Coloplast delivers solid quarterly results

Coloplast’s Q3 2010/11 financial statements showed that revenue increased by 8% to DKK 7,601m and the EBIT margin was 24% compared to 20% in the same period last year.

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”I’m satisfied with the results. We continue to improve profit and grow more than the market and thereby we meet both our own and the market’s expectations”, says CEO Lars Rasmussen.

The Ostomy Care business area showed an organic growth of 7% and the Urology and Continence Care business showed an organic growth of 8%.

”I’m very pleased with the positive development in our Chronic Care business areas Ostomy Care and Continence Care. Growth is primarily driven by Emerging Markets and the UK. Furthermore, growth rates in the U.S. have slightly improved compared to last quarter’s unsatisfactory growth,” says Lars Rasmussen.

The gross profit increased by 14% to DKK 4,860m equaling a gross margin of 64% against 61% in the same period last year. The Q3 growth in DKK was 7%.

Continued Wound Care commitment
Wound and Skin Care showed positive growth in Q3 at 3% which took growth for the first nine months of 2010/11 from negative to flat. Despite the positive development Wound Care growth was negative by 1%.

“We are pleased to see signs of an improving trend but a 1% drop in revenue is not satisfactory,” says Lars Rasmussen.

“Despite the current tough market environment we believe that the Wound Care market is attractive and it fits well into our portfolio of healthcare activities. This means that we remain committed to the business. However, in light of the continued adverse market conditions on most European markets we no longer believe that growth will return in Wound Care in 2011.”

Financial guidance for 2010/11
The organic revenue growth is still expected to be around 6%. Growth in DKK is expected to be around 7%. The EBIT margin is still expected to be 24-25% both at constant exchange rates and in DKK.