Coloplast (COLO) Q4 23/24 earnings summary

Executive summary

• Achieved 8% organic growth and 10% reported revenue growth to DKK 27,030 million for FY 2023/24, with EBIT before special items up 6% to DKK 7,286 million and a 27% EBIT margin, driven by broad-based segment performance and the Kerecis acquisition.

• Kerecis contributed 4 percentage points to reported growth and DKK 1,026 million in revenue, with 35% underlying growth; currencies had a negative 1-point impact.

• Net profit before special items increased by 4% to DKK 5,052 million; diluted EPS before special items was DKK 22.34 (down 1%).

• Over 270,000 new users joined the Coloplast Care support program.

• Executive Leadership Team expanded to support new growth platforms and the 2030 strategy.

Financial highlights

• Gross profit was DKK 18.3 billion, with a gross margin of 68% (up from 67% last year).

• Operating profit before special items was DKK 7.3 billion, up 6% year-over-year; EBITDA before special items was DKK 8,576 million, with a 32% margin.

• Free cash flow was DKK 1.4 billion; adjusted free cash flow (excluding extraordinary tax) was DKK 3.9 billion.

• ROIC after tax before special items was 15% (down from 17%), reflecting acquisition impacts.

• Proposed total dividend of DKK 22.00 per share, up from DKK 21.00.

Outlook and guidance

• FY 2024/25 organic revenue growth expected at 8-9%, with EBIT margin before special items around 28%.

• Gross margin expected to remain at 68%, with easing inflationary pressures and stable raw material costs.

• Kerecis expected to contribute about 1 percentage point to group organic growth, assuming continued LCD coverage.

• CapEx expected at DKK 1.4 billion; effective tax rate around 22%; net working capital to sales ratio targeted at 24-25%.

• Long-term organic growth target of 8-10% p.a. and EBIT margin above 30% beyond 2024/25.