Coloplast Q1 report: Raises full year EBIT margin guidance to 19%

Coloplast continues to increase earnings and now expects an EBIT margin for 2009/10 of 19% against the previous guidance of 17-18%. The new guidance follows a strong first quarter showing organic growth of 7% and an EBIT margin of 20% against 15% in Q1 2008/09.

CEO Lars Rasmussen is content with the strong results:

“Our earnings have improved significantly, the relocation of production is running according to plan and the increase in sales was as expected. So in all I am very pleased”.

Coloplast now expects to reach an EBIT margin of more than 20% within 2 years against the previous guidance of 2-4 years.

“Thanks to our competent staff, we have become more efficient and profitable in less time than expected – but we must still improve,” Rasmussen says. “Therefore, we will continue our focus on earnings, while at the same time investing in projects that will increase growth on a long-term basis.”

Coloplast still expects an organic revenue growth of 6-7% while growth in DKK is expected to be 5-6% against the previous guidance of 4-5%.