Overview

Coloplast A/S reported its fiscal third‑quarter results on 18 August 2026, showing stronger‑than‑expected sales growth but a shortfall in profitability due to margin pressure from its Biologics unit and adverse currency effects.

Financial Performance

The company achieved 6% organic revenue growth in the quarter, outpacing the analyst consensus of 5.6% and exceeding the median forecast of 4.4% for growth in Danish kroner. Reported growth in DKK also registered 6%. Earnings before interest and taxes (EBIT), excluding special items, amounted to DKK 1.93 billion, slightly below the consensus estimate of DKK 1.95 billion. The EBIT margin came in at 26%, missing the expected 26.82% and declining from 28% in the comparable quarter a year earlier.

Segment Performance

  • Continence Care delivered 8% organic growth, driven by double‑digit expansion in the United States, with the Luja product line identified as a key contributor.
  • Interventional Urology grew 7%, propelled by the U.S. men’s health business.
  • Ostomy Care expanded 5%, supported by strong double‑digit growth in the United States outside China.
  • Voice and Respiratory Care posted 6% growth, with notable gains in laryngectomy offset by a softer tracheostomy quarter.
  • Wound and Tissue Repair rose 3%; Advanced Wound Dressings grew 4% thanks to U.S. momentum and phasing gains in Germany and the Middle East, partially offset by a product return in China.
  • The Biologics unit experienced a 6% sales decline and recorded a negative 5% EBIT margin before purchase‑price amortisation, reflecting a reimbursement change.

Currency effects reduced the group’s EBIT margin by approximately 110 basis points in the quarter, while the recent acquisition of Kerecis added another 60 basis points of margin drag.

Nine‑Month Results (ended 30 June 2026)

Across the first nine months, organic revenue growth remained at 6%. EBIT before special items reached DKK 5.60 billion, delivering a 26% margin, down from 27% a year earlier. Currency headwinds trimmed the nine‑month EBIT margin by about 90 basis points, and the Kerecis acquisition contributed a further 50‑basis‑point reduction.

Net profit before special items increased to DKK 4.29 billion, a rise of DKK 510 million year‑on‑year after adjusting for a non‑recurring tax impact. Adjusted diluted earnings per share grew 14%, and the free‑cash‑flow‑to‑sales ratio improved to 20% from 16%.

Guidance and Outlook

Coloplast reaffirmed its full‑year guidance, targeting 5%‑6% organic revenue growth and roughly 5% EBIT growth in constant currencies. The company expects the Kerecis acquisition to generate approximately 0% organic growth and a 0% EBIT margin for the fiscal year, with special items projected around DKK 3.1 billion, reflecting a DKK 3 billion impairment loss on Kerecis.

Management Commentary

President and Chief Executive Gavin Wood highlighted the strength of the Chronic Care business, the “significant untapped potential in the US,” and praised the quality of the company’s people as key drivers of performance.