In Q1, Coloplast delivered organic revenue growth of 6% and an EBIT margin of 33% at constant exchange rates. The results are in line with expectations.
Coloplast delivered organic growth of 6% in the first three months of the 2016/17 financial year, increasing revenue measured in Danish kroner by 3% to DKK 3,755m. EBIT increased by 3% to reach DKK 1,226m, while the profit for the period was up by 15% to DKK 946m.
Coloplast continued to generate growth in all business areas in the first quarter, delivering organic growth in Ostomy Care at 6%, Continence Care at 5%, Wound & Skin Care at 5% and Urology Care at 8%.
In Continence Care, Coloplast recently launched a new flexible catheter for men, the SpeediCath Flex. The product is now on the market in 11 countries. In addition, in Wound & Skin Care, the Biatain Silicone Sizes & Shapes product portfolio had been launched in eight countries on 1 January. Both launches have received very positive feedback from users and healthcare professionals.
Geographically, Europe was the main growth driver overall, delivering 6% organic growth, with sales growth in the UK and France standing out. Other developed markets produced 4% growth, while Emerging Markets contributed 7%.
"We delivered satisfactory results in the first quarter of the year, supported by a particularly strong performance of our European business. Growth in the US was affected by inventory reductions of large distributors. Inventory levels are now back to normal, and we expect this to drive favourable sales growth developments in the coming quarters," says Lars Rasmussen, CEO of Coloplast.
In a move to support the overall ambition of bringing innovative products and services to the US market, Coloplast acquired US distributor Comfort Medical in November. The acquisition was approved in late December, and the process of integrating the company has now been set in motion.
Coloplast continues to expect an organic revenue growth of 7-8% at constant exchange rates. Coloplast now expects organic revenue growth of 7-8% in Danish kroner (DKK) following the acquisition of Comfort Medical and developments in the British pound and the US dollar. Coloplast continues to expect the EBIT margin to be 33-34% at constant exchange rates and about 33% in DKK.
Senior Media Relations Manager
+45 49 11 30 95
Director, Investor Relations
+45 49 11 33 76