Coloplast (CPSE:COLO B) Profit Margin Falls to 13%, Challenging Bullish Growth Narratives

Coloplast (CPSE:COLO B) is projecting healthy momentum, with earnings forecast to grow at 15.8% per year, outpacing the Danish market's 3.7% average. Revenue is also expected to climb at 6.9% annually, ahead of the market's 5% rate. Despite these positive forecasts, the company’s net profit margin has contracted to 13% from 18.7% last year. Five-year earnings growth has averaged just 0.03% per year, with earnings declining over the past year. Investors are eyeing Coloplast’s above-market growth outlook, even as recent pressure on margins and subdued profit trends temper enthusiasm about the future.

See our full analysis for Coloplast.

Next up, we’ll compare Coloplast’s earnings results to the dominant market narratives. This will highlight where the story gains fresh momentum and where expectations might be put to the test.

See what the community is saying about Coloplast

Profit Margin Drop Stands Out

• Net profit margin declined to 13%, falling from 18.7% a year earlier, marking a clear squeeze on profitability that stands apart from the robust growth forecasts discussed above.
• Consensus narrative highlights both operational restructuring and innovation efforts aimed at restoring margin strength.
  • However, it warns that intensifying pricing, regulatory, and currency headwinds have already triggered costly product returns and recall expenses, pressuring profits.
  • Restructuring and acquisitions are still expected to bring margin expansion in future years. Margin recovery will be a key indicator for confidence in management's strategy.

Long-Term Forecasts Lean Positive

• Analysts expect profit margins to rebound from 14.6% today to 21.2% within three years, with earnings projected to climb from DKK4.1 billion to DKK7.3 billion by September 2028.
• Consensus narrative points to strategic restructuring and pipeline progress supporting these forecasts.
  • Bulls see recurring revenues from user-focused product launches driving sustained momentum and justifying outsized growth expectations for Coloplast.
  • The challenge will be turning projected margin recovery and faster innovation cycles into reliable, visible bottom-line improvement amid regional and regulatory risks.

Valuation: Premium Despite Fair Value Gap

• With the share price at DKK614.8, Coloplast trades below the DCF fair value of DKK770.32, but its current PE of 34.3x remains expensive relative to both analysts’ future PE assumption of 26.2x and the industry’s 31.8x multiple.
• Consensus narrative underlines how this premium price reflects investor faith in above-market growth and successful innovation.
  • Skeptics note only marginal 5-year earnings growth and downward pressure on margins as signals that the valuation requires strong execution and smooth margin recovery to be sustained.
  • Expectations are high for upside, yet any prolonged slip on margin or profit rebound could see the premium re-rated closer to broader industry norms.

For the full narrative, including more on how strategic changes, competitive pressures, and innovation cycles are shaping Coloplast’s path, check the balanced analyst breakdown below. 📊 Read the full Coloplast Consensus Narrative.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Coloplast on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Noticing something the consensus missed? Put your own spin on the numbers and craft a fresh narrative in just minutes. Do it your way

A great starting point for your Coloplast research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

See What Else Is Out There

Coloplast’s recent dip in profit margins and only marginal earnings growth suggest pressure points that could challenge long-term returns if margin recovery stalls.

If you want to focus on stocks demonstrating steady expansion instead, check out stable growth stocks screener (2074 results) for companies that consistently grow revenue and earnings across market cycles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com