This article first appeared on GuruFocus .
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Organic Revenue Growth:6% in Q3 and for the first nine months.
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Reported Revenue:Increased by DKK568 million (around 3%) for the first nine months.
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EBIT Growth (Constant Currencies):5% in Q3 and for the first nine months before special items.
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Operating Profit (EBIT) Before Special Items:DKK5.6 billion for the first nine months, a 2% decrease compared to last year.
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EBIT Margin Before Special Items:26% for the first nine months, compared to 27% last year.
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Gross Margin:67% for the first nine months, compared to 68% last year.
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Net Profit Before Special Items:DKK4.3 billion for the first nine months.
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Adjusted Diluted Earnings Per Share (EPS) Before Special Items:Increased by 14%.
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Free Cash Flow:Inflow of DKK4.1 billion for the first nine months, a 16% increase.
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Operating Cash Flow:Inflow of DKK5.4 billion for the first nine months, compared to DKK4.4 billion last year.
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Return on Invested Capital (ROIC) After Tax:15% before special items.
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Ostomy Care Organic Growth:5% in Q3 and for the first nine months.
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Continence Care Organic Growth:8% in Q3 and 7% for the first nine months.
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Voice & Respiratory Care Organic Growth:6% in Q3 and 7% for the first nine months.
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Wound and Tissue Repair Organic Growth:3% in Q3 and 2% for the first nine months.
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Interventional Urology Organic Growth:7% in Q3 and 8% for the first nine months.
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Biologics Growth:Declined 6% in Q3.
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Advanced Wound Dressings Growth:Increased 4% in Q3.
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Full Year Guidance:Organic revenue growth of 5% to 6%, EBIT growth in constant currencies before special items of around 5%, and ROIC after tax before special items of around 15%.
Release Date: August 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Coloplast AS ( CLPBF ) delivered 6% organic revenue growth and 5% EBIT growth in constant currencies, with strong performance in Chronic Care and Interventional Urology.
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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.
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Innovative products like SenSura Mio, Luja, and Titan are driving growth, with Titan Prime receiving FDA approval and expected to launch soon.
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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.
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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.
Negative Points
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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.
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China Ostomy Care experienced a significant inventory reduction due to a new channel strategy, temporarily affecting growth and expected to continue into Q4.
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Gross margin declined to 67% from 68% due to negative currency impacts and ramp-up costs in Costa Rica and Portugal.
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The launch of INTIBIA has been delayed to early 2027-28 due to FDA review timing, pushing back a key growth catalyst.
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Raw material cost inflation is expected to be 2-3% next year due to the Middle East conflict, adding cost pressures.
Q & A Highlights
Q: Gavin, you highlight industry-leading profitability in your reflections. Should we read into the importance of this going forward given the investments you are flagging? Also, what are you actually going to do differently under your leadership versus your predecessor? A: Gavin Wood (President and CEO) stated that the focus will be on reallocation of resources rather than compromising the overall margin. He emphasized that the real answer will come at the full-year results, but highlighted concrete changes such as leaning into the US market, where they are seeing double-digit growth, and actively shifting Wound and Tissue Repair resources from outpatient to inpatient settings. He acknowledged that the company is assessing a number of things and will conclude on the implications for strategic priorities and value drivers at the full-year announcement in November.
Q: On Kerecis, the inpatient business did not grow double-digit in the quarter as observed in the first half. What are you seeing competition-wise, and where are channel inventory levels? Also, what is the reason for the INTIBIA launch delay? A: Gavin Wood (President and CEO) explained that the outpatient market continues to transition due to the fixed payment rate, with providers becoming more selective and price competition intensifying. However, the inpatient setting remains stable with healthy demand, and while the last quarter was high single-digit, they are confident of closing the year with double-digit growth in inpatient. Anders Lonning-skovgaard (CFO) added that the INTIBIA launch delay to '27-'28 is driven by the FDA approval process, but they still expect it to contribute to urology growth towards the end of the strategic period.
Q: Regarding the change in executive leadership for Wound and Tissue Repair, should we read into this that more serious discussions are being had about the future of this business? Is there an outcome where you are strategically reviewing this business? A: Gavin Wood (President and CEO) clarified that this is a natural evolution of the business, not a precursor to a divestment. Fertram is moving to a technology assessment role where his strengths lie, while Gavin takes an interim assessment of the business to professionalize and scale it. He stated he has very high conviction in the biologics category and technology going forward, and his background in wound care will help him assess the organization and talent to develop the right setup for the future.
Q: You are currently growing 5-6% organically, but the 7% organic growth target for Impact4 seems challenged given Kerecis, INTIBIA delays, and China. What is going to accelerate growth in the coming years? Also, how do you fund higher investments without further margin pressure? A: Anders Lonning-skovgaard (CFO) noted that excluding China, the chronic business is off to a good start, and the Urology business is already at high single-digit growth, ahead of expectations. The current year is impacted by the biologics reimbursement reform and the China inventory reduction, but much of the business is at or above expectations. Gavin Wood (CEO) added that funding will come from organizational simplification, operational efficiencies, and tech-enabled productivity improvements, particularly in noncustomer-facing areas, allowing them to invest more in customer-facing roles and innovation.
Q: Can you provide more detail on the Advanced Wound Dressings strength in Q3, and how should we think about Urology growth next year given the INTIBIA push-out? A: Anders Lonning-skovgaard (CFO) confirmed that contract manufacturing drove a lot of the strength in Q3, which is expected to continue into Q4 but at a lower level. He also noted a strong Q4 for Dressings due to the comparison with last year's China recall. For Urology, the business is off to a better start than anticipated, driven by Men's Health, and they expect high single-digit growth to continue, supported by the upcoming launch of the Titan Prime penile implant and the contribution from the Euro Medica acquisition.
Q: On the timing of investments in innovation, is this a slow burn or can you ramp up quickly? And are the efficiencies you mentioned low-hanging fruit? A: Gavin Wood (President and CEO) stated that the investment in innovation will be through the midterm, as it takes time to develop meaningful products. He confirmed that the company has solid innovation up until 2029, and the commitment is to start reinvesting for the period beyond that. He did not specify the timing of the efficiency gains but indicated that they see meaningful opportunities to free up capacity through simplification and productivity improvements.
Q: On the US opportunity, what are the standout opportunities to really move the dial in the near term? A: Gavin Wood (President and CEO) identified commercial execution as the biggest short-term opportunity. He highlighted that the US represents the largest market for med tech globally, but Coloplast holds only a 15-20% share in Ostomy Care and around 30% in Continence Care, well below their global average. By investing more in commercial capabilities and leveraging their superior products, they believe they can win and accelerate growth in the US.
Q: Can you unpack the performance in China, and how much of the softer growth is market share loss versus market weakness? A: Anders Lonning-skovgaard (CFO) acknowledged that China has been a challenge, with underlying expectations of low single-digit negative growth this year. A new management team is reviewing the go-to-market strategy, including the number of distributors, and has decided to reduce inventories, resulting in a one-off impact of around DKK45 million in Q3 and additional impacts in Q4. He expressed optimism that the new strategy will improve the Chinese business over time.
Q: Regarding the dividend policy, can you confirm you can keep the dividend intact or even increase it given the investments needed and the ambition to reduce gearing? A: Anders Lonning-skovgaard (CFO) confirmed that the dividend policy remains unchanged, with a payout ratio target of 60-80%. He emphasized a strong focus on improving cash flow and reducing the debt ratio from around 2.3 times EBITDA this year to below 2 times over the period. Maintaining the dividend policy requires strong cash flow in the years to come, which they are confident in achieving.
Q: On the raw material inflation, can you provide more color on the impact going into next year? A: Anders Lonning-skovgaard (CFO) stated that the Middle East crisis will impact raw material costs by around 2-3 percentage points next financial year. This is in addition to the impact expected
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
