Coloplast (COLO) Q1 25/26 earnings summary

Executive summary

• Achieved 6% organic revenue growth and 3% EBIT growth in constant currencies in Q1 2025/26, with a reported EBIT margin of 26% and return on invested capital at 15%.

• Reported revenue was flat at DKK 7,043 million, with negative impacts from currency fluctuations and the Skin Care divestment.

• Segment performance was strong in Interventional Urology, Continence Care, and Voice & Respiratory Care, but softer in Ostomy Care and Wound & Tissue Repair.

• Kerecis faced significant sales disruption and margin pressure due to Medicare reimbursement changes.

• Leadership changes included departures and new appointments in People & Culture and Interventional Urology, with an ongoing CEO search.

Financial highlights

• Q1 revenue was DKK 7,043 million (0% reported growth, 6% organic), with gross profit at DKK 4.7 billion and gross margin at 67%.

• EBIT before special items was DKK 1,850 million (down 3% year-over-year), with an EBIT margin before special items at 26%.

• Net profit was DKK 1,397 million (up 34% year-over-year, due to last year's non-recurring tax expense); adjusted diluted EPS before special items down 1%.

• Free cash flow was DKK 1,821 million (down 3% year-over-year, but up 8% excluding last year’s divestment benefit); free cash flow-to-sales ratio at 26%.

• CAPEX in Q1 was DKK 414 million (CAPEX-to-sales ratio 6%), including investment in a new manufacturing site in Portugal.

Outlook and guidance

• Full-year organic revenue growth guidance maintained at around 7%, with EBIT growth in constant currencies also at 7%.

• ROIC after tax before special items expected at 16%.

• Interventional Urology growth outlook raised to high single digits; Kerecis growth outlook lowered to around 10% due to Medicare reimbursement changes.

• Reported revenue growth in DKK expected at around 4%, with a 3–4 percentage point negative currency impact.

• CAPEX-to-sales ratio expected at 5%; effective tax rate at 22%; net working capital at 25%.