Q3 2024 Coloplast A/S Earnings Call Transcript
Key Points
- Coloplast A/S (CLPBF) delivered 8% organic growth and a reported EBIT margin before special items of 27% in the third quarter.
- The company launched several significant products, including the Luja intermittent catheter, which is already contributing to growth in 13 markets.
- The acquisition of Kerecis is performing well, with the business growing at a strong double-digit rate of around 35%.
- Coloplast established a new distribution center in the US, expected to drive scale benefits and support future growth.
- The CMS decision to update coding for intermittent urinary catheters is seen as a win for patients and innovation, potentially increasing access to hydrophilic catheters.
- The new US distribution center caused short-term supply disruptions, impacting chronic care business and detracting around 20 basis points from the group's organic growth in Q3.
- Extraordinary costs related to the new distribution center are expected to persist into Q4, with an estimated total of DKK50 million for the year.
- The women's health business continues to face competitive pressure, impacting growth in the interventional urology segment.
- The Chinese market remains challenging, with patient values still depressed compared to pre-COVID levels, affecting growth in the ostomy care segment.
- Foreign exchange rates had a negative impact of DKK305 million on reported revenue, related to the depreciation of the US dollar, Japanese yen, and emerging market currencies.
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Good morning, everybody, and welcome to our nine-months '23-'24 conference call. I'm Kristian Villumsen, the CEO of Coloplast, and I'm joined by our CFO, Anders Lonning-Skovgaard and our Investor Relations team. We'll start with a short presentation by Anders and myself and then open up for questions like we usually do.
Please turn to slide number 3. We delivered 8% organic growth and a reported EBIT margin before special items of 27% in our third quarter. Return on invested capital after tax and before special items was 15%, reflecting impact from the acquisition of Kerecis. I'm satisfied with our performance, continue to broadly outgrow the market, and we're delivering solid growth in absolute profits. More importantly, we also continue to help a lot more people who live with intimate healthcare needs.
Let me start today's call with a few highlights. First, innovation. This is a year with several significant product launches that will
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