Coloplast posts 6% organic growth in Q3 amid Biologics drag
Coloplast has reported third-quarter organic revenue growth of 6% for the period ending 30 June 2026, with EBIT growing 5% in constant currencies to DKK 1,929 million. The Danish medical devices group said reported revenue in Danish krone also rose 6%, as currency movements had a net neutral effect on the quarter.
Gavin Wood, who took over as President and Chief Executive earlier this year, said the results reflected the strength of Coloplast's Chronic Care franchise and its leadership positions across several product categories. "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," he said.
Divisional performance
Growth was broadly spread across Coloplast's five business areas. Continence Care led the group with 8% organic growth, driven by double-digit expansion in the United States and solid European performance attributed to the Luja product line. Interventional Urology grew 7%, sustained by momentum in the US Men's Health segment. Ostomy Care grew 5% for the quarter, with strong double-digit US growth partially offset by continued softness in China. Voice and Respiratory Care rose 6%, with strong Laryngectomy sales partly countered by a softer quarter in Tracheostomy. Wound and Tissue Repair grew 3%, with Advanced Wound Dressings up 4% as positive phasing effects in Germany and the Middle East offset a product return related to China.
The exception was Biologics, where sales fell 6% and the EBIT margin before purchase price allocation amortisation turned negative at minus 5%. Coloplast attributed the shortfall to an adverse reimbursement change affecting the unit, which covers fish-skin wound-care products acquired through its Kerecis purchase. The Kerecis integration continues to weigh on group margins: the EBIT margin for the quarter came in at 26%, down from 28% a year earlier, with approximately 60 basis points of that compression attributable to Kerecis.
Market context and outlook
For the nine-month period, Coloplast reported 6% organic revenue growth and 5% EBIT growth in constant currencies. Reported revenue in krone grew only 3%, reflecting a 3 percentage point currency headwind. Net profit before special items reached DKK 4,289 million, up DKK 510 million year-on-year on an adjusted basis, with adjusted diluted EPS before special items rising 14%. The free cash flow to sales ratio improved to 20% from 16% a year earlier, driven by favourable working capital movements and lower net financial items.
The company left its full-year 2025/26 guidance unchanged, targeting organic revenue growth of 5% to 6% and constant-currency EBIT growth of around 5%. Return on invested capital after tax is expected at around 15%. Kerecis is forecast to deliver approximately zero organic growth and a breakeven EBIT margin for the full year, and the group has flagged a special items charge of around DKK 3.1 billion reflecting a Kerecis impairment.
Coloplast competes in the chronic-care and wound-management space against larger diversified medtechs including Hollister, Convatec and Smith and Nephew, as well as specialist wound-care players. The reimbursement pressure on Biologics underscores a broader challenge facing biological wound-care products in markets where payers are scrutinising cost-effectiveness more closely. Investors will be watching whether the US growth engine across Ostomy and Continence Care can sustain momentum through the final quarter, and whether the new CEO's stated strategic priorities will involve any portfolio changes to address the underperforming Kerecis unit.