Investing.com -- Coloplast on Tuesday reported fourth-quarter earnings that missed profit expectations and revised its outlook, sending shares about 3% following the announcement.
The Danish medical device company posted 5% organic revenue growth in the fourth quarter, driven by strength in Chronic Care and Interventional Urology. Revenue for the quarter came in at DKK 7.46 billion, above the IBES estimate of DKK 7.39 billion.
However, EBIT in constant currencies was flat YoY at DKK 1.73 billion, pressured by inflation and weakness in its Biologics business, and below the IBES estimate of DKK 2 billion. The EBIT margin contracted to 25% from 28% in the prior-year period, including approximately 150 basis points of negative currency impact and pressure from Kerecis and inflationary headwinds on raw materials and freight.
EBIT before special items fell 5% to DKK 1.85 billion.
For fiscal 2026/27, Coloplast guided to organic revenue growth of 5-7% and an EBIT margin of around 25%. The midpoint of the revenue guidance range at 6% appears in line with recent performance, but the EBIT margin guidance of 25% reflects continued pressure from inflation, ramp-up costs in Portugal, and increased investments.
The company expects reported revenue growth in DKK of 7-9%, benefiting from approximately 2%-points of positive currency impact.
Full-year fiscal 2025/26 organic growth reached 6%, with EBIT in constant currencies up 4%. By business area, Ostomy Care grew 5%, Continence Care 7%, Voice & Respiratory Care 8%, Wound & Tissue Repair 2%, and Interventional Urology 7%. The Biologics business declined 12% in the fourth quarter due to continued impact from out-patient reimbursement changes, though the in-patient business maintained double-digit growth.
"We delivered strong 6% organic growth for the full year and 4% EBIT growth, broadly in line with our updated guidance from April 2026," said Gavin Wood, President & CEO. "What stands out is the strong growth in Chronic Care and Interventional Urology in the U.S., including reaching 20% market share in Ostomy Care this year."
The company announced a revised 2030 financial ambition targeting organic revenue growth of 5-7% annually and an EBIT margin in the mid-20% range.
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