Significantly improved profitability and continued growth

Coloplast’s interim financial statements for the fiscal year 2008/09 confirm the positive trend of the 1st quarter.
Operating profit (EBIT) was DKK 642m, an increase of 16% compared to last year.

The increased profit means that Coloplast’s profit margin for H1 2008/09 increased to 15% compared to 13% for the same period last year. Consequently, Coloplast is getting closer to the company’s long-term goal of a profit margin of more than 20%.

“The H1 result shows that we have taken some important steps in the right direction. Profit has improved significantly as a result of the organisational changes and efficiency measures undertaken, which is of course very satisfactory,” says CEO Lars Rasmussen.

Sales are also increasing, with Coloplast reaching an organic growth of 6% in spite of lower-than-expected sales in Germany.

”Coloplast is generally doing well in all markets except Germany where we still see challenges. Excluding the German market, our organic growth is 9%, which is well above the general market growth,” says Lars Rasmussen.

He underlines that Coloplast is currently working at improving the situation in Germany.

”Recently we appointed a new management team in Germany. Together with the new management we have adopted an action plan that will bring us back on track. We must admit, though, that the situation is very challenging.”

Based on the H1 results, Coloplast has revised the company’s guidance for 2008/09 and now expects an organic revenue growth of 6% and a profit margin in fixed currencies of around 16% and of around 15% in DKK.