Welcome to the annual general meeting. First of all, I'd like to apologize for my voice. It's not thanks to Christmas lunches or parties. I'm just affected by a sore throat, so I apologize for having to use it to give you information. I'm pleased to welcome you to this year's AGM. True to tradition, we do it in Danish, and there's English translation directly from the website so that shareholders all over the world can follow proceedings there. Also, welcome to those who follow us in that manner. First of all, let me introduce the board and the executive leadership. Together with me, we have the Vice Chair on the board, Niels Peter Louis-Hansen, and the CEO, Kristian Villumsen. The other members of the board elected by the AGM are Annette Brüls, Carsten Hellmann, Jette Nygaard-Andersen, and Marianne Wiinholt.
The three board members elected by the employees are Thomas Barfod, Roland Vendelbo Pedersen, and Nikolaj Kyhe Gundersen. The other members of the executive leadership team are Anders Lønning-Skovgaard, Caroline Vagner Rosenstand, Allan Rasmussen, Torsten Durhuus, Nicolai Buhl Andersen, and Tommy Johns Jr. It is the board that elects the chairman of the meeting, and in keeping with last year, we decided to appoint Niels Korner from Law Firm Bech-Bruun, and now he is seated next to me, and I'd like to hand over the meeting to him.
Thank you for electing me chairman of the AGM here in Coloplast. Pursuant to Article 10 in the Articles of Association, I hope for a good and lively debate and a good AGM. For that purpose, I would like to encourage you to put your mobile phones on silent mode, and I should make you aware that the press has access to the AGM and that they're allowed to record sound, but no video. My first task is to conclude whether the AGM has been lawfully convened and is competent to transact business on the agenda. Before the AGM, I have gone through the convening notice and made sure that the requirements in the articles and in the Danish Companies Act are complied with, and I can therefore conclude that the AGM is lawfully convened and competent to transact the business on the agenda.
I hope I have the agreement of the AGM. I see no objections. I conclude that it is indeed, and I would like to include that in the minutes. Just before we started, we have registered 139 participants here in the room, 104 shareholders, and 35 guests, journalists, consultants, and so on. Furthermore, 87.79% of votes are represent, deducting treasury shares. For capital, 79.02% is represented. The board has received a number of proxies and postal votes, representing 87.41% of the represented votes and 78.35% of the represented share capital. The final figures will appear from the minutes. I can already reveal that there is broad support for all of the proposals and recommendations from the board of directors.
Just like previous years, we need to mention Section 101, para 5 in the Danish Companies Act, which requires a full account of the voting for each decision made on the AGM, with how many shares are in favor and against, and so on and so forth, even if the result of the vote is quite clear. On previous occasions, we have deviated from that requirement. I propose we do the same this year, so that we deviate from this complete account. Can we all agree to do so? Thank you very much. I will conclude that that will be the case again this year. Finally, I would like to ask that anyone who wishes to take the floor make themselves known to me, and I will try to distribute speaking time fairly.
Speakers should speak from the rostrum, so please show me your access card if you want to take the floor, so that I can make sure that you are entitled to speak at the AGM. There are a number of chairs available up here, so if you are on the speakers list, please approach the rostrum and sit up here so that the proceedings can flow as smoothly as possible. That leads me to the agenda for today. As you can see in the convening notice and also on the screen behind me, item one is the report by the board of directors on the activities of the company during the past year. Item two, the presentation and approval of the audited annual report. Item three, resolution on the distribution of profit. Item four is the presentation and approval of the remuneration report.
Item 5, approval of the Board of Directors' remuneration for the current financial year. Item 6, proposals from the Board of Directors or shareholders. Item 7, election of members for the Board. 8, election of auditors. Item 9 is the authorization to the Chairman of the AGM. AGM, and finally, Item 10 is any other business. We'll embark upon the agenda for today, and as per usual, at AGMs in Coloplast, the first four items on the agenda, Item 1 to 4, will be treated as one, and we will take a debate of all four items on the same time. We will hear the report, the presentation of the annual report, the resolution on the distribution of profit, and the presentation of the remuneration report.
Lars Rasmussen, the chair of the board, will give us his report and present the annual report, the remuneration report, and also present the distribution of profit. We hope that your voice will do. The floor is yours, Chair.
Thank you for deciding to attend this year's AGM. I've been looking forward to presenting the report for the past year. In fiscal 2023, 2024, we delivered 8% in organic growth and an EBIT margin of 27% before special items. This is a solid result. It's in line with the expectations communicated at the beginning of the year. Once again, we grew faster than the market. Despite challenges during the year, more on that later, we delivered one of the industry's highest profitability levels. At the same time, we fulfilled our mission of making life easier for people with intimate healthcare needs. This year, we helped more than 2 million people worldwide with our products and services. This means people with intimate healthcare needs, were better able to live a dignified life on their own terms and outside hospitals.
This has been our purpose since Aage and Johanne Louis-Hansen founded the company in 1957, and today, nearly seven decades later, it remains the essence of our mission. I'd like to turn to our board of directors and our collaboration with the executive leadership team in the course of the year. This year, we had an annual evaluation conducted with inter-external assistance, and it's concluded that there's a strong and trusting collaboration with the executive leadership team. It also highlighted high satisfaction with the board's collective competencies. This year, the board has focused particularly on the acquisition of Kerecis. We've also assessed how Coloplast is best positioned to seize future growth and value creation opportunities. This brings me to our new leadership team.
In the current strategy period, we have made significant investments into innovation and M&A to expand the company and build four growth strong platforms. These four growth platforms are chronic care, voice and respiratory care, advanced wound care, and interventional urology. These four platforms will drive value creation for many years to come. To reflect this focus, we've decided to expand the company's executive leadership team. In the new leadership team, chronic care, which includes the innovation organization and the commercial organization, it will all be gathered under one leader, Nikolaj Buhl. Paul Marcun has decided to step down after two successful terms at Coloplast and 36 years in MedTech. He's made significant contributions to Coloplast and has been a valuable member of the executive leadership team. I'd like to take this opportunity to thank him for his dedication to the company.
The new leadership team also includes two new members. One is Caroline Vagner Rosenstand, Executive Vice President for Voice and Respiratory Care, and the other is Thomas Johns Jr, Executive VP for the Interventional Urology business. Both Caroline and Tommy are experienced and respected Coloplast leaders. Caroline has led Atos Medical, now called the Voice and Respiratory Care, since we acquired the company, and she's built a strong team and consistently delivered high growth rates. Tommy has led the Interventional Urology business since January 2023. He has set the direction for future growth acceleration through investment into innovation and the commercial organization. The final growth platform, advanced wound care, will eventually also be represented in the executive leadership team. This will happen once the Kerecis integration is complete, and we've delivered on our plans to improve profitability in the wound dressings business.
Apart from these changes, Kristian Villumsen will continue as President and CEO, Anders Lonning-Skovgaard as CFO, Dorthe Rønnau as Executive VP for People and Culture, and Allan Rasmussen as Executive VP for Global Operations. That was a brief outline of the leadership team that will shape the company's direction in the coming years. Their task will be to unfold the potential within each of the four growth platforms. This will drive value creation and ensure that Coloplast delivers on its long-term guidance, which is an EBIT margin of more than 30% and between 8%-10% inorganic growth. The ambition is also to accelerate growth to the upper end of these intervals. Let me elaborate on each of the four growth platforms, starting with Chronic Care. Our Chronic Care business covers ostomy and continence care.
We are now global market leader with market shares of between 35%-40% and 40%-45%, respectively. A strong chronic care business is essential to achieve our financial ambitions. This requires new innovations and differentiated technology, alongside a strong commercial model that delivers clear value to healthcare professionals and users. We've invested in innovation and new technology to set treatment standards in the market and drive long-term growth. This year has been a year of launches. Coloplast continued the launch of its new intermittent catheter platform, Luja, designed to reduce the risk of urinary tract infections. Luja for men is now available in all markets, and this year, the version for women was launched. Luja sets a brand new market standard, exceeding sales expectations, and marks our best continence care launch to date.
Progress was also made with Heylo, the world's first digital leakage notification system, which is designed to detect and prevent leakage for ostomy users. This year, Heylo received reimbursement approval in the U.K., which is our largest market, where the launch now has started. Discussions with German authorities are ongoing. We also launched three new products in the SenSura Mio portfolio to further strengthen our position in the ostomy care market. Last but not least, we introduced Peristeen Light, aimed at driving growth in bowel care. In 2023, 2024, the ostomy care business achieved 7% in organic growth, while continence care delivered 8% in growth, primarily driven by strong results in Europe and other markets. The U.S. ostomy business also contributed positively, supported by agreements with major purchasing organizations, Vizient and Premier. Together, they cover 75% of U.S. hospitals.
The chronic care business is in a strong position, thanks to Coloplast's focus on innovation and commercial investments. The company is well positioned to outperform market growth in future. Our next growth platform is voice and respiratory care, and it entered the company with the acquisition of Atos Medical in 2022. We are currently the global market leader in this segment, with an 85% share in the laryngectomy market, along with a smaller but rapidly growing tracheostomy business. The laryngectomy business shares many similarities with our chronic care segment. Products are designed for individuals who have undergone total laryngectomy due to larynx cancer and now live with a neck stoma. Here, too, the strength lies in the combination of a commercial model and technology that enhances patients' quality of life, enabling them to live with dignity. The growth opportunities are substantial.
Thousands of patients currently lack access to treatment or products. We are now investing in improving standards in existing markets and opening new ones to ensure more people can live the lives they deserve. Due to our high market share, our growth equals market growth. Coloplast expects voice and respiratory care to deliver 8%-10% in organic growth and solid EBITDA margins in the mid-thirties for years to come. Integration is proceeding as planned, the platform achieved 11% organic growth in 2023-2024. This brings me to our third growth platform, advanced wound care. We are fifth largest in the advanced wound care market, holding a market share between 5%-10%. It's the largest market we operate in and is a highly attractive growth opportunity.
The growth platform today consists of our existing wound dressing business and Kerecis, which we acquired in 2023, to establish a position in the market for biological wound products. Coloplast has decided on the fourth of December to divest its core skin care business, consisting of creams and lotions, among other things, as part of simplifying operations and increasing profitability. The wound dressings business focuses on the two fastest growing segments: silicone and fiber. Today, we have the strongest product portfolio in the company's history, and Coloplast is the third largest player in the silicone market in Europe. This year, we also launched Biatain Silicone Fit for the U.S. market. The second business pillar, Kerecis, develops advanced wound care products using technology based on intact fish skin. Kerecis is the fastest growing company in the biologics segment in the U.S., with a clear ambition to become the category leader.
Its technology is well documented, as evidenced by Kerecis' largest clinical study to date this year, showing strong results in treating diabetic foot ulcers. This study aims to secure broader coverage in the U.S. and will eventually support the expansion of this technology into new markets. Kerecis' products were included this year on Medicare's updated reimbursement list in the U.S., thanks strong to strong clinical data. Kerecis' fish skin is now one of only 17 products, down from previously 189 products, that qualify for reimbursement for treating diabetic foot ulcers. This is great news for American patients and represents a significant growth opportunity for Coloplast. Kerecis has conducted a large clinical trial to document the effectiveness of fish skin for venous leg ulcers, aiming for broader coverage and increased growth.
Kerecis represents a unique opportunity to elevate value creation in the wound care business, making it a substantial contributor to the Coloplast group. It boosts an attractive growth profile with a three-year CAGR of 30% through 2025-2026, and significant potential to improve profitability. In 2023-2024, Kerecis delivered 35% in growth and a 10% EBIT margin before amortization, which is in line with expectations. Now let's have a look at Coloplast's fourth and final growth platform, interventional urology, where we currently hold a 15% market share, making it the fourth largest player.
... Interventional Urology business is one of niches in this company. The growth platform particularly excels in men's health, which along with the endourology business, drove growth in 2023, 2024. There have also been challenges. Increased competition in the women's health area negatively impacted growth. In the fourth quarter, however, women's health returned to a growth trajectory, and the total organic growth was 5% in Interventional Urology for the year, which was short of our expectations. For 2024, 2025, we anticipate mid-single digit growth in urology due to continued competition in women's health. Looking ahead, the outlook is positive, driven by investments in new technology and innovation. Last fiscal year, we launched our first laser device, the Thulium Fiber Laser Drive, which enables faster and more precise treatment of kidney stones.
This product has significantly contributed to growth in the endourology business, and we also acquired in 2020, a promising technology called Intivia. This is a small nerve simulator which is placed in the lower leg under local anesthesia in order to treat an overactive bladder. The technology gives us access to a highly attractive market valued at around $1 billion, and we plan to enter it in 2025, 2026. Our investments in new technology, in particular, Intivia, combined with ongoing commercial activities, will help the company regain strong growth in interventional urology. Now, that concludes a review of the four growth platforms of Coloplast, all of which share distinct commonalities. First, they operate in attractive markets with structural growth. Second, new technology and innovation are vital if you want to win in these categories.
We are either market leader or aspires to become the leader by setting market standards with innovative technologies. In coming years, focus will be on unfolding the potential of each platform to achieve our long-term ambition of growth between 8% and 10% and an EBIT margin upwards of 30%. This now brings me to an area in our strategy Strive25, that has a significant impact on margins, namely unparalleled efficiency. Coloplast thanks. Coloplast launched Global Operations Plan 6 last year, running until 2025/2026. The plan focuses on efficiency, input costs, and expanding production to support growth. Two years ago, Coloplast selected Portugal as the location for the company's next factory due to its position in Europe, proximity to Coloplast's largest markets, and access to a skilled workforce.
The establishment of the first new factory is progressing as planned. It's expected to be completed by 2026. The work to increase capacity in Costa Rica is also advancing. We expect Costa Rica and Portugal to each account for 20%-25% of our global production by 2029-2030. Coloplast has a clear ambition to return the company to an EBIT margin above 30%. To achieve this, we've initiated a procurement program aimed at mitigating inflationary pressure and reducing costs. Despite good initiatives like the procurement program, we must acknowledge that margin development is not entirely on track. It is at the lower end of our expectations. This is due to several factors. Inflation continued to challenge our profitability in 2023-2024. Costs associated with the capacity expansion in Costa Rica weighed on our margins.
There were currency headwinds, and we encountered challenges with the establishment of our new distribution center in the U.S., which unfortunately affected both our customers and our financial results. Although the rationale for our new distribution center is positive to support Coloplast's strong growth, we're not satisfied with the execution. Now we must learn from our mistakes and come back even stronger. I remain confident that Global Operations Plan 6, along with the rest of our global business support organization, will contribute positively to bringing Coloplast back to an operating margin above 30%. This brings me to this year's results and sustainability. At Coloplast, we have set concrete 2030 targets to reduce our CO2 emissions while improving the environmental impact of our products and packaging without compromising product quality or safety.
We have now reduced our Scope 1 and 2 emissions by 27% since 2018/19. This has been achieved by installing heat pumps at our factories in Hungary, transitioning to district heating in Denmark, and phasing out natural gas in favor of renewable energy. In Scope 3, which includes emissions from our suppliers, we've reduced emissions by 3% since 2018/19. This represents a setback compared to the previous year, primarily due to increased emissions from raw materials and transportation. Our ambition remains a 50% CO2 reduction per product by 2030. We will strengthen our focus on Scope 3 in the coming years to achieve this goal. Another focus area is products and packaging, which also includes Coloplast's production waste. Currently, 77% of the company's production waste is recycled, with significant progress coming from our factories in Costa Rica.
There, we have partnered with a local supplier to turn our waste into plastic containers and shoes. Coloplast continues to explore new opportunities to further increase recycling. Let me conclude the strategy review with the part that pertains to the core of the company: leadership, culture, and organization. We regularly gather feedback from our more than 16,000 employees through global surveys that show how we are developing as a workplace. This year's latest figures show a high engagement level with a score of 8.1 out of 10, placing us in the top 25% compared to other companies in the healthcare sector. This high level of engagement is crucial because our ability to attract and retain talented employees depends on them feeling valued and motivated. When our employees thrive, it strengthens Coloplast's position as an attractive workplace, ensuring we can deliver on our mission.
This concludes the review of Coloplast's strategy, Strive25. I will now present the key financial figures for 2023, 2024. Organic revenue growth reached 8%, while reported revenue increased by 10% to DKK 27 billion. Operating profit before special items rose by 6% to DKK 7.3 billion, corresponding to an EBIT margin of 27% before special items. Gross profit increased by 12% to DKK 18.3 billion, corresponding to a gross margin of 68%. Return on invested capital after tax and before special items was 15%. Net profits after special items amounted to DKK 5.1 billion, while total assets stood at DKK 48 billion and equity totaled DKK 17.9 billion.
Free cash flow for the year was DKK 1.4 billion, while net interest-bearing debt was DKK 21.8 billion at the end of the year. The board is proposing an additional dividend of DKK 17 per share at today's AGM. In addition to the DKK 5 per share paid at half year, this brings the total dividend for the year to DKK 22 per share, compared to DKK 21 per share last year. This corresponds to a total payout of approximately DKK 5 billion and a payout ratio of 98% after special items. On the last trading day of the previous fiscal year, Coloplast's share was listed at DKK 748 on Nasdaq Copenhagen. On the final day of the fiscal year under review, the share closed at DKK 875.
The return on the Coloplast share from October 1st, 2023 to September 30th, 2024 was about 20%, including dividends paid during the period. The day before the AGM, the share closed at DKK 887. Now let's move on to the financial outlook for 2024-2025. For the fiscal year, Coloplast expects organic growth of 8%-9% in constant exchange rates. These expectations broadly reflect the ambitions of Strive25, with a few adjustments. In China, continued low consumer confidence means we expect mid-single-digit growth for the year. In urology, growth is also expected to be mid-single digit, primarily due to increased competition in the women's health business. Kerecis is expected to contribute about one percentage point to Coloplast's overall organic growth. We expect a reported EBIT margin before special items of 28%.
This reflects a positive development in input costs due to declining inflation and tighter cost control. It also includes a 30 basis point improvement, that is 0.3%, in the company's EBIT margin, driven by several initiatives within the advanced wound care business. The margin guidance includes a negative impact from ramp-up activities at our factories in Costa Rica and Portugal, and the acquisition of Kerecis is also expected to have a negative impact of around 100 basis points, including approximately DKK 100 million in depreciation. CapEx expectations are DKK 1.4 billion, and the effective tax rate is expected to be 22%. This concludes the report for the financial year 2023, 2024. I would like to end by sharing a personal highlight from the year.
It occurred during the board strategy days in June, when we met Pete Reed, one of Coloplast's users. Pete Reed is a three-time Olympic gold medalist. In rowing, I should say, in 2019, he suffered a stroke that left him paralyzed from the chest down. Since then, he has used intermittent catheters, which unfortunately has resulted in numerous infections and hospitalizations. Significant burden for Pete and his family. In August 2023, he was introduced to our latest catheter, Luja. It made a big difference. Since then, Pete has experienced fewer infections and complications, and his quality of life has improved. In fact, he told us that he feels he has his life back. That left a strong impression on me.
Coloplast's purpose is to make life easier for people with intimate healthcare needs, and Pete's story is a powerful reminder of the impact our products have on millions of people. They change lives. As I outlined today, we're entering an exciting phase. We have four strong growth platforms, and the coming period will focus on unfolding their full potential. If we succeed, we will not only drive value creation, but also help many more people. I would like to end my report with a video about Pete Reed, who visited our R&D team here at our headquarters in Humlebæk earlier this year. Here's the video. Thank you very much.
I've never been as emotionally invested and as personally invested in a company as I am with Coloplast. My name is Pete Reed. I'm here at Coloplast HQ.
We also try to build the user situation into our models.
My background is in rowing. I've got three Olympic gold medals. I've got a spinal cord injury, which means I use your products and have done for many months now. Because the nature of the tissue is kind of closing around. Sitting in here in R&D, I'm in the brain cell of something that's really important, meeting the people who have made decisions on things that have actually changed my life. Given me opportunities to do things that I wouldn't have done before and minimize the risk of missing out on things that are very, very deeply personal to me. What's so exciting for me is all the people in my life don't have any relationship with catheters. I can't speak more highly of the work that I've seen, the products that I've used, the innovation, how important it is to me.
Listening to the presentations, it's the first chance that I've ever had to speak to people who understand it, because everyone in my circle, they don't. They hint at ISC, they don't push something up. They don't understand. The team here do understand, it's a chance to say thank you. It's a chance to understand the thinking, it's a real pleasure for me. It's quite emotional. Tak.
Thank you to the Chairman of the Board for the presentation of the report for fiscal 2023, 2024, the presentation of the Annual Report and the Remuneration Report also for 2023, 2024, and the presentation of the distribution of profit. I can inform you that the Annual Report is available in a version signed by members of the Board and the Executive Leadership Team, with the company's auditor, having given it a blank endorsement. It will be available in the Annual Report. As mentioned by the Chairman of the Board, the Board proposes that a dividend be paid out for fiscal 2023, 2024, amounting to DKK 17 per share of DKK 1. This is in addition to the extraordinary dividend paid out in connection with the publication of the interim accounts, where DKK 5 per action was paid out.
The total dividend payment comes to 98% of the group profit for the year. With these words, I'd like to open up for the debate. I already have 3 people on my list of speakers. First, we will hear from ATP, a Danish pension fund. Thank you. I am Claus Wiinblad. I represent ATP. First of all, I'd like to say thank you for the report and the review of the operations during the year. It was an okay year with regard to top line growth, which once again came to 8%. In particular, voice and respiratory care and advanced wound care did well with respectively 11% and 10% in growth. Urology had a difficult year because the competitor has been very successful in launching a new innovative product.
The total organic growth in Coloplast over the past two years has been in the range of 8%. Before that, we were between 4% and 7%. The development in organic growth, therefore, is clearly going in the right direction, with the guidance for next year of between 8% and 9%, Coloplast is now getting close to the middle of the long-term goal. The EBIT margin before extraordinary items still doesn't meet the levels achieved in prior times. It was 28% last year, it was lower this year. Three years ago, before extraordinary items, it was 32%. The higher inflation, including higher wages over the past years, is poison to the medtech industry because price increases are difficult to be compensated for when costs increase. The lower margin in 2023, 2024 were also due to internal problems.
A new distribution center in the U.S. caused increased costs because of delivery problems. This is a critical situation. I believe the problem has now been solved. 2023, 2024, thus, was a year with both good and bad things. We also see that the daily management, with regard to the variable part of the pay that is paid out in cash, only reached 39% of their maximum payment. Next year is likely to be characterized by continued positive development in the acquired businesses, in particular, Kerecis, and also success for new products such as Heylo and Luja. On the 4th of November this year, we saw that Kerecis was now included on the reimbursement list in the U.S., big for diabetic foot ulcers, but not on the list for venous wounds.
I'd like to hear from the management: Why do you think this decision was made? The chair did touch a bit upon this in his presentation. As far as Luja is concerned, there are plenty of rumors that the small holes in the catheter cause clogs in the bladder, and this will cause urine to be to have blood in it. What are your comments to this situation? Are you currently trying to find out if there is a problem here? Over the past years, the ESG efforts have been taken to a higher level in Coloplast, this is good. Gender diversity is something that we've talked about a lot here, now at the senior and leadership level, we now have 28% in women, which is 2 percentage points higher than last year.
The goal for 2030 is for women to account for minimum 40%. I also take pleasure in seeing that we now have a new and broader executive leadership team and that 2 women have been added to it. Good luck with the challenges that you will be fighting with in future. Thank you.
Thank you to Claus Wiinblad from ATP. There are a few specific questions for the chair of the board to answer. The floor is yours.
Thank you very much for those comments. Thank you for mentioning what is going well, and of course, you have some questions, and I will try to answer them here. About Kerecis and Kerecis' products included in Medicare's list of reimbursed products. It's first and foremost a piece of good news that Kerecis has been included in the final reimbursement list when it comes to diabetic foot ulcers. As I mentioned before, only 17 products are included in that list, versus about 190 products before, and that is due to the clinical documentation that we've been able to present.
For a brief period of time, we questioned whether to be on this list because the clinical documentation wasn't taken into consideration, the first time around. This is a very positive development and a good growth opportunity for us. The final reimbursement policy is divided in two: in diabetic foot ulcers and what is called venous wounds, and Kerecis was part of both. A big part of it was with a focus on the diabetic foot ulcers. Right now, we're not included in the list for venous wounds, but studies are underway to prove that the product works just as well on that kind of ulcers. Once that documentation is in place, we will probably be able to get on the list for the other indication as well.
Regarding Luja and the problems you refer to here, the crystals in the urine that can't be emptied out because the holes are too small in the catheter. Here, it is our impression that these are competitor-driven narratives or allegations that we are hearing. We should be pleased that the competitors want to speak about our product. That is always a good sign. Luja has been supported by a long list of clinical studies. We have not seen this problem arising at any time. We have tested many prototypes of Luja. What we can say currently is that we have seen a wonderful reception of Luja. We have heard very, very few complaints. It works.
It enables a complete emptying of the bladder in one flow. It is probably the catheter product that we have received the best feedback on ever. We are very optimistic, but of course, we must always be very much aware if there are any problems arising. We believe that we have not seen any problems in this respect.
Thank you very much to the Chair of the Board for answering ATP and Mr. Claus Wiinblad. The next speaker is from the Danish Shareholders Association. Bjarne Kongsted?
Yeah.
Bjarne Kongsted, you have the floor.
Good afternoon. I, too, would like to say, first of all, thank you for a good and comprehensive outline of what happened in Coloplast in the past fiscal year. I am Bjarne Kongsted. I attend the meeting today as a representative of the Danish Association of Shareholders. I've taken the floor to act as spokesman of our members. We attend about 40 AGMs per year all over the country. We also attend Coloplast as one of these 40. This is not the first time. First of all, I'd like to give praise to Coloplast for still having a physical AGM, so that all investors have the opportunity to turn up in the flesh and listen to news, and also meet members of Board and Executive Leadership Team. It should be commended that the annual report is still available in a Danish version.
This is a rarity these days. This is a large international group, and it is not necessarily Danish that you use when you communicate. It doesn't appear in a printed version, although this is a step back in relation to services provided to shareholders, but it is still good for the environment not to use so much paper. In the accounts, I see that in Hungary, you produce about 70% of your production volume, and the pay inflation has been upwards of 10%, and that's one of the reasons why the operating margin is not higher than it is. There is a lot of pressure on wages in a number of countries in Eastern Europe, including Hungary. Was it the right decision to establish yourselves with a production unit in Hungary?
Because it is a country that is fairly unstable when it comes to the political scene. Generally speaking, it is an okay result that we see announced today. Last year, we got a total dividend of DKK 21. This year, we go even above that, DKK 22. "It is a solid result, which is in keeping with our expectations," says CEO Kristian Villumsen, in connection with the presentation of the annual report, and I couldn't agree more. The financial expectations for 24%, 25%, and 28% in operating margin, going up to 30% in the following years, and that is an acceptable level. We've continued focus on reducing operating costs. In this way, I think that it's going to be some very interesting years ahead of all of us.
There has been ongoing investment in new in production plants and most recently in Portugal, and a fair amount has been allowed for new machinery and IT and sustainability. I find it slightly surprising that in the text, in the report here, there are a number of reservations made in relation to the future, such as changes in the healthcare sector and world economy development. It is also emphasized that the forward-looking statements about earnings depend on a number of things, and there is a certain level of uncertainty connected with this. I think it's good that you are aware of the challenges which exist in running a large international group, but I would like these statements to be followed up by comments from the management.
Over the past 3 years, you have made strategic acquisitions of a number of businesses in order to develop your business areas. Some of them will not have effect until 2026, 2027. Previously, Coloplast has expressed strong belief in the future of these locations, Hungary, Costa Rica, and now most recently in Portugal. Organic growth ended up at 8%. This is the same as last year. The future is also okay because you expect organic growth between 8% and 9% in the next fiscal year. I read in yesterday's paper that there are products in wound and skin care that will now be divested. This will be compensated for by other areas in that particular category. It was a pleasure to read the focus you intend to put on sustainability.
For instance, 83% of the energy spent on own activities is renewable, and 77% is what you have reached when it comes to recycling. These are indications of a company that is aware of its responsibility also when it comes to the environment. Lastly, I would like to say thank you to investor relations for a meeting they held in our local district this spring, where a competent person from Coloplast turned up and took the time to explain about Coloplast. It's a good thing that you have the resources to do this. Thank you very much. You have sound faith in future. There's hope for a growing share price and a good dividend level. All employees and the board and the executive leadership, I would like to wish you all a good and successful 2025/2026.
Thank you.
Thank you to Bjarne Kongsted from the Association of Danish Shareholders. There were a few comments and questions for the chairman of the board.
Thank you very much for those words of praise. You also had a few questions. The first one was about Hungary and whether it was such a wise decision we made. Well, we are happy about that decision. It might sound like a paradox, but that is indeed the case. It's one of the biggest sites of Coloplast, with more than 4,000 employees and with a very competitive salary level. That said, you're quite right that the salaries have increased more than we expected. We made this decision 25 years ago.
Sometimes when you move around production, if you produce electronics, it might be assembly lines that you move, and it's like moving a table, and then you're up and running pretty quickly. I don't think many of you could imagine what a Coloplast factory looks like. It's like the crazy inventors, the factory. We do produce products that very, very few companies in the world produce, and it takes many years to learn how to operate our equipment, so it's not very easily moved. We have sterile production and lots of requirements, so our equipment and factories take a long time when it comes to installation and training of employees. Once we establish a factory, we will keep it at the same location for a long time. We're not going to be moving anytime soon.
We were one of the first companies to really invest in Hungary. Since then, Audi and BMW and Lego and other companies have invested there. We've even seen big investments in recent months in the country, so it's still a very attractive production country. Of course, we're aware of the current developments, and we are in close contact with our foreign services because we are very much aware of what is going on. We want to make sure that we are present in countries where international rules and laws are adhered to. That is the case in Hungary because Hungary is part of the EU. They might protest sometime about the way the EU works, but they're still there, and that means a lot to us.
We are happy with our decision to invest in Hungary, but of course, it was difficult to foresee 25 years ago that these were the sort of problems that we might be facing today. I must say that it has been a successful investment that continues to serve us well. You talk about the disclaimers, as that's all. That as we write in our financial statements, that these are forward-looking statements, and you can't really predict geopolitical developments. I mean, if you buy a battery at your local supermarket, there will also be a disclaimer saying, you shouldn't swallow it. I mean, why do they have to write that?
I like that you mention this because it's just common sense that of course, we know that you can't predict geopolitics. If you have an American shareholder who really takes it very literally and who said: Well, you promised that you would see this sort of return, of course, we make a few reservations beforehand. It's just a standard formulation. It's not something we've invented in Coloplast. I understand where you're coming from. I just say, what on earth are you on about? Effects of investments in 26, 27. The thing is just that it takes time to install new factories, new machines, and train new employees. It will take some time before this is fully implemented. You are quite right, because the board is also impatient.
I mean, does it have to take until 2026, 2027? Unfortunately, these things do take time. I think that covers your questions. Thank you very much for your comments.
Thank you very much for replying to the questions from Bjarne Kongsted. The next speaker is Bjørn Hansen.
He is challenged from a mobility point of view, so we have promised him that he will be allowed to use a roaming mic. I hope that we can do it in this way. Is this okay for you? We also need to remember that we have the webcast, so we need some sort of microphone arrangement. Yes, right. Go ahead.
Yes.
Yeah. I think this works, says Bjørn Hansen. Thank you very much, and thank you for the review, Lars. I think it was a good presentation you gave. It's such a pleasure to come here year after year and see how you grow and grow, and how you are humane in the way you think and produce your products. Are there any changes to the articles? I didn't see a copy of them outside. I hope there are no changes. The first thing I'd like to talk about is the payout ratio. It's absolutely amazing. It says one thing in the annual report, but up here it was 1% down, but it's about DKK 100 million. I guess that this will go to the shareholders or to the new factory in Portugal. I think you should just take a second look. Now something more serious.
New products, ATP touched upon this. What we have seen for a number of years is product liability problems in the US. I don't know whether we ran into $7 billion or $8 billion, did we? It's over now, it's all done. How about a PU code and a national code and a trademark code so that we can follow developments with regard to a given product? If you are registered as a patient, you can use this because it means that you can check anything that happens, which is the responsibility of Coloplast and perhaps not involves anyone else in the US. I'm not saying that it should always be the biggest company that has to pay the final bill every single time.
I think you have done a very good job of settling the cases, and you have generally also done a good job of running the business, but we don't want to see a repeat of this. Hungary, others have talked about this, and Portugal. This is all Europe, it's all EU. I think it's a very good idea to stay in Portugal. I have proposed that a trip be arranged. Why not? We could use Norwegian. We do still have connections, and then go and visit 2 days, and we could also take Costa Rica now we're at it. That's what the Americans do. We use American in our communications. Let's do things the American way.
I sometimes went in the 1960s from Hawaii to Alaska, then I had to go to Mississippi, then I thought the Second World War hasn't ended because it was a shock to me to see the difference between these areas. Unfortunately, also within the U.S., we have such differences even now, so many years later. It would be a very good idea if it could be possible to go there and see this with your own eyes. I hope it doesn't take 5 years to produce the machines. Where do they actually come from? Are they Chinese, or are they produced in one of the Western European countries? German quality, Swiss car quality, precision making, that's Swiss. 1 thousandth of a millimeter is what they operate with. That's what I was told in the U.S.
I wish to you all a very good Christmas. Just one more thing, your dividend policy. Do you intend to continue what you've been doing for the past 10 years? Thank you for listening.
Thank you, Bjørn Hansen. Thank you to Mr. Bjørn Hansen. There were a few questions and comments for the chair of the board. Thank you. Thank you.
Thank you very much, Bjørn Hansen. Thank you for your always positive approach to Coloplast. Mostly at least, I'd say. You always mention more positive things than negative ones, I should be pleased with that, shouldn't I? I hear what you're saying about product responsibility. We've done whatever we could in order to not be in that position again. As you say, the cases there have been are now settled, if any cases should show up in the future, that often happens in the U.S., we know what to do. Where the machines come from, many of them are built in Denmark. The first one, at least.
Once we know how to do it, we will replicate it in China, in our own factory. That is why we have such a good EBIT margin. We spend a lot of money on machines and equipment. We build a lot of machines and series of machines. This is the best way to manufacture them. You asked about dividend. Well, we have a dividend policy, that we have.
... presented. We will make you aware if we are going to make any changes, but we think it works quite well. That was the answer from the Chair of the Board. The next speaker is Knud Lindfeldt, the floor is yours.
Yeah, is it also Carsten?
My name is also Carsten Lindfeldt, and most people will know me by that name, but well, it says Knud on the papers. Yes, you're right. It also said, says Bernhard. I have a few names to choose from, but I'm very happy to be here today. I've been here before. I was the co-project manager on the construction of this building. Back when I was in Coloplast, things went well, and after I left the company, things have gone even better. It's nice to hear all about Strive25, and growth, and progress, and greater EBIT margins, and so on and so forth. Listening to the chairman today, everything sounds good, but when I read in the newspaper that the chairman has sold shares to the tune of DKK hundreds of millions, I heard something about 95%.
I don't know if I can believe everything I read in the papers. As a shareholder, I would like to ask, should we listen to what the chair says or what the chair does? That is my question. A reply from the chair.
Well, I'm glad that one came up. We knew you would probably ask. The thing is, when you are a member, a long-standing member of top management, you can buy all the shares you want, and no one ever cares. When you sell just one, you have to explain. I wanted to sell shares. I asked many years ago when I stopped as CEO because I had bought these shares in Coloplast for over a period of 30 years. I phoned some of the big investors and said: "What do you think?
I might want to use money for something in my private sphere, which requires me to get money instead of shares. What do you think I should do?" They say, "Sell in as large chunks as possible because you will be required to explain every single time you do it." I have now DKK 10 million left invested in this company. I think that's quite a high amount, isn't it? It's a wonderful business. Sometimes you might want to do something, as I say, in your private environment. That was what happened to me. It's not as if Coloplast is a poor investment. I feel... I'm sorry about the voice, I now have DKK 10 million left in Coloplast. That's a lot in my book.
If you check in most of Danish businesses, you can find people who have invested more in their businesses, apart from me, but not many. Thank you for the question. Thank you for this answer. I have no more speakers on my list. Any requests for the floor? That doesn't seem to be the case. We have now dealt with items 1 to 4 on the agenda, and I find that we have made a note of the report. We have approved the annual report 2023, 2024. We have approved the distribution of profit for the year, and we have approved the remuneration report for 2023, 2024. Thank you. This will all be entered in the protocol.
Brings us to item five, which is approval of remuneration to the Board for the current fiscal year. There's, for the first time in nine years, a proposal for an increase in the basic fee from 450,000 DKK to 500,000 DKK for an ordinary Board member. The Vice Chair of the Board will get 1.75 times that. The Chairman of the Board will get three times the base fee. The Board proposes that remuneration payable to each member of the Audit Committee be increased from 240,000 DKK to 300,000 DKK. That the Chair of the Audit Committee gets a raise from 430,000 DKK to 500,000 DKK.
The board proposes that remuneration to all members of the Remuneration and Nomination Committee will be increased from DKK 150,000 to DKK 200,000, and that the remuneration to the chairman of the Remuneration and Nomination Committee be increased from DKK 250,000 to DKK 300,000. You will also get a number of reimbursements, of course. All this is described in detail in the remuneration policy. I will not read it out. This is something we can agree by simple majority, and I take it that we can agree that it has been adopted. Thank you. Next, item 6. There are no proposals. There are certain deadlines that have to be complied with here, but no proposals have been arrived, so we will move on to item 7.
Election of members to the board. Here the board proposes re-election of all board members. These are Lars Søren Rasmussen, Niels Peter Louis-Hansen, Annette Brüsch, Carsten Hellmann, Jette Nygaard-Andersen, and Marianne Wiinholt. I can inform you that the managerial positions of the candidates can be seen from page 66 in the report. They could also be seen in the convening notice. Are there any other candidates for the board or anyone who wants to take the floor under this item? That does not seem to be the case. I can therefore conclude that the board has been re-elected. Congratulations and good luck to all of you. Please give them a round of applause. That leads me to item 8, which is the election of auditors. Here the board proposes re-election of EY Godkendt Revisionspartnerselskab, as recommended by the audit committee.
This is applies to the statutory financial reporting, as well as a novelty, as assurance engagement relating to sustainability reporting. I need to inform you that the audit committee's recommendation has not been influenced by any third party and has not been subject to any agreement with any third party, under which the election of certain auditors by the shareholders would be restricted. Are there any other candidates for auditor of the company? That would be a surprise to me, but there are no other candidates proposed, and I can therefore conclude that EY has been re-elected as company auditor for financial reporting as well as for sustainability reporting. That leads me to item nine, which is an authorization to the chairman of the AGM, which is me. You can read the wording of this authorization in the convening notice.
I'm not going to bore you with that, but it is just an authorization to make the required registrations in the Danish business authorities register. Any objections to this very exciting proposal? No. That means I can conclude that that has been adopted, and that leads me to the final item 10, which is any other business. Here you can say anything you want as long as it pertains to the company. Does anyone wish to take the floor here? Any words of criticism or praise? That does not seem to be the case. That means we can conclude that item on the agenda, and I can only state that we have exhausted our agenda for today, and all that's left for me is to resign as chairman of the AGM.
For the last time today, I will pass the floor back to the chair of the board.