2024-02-09 12:04:02 ET
Coloplast A/S (CLPBF)
Q1 2023/2024 Earnings Conference Call
February 09, 2024 5:00 AM ET
Company Participants
Kristian Villumsen – President and Chief Executive Officer
Anders Lonning-Skovgaard – Chief Financial Officer
Conference Call Participants
Jack Reynolds-Clark – RBC Capital Markets
Hassan Al-Wakeel – Barclays
Robert Davies – Morgan Stanley
Veronika Dubajova – Citi
Lisa Clive – Bernstein
Anchal Verma – J.P. Morgan
Christian Ryom – Danske Bank
Julien Dormois – Jefferies
Marianne Bulot – Bank of America
Mattias Häggblom – Handelsbanken
Maja Stephanie Pataki – Kepler Cheuvreux
Richard Felton – GS
Niels Granholm-Leth – Carnegie
Graham Doyle – UBS
Presentation
Kristian Villumsen
Good morning. Thank you, operator, and welcome to our Q1 2023/2024 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 like we usually do with a short presentation by Anders and myself, and then we'll open up for questions. Could I ask you all to please turn to Slide number 3. We delivered 8% organic growth and a reported EBIT margin before special items of 28%. Return on invested capital after tax and before special items was 15% a level, which reflects the full impact from the Kerecis acquisition in which we expect to be the trough. I'm satisfied with the solid start of the year. We continue to outgrow the market and help a lot more people with intimate healthcare needs.
Let me start the call today with a few highlights. We had a strong start in our Chronic Care businesses with both Ostomy Care and Continence Care delivering 8% organic growth. In Continence Care, we're starting to see positive impact from Luja, a new male intermittent catheter with a Micro-hole Zone Technology. The product is now available in 10 markets with most recent launches over the last few months in the UK, the U.S. and Germany. The reception of the product across markets has been fantastic. Based on a recent survey, we know that 95% of healthcare professionals would recommend Luja to their patients while 86% of users using catheterizations have reported that they do not worry about urine left in the bladder when using Luja. These are very strong numbers.
Our newest member of the family, Kerecis is also off to a good start with 4% contribution to reported revenue growth in Q1 in line with expectations. The underlying business growth was around 35%, reflecting continued market share gains in the U.S. And last but not least, we've now officially kicked off what I'll call the year of launches with the launches of Biatain Silicone Fit in wound care and Peristeen Light in Bowel Care. Biatain Silicone Fit is a new silicone foam dressing for pressure injury prevention and wound management launched in January 2024 in the U.S. This is a strategic product launch that strengthens our advanced dressings portfolio with a U.S. specific offering. And to reach the full potential of the launch, we have also now invested in a dedicated U.S. Wound Care organization. As such, with the launch of Biatain Silicone Fit and the expansion of our U.S. Wound Care sales force, we're well positioned to build a meaningful presence in the world's largest advanced wound care market.
Peristeen Light is a new low volume transanal irrigation device in Bowel Care, which is designed for ease of use. Bowel Care is a subsegment of our Continence Care business, and today, it's an area where many patients remain untreated. With the launch of Peristeen Light, we need to expand the addressable market and help more people with bowel dysfunction by making transanal irrigation an option for more patients. The product will be launched in markets across Europe over the next 12 months, and it's expected to support continued good growth in our Bowel Care business.
Now let's take a look at today's results in a bit more detail. Please turn to Slide number 4. In Ostomy Care, organic growth was 8% for the first quarter, and growth in Danish kroner was 5%. Our SenSura Mio portfolio was the main growth contributor, followed by the Brava range of supporting products. Our SenSura and Assura/Alterna portfolios continue to contribute to growth in emerging markets. From a geographical perspective, growth in the quarter was driven by broad-based contribution across emerging markets as well as Europe, mainly driven by the UK. The Ostomy Care business in China posted mid-single-digit growth in Q1, in line with expectations. Growth was driven by a strong quarter in the hospital channel and a double-digit increase in inflow of new patients while the consumer channel remain impacted by lower average value per patient and a bit of consumer sentiment.
In Continence Care, organic growth was 8% for the first quarter, with growth in Danish kroner of 4%. Growth in the quarter was driven by solid momentum in intermittent catheters across the SpeediCath portfolio with good contribution from both compact standard and flexible catheters. Luja, our new male intermittent catheter also contributed to growth in Q1. Our two smaller segments in Continence Care, Bowel Care and Collecting Devices, both also contributed to growth. From a geographical perspective, all regions contributed to sales growth in Q1 led by Europe, driven primarily by Germany and France. Markets where reimbursement has been recently established or improved such as Poland, Australia, Japan and South Korea, all continued to perform well and all grew double digit....
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Coloplast A/S (CLPBF) Q1 2023/2024 Earnings Call Transcript