Coloplast Faces COVID-19 and Foreign-Currency Headwinds in Fiscal Fourth Quarter

Coloplast posted fiscal fourth-quarter results that featured softer growth thanks to the pandemic, though the firm hit our full-year estimates nearly on the nose, so we’re holding steady on our fair value estimate. Ostomy and continence care (the two largest segments that account for more than 75% of total revenue) saw fourth-quarter organic growth of 3% and 4%, respectively, roughly half the normal growth rates. Further, a solid currency translation headwind added to the consolidated reported 1% top-line decline in the quarter. Nonetheless, we remain confident in Coloplast’s narrow economic moat and the company's ability to continue introducing meaningful innovation.