Coloplast Introduces Next-Generation Catheter; No Change to Our Fair Value Estimate

Narrow-moat Coloplast kicked off its new fiscal year in strong fashion, despite diminishing ripple effects from the pandemic, and we’re leaving our fair value estimate unchanged. Quarterly organic revenue growth of 7% year over year was closer to what we’d consider typical for the firm. In particular, ostomy and continence care were up 8% and 7%, respectively. The last lingering effects of COVID-19 showed up in softness in China as the country navigated the rise of the omicron variant and shortages of input materials, especially for silicone products, which have hindered the continence care and wound care business. We expect these two dynamics will be ironed out over the next quarter or two.