Even though the company reduces its growth expectations in DKK for the full year results due to the weak British pound, optimism is slowly returning.
“I am satisfied with the result,” says Lars Rasmussen, Coloplast’s CEO.
“Our operating profit is at the same level as last year, which is good – especially considering that Coloplast has been hit by the low British pound. This implies that the effect of the organisational changes and efficiency measures which we have implemented is beginning to show.”
In the first quarter, Coloplast achieved an organic growth rate of 6% and an operating profit margin of 15%. If exchange rates had not been unfavourable to Coloplast, the operating profit margin would have been 17% against 16% for the same period last year.
Coloplast is still facing challenges in the German market, and the earnings within the Wound and Skin Care business are also not satisfactory. “We continue to respond to the challenges we face, and among other activities, we are in the process of restructuring the Wound and Skin Care business”, says Lars Rasmussen.
He is pleased that the benefits from moving production to Hungary and China are beginning to materialise as improved earnings, and that the level of administration costs continues to fall.
“Like everyone else, we are also impacted by the financial crisis; one of the reasons being the fluctuation of the British pound,” says Lars Rasmussen. “But fundamentally, Coloplast is a sound business no matter the state of the international economy, as we sell medical devices which are in daily demand”.