Coloplast delivered 6% organic growth in Q2, impacted by the product recall in Interventional Urology and a softer quarter in Ostomy Care. Q2 EBIT margin1 held steady at 27%. Reported revenue in DKK grew 5%, impacted by the Skin Care divestment.
Organic growth rates by business area: Ostomy Care 4%, Continence Care 8%, Voice and Respiratory Care 7%, Advanced Wound Care 10% and Interventional Urology -1%.
Growth in Chronic Care was driven by solid contribution from Continence Care, where Luja™ was the main contributor. The slower growth in Ostomy Care was due to a high baseline in Europe, tender phasing in Emerging markets and a slow-down in China. Growth in Ostomy Care is expected to pick up in the second half of the year compared to Q2.
Voice and Respiratory Care growth was driven by both Laryngectomy and Tracheostomy, against a high baseline last year.
Advanced Wound Dressings grew 3% reflecting negative growth in China, partly impacted by a high baseline last year.
Kerecis grew 30%, with a 12% EBIT margin before PPA amortisation. The implementation of the final Local Coverage Determination policy has been delayed to 1 January 2026 and is currently not expected to impact financial performance.
Interventional Urology growth was negatively impacted by the voluntary product recall in Bladder Health and Surgery (~DKK 35 million). Sales of the products resumed during February, however, sales pick up has been significantly slower than expected.
EBIT1 was DKK 1,891 million, a 6% increase from last year. The EBIT margin1,2 was 27%, on par with last year, and includes a higher level of commercial and logistics costs and around 50 basis points benefit from currencies.
CEO Kristian Villumsen stepped down from his role on 5 May 2025. Lars Rasmussen has stepped in as an interim CEO (for more information, please refer to announcement 03/2025 Company announcement).
H1 2024/25 organic growth of 7% and EBIT margin1 of 27%. Reported revenue in DKK grew 6% to DKK 13,956 million.
Organic growth rates by business area: Ostomy Care 6%, Continence Care 7%, Voice and Respiratory Care 9%, Advanced Wound Care 11% and Interventional Urology 0%.
EBIT1 was DKK 3,803 million, a 5% increase from last year. The EBIT margin1 was 27%, on par with last year.
Adjusted3 net profit before special items was DKK 2,666 million, a DKK 175 million increase from last year. Adjusted3 diluted earnings per share (EPS) before special items increased by 7% to DKK 11.83.
Adjusted3 ROIC after tax before special items was 15%, on par with last year.
The company will pay half-year interim dividend of DKK 5.00 per share, for a total dividend pay-out of DKK 1,126 million.
FY 2024/25 guidance revised with organic growth of around 7% and an EBIT margin before special items of 27-28%.
Organic growth is now expected to be around 7% in constant currencies, from previously 8-9%. The revised guidance includes impact from Interventional Urology, where growth is now expected to be around 0% for the year, and higher uncertainty related to Emerging markets tender phasing and a slow-down in China, mostly impacting Ostomy Care.
Reported growth in DKK is expected at around 4%, from previously around 7%, impacted by the lowered organic growth outlook and around 2%-points negative impact from currencies due to the weaker US dollar. The negative impact from the Skin Care divestment impact is unchanged at around 1.5%-points.
The reported EBIT margin before special items is now expected to be 27-28%, from previously around 28%. The revision is driven by the lowered organic growth outlook, partly offset by prudent cost management.
Special Items are now expected to be around DKK 450 million due to profitability improvement initiatives, including restructuring, to support long-term value creation and write-down of assets.
Expectations on capital expenditures and tax rate (ordinary and effective) are unchanged.
"As we prepare to enter a new strategic period, the Board believes it is time to bring in a new CEO to unfold the potential and drive long-term growth and value creation for the group. I look forward to working with the executive leadership team in the role of interim CEO, while the Board conducts the search for Coloplast’s next CEO." says Lars Rasmussen, and adds "On behalf of the Board, I want to thank Kristian for his dedication and contributions to Coloplast over the past 17 years. Since becoming CEO in 2018, he has been instrumental in strengthening our market position, including through key strategic acquisitions."
1. before special items expenses of DKK 84 million in Q2 2024/25 and DKK 158 million in H1 2024/25. 2. before special items expenses of DKK 19 million in Q2 2023/24 and DKK 34 million in H1 2024/25. 3. Adjusted for the impact from the Kerecis IP transfer.
Conference call
Coloplast will host a conference call on Tuesday, 6 May 2025 at 11.00 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 2024/25 conference call
Contacts Investors and analysts Anders Lonning-Skovgaard Executive Vice President, CFO Tel. +45 4911 1111
