Coloplast A/S
Coloplast lowers the financial expectations for 2014/15

DGAP-News: Coloplast A/S

2015-06-16 / 10:59

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As a result of continued challenges in our UK homecare business, Charter
Healthcare, and continued lower campaign activity in the ostomy and continence
businesses in the US, Coloplast lowers the financial expectations for the
financial year 2014/15. 

Revenue expectations for the full-year are revised from an organic revenue
growth of 8-9% to an organic revenue growth of 7%. In DKK this equals a
revision from 13-14% to 12%.The expected EBIT margin for 2014/15 is lowered
from around 34% at both constant exchange rates and in DKK to around 32%, both
at constant exchange rates and in DKK. 

'It has taken longer than first expected to get our business in the UK back on
track. We are seeing progress, but not at the level that we had expected. Also,
we are experiencing reduced campaign activity in our US market as a consequence
of the ongoing Department of Justice investigation - and that has impacted our
sales negatively. With two big markets like the UK and the US lacking momentum,
we have to lower our financials expectations for the year', says CEO of
Coloplast, Lars Rasmussen. 

Provisions
Furthermore, Coloplast is taking a provision in relation to the ongoing
Department of Justice investigation in the US and has increased the provision
for bad debt in Southern Europe. The size of the provisions are not disclosed.
Finally, Coloplast has taken a write-down on the NPWT inventory purchased from
Devon Medical. 

'It is now our best estimate that we will incur costs associated with the
closing of the Department of Justice investigation in the US. At the same time,
the financial development in especially Greece makes it necessary for us to
take precautions. That is why we are making the two provisions,' says Lars
Rasmussen. 

Coloplast's long-term financial guidance remains to generate 7-10% sales growth
per year and to improve the profit margin by 0.5-1.0 percentage point per year.
News Source: NASDAQ OMX



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2015-06-16 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English        
Company:     Coloplast A/S  
 
 
             Denmark        
ISIN:        DK0060448595   
 
 
End of News    DGAP News-Service  
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368699 2015-06-16