May 7, 2014 / 11:42 AM / 4 years ago

UPDATE 1-Coloplast's Q2 tops forecast, raises outlook

* Q2 operating profit before special items 984 mln DKK tops 966 mln forecast in poll

* Raises full-year 2013/14 outlook

* Takes a net cost of DKK 1 bln to cover legal costs

* Will pay interim dividend of DKK 4

* Shares up 3.5 pct at 1139 GMT (Adds details, share price)

COPENHAGEN, May 7 (Reuters) - Danish healthcare products maker Coloplast’s second-quarter operating profit beat expectations and it raised its full-year outlook on the back of organic revenue growth of around 10 percent in its two biggest business units - ostomy and continence care.

The group, which sells products ranging from ostomy and urine bags to wound dressings, reported operating profit before special items of 984 million Danish crowns ($183.68 million) in January-March, above a forecast of 966 million crowns in a Reuters poll..

“Coloplast has once again delivered a very strong report,” Sydbank analyst Soren Lontoft said.

After special items the company posted an operating loss of 16 million crowns because of a one-off 1 billion crowns for legal expenses in connection with insurance claims in the United States on the use of mesh for treatment of pelvic organic prolapse and stress urinary incontinence..

“It is a fair amount when you look at Coloplast’s market cap of 91 billion crowns,” Lontoft said.

The group said its new ostomy bag, Sensura Mio, an upgrade of earlier products, but now in a neutral grey color addressing the important need for discretion among its patients, had been well-received.

“It’s a new product that we feel is revolutionising the thinking within ostomy care,” Chief Financial Officer Lene Skole told Reuters.

The group now expects 2013/14 revenue outlook growth of around 9 percent in local currencies from 8 percent previously, and an EBIT margin before special items of 33 to 34 percent from previously around 33 percent.

Coloplast said it will pay an interim dividend of 4 crowns per share.

At 1139 GMT Coloplast shares were up 3.5 percent. Year-to-date Coloplast’s shares are up 30.56 percent, outperforming a 6.04 percent rise for one of its closest peers Britain’s Smith & Nephew and a 4.45 percent rise in Thomson Reuters Europe Medical Equipment Index.

$1 = 5.3571 Danish Crowns Reporting by Stine Jacobsen, editing by Louise Heavens and Susan Thomas

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below