Coloplast As Stock Earnings Reports

Coloplast reported Q1 '25/'26 results with 6% organic revenue growth and 3% constant-currency EBIT growth before special items. The company maintained full-year guidance of ~7% organic revenue growth and ~7% EBIT growth in constant currencies, but revised segment outlooks: Kerecis (Wound & Tissue Repair) guidance was lowered to around 10% growth for the year amid major Medicare reimbursement disruption in the outpatient channel (Q1 Kerecis EBIT margin was 1%); Interventional Urology guidance was raised to high single-digit growth after a strong start, supported by the INTIBIA FDA submission and the pending Uromedica acquisition. Key drivers and headwinds: healthy underlying performance in Chronic Care (Ostomy, Continence, Voice & Respiratory), a soft start in China (impacting Ostomy and Advanced Wound Dressings), FX headwinds (notably USD depreciation) reducing reported revenues, ramp-up costs in new manufacturing sites (Costa Rica, Portugal) and elevated CapEx (CapEx-to-sales ~6% in Q1). Management expects Kerecis to stabilize through the year with margin recovery to a double-digit full-year EBIT margin (from 1% in Q1) and that the reimbursement changes will cause near-term market uncertainty but could structurally benefit clinically differentiated products like Kerecis' fish-skin technology. Cash flow remained strong (Q1 operating cash inflow DKK 2.2bn; free cash flow inflow DKK 1.8bn), net financial expense guidance improved (around -DKK 500m vs -DKK 1bn prior year), and ROIC after tax before special items is expected around 16% for the year. Leadership updates: search for a new CEO progressing; EVP changes announced (People & Culture departure; new EVP Interventional Urology joining in February).