Coloplast Reports 6% Organic Growth in Q3 Amid Biologics Headwinds
Danish medical devices firm maintains full-year guidance despite currency pressures and reimbursement challenges in its Kerecis biologics division.
Strong Quarter Masks Margin Pressure
Coloplast A/S posted 6% organic revenue growth in its third quarter ending June 30, matching its nine-month performance, but faced margin compression as its EBIT margin contracted to 26% from 28% year-over-year (SR filing, 2026-08-18). The Danish medical devices manufacturer generated DKK 7,355 million in Q3 revenue, with reported growth also reaching 6% as currency impacts proved neutral for the quarter.
The company's EBIT grew just 1% on a reported basis to DKK 1,929 million, though constant currency EBIT growth reached 5%. The margin decline reflected "around 110 basis points negative impact from currencies and around 60 basis points negative impact from Kerecis," its recently acquired biologics business (SR filing, 2026-08-18).
Chronic Care Drives Performance
The quarter showcased geographic strength in Coloplast's core markets. Ostomy Care excluding China delivered 8% organic growth, with "strong double-digit growth" in the US and solid European performance led by the UK, Germany, and Italy (SR filing, 2026-08-18). The flagship SenSura Mio Convex product line drove momentum across regions.
Continence Care achieved 8% organic growth, with double-digit US expansion and strong European performance driven by the Luja catheter portfolio. The business generated DKK 2,401 million in Q3 revenue. "Since launch, Luja male has been a key contributor to sustained high single-digit growth in the male catheter business, while Luja female has accelerated growth in the female business to high single-digit, from mid-single digit pre-launch," the company reported (SR filing, 2026-08-18).
Interventional Urology continued its strong trajectory with 7% organic growth, driven by US Men's Health products.
Biologics and China Challenges
The Kerecis biologics acquisition proved problematic, with the business posting a "6% sales decline and -5% EBIT margin before PPA amortisation, due to the reimbursement change" (SR filing, 2026-08-18). The division is now expected to deliver "around 0% organic growth and around 0% EBIT margin" for the full year.
In China, Ostomy Care sales "declined significantly" in Q3 due to a strategic inventory reduction as the company implemented a new sales channel strategy to improve channel economics (SR filing, 2026-08-18). The underlying market continued to face "weak consumer sentiment and competitive pressures from domestic players."
Guidance Maintained Despite Headwinds
President and CEO Gavin Wood, in his first 100 days at the helm, maintained full-year guidance for 5-6% organic revenue growth and approximately 5% EBIT growth in constant currencies. "What stands out to me is the strength of our Chronic Care business, the significant untapped potential in the US, and the quality of our people," Wood stated (SR filing, 2026-08-18).
For the nine-month period, net profit before special items reached DKK 4,289 million, up DKK 510 million year-over-year when adjusted for prior-year tax impacts, "positively impacted by lower net financial items due to gains on exchange rate adjustments" (SR filing, 2026-08-18). The free cash flow-to-sales ratio improved to 20% from 16%, driven by favorable working capital development.
The company expects reported revenue growth of around 3% in DKK terms for fiscal 2025/26, with currencies creating a 2-3 percentage point headwind. Special items are projected at approximately DKK 3.1 billion, primarily reflecting a DKK 3 billion impairment loss on Kerecis.
This article was generated by MarginX from the SR filing on 2026-08-18. It is not investment advice.