Consensus estimater
Coloplast delivered Q2 organic growth of 6% and 6% EBIT growth1 in constant currencies. Strong quarter in Chronic Care and Interventional Urology, challenging quarter in Wound & Tissue Repair. Reported revenue in DKK grew 2%, with 4%-points negative impact from currencies. Return on invested capital after tax before special items was 15%.
Organic growth rates by business area: Ostomy Care 7%, Continence Care 8%, Voice & Respiratory Care 8%, Wound & Tissue Repair -2%, and Interventional Urology 8%.
Momentum uplift in Ostomy Care, as expected, following a soft start in Q1, with double-digit growth in the US.
Growth in Continence Care was driven by continued strong contribution from Luja™ for both male and female users.
Voice & Respiratory Care growth was driven by Laryngectomy, while Tracheostomy was impacted by order phasing, as expected.
Kerecis at 0% organic growth and 0% EBIT margin before PPA amortisation, reflecting significant sales disruption from the Medicare reimbursement change in the out-patient setting. Growth in the in-patient setting remained at a healthy double-digit level, albeit with a slight easing of momentum compared to previous quarters.
Advanced Wound Dressings declined 2% due to the voluntary product return of all Biatain® Adhesive dressings in China, impacting Q2 negatively with around DKK 25 million, and a soft quarter across our European markets.
Continued strong momentum in Interventional Urology, driven by the US Men’s Health business.
EBIT1,2 was DKK 1,820 million. EBIT1,2 in constant currencies increased 6% compared to last year, while reported EBIT1,2 decreased 4% from last year. The EBIT margin1,2 was 26%, against 27% last year, and includes around 120 basis points negative impact from currencies and around 50 basis points negative impact from Kerecis.
As a result of the slower market recovery now anticipated in the skin substitutes out-patient setting, an impairment loss of DKK 3.0 billion has been recognised against the Kerecis goodwill, reducing the total carrying book value of Kerecis to around DKK 6 billion.
