Coloplast Delivers 6% Organic Growth as New CEO Outlines Strategic Priorities
Danish medical device maker posts solid nine-month results while interim chief Gavin Wood pledges sharper focus on U.S. market and chronic care innovation.
Strong Quarter Despite Currency Headwinds
Coloplast A/S reported 6% organic revenue growth and 5% EBIT growth in constant currencies for the third quarter of its 2025-26 fiscal year, the Danish medical device company disclosed on its earnings call. The company's reported revenue for the nine-month period increased by DKK 568 million, or approximately 3%, though foreign exchange headwinds shaved three percentage points off growth (earnings call, 2026-08-18).
Interim President and CEO Gavin Wood, reflecting on his first 100 days at the helm, described Coloplast as "fundamentally a strong company" with leadership positions across its businesses and sustainable growth, profitability and cash flow (earnings call, 2026-08-18).
Chronic Care Maintains Momentum
The company's core Chronic Care segment, representing more than 75% of group sales, delivered across the board. Ostomy Care posted 5% organic growth in Q3, with U.S. sales achieving "strong double-digit" growth continuing momentum from the first half and benefiting from recent product launches (earnings call, 2026-08-18). The SenSura Mio product line remained the main contributor to growth.
Continence Care performed even better with 8% organic growth in the quarter, led by strong double-digit growth in the U.S. supported by the Luja catheter range. Wood highlighted that Luja Male has been a "key contributor to sustained high single-digit growth in the male catheter business," calling these "very encouraging early indicators" of meaningful innovation (earnings call, 2026-08-18).
Strategic Pivot to U.S. Market
Wood outlined three strategic priorities, with expanding the company's U.S. presence at the forefront. Despite strong momentum, the U.S. represents only about one-quarter of group sales. In U.S. Ostomy Care, Coloplast holds the number three position with approximately 15-20% market share, while in Continence Care it leads with around 30% share—both "well below our global average," Wood noted (earnings call, 2026-08-18).
"The U.S. should therefore play a much larger role in our strategic and investment choices going forward," Wood said, pledging more deliberate investment and focused execution (earnings call, 2026-08-18).
Biologics Faces Continued Pressure
Wound and Tissue Repair remained the weak spot, with biologics declining 6% in the quarter due to ongoing U.S. reimbursement headwinds. However, the inpatient setting showed "healthy" momentum with double-digit growth year-to-date (earnings call, 2026-08-18).
The company announced that Fertram Sigurjonsson would step down as Executive Vice President of Wound and Tissue Repair, transitioning to Chief Innovation and Technology Adviser to the CEO. The business will report directly to Wood on an interim basis while the company "sharpens the organization and priorities" (earnings call, 2026-08-18).
Financial Performance and Margins
Gross margin for the nine-month period came in at 67%, down from 68% last year, pressured by currency headwinds of approximately 90 basis points and ramp-up costs in Costa Rica and Portugal (earnings call, 2026-08-18). Return on invested capital after tax stood at 15%, in line with the prior year's adjusted level.
Wood promised a broader strategic update at the full-year results, scheduled for November 3, 2026, according to MarginX data.
This article was generated by MarginX from the earnings call on 2026-08-18. It is not investment advice.