HCA Red Flag: Coloplast's operating profit disappoints for the third consecutive quarter (AI)
HC Andersen Capital
Summary
- Coloplast's operating profit for Q4 2025/26 was DKK 1,848 million, falling short of the expected DKK 2,018 million, due to inflation in raw materials and a stronger Hungarian forint, leading to a profit margin decrease to 24.8% from 28.0%.
- Free cash flow increased by 16% to DKK 6.3 billion, supported by lower working capital and financial costs, allowing for an unchanged dividend of DKK 23 per share and a reduction in net debt to DKK 21.0 billion.
- Coloplast's US ostomy market share reached approximately 20%, driven by the success of SenSura Mio ostomy bags, while the urology segment grew 7% organically, aided by the Titan penile implant and upcoming Titan Prime launch.
- European growth slowed to 3% in Q4, with pricing pressures in France and Germany posing risks to the growth outlook for 2026/27.
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Automatic translation: Originally published in Danish 02/11/2026, 17:44 GMT. Give feedback here.
Red Flag · First read of the financial statements · AI-generated content
HCA Red Flag: Coloplast's operating profit disappoints for the third consecutive quarter (AI)
Coloplast (COLO B) · Q4 2025/26 · November 2
The share is up 10% over three months and 22% below its LTM peak
| Overall assessment | Negative assessment |
| Positive view | Balanced | Negative view |
Coloplast's operating profit of DKK 1,848 million vs. the expected DKK 2,018 million points to a lower opening, as earnings stagnated in constant currencies and 2026/27 estimates need to be revised downward. Free cash flow rose by 16% to DKK 6.3 billion, covering an unchanged dividend of DKK 23 per share.
Red flags in the financial statements
Operating profit came in below all analysts' estimates
Actual DKK 1,848M · Est. DKK 2,018M
Inflation in raw materials and freight, the plant startup in Portugal, and a stronger Hungarian forint lowered the profit margin – operating profit as a percentage of sales – to 24.8% from 28.0%. Excluding currency effects, operating profit stagnated, meaning 2026/27 starts lower.
Kerecis' decline doubles to 12%
Now: -12% · Q3: -6%
Kerecis, which sells fish skin wound care products in the US, generated sales of DKK 300 million following the change in Medicare outpatient reimbursement. The profit margin was 1%, meaning the target of over 10% in 2026/27 starts from a very low level.
European growth slows to 3%
Q4: 3% · Full year: 5%
Europe, accounting for over half of sales, grew by only 3% organically, partly due to delayed wound care orders in Germany. With pricing pressure in France and Germany in 2026/27, Europe poses a risk to the growth outlook.
Green flags in the financial statements
Free cash flow rises 16% to DKK 6.3 billion
Now: DKK 6,279M · Previously: DKK 5,394M
Lower working capital, driven by later payments to suppliers among other factors, and lower financial costs boosted cash flows despite higher capital expenditures. This covers an unchanged dividend of DKK 23 per share and decreased net debt to DKK 21.0 billion.
Coloplast reaches 20% of the US ostomy market
Now: ~20% · August: 15 to 20%
SenSura Mio ostomy bags and the new two-piece click coupling gained share in both hospitals and home care. The US is CEO Gavin Wood's top growth priority, and ostomy care excluding China grew by 7% in Q4.
Urology grows 7% on penile implants in the US
Organic: 7% · Reported: 11%
Titan, Coloplast's inflatable penile implant, and ProACT from the Uromedica acquisition drove growth, and the successor Titan Prime will be launched in the US within a few months. This supports the forecast of mid- to high-single-digit growth in 2026/27.
Disclaimer: This is an HCA AI-generated research commentary based solely on the company's published financial statements. The commentary does not constitute investment consulting and should not be used as the sole basis for investment decisions. Investing in shares involves the risk of loss. Seek professional consulting. /HC Andersen Capital, 6:43 PM, November 2, 2026