Overview
Coloplast A/S recognised a DKK 3.0 billion impairment on the goodwill of its Kerecis wound-care unit after that business delivered 0% organic growth in the second quarter of the 2025-26 financial year. The company said the flat performance at Kerecis reflected "significant sales disruption from the Medicare reimbursement change in the out-patient setting."
The impairment and ongoing market headwinds weighed on results and guidance. Coloplast set full-year EBIT growth guidance at around 5% in constant currencies before special items, below the analyst consensus median of 6%.
Quarterly earnings and margins
For the three months ended 31 March 2026, Coloplast reported EBIT before special items of DKK 1.82 billion, missing the analyst consensus median of DKK 1.89 billion. The company's reported EBIT margin before special items was 26%, compared with a consensus median of 26.7% and a 27% margin in the prior-year period.
Management quantified the margin pressures as roughly a 120 basis-point negative impact from currencies and about a 50 basis-point negative impact attributable to Kerecis. On a constant-currency basis, EBIT before special items grew 6% in the quarter, which was ahead of the consensus median of 4.9%.
Organic revenue growth in the second quarter was 6%, slightly below the consensus median of 6.5%. Reported revenue in Danish crowns rose 2%, versus a consensus median reported growth of 2.3%, with the company noting a four percentage-point negative effect from currencies.
Kerecis impairment and business performance
The DKK 3.0 billion impairment reduces Kerecis's carrying book value to approximately DKK 6 billion. In the quarter, Kerecis recorded 0% organic growth and a 0% EBIT margin before purchase price allocation amortisation, which Coloplast directly connected to the disruption caused by the Medicare reimbursement change in outpatient channels.
Coloplast also highlighted that growth in the in-patient setting remained at a healthy double-digit level, though momentum eased slightly compared with prior quarters.
First-half results and operating cash flow
For the first half of the 2025-26 financial year, Coloplast reported EBIT before special items of DKK 3.67 billion and an EBIT margin before special items of 26%, down from 27% in the prior-year period. The company said the half-year margin included roughly a 70 basis-point negative impact from currencies and around a 40 basis-point negative impact from Kerecis.
On a constant-currency basis, EBIT before special items rose 5% year-on-year for the half, while reported EBIT before special items declined 3%. Reported revenue in Danish crowns increased 1% for the half-year, with a four percentage-point headwind from currencies; half-year organic growth was 6%.
Net profit before special items for the first half was DKK 2.81 billion, which Coloplast said represented a DKK 147 million increase from the prior year after adjusting for a non-recurring tax impact in that earlier period.
The free cash flow-to-sales ratio improved to 20% from 15% the prior year, excluding the effects of the Uromedica acquisition this year and the Skin Care divestment last year. Return on invested capital after tax before special items stood at 15%, which the company described as on par with last year after adjusting for the Kerecis intellectual-property transfer.
Full-year outlook and special items
Coloplast's guidance for the full 2025-26 financial year calls for organic revenue growth of 5% to 6%, below the analyst consensus median of 6.7%. Reported revenue growth in Danish crowns is expected to be around 3%, with 2 to 3 percentage points of negative impact from currencies.
The company expects Kerecis to deliver 0% growth for the full year, citing a slower recovery in the outpatient market. Coloplast forecast special items of approximately DKK 3.10 billion for the full year, reflecting the DKK 3.0 billion Kerecis impairment recorded in the quarter.
Capital allocation
Coloplast said it will pay an interim half-year dividend of DKK 5 per share, representing a total dividend pay-out of DKK 1.13 billion for the period.
Takeaway
The quarterly numbers underline two simultaneous pressures on Coloplast's near-term performance: a firm-level hit from the Kerecis impairment and a meaningful currency headwind. While constant-currency EBIT growth remained positive, reported metrics and margin comparisons were affected sufficiently for management to set guidance below consensus and to record a substantial special-item charge tied to the Kerecis goodwill adjustment.