Coloplast AS - ADR

Solid operating momentum; guidance unchanged - Q3 performance: 6% organic revenue growth and 5% EBIT growth (constant currency) before special items. - 9-month reported revenue +~3% YoY (with ~6% organic); FX was a headwind (~DKK 595m / ~-3pp). - ROIC (after tax, before special items): 15% (in line with prior year). - Full-year guidance (unchanged): 5–6% organic revenue growth, ~5% EBIT growth (constant currency, before special items), ROIC ~15%. - FX headwind expectation: ~-2 to -3pp on reported revenue growth and ~80 bps negative on reported EBIT margin; also watch Middle East impact (demand/supply/cost inflation).

Business performance: Chronic Care & Interventional Urology strong; Biologics remains the drag - Chronic Care backbone: management emphasized it’s >75% of group sales and the key engine of growth/profit/cash. - Ostomy (9 months): +5% organic, with Q3 +5% organic; U.S. strong double-digit growth; China hit by channel/inventory issues (inventory reduction created a temporary drag). - Continence Care (9 months): +7% organic, Q3 +8%; U.S. drove double-digit growth supported by Luja and phasing; Bowel Care also strong (double-digit in Q3). - Interventional Urology (9 months): +8% organic, Q3 +7%; Men’s Health led (flagship Titan + double-digit); Titan Prime FDA-approved—launch expected within the next couple of months. - Wound & Tissue Repair: only +2% organic (9 months); Biologics -6% in Q3, reflecting continued outpatient reimbursement pressure; inpatient momentum healthy double-digit growth and management expects double-digit full-year inpatient growth.

Biologics / Kerecis: inpatient optimism vs outpatient reimbursement pressure; leadership transition is mainly structural - Market context: outpatient reimbursement reform continues to pressure utilization and drive price competition and use of lower-cost alternatives (clinically appropriate). - Inpatient setting viewed as the stabilizer and main growth hope for Kerecis (strong differentiation + evidence); management expects continued double-digit inpatient growth. - Surprising/important: Executive leadership change—Feratram steps down as EVP Wound & Tissue Repair and becomes Chief Innovation & Technology Adviser to the CEO. - Management framed this as a normal evolution: Gavin will lead Wound & Tissue Repair interim while they assess and professionalize/scale the business (not presented as a “business exit”). - Special items include ~DKK 3bn Kerecis impairment loss in the first 9 months.