Danish medical device maker Coloplast on Tuesday unveiled a new five-year strategy that tempers its long-term growth forecast.
The company said it is now targeting a compound annual organic revenue growth rate of 7-8% through its 2029/30 fiscal year under the new plan, called "Impact4".
The new target is a reduction from the 7-9% annual growth goal set in its previous "Strive25" strategy, which was launched in 2020.
Alongside the revised sales target, Coloplast said it expects growth in earnings before interest and taxes to be in line with or above revenue growth over the period, and for its return on invested capital to exceed 20% by fiscal 2029/30.
The new strategy will organize the company into two business units, Chronic Care and Acute Care, a move announced in August.
"The strategic priorities we have laid out in Impact4 set a clear direction – one where our customers are at the centre of everything we do," interim CEO Lars Rasmussen said in a statement.
According to the company, the new financial ambitions assume overall market growth of 4-5% and a stable macroeconomic environment.
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Danish medical device maker Coloplast on Tuesday tempered its long-term growth forecast as it unveiled a new five-year strategy, dubbed "Impact4."