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Press Release

Announcement no. 4/2017 - Interim Financial Report, 9M 2016/17


Posted on: 16 Aug 17

Interim financial report, 9M 2016/17

(1 October 2016 - 30 June 2017)                        

 

Highlights

·       Q3 organic revenue growth was 8%, and revenue in DKK was up by 6% to DKK 3,912m. In the first nine months, organic revenue growth was 7% and revenue in DKK was up by 6% to DKK 11,548m.

·       Reported Q3 revenue was reduced by a DKK 90m one-off revenue adjustment made after Coloplast identified incorrect management of contractual obligations relating to a 2009 agreement with the U.S. Department of Veterans Affairs (the U.S. Veterans Affairs). The DKK 90m one-off relates to continence care products and is adjusted directly in the Q3 revenue. The matter has not affected the organic growth rate for the reporting period. Coloplast has now opened a dialogue with the U.S. Veterans Affairs in order to resolve the matter.

·       Organic growth rates by business area in the first nine months were as follows: Ostomy Care 7%, Continence Care 8%, Urology Care 11% and Wound & Skin Care 0%.

·       The US Chronic Care business reported double-digit organic sales growth in the third quarter.

·       Pricing reforms in Greece and France had a negative impact on sales growth in the Wound and Skin Care business in the third quarter. The effect was offset by a stronger momentum for the Wound Care business in China and for the Skin Care business in the USA.

·       EBIT was up by 9% at constant exchange rates and before the one-off revenue adjustment related to the U.S. Veterans Affairs, and up by 4% in DKK to DKK 3,705m. At constant exchange rates and before the one-off revenue adjustment the EBIT margin was at 33%, which was in line with the same period of last year.

·       Net profit was up by 3% to DKK 2,787m, and diluted earnings per share were up by 3% to DKK 13.13.

·       The free cash flow was DKK 322m, DKK 1,321m less than in the same period of last year. Adjusted for payments made in connection with lawsuits alleging injury resulting from the use of transvaginal surgical mesh products, the acquisition of Comfort Medical, and timing differences in tax payments, the underlying free cash flow was in line with last year’s cash flow.

 

Financial guidance for 2016/17

·       We continue to expect organic revenue growth of 7–8% at constant exchange rates. The guidance for organic revenue growth has not been affected by the one-off revenue adjustment of DKK 90m. The guidance for reported revenue growth is revised to 6% in DKK instead of as previously 7–8%, due to the one-off revenue adjustment of DKK 90m and to exchange rate developments with especially the depreciation of the USD and GBP having a negative impact. 

·       The EBIT margin guidance remains at 33–34% at constant exchange rates. The EBIT margin guidance at constant exchange rates includes the one-off revenue adjustment of DKK 90m. The reported EBIT margin guidance in DKK is revised to about 32% instead of as previously about 33%, due to the one-off revenue adjustment of DKK 90m and to exchange rate developments with especially the depreciation of the USD and GBP having a negative impact.

·       Capital expenditure is still expected to be around DKK 700m.

·       We continue to expect the effective tax rate to be about 23%.

GlobeNewswire
globenewswire.com

Last updated on: 16/08/2017

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