cellular and Tissue-Based
Products
On 25 April, seven Medicare
Administrative Contractors issued a
draft Local Coverage Determination
(LCD) policy regarding skin substitute
grafts/cellular and tissue-based
products (CTP) for the treatment of
diabetic foot ulcers and venous leg
ulcers in the Medicare population.
The draft LCD policy contains a
technical qualification and a clinical
efficacy qualification that CTPs need to
fulfil to be covered for payment.
Kerecis fulfils the technical qualification
in the draft policy, but it is considered to
not meet the clinical efficacy
qualification and it is therefore not
included on the covered list in the draft
policy. An estimated ~20% of Kerecis
revenues could fall under the draft
policy.
Manufacturers of CTPs can provide their
input to the draft policy during a
consultation period that ends on 8 June.
The potential implementation date of
the policy has not been established, but
typically it takes several months to half
a year from the conclusion of the
consultation period. Kerecis has a strong
clinical body of evidence with more than
40 peer reviewed publications, including
a number of randomized controlled
trials (RCTs). A 2023 RCT by Lantis et
al., which provides relevant and high-
quality evidence on the efficacy and
performance of Kerecis fish skin in the
treatment of chronic diabetic foot
ulcers, is not included in the draft policy
assessment. Kerecis will provide
comments to the draft LCD policy,
including the abovementioned 2023
RCT on diabetic foot ulcers. Coloplast
strongly believes the clinical data meets
and exceeds the efficacy qualification of
the draft LCD policy, and therefore
Kerecis should remain on the list of
covered products.
1. Luja female ensured zero flow stops in 87% of catheterisations &
<10 mL residual urine at first flow stop in 83% of catheterisations
(RCTs, post-hoc, NCT05841004, n=73, & NCT05814211, n=82).
Coloplast Data-on-File) 2. UTI risk factors defined by Kennelly M., et al
2019, DOI:10.1155/2019/2757862 3. Averbeck M.A., et al 2023,
DOI:10.12968/bjon.2023.32.18.S8. 4. Compared to SpeediCath®
Compact Eve. Based on externally reviewed carbon footprint
according to ISO14067. 5. Product design, use and local waste
management specifics may limit recyclability.
*CE-marked medical device. Product availability is subject to
regulatory process of individual countries and is not guaranteed.
Currently not available in the US. ** minimum of 50 micro-holes on
Luja female CH10-16.
Announcement no. 02/2024
15
7 May 2024
Long-term financial
guidance
8-10%
Organic growth p.a.
above 30%
EBIT margin beyond 2024/25
(at constant exchange rates)
The long-term organic growth guidance
includes around 1%-point accretion
from Kerecis as of FY 2024/25. For the
remaining Strive25 strategic period
running until end of 2024/25, the EBIT
margin is expected to remain
below 30% and assumes dilution of
around 100 basis points p.a. from
Kerecis (including PPA amortisation).
For financial assumptions on Kerecis,
please refer to: Kerecis acquisition
Key assumptions largely
unchanged
Current macroeconomic and industry-
specific trends are continuously
monitored and their potential impact on
our business is evaluated on an ongoing
basis. As such, the financial guidance is
subject to a higher degree of
uncertainty.
The addressable market in which
Coloplast operates is expected to
continue growing at 4-5%.
The organic revenue growth guidance
and EBIT margin guidance are
unchanged, and the assumptions laid
out in November 2023 still largely hold.
Revenue growth
Organic growth is expected around 8%
in constant currencies with the following
assumptions:
a. Chronic Care:
o Continued solid momentum in
Europe and Emerging markets
ex. China, in line with the
Strive25 ambitions
o Improvement in growth in China,
however, China is not expected
to return to the Strive25
ambition of double-digit growth,
due to continued impact from
average value per patient which
remains hindered by consumer
sentiment
o US Chronic Care – growth
expected to be second half
weighted, due to impact from
order phasing in the US ostomy
care business in H1 2023/24
b. Advanced Wound Care is expected
to deliver growth above the market
c. Interventional Urology is now
expected to deliver mid-single digit
growth, from previously high-single
digit, impacted by softer momentum
in the Women’s Health business
d. Voice and Respiratory Care is
expected to grow at 8-10%
e. No current knowledge of significant
health care reforms; positive pricing
impact is expected. The expectation
of long-term price pressure of up to
1% annually is unchanged
f. A stable supply and distribution of
products across the company
Reported growth in DKK is now
expected to be 10-11%, from previously
around 11%, which includes negative
impact from currencies of around 1-2%-
points, from previously around 1%-
point. Contribution from the Kerecis
acquisition is still expected around 4%-
points (11 months).
EBIT margin
The reported EBIT margin before
special items is expected at 27-28%,
and includes the following assumptions:
a. Input costs development:
o Raw materials – mid single-digit
price increase
o Tailwind from total energy costs
of around DKK 100 million on
the gross margin
o Tailwind from freight cost
o Wages in Hungary – double-digit
increase, similar to 2022/23
b. One-off baseline benefit of ~40 basis
points from the Italian pay-back
reform provision which was included
in the FY 2022/23 gross margin
c. Prudent management of operating
costs, expected to grow below
reported revenue in DKK (excluding
acquired growth)
d. Incremental investments at the
lower end of the Strive25 guidance
(up to 2% of sales in incremental
OPEX investments)
e. Benefit from operational synergies
related to integration of Atos
Medical on Coloplast infrastructure
f. Negative impact from Kerecis of
around 100 basis points, which
includes around DKK 100 million in
PPA amortisation
g. Negative impact from currencies of
around 50 basis points
2023/24
Financial
guidance
Around 8
%
Organic revenue growth
at constant exchange rates
27-28
%
Reported EBIT margin
(before special items)
Around 1.4 bn
Capital expenditure in DKK
Around 22
%
Effective tax rate
Announcement no. 02/2024
16
7 May 2024
Special items of around DKK 50 million,
related to the Atos Medical integration.
Capex includes investments in the new
manufacturing site in Portugal,
investments in new machines for
existing and new products, IT and
sustainability investments, as well as
Atos Medical integration capex.
Effective tax rate is expected to be
around 22%, positively impacted by the
transfer of Atos Medical Intellectual
Property (IP).
Dividend policy
The Board of Directors intends to
distribute excess liquidity to the
shareholders through dividends and
share buybacks, with a target payout
ratio of 60-80% of net profit.
Forward-looking
statements
The forward-looking statements in this
announcement, including revenue and
earnings guidance, do not constitute a
guarantee of future results and are
subject to risk, uncertainty and
assumptions, the consequences of
which are difficult to predict.
The forward-looking statements are
based on our current expectations,
estimates and assumptions and are
provided on the basis of information
available to us at the present time.
Major fluctuations in the exchange rates
of key currencies, significant changes in
the healthcare sector or major
developments in the global economy
may impact our ability to achieve the
defined long-term targets and meet our
guidance. This may impact our
company’s financial results.
Exchange rate
exposure
Our financial guidance for the 2023/24
financial year has been prepared on the
basis of the following assumptions for
the company’s principal currencies:
OVERVIEW OF EXCHANGE RATES FOR
KEY CURRENCIES AGAINST DKK
GBP
USD
HUF
Average exchange
rate 6M 2022/23
849
711
1.87
Average exchange
rate 6M 2023/24
865
690
1.94
Change in average
exchange rates for
2023/24 compared
with the same
period last year
2%
-3%
4%
Average exchange
rate 2022/23¹⁾
855
698
1.92
Spot rate on
3 May 2024
872
695
1.92
Estimated average
exchange rate
2023/24²⁾
869
692
1.93
Change in
estimated average
exchange rates
compared with
average exchange
rate 2022/23
2%
-1%
1%
¹⁾ Average exchange rates for 2022/23 are
from 1 October 2022 to 30 September 2023.
²⁾ Estimated average exchange rates are
calculated as the average exchange rates for
the first six months combined with the spot
rates at 3 May 2024.
Revenue is particularly exposed to
developments in USD and GBP relative
to DKK. Fluctuations in HUF against
DKK impact the operating profit
because a substantial part of our
production, and thus of our costs, are in
Hungary, whereas our sales there are
moderate.
EFFECT OVER 12 MONTHS OF A 10%
INITIAL DROP IN EXCHANGE RATES FOR
KEY CURRENCIES (DKK MILLION)
Revenue
EBIT
USD
-710
-220
GBP
-350
-220
HUF
-
130
Announcement no. 02/2024
17
7 May 2024
Executive Management
Executive Vice President
Board of Directors
Announcement no. 02/2024
18
7 May 2024
Statement of comprehensive income
1 October – 31 March, unaudited
Consolidated
2023/24
2022/23
2023/24
2022/23
DKK million
Note
6 mths
6 mths
Index
Q2
Q2
Index
Revenue
2
108
109
Production costs
-4,211
-3,993
105
-2,109
-2,034
104
Gross profit
110
111
Distribution costs
-4,282
-3,747
114
-2,152
-1,882
114
Administrative expenses
-659
-574
115
-324
-277
117
Research and development costs
-454
-425
107
-221
-209
106
Other operating income
150
106
Other operating expenses
-12
-8
150
-7
-5
140
Operating profit (EBIT) before special items
105
107
Special items
3
-34
-33
-
-19
-20
-
Operating profit (EBIT)
105
107
Financial income
4
162
86
Financial expenses
4
-536
-597
90
-201
-232
87
Profit before tax
109
110
Tax on profit for the period
-697
-606
115
-355
-306
116
Net profit for the period
108
108
Remeasurements of defined benefit plans
-2
Tax on remeasurements of defined benefit plans
-2
-1
-2
Items that will not be reclassified to the income
statement
-1
Value adjustment of currency hedging
-16
-46
Transferred to financial items
-71
-18
-6
Tax effect of hedging
-38
-8
Currency adjustment of opening balances and
other value adjustments relating to subsidiaries
-267
-542
-374
-69
Tax effect of currency adjustment, assets in
foreign currency
Items that may be reclassified to income
statement
-255
-392
-344
-49
Total other comprehensive income
-256
-389
-341
-44
Total comprehensive income
DKK
Earnings per share (EPS)
Earnings per share (EPS), diluted
Announcement no. 02/2024
19
7 May 2024
Statement of cash flows
1 October – 31 March, unaudited
Consolidated
2023/24
2022/23
DKK million
Note
6 mths
6 mths
Operating profit
Amortisation
Depreciation
Adjustment for other non-cash operating items
6
-60
-81
Changes in working capital
6
-953
-1,289
Ingoing interest payments, etc.
Outgoing interest payments, etc.
-423
-155
Income tax paid
-3,615
-1,252
Cash flows from operating activities
-772
Investments in intangible assets
-84
-134
Investments in land and buildings
-5
-5
Investments in plant and machinery and other fixtures and fittings, tools and equipment
-27
-30
Investments in property, plant and equipment under construction
-434
-397
Property, plant and equipment sold
Investment in other investments
-13
-17
Company divestment
Net sales/purchase of marketable securities
Cash flows from investing activities
-554
-381
Free cash flow
-1,326
Dividend to shareholders
-3,595
-3,185
Sale of treasury shares and loss on exercised options
Financing from shareholders
-3,346
-3,178
Repayment of lease liabilities
-127
-119
Drawdown on credit facilities
Cash flows from financing activities
-549
Net cash flows
Cash and cash equivalents at 1 October
Value adjustment of cash and bank balances
-21
-32
Cash and cash equivalents, disposed operations
-4
Net cash flows
Cash and cash equivalents at 31 March
7
The cash flow statement cannot be derived using only the published financial data.
Announcement no. 02/2024
20
7 May 2024
Assets
At 31 March, unaudited
Consolidated
DKK million
Note
31.03.24
31.03.23
30.09.23
Intangible assets
Property, plant and equipment
Right-of-use assets
Other equity investments
Deferred tax asset
Other receivables
Non-current assets
Inventories
Trade receivables
Income tax
Other receivables
Prepayments
Marketable securities
Cash and cash equivalents
Current assets
Assets
Announcement no. 02/2024
21
7 May 2024
Equity and liabilities
At 31 March, unaudited
Consolidated
DKK million
Note
31.03.24
31.03.23
30.09.23
Share capital
Currency translation reserve
-1,832
-1,381
-1,579
Reserve for currency hedging
Proposed ordinary dividend for the period
Retained earnings
Equity
Provisions for pensions and similar liabilities
Provision for deferred tax
Other provisions
Bonds
5
Other payables
Lease liability
Prepayments
Non-current liabilities
Provisions for pensions and similar liabilities
Other provisions
Bonds
5
Other credit institutions
Trade payables
Income tax
Other payables
Lease liability
Prepayments
Current liabilities
Equity and liabilities
Announcement no. 02/2024
22
7 May 2024
Statement of changes in equity, current year
At 31 March, unaudited
Consolidated
Share capital
Reserves
DKK million
A shares
B shares
Currency
translation
Currency
hedging
Proposed
dividend
Retained
earnings
Total
2023/24
Equity at 1 October
-1,579
Net profit for the period
Other comprehensive income
-253
-68
-256
Total comprehensive income
-253
-68
Sale of treasury shares and loss on
exercised options
Share-based payment
Dividend paid out in respect of
2022/23
-3,595
-3,595
Transactions with shareholders
-3,595
-3,307
Equity at 31 March
-1,832
Announcement no. 02/2024
23
7 May 2024
Statement of changes in equity, last year
At 31 March, unaudited
Consolidated
Share capital
Reserves
DKK million
A shares
B shares
Currency
translation
Currency
hedging
Proposed
dividend
Retained
earnings
Total
2022/23
Equity at 1 October
-910
Net profit for the period
Other comprehensive income
-471
-68
-389
Total comprehensive income
-471
Sale of treasury shares and loss on
exercised options
Share-based payment
Dividend paid out in respect of
2021/22
-3,185
-3,185
Transactions with shareholders
-3,185
-3,151
Equity at 31 March
-1,381
Announcement no. 02/2024
24
7 May 2024
Key accounting policies
1 Accounting policies
Profit and loss
2 Segment information
3 Special items
4 Financial income and expenses
Assets and liabilities
5 Bonds
Cash flows
6 Specifications of cash flow from operating activities
7 Cash and cash equivalents
Other disclosures
8 Contingent liabilities
9 Acquisitions
List of notes
Announcement no. 02/2024
25
7 May 2024
Note 1
Accounting policies
The financial statements in this report is prepared in accordance with IAS 34 “Interim financial reporting” as adopted by the EU
and additional Danish disclosure requirements for interim reports of listed companies.. The accounting policies for recognition
and measurement applied in the preparation of the financial statements in this report are consistent with those applied in the
Annual Report 2022/23.
Note 2
Segment information
Operating segments
The operating segments are defined on the basis of the monthly reporting to the Executive Leadership Team, which is
considered the senior operational management and the management structure. Reporting to the Executive Leadership Team is
based on five operating segments: Chronic Care, Voice and Respiratory Care, Interventional Urology, Advanced Wound
Dressings and Biologics.
The segment Chronic Care covers the sale of ostomy care products and continence care products. The segment Voice and
Respiratory Care covers the sale of laryngectomy and tracheostomy products. The segment Interventional Urology covers the
sale of urological products, including disposable products. The segment Advanced Wound Dressings covers the sale of wound
and skin care products and Compeed contract manufacturing. The segment Biologics represents a new segment, obtained
through the acquisition of Kerecis, covering the sale of tissue-based products. The segmentation reflects the structure of
reporting to the Executive Leadership Team.
The shared/non-allocated costs comprises support functions (production units and staff functions) and eliminations, as these
functions do not generate revenue. While the costs of R&D for Interventional Urology, Voice and Respiratory Care and Biologics
are included in the segment operating profit/loss for the above-mentioned segments, R&D activities for Chronic Care and
Advanced Wound Dressings are shared functions which are included in shared/non-allocated functions. The shared/non-
allocated costs also include PPA amortisation expenditures related to Voice and Respiratory Care and Biologics. Financial items
and income tax are not allocated to the operating segments.
The Executive Leadership Team reviews each operating segment separately, applying their market contributions to earnings
and allocating resources on that basis. The market contribution is defined as external revenue less the sum of direct production
costs, distribution costs, sales costs, marketing costs and administrative expenses. Costs are allocated directly to segments.
Certain immaterial indirect costs are allocated systematically to the shared/non-allocated and the reporting segments.
The Executive Leadership Team does not receive reporting on assets and liabilities by the reporting segments. Accordingly, the
reporting segments are not measured in this respect, nor do we allocate resources on this background. No single customer
accounts for more than 10% of revenue.
Announcement no. 02/2024
26
7 May 2024
Note 2, continued
DKK million
Chronic Care
Voice and
Respiratory
Care
Interventional
Urology
Advanced
Wound
Dressings
Biologics
Group
2023/24
Segment revenue:
Ostomy Care
4,663
-
-
-
-
4,663
Continence Care
4,129
-
-
-
-
4,129
Voice and Respiratory Care
-
1,035
-
-
-
1,035
Interventional Urology
-
-
1,401
-
-
1,401
Advanced Wound Care
-
-
-
1,503
461
1,964
External revenue as per the
statement of comprehensive
income
8,792
1,035
1,401
1,503
461
13,192
Costs allocated to segment
-3,665
-678
-920
-928
-416
-6,607
Segment operating profit/loss
5,127
357
481
575
45
6,585
Shared/non-allocated
-2,972
Special items not included in segment operating profit/loss (see note 3)
-34
Operating profit before tax (EBIT) as per the statement of comprehensive income
3,579
Net financials
-418
Tax on profit/loss for the period
-697
Profit/loss for the period as per the statement of comprehensive income
2,464
DKK million
Chronic Care
Voice and
Respiratory
Care
Interventional
Urology
Advanced
Wound
Dressings
Biologics
Group
2022/23
Segment revenue:
Ostomy Care
4,478
-
-
-
-
4,478
Continence Care
3,951
-
-
-
-
3,951
Voice and Respiratory Care
-
959
-
-
-
959
Interventional Urology
-
-
1,353
-
-
1,353
Advanced Wound Care
-
-
-
1,425
-
1,425
External revenue as per the
statement of comprehensive
income
8,429
959
1,353
1,425
-
12,166
Costs allocated to segment
-3,598
-641
-874
-885
-
-5,998
Segment operating profit/loss
4,831
318
479
540
-
6,168
Shared/non-allocated
-2,723
Special items not included in segment operating profit/loss (see note 3)
-33
Operating profit before tax (EBIT) as per the statement of comprehensive income
3,412
Net financials
-524
Tax on profit/loss for the period
-606
Profit/loss for the period as per the statement of comprehensive income
2,282
Announcement no. 02/2024
27
7 May 2024
Note 3
Special items
DKK million
2023/24
2022/23
Expenses related to business combinations
34
33
Total
34
33
Special items contains expenses related to integration costs for the Atos Medical acquisition.
Note 4
Financial income and expenses
DKK million
2023/24
2022/23
Financial income
Interest income
39
10
Fair value adjustments of forward contracts transferred from other comprehensive income
33
-
Interest hedges
38
37
Hyperinflationary adjustment of monetary position
7
24
Other financial income
1
2
Total
118
73
Financial expenses
Interest expenses
115
64
Interest expenses, lease liabilities
15
12
Interest expenses, bonds
259
205
Fair value adjustments of forward contracts transferred from other comprehensive income
-
31
Fair value adjustments of cash-based share options
2
2
Net exchange adjustments
100
227
Other financial expenses and fees
45
56
Total
536
597
Announcement no. 02/2024
28
7 May 2024
Note 5
Bonds
Bonds
Coloplast has in 2021/22 raised EUR 2.2 billion in debt financing through the issuance of senior unsecured notes in an
aggregate principal amount of EUR 2.2 billion under the Coloplast Euro Medium Term Note programme. The Notes are
unconditionally and irrevocably guaranteed by Coloplast. COLOCB1 Floating Rate Note carries a coupon adjusted quarterly.
COLOCB2 carries a fixed coupon for five years, and COLOCB3 carries a fixed coupon for eight years.
COLOCB2 and COLOCB3 can be redeemed at a market price fixed on the redemption date in relation to named EUR bonds
with similar maturity.
A pre-hedge was made with Interest swaps on COLOCB2 and COLOCB3 with mandatory breakage on the day the bonds are
issued to limit the financial risks. The gain of DKK 521 million has as per hedge accounting been set off in the equity and
transferred to the financial items during the lifetime of the bonds.
Short name
Currency
Amount, million
Expiry date
Coupon¹⁾
COLOCB1
EUR
650
19-05-2024
4.67
COLOCB2
EUR
850
19-05-2027
2.25
COLOCB3
EUR
700
19-05-2030
2.75
¹⁾ Fixed for COLOCB1 as per 17-02-2024. The coupon rate is set as 3M Euribor + 0.75%.
Note 6
Specifications of cash flow from operating activities
DKK million
2023/24
2022/23
Net gain/loss on divestment of non-current assets
-
-1
Change in other provisions
-98
-107
Other non-cash operating items
38
27
Adjustment for other non-cash operating items
-60
-81
Inventories
-138
-445
Trade receivables
-395
-232
Other receivables, including amounts held in escrow
-93
-95
Trade and other payables etc.
-327
-517
Changes in working capital
-953
-1,289
Announcement no. 02/2024
29
7 May 2024
Note 7
Cash and cash equivalents
DKK million
2024
2023
Bank deposits, short term
889
628
Cash and cash equivalents at 31 March
889
628
Note 8
Contingent liabilities
The Coloplast Group is a party to a few minor legal proceedings, which are not expected to influence the Group’s future
earnings.
Note 9
Acquisitions
On 31 August 2023 Coloplast acquired all shares and voting rights of Kerecis hf. and its subsidiaries at a cash consideration of
DKK 7,923 million. At the end of 2022/23, the initial accounting for goodwill, intellectual property rights, other intangible assets
and deferred tax assets and liabilities remained provisional. The consideration based on the performance of Kerecis in 2023/24
was assessed at a very high level in the purchase price allocation. During 2023/24, the assumptions were reassessed, and a
reduction of the consideration was recognized at a value of DKK 523 million. The reduction was offset by a corresponding
amount to goodwill.
For further information regarding the acquisition and the provisional purchase price allocation please refer to the note 32 in the
Annual Report for 2022/23.
Announcement no. 02/2024
30
7 May 2024
Income statement, quarterly
Unaudited
Consolidated
2023/24
2022/23
DKK million
Q2
Q1
Q4
Q3
Q2
Q1
Revenue
6,586
6,606
6,226
6,108
6,061
6,105
Production costs
-2,109
-2,102
-2,094
-2,085
-2,034
-1,959
Gross profit
4,477
4,504
4,132
4,023
4,027
4,146
Distribution costs
-2,152
-2,130
-1,905
-1,866
-1,882
-1,865
Administrative expenses
-324
-335
-279
-262
-277
-297
Research and development costs
-221
-233
-231
-216
-209
-216
Other operating income
18
21
17
13
17
9
Other operating expenses
-7
-5
-20
-6
-5
-3
Operating profit (EBIT) before special items
1,791
1,822
1,714
1,686
1,671
1,774
Special items
-19
-15
-69
28
-20
-13
Operating profit (EBIT)
1,772
1,807
1,645
1,714
1,651
1,761
Financial income
36
82
81
37
42
31
Financial expenses
-201
-335
-199
-141
-232
-365
Profit before tax
1,607
1,554
1,527
1,610
1,461
1,427
Tax on profit for the period
-355
-342
-298
-338
-306
-300
Net profit for the period
1,252
1,212
1,229
1,272
1,155
1,127
DKK
Earnings per share (EPS) before special items
5.63
5.45
5.72
5.88
5.51
5.36
Earnings per share (EPS)
5.57
5.39
5.47
5.99
5.44
5.31
Earnings per share (EPS) before special items, diluted
5.63
5.45
5.72
5.88
5.51
5.35
Earnings per share (EPS), diluted
5.57
5.39
5.47
5.98
5.44
5.31
Announcement no. 02/2024
31
7 May 2024
Our mission
Making life easier for people
with intimate health care needs
Our values
Closeness... to better understand
Passion... to make a difference
Respect and responsibility... to guide us
Our vision
Setting the global standard
for listening and responding
For further information, please contact
Investors and analysts
Anders Lonning-Skovgaard
Executive Vice President, CFO
Tel. +45 4911 1111
Aleksandra Dimovska
Senior Director, Investor Relations
Tel. +45 4911 1800 / +45 4911 2458
Email: dkadim@coloplast.com
Kristine Husted Munk
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
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.
Coloplast was founded on passion, ambition, and commitment. We were born from a nurse’s wish to help her sister and
the skills of an engineer. Guided by empathy, our mission is to make life easier for people with intimate healthcare needs.
Over decades, we have helped millions of people to live a more independent life and we continue to do so through
innovative products and services. Globally, our business areas include Ostomy Care, Continence Care, Advanced Wound
The Coloplast logo is a
registered trademark of
Coloplast A/S. © 2024-05
All rights reserved Coloplast A/S,
3050 Humlebaek, Denmark.