Q3 2026 Coloplast A/S Earnings Call Transcript
Key Points
- Coloplast AS (CLPBF) delivered 6% organic revenue growth and 5% EBIT growth in constant currencies, with strong performance in Chronic Care and Interventional Urology.
- The US market shows strong momentum with high single-digit to double-digit growth across Chronic Care and Interventional Urology, presenting a significant value creation opportunity.
- Innovative products like SenSura Mio, Luja, and Titan are driving growth, with Titan Prime receiving FDA approval and expected to launch soon.
- Free cash flow increased 16% in the first nine months, with a strong free cash flow to sales ratio of 20% and improved working capital.
- The company maintains a strong balance sheet with a gearing ratio expected at 2.3 times EBITDA, and no major M&A planned, focusing on organic growth and smaller tuck-ins.
- Biologics (Kerecis) continues to be negatively impacted by US reimbursement reform, with a 6% decline in Q3 and expectations of recovery only by Q2 2026-27.
- China Ostomy Care experienced a significant inventory reduction due to a new channel strategy, temporarily affecting growth and expected to continue into Q4.
- Gross margin declined to 67% from 68% due to negative currency impacts and ramp-up costs in Costa Rica and Portugal.
- The launch of INTIBIA has been delayed to early 2027-28 due to FDA review timing, pushing back a key growth catalyst.
- Raw material cost inflation is expected to be 2-3% next year due to the Middle East conflict, adding cost pressures.
Ladies and gentlemen, welcome to the Coloplast interim financial statements for nine months, 2025-26 conference call. And I'm Morris, the Chorus Call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question-and-answer session. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Gavin Wood, Income President and CEO. Please go ahead, sir.
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Good morning, everyone, and welcome to Coloplast Q3 2025-'26 Conference Call. I'm Gavin Wood, President and CEO of Coloplast. I'm joined today by our CFO, Anders and our Investor Relations team. Anders and I will take you through the quarter, and then we'll open up the call for questions.
Please turn to Slide number 3. Over my first 100 days at Coloplast, I've spent a great deal of time with our businesses,
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