* Expects 7-10 pct revenue growth/year next 3 to 5 years
* Expects EBIT margin expansion of 0.5-1.0 pct points
* This marks a permanent shift to higher growth rates - CEO
* The new guidance is very aggressive - DNB Markets
* Shares up more than 4 percent to all-time high
(Adds analyst, CEO, background, updates share price)
By Stine Jacobsen
COPENHAGEN, June 4 Danish healthcare products
maker Coloplast has targeted sales growth of 7 to 10
percent per year over the next three to five years, the company
said on its capital market day on Wednesday.
Coloplast, Denmark's fourth-biggest company by stock market
value, has seen its shares rise by 33.5 percent this year ahead
of Wednesday's presentation, outperforming a 17 percent rise in
the country's benchmark stock index.
"The most important things is to deliver on our pipeline,
continue the investments in consumers and continue to build our
presence in emerging markets," Chief Executive Lars Rasmussen
He was confident the company had made a permanent shift from
previous annual growth rates of around 6 percent.
Coloplast is aiming for revenue growth of almost double the
estimated general market rate of 4 to 5 percent.
"To grow twice the market as a market leader is an
aggressive guidance," DNB Markets analyst Rune Majlund Dahl
The group, which sells products ranging from colostomy bags
to wound dressings, previously had a goal of delivering
profitability in line with the best-performing medical
technology companies and to outperform the market.
Its shares jumped 4.2 percent to an all-time high at 500.5
Danish crowns ($910) by 1215 GMT, outperforming a 0.5 percent
rise in Copenhagen's benchmark index.
ACQUISITIONS TO GAIN SCALE
Rasmussen saw limited possibilities for acquisitions in
Coloplast's biggest business areas for ostomy and continence
care. But acquisitions in its smaller business for wound and
skin care, where the company currently has a 5 to 10 percent
global market share, would be an obvious possibility, he said.
"We are sub-scale, but if we get more scale we would also be
more profitable, so yes M&A activities could be efficient to
that part of the business," Rasmussen said.
The group also forecast an expansion of its operating margin
by 0.5 to 1.0 percentage points a year in the next three to five
Coloplast reported an operating margin of 32 percent in its
2012-2013 accounting year, up from 12 percent in 2007-2008.
The company has few direct competitors. British medical
equipment and technology company Smith & Nephew, which
competes with it in some areas, reported an operating margin of
18.6 percent in 2013.
Coloplast is among the three most highly valued stocks in
the Thomson Reuters Europe Medical Equipment Index
, with a price-to-book ratio of 14.5. It has
the highest return on equity in the index at 42.32 percent, the
"The stock is expensive, but today we got a signal that it
is a fair price," Alm Brand Markets analyst Michael Friis
($1 = 5.4798 Danish Krones)
(Editing by David Holmes and Jane Baird)