Interim financial report, H1 2010/1
(1 October 2010 - 31 March 2011)

Read the report: English Danish.

Read the press release.

Highlights

• Organic revenue growth was 6%. Revenue in DKK was up by 10% to DKK 5,004m.
• Organic growth rates by business area: Ostomy Care 7%, Urology & Continence Care 7%. In Wound & Skin Care, sales fell by 2%.
• Gross profit was up by 15% to DKK 3,189m, equal to a gross margin of 64% (H1 2009/10: 61%). Changes in exchange rates lifted the gross margin by about 0.5 of a percentage point.
• EBIT was up by 31% to DKK 1,188m. The EBIT margin was 24% against 20% in H1 2009/10. At constant exchange rates, the EBIT margin was 23%.
• The free cash flow was DKK 179m against DKK 469m in the same period of last year.
• ROIC after tax was 26%, compared with 20% in H1 2009/10.
• The second half of the share buy-back programme was launched in February 2011, and buy-backs during the period to 31 March 2011 amounted to DKK 211mFinancial guidance for 2010/11.

Financial guidance for 2010/11

• Organic revenue growth narrowed to now about 6% (previously 6–8%). Revenue growth in DKK is now expected to be about 6% (previously 8-10%).
• We expect an EBIT margin of 24–25% (previously 23–25%), both at constant exchange rates and in DKK.
• Capital expenditure is expected to be about DKK 300m (previously DKK 300–400m).
• The effective tax rate forecast is unchanged at about 26%.