What are the key drivers behind the reported revenue and earnings performance for the first 9 months of 2024/25?

Fundamental drivers:

Coloplast’s 9‑month interim shows a modest revenue uplift, primarily powered by continued volume growth in its core wound‑care and continence businesses. New product launches—especially the next‑generation ostomy skin barrier and the expanded range of home‑care wound dressings—have been well‑received, lifting same‑store sales in Europe and North America by low‑‑mid single digits. Pricing discipline, supported by modest price‑adjustments in premium segments, added another 1‑2 % to top‑line growth. On the cost side, the company realized a 3 % reduction in manufacturing overhead through the rollout of its “Lean Production” initiative and a favorable foreign‑exchange swing that offset higher raw‑material inflation, helping earnings before interest and tax (EBIT) to beat consensus.

Trading implications:

The earnings beat and clear volume‑driven narrative suggest the market will price in a steadier growth trajectory for Coloplast, especially as its product pipeline matures. Technicals show the stock holding just above its 50‑day moving average with a bullish bullish engulfing pattern on the daily chart, while the RSI remains under‑bought (~38), indicating upside potential if sentiment improves. Given the upside‑biased fundamentals and the absence of major macro‑headwinds for its healthcare niche, a short‑to‑mid‑term long position (e.g., buying on a pull‑back to the 20‑day MA with a 6‑month target of 10‑12 % above current levels) appears warranted. Investors should monitor Q4 guidance for any shifts in capital‑expenditure plans or unexpected cost pressures that could temper the earnings momentum.