Announcement of full-year financial results 2010/11

(1 October 2010 - 30 September 2011)

Read the report: English Danish

Read the press release

Highlights

• Organic revenue growth was 6%. Revenue in DKK was up by 7% to DKK 10,172m.
• Organic growth rates by business area: Ostomy Care 7%, Continence Care 8% and Urology Care 4%. In Wound & Skin Care, sales decreased by 1% relative to last year.
• Gross profit was up by 12% to DKK 6,568m, equal to a gross margin of 65% (FY 2009/10: 61%). At constant exchange rates, the gross margin was 64%.
• EBIT was up by 29% to DKK 2,581m. The EBIT margin was 25% against 21% in FY 2009/10. At constant exchange rates, the EBIT margin was also 25%.
• The net profit for the year was up by 46% to DKK 1,819m, while earnings per share also improved by 46% relative to last year to DKK 42.6.
• The free cash flow was up by 23% to DKK 1,818m against DKK 1,476m last year.
• ROIC after tax was 30%, compared with 23% last year.
• The second half of the share buy-back programme launched in February 2011 was closed in the third quarter with buy-backs amounting to DKK 500m.
• The Board of Directors recommends that the shareholders attending the general meeting to be held on 7 December 2011 approve a dividend of DKK 14.00 per share (FY 2009/10: DKK 10.00 per share), equal to a pay-out ratio of 32%, as compared with 34% last year.
• We intend to launch a DKK 1bn share buy-back programme that will run until the end of the 2012/13 financial year.

Financial guidance for 2011/12

• Expected revenue growth of about 6%, both organically and in DKK.
• Expected EBIT margin of about 27%, both at constant exchange rates and in DKK.
• Capital expenditure is expected to be around DKK 300m.
• The effective tax rate is expected to be 25–26%.