Coloplast (COLO) Q2 25/26 earnings summary

Executive summary

• Organic growth of 6% in H1 2025/26, mainly driven by Chronic Care and Interventional Urology, while Wound & Tissue Repair faced headwinds, notably from Kerecis due to Medicare reimbursement changes.

• Reported revenue increased by 1% year-over-year, with negative impacts from currency fluctuations and the Skin Care divestment.

• EBIT margin before special items was 26%, down from 27% last year, affected by currency and Kerecis-related costs.

• Net profit before special items rose 6% year-over-year, with adjusted diluted EPS up 5%.

• Free cash flow-to-sales ratio improved to 20% from 15% last year.

Financial highlights

• H1 2025/26 reported revenue reached DKK 14,127 million, up 1% from last year; organic growth contributed DKK 789 million (6%).

• Gross profit reached DKK 9.5 billion with a gross margin of 67%, down from 68% last year, mainly due to currency impacts and ramp-up costs.

• EBIT before special items was DKK 3,670 million, a 3% decrease year-over-year; EBIT margin before special items was 26%.

• Net profit after special items: DKK 426 million; diluted EPS after special items: DKK 1.89.

• Free cash flow for H1 was DKK 2,816 million, up 33% year-over-year; free cash flow to sales ratio improved to 20%.

• Special items included a DKK 3 billion impairment loss related to Kerecis.

Outlook and guidance

• Full-year organic revenue growth expected at 5%-6%; EBIT growth in constant currencies before special items around 5%.

• Return on invested capital after tax before special items projected at 15%.

• Capex-to-sales ratio expected at 5%; effective tax rate around 22%.

• Currency headwinds expected to reduce reported revenue growth by 2-3 percentage points and EBIT margin by 80 basis points.

• Special items expected at DKK 3.1 billion, reflecting Kerecis impairment.