Coloplast ready to perform in line with the best

Generating growth of 8% and an EBIT margin of 21% that was up from 16% last year, Coloplast is announcing extremely satisfactory full-year 2009/2010 financial results, meeting the long-term financial targets some 12-24 months ahead of schedule.

"I'm very pleased with our performance," says CEO Lars Rasmussen.  

"We've delivered results that are consistent with our own and with the market's expectations. In addition, we've achieved our long-term targets of growing more than the market and an EBIT margin of 20% sooner than we had expected. Going forward we will seek a more balanced focus on growth and profitability than we have had over the recent years where our focus has been primarily on the bottom line.”

Gross profit was up by 15% to DKK 5,844m, for a gross margin of 61%, up from 58% last year.

The organic growth rates by business area were as follows: Ostomy Care 7%, Urology & Continence Care 9%. Sales in Wound & Skin Care were unchanged from last year.

Improvements are expected to continue in 2010/2011

For 2010/11 Coloplast expects an organic revenue growth of 6–8% and an EBIT margin of 23–25% for the upcoming financial year.

"We're now seeing the effects of relocating our production and of improving our cost discipline, and that makes us confident that we can improve our EBIT margin to 23–25% next year," says Lars Rasmussen.

Performing in line with the best

Coloplast's new long-term ambition is to continue to outgrow the market while achieving earnings margins that are in line with highest earners of the med-tech industry.

"As a business, Coloplast has made great strides during the past few years, and our ambition is to provide earnings that are in line with the best in our industry," says Lars Rasmussen.

"We intend to do that by developing and selling even better products, providing even better service to our customers, keep on enhancing our sales force and remain focused on cost discipline.”