Coloplast Earnings: Demand Solid, but Kerecis Reimbursement Remains Outstanding

Coloplast delivered fiscal second-quarter results that held few surprises on the top and bottom lines. After slight adjustments for our near-term assumptions and revised share count, we’re leaving our fair value estimate unchanged. Organic quarterly revenue grew 8% year over year, which is consistent with Coloplast’s long-term pattern. However, operating margin remained under pressure thanks to inflation-influenced supplies and inventory, as well as the need to support key new product launches. With the firm in the early stages of commercializing several novel ostomy and continence care products, we remain confident in the firm’s wide economic moat.