Coloplast A/S - Announcement no. 07/2025 - Coloplast announces new financial ambition towards 2030

Core Viewpoint - Coloplast has announced a new 5-year strategy named Impact4, aiming for organic revenue growth of 7-8% CAGR until FY 2029/30, with a focus on EBIT growth and a ROIC exceeding 20% by FY 2029/30 [1][3]. Financial Ambitions - The company targets organic revenue growth of 7-8% from FY 2024/25 to FY 2029/30 [6]. - Absolute EBIT growth is expected to align with or exceed revenue growth during this period [6]. - Aiming for a ROIC of more than 20% by FY 2029/30, with a linear improvement anticipated throughout the strategy period [6]. Market Context - The expected market growth during this period is projected to be 4-5% [6]. - A stable macroeconomic environment is assumed, with no significant changes in tariffs or trade restrictions [6]. Operational Assumptions - The company anticipates stable quality, supply, and distribution of products [6]. - Pricing is expected to have a neutral impact over the period [6]. - No significant M&A deals are anticipated, with a focus on bolt-on acquisitions [6]. Financial Metrics - The capex-to-sales ratio is projected to be 4-5%, reducing to around 4% towards the end of the Impact4 strategy period [6]. - The tax rate is expected to be around 22% during the strategy period [6]. - The net working capital (NWC)-to-sales ratio is expected to improve to around 24% [6]. - The net debt/EBITDA ratio is projected to decrease to around 1.5x by FY 2029/30 [6]. Capital Allocation - The capital allocation policy aims to pay out excess cash through dividends, targeting a payout ratio of 60-80% of net profit [6].