HUMLEBAEK, Denmark, May 4, 2011 (GLOBE NEWSWIRE) -- Coloplast's H1 2010/11 financial statements show that revenue increased by 10% to DKK 5,004m and the EBIT margin was 24% compared to 20% in the same period last year.
"I am pleased that we continue to improve earnings and deliver an EBIT margin of 24%. At the same time we have increased our market shares in the Chronic Care business", says CEO Lars Rasmussen.
"We have now finalized the relocation of our volume production to Hungary and China which has taken place over the last 10 years. The result is clear. We have succeeded in reducing costs and improving both quality and efficiency while at the same time increasing employee satisfaction."
The gross profit increased by 15% to DKK 3,189m equaling a gross margin of 64% against 61% in the same period last year. The Q2 growth in DKK was 8%.
Nice growth, but challenges within Wound Care and the USA
The Ostomy Care business area as well as the Urology and Continence business area both showed an organic growth of 7%.
"I am pleased with the development in Ostomy Care where we have seen very satisfactory sales, especially in the United Kingdom and Emerging Markets," says Lars Rasmussen.
The Wound and Skin Care business showed a negative growth of 2%.
"The development that we see in Wound and Skin Care is of course not satisfactory. We still expect growth within this financial year. However, we realize that growth shows more slowly than expected."
In the American market sales development in general does not meet expectations. Therefore, organizational changes were recently implemented. Claus Bjerre, former SVP Emerging Markets, has taken on responsibility for Chronic Care in the USA.
"With Claus Bjerre in charge we wish to strengthen growth even more in the American business," says Lars Rasmussen.
New definition of the financial guidance for 2010/11
The organic revenue growth has been narrowed to about 6% against previously 6-8%. In DKK a growth of about 6% is expected against previously 8-10%. We expect an EBIT margin of 24-25% against previously 23-25%, both at constant exchange rates and in DKK.
Continued focus on profitable growth
While Coloplast has given higher priority to the bottom line than to growth during the company turnaround, focus is now balanced on both growth and bottom line.
" We continue to focus on both profitability and growth. Our long-term growth initiatives proceed according to the plan with a strong and innovative product portfolio and investments in the sales forces," says Lars Rasmussen.
In April Coloplast launched the SenSura(R) Mio - an ostomy bag with a brand new and elastic adhesive adjusting to individual body contours. The product has been very well received.
PRESS CONTACT
Ulla Lundhus
Media Relations Manager
+45 4911 1929
dkul@coloplast.com
INVESTOR RELATIONS
Ian S. E. Christensen
Director, Investor Relations
+45 4911 1301
dkisec@coloplast.com
KEY FIGURES