How did currency fluctuations (euro, US $) affect the reported results, and what hedging strategies are in place?

Answer

The short news release you shared about Coloplast A/S’s 9‑month 2024/25 earnings announcement does not contain any specific commentary on the impact of currency movements (euro vs. US $) on the reported results, nor does it detail the company’s hedging policies or instruments that are in place.

Below is a concise summary of what we can infer from the information you provided, together with some practical next‑steps for obtaining the precise data you need.

1. What the release tells us (and what it does not tell us)

Because the release is essentially an announcement of the call and a logistical note (when the webcast will be available, when the presentation will be posted, etc.), it does not contain the substantive financial commentary that would normally accompany an earnings release—such as:

• The effect of EUR/USD movements on sales, cost of goods sold, or net income.
• The proportion of revenue generated in euros versus US $ (or other currencies).
• The net foreign‑exchange gain/loss recognized in the period.
• Any hedging instruments (forward contracts, options, swaps) the company uses to mitigate that exposure, and the effectiveness of those hedges.

2. Where the missing details are likely to be found

1. Full Earnings Release (PDF/Press Release) – Companies typically publish a more detailed press release that includes a “Management Discussion & Analysis” (MD&A) section. Look for a paragraph titled “Currency impact” or “Foreign exchange risk”.

2. Investor Presentation Slides – The presentation that will be posted on Coloplast’s website (≈ 1 hour before the call) often contains a slide titled “Currency exposure” or “FX impact on results”. It may show a table of:

   • Revenue by functional currency.
   • Net foreign‑exchange gains/losses.
   • Hedging instruments and the proportion of exposure covered.

3 Conference Call Transcript / Q&A – During the call, analysts frequently ask about FX exposure. The transcript (or a recording) will capture any statements made by the CFO or CEO on this topic.

1. Annual Report / 10‑K (or local equivalent) – While the 9‑month interim results are not as detailed as the full‑year report, the annual report usually contains a dedicated “Foreign currency risk” note in the notes to the financial statements. This will outline:

   • The company’s functional currency (euro) and the currencies of its major markets.
   • The accounting policy for translating foreign‑currency transactions.
   • The hedging strategy (e.g., use of forward contracts, options, natural hedges).

2. Regulatory Filings (e.g., Form 20‑F for Danish‑listed companies) – If Coloplast is listed on a European exchange, the filing may include a “Risk Management” note that details the hedging policy.

3. Typical ways a Euro‑based medical‑device company like Coloplast manages currency risk

Even though we can’t confirm Coloplast’s exact approach from the brief notice, many companies with a functional currency of EUR and significant sales in the US $ (or other foreign currencies) employ a combination of the following:

4. How to obtain a definitive answer

Step 1 – Retrieve the full earnings release

Visit Coloplast’s investor‑relations page (usually investor.coloplast.com or a similar URL) and download the PDF titled something like “Coloplast A/S – Interim results for 9M 2024/25”. Look for a section on “Currency impact” or “Foreign exchange risk”.

Step 2 – Review the presentation slides

The presentation posted ~1 hour before the call often contains a slide on “FX exposure”. Capture any tables or commentary that quantify the effect of EUR/USD movements on revenue, margins, and net income.

Step 3 – Listen to or read the call transcript

If the webcast is still available on the site, watch the “Management discussion” portion. Pay particular attention to any Q&A where analysts ask about hedging. The transcript will capture exact wording.

Step 4 – Check the notes to the financial statements

If the interim results include a condensed set of notes, the “Foreign currency risk” note will list the hedging instruments, the accounting treatment (e.g., hedge accounting under IFRS 9), and the effectiveness of the hedge (usually > 80 % for a qualifying hedge).

Step 5 – Contact Investor Relations (optional)

If the public documents still do not disclose the level of FX impact or hedging details, you can email Coloplast’s IR team (often listed on the same page) with a request for clarification. Publicly listed companies are generally obliged to provide material information to shareholders upon request.

5. Sample answer you could give once the detailed documents are reviewed

*“In the 9‑month interim results for 2024/25, the company reported that the strengthening of the US $ against the euro had a net positive effect of €X million on the top line, partially offset by higher euro‑denominated operating costs. The net foreign‑exchange gain was €Y million, representing Z % of total earnings before tax. Coloplast continues to manage its currency exposure primarily through forward contracts covering approximately 85 % of its forecasted USD receivables, with the remainder hedged via natural hedges (e.g., USD‑priced component purchases). The forward hedge portfolio is re‑balanced quarterly to maintain a target coverage ratio of 80‑90 % of open USD positions, and the effectiveness of the hedge has consistently met the 80 % threshold required for hedge accounting under IFRS 9.”

Until you have the full release and presentation, the exact figures (X, Y, Z) cannot be confirmed, but the above structure reflects the typical content you should expect to find.

Bottom line

• The brief news item you posted does not include the specific FX impact or hedging details.
  
• To answer your question definitively, you’ll need to consult the full earnings release, the accompanying investor presentation, and/or the conference‑call transcript.
  
• Based on industry practice, Coloplast likely uses forward contracts, natural hedges, and possibly options or swaps to mitigate euro/US‑dollar exposure, but the exact coverage ratios and the magnitude of the currency effect can only be verified from the detailed documents.
  

If you can locate the PDF or the slide deck, feel free to share a snippet, and I can help you extract and interpret the relevant numbers.