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Finance

Coloplast pares back China operations as market recovery remains elusive

Published by Global Banking & Finance Review

Posted on November 3, 2026

2 min read

· Last updated: November 3, 2026

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Coloplast Scales Back China Operations, Expects Recovery by 2027/28

Coloplast's Strategic Adjustments in the Chinese Market

By Vera Dvorakova and Jesus Calero

Nov 3 (Reuters) - Coloplast has reduced its commercial operations in China by 80 people and does not expect its business there to stabilize until 2027/28, the Danish medical equipment maker told Reuters on Tuesday.

Impact on Sales and Ostomy Care Division

Forming around 4% of group sales, China has become a drag on Coloplast's largest division, ostomy care, as domestic competition and weak consumer confidence weigh on demand for ostomy bags that consumers pay out of pocket.

Operational Changes and Leadership Adjustments

• Coloplast cut inventories, simplified its Chinese organisation and installed new leadership while adjusting to difficult market conditions, chief executive Gavin Wood said

Staff Reductions and Production Site Status

• The staff reductions affected only Coloplast's commercial organisation, leaving its 750-person production site in Zhuhai unaffected

Competitive Landscape in China

• Chinese peer Cofoe Medical Technology said in April it had managed to take over local market share formerly occupied by overseas brands

Broader Organisational Programme

Cost-Saving Initiatives

• The changes are part of a broader programme to free up 500 million Danish crowns ($75 million) through organisational changes, adjustments to the company's US Biologics business and procurement savings

Currency Exchange Rate

($1 = 6.6779 Danish crowns)

Reporting Credits

(Reporting by Jesus Calero and Vera Dvorakova in Gdansk; Editing by Matt Scuffham)

Key Takeaways

  • China accounts for approximately 4% of Coloplast’s group sales but is now a drag on its ostomy care division due to rising local competition and subdued consumer confidence. (marketscreener.com)
  • The company reduced its commercial headcount in China by around 80 staff, cut inventories, simplified its organizational structure, and installed new leadership—all leaving its 750‑person Zhuhai production site intact. (stockanalysis.com)
  • Coloplast expects China’s business to stabilize only by fiscal 2027/28, as part of its broader ‘Funding the Journey’ programme aiming to free up DKK 500 million (~$75 million) via organizational changes, procurement savings, and reallocation of resources. (marketscreener.com)

References

Frequently Asked Questions

Why did Coloplast reduce its commercial operations in China?
Coloplast reduced its commercial operations in China due to domestic competition and weak consumer confidence affecting demand for ostomy care products.
How many staff did Coloplast cut in China?
Coloplast cut 80 people from its commercial organization in China.
When does Coloplast expect its business in China to stabilize?
Coloplast expects its business in China to stabilize by 2027/28.
Did the changes affect Coloplast’s production site in Zhuhai?
No, the staff reductions only affected the commercial organization; the Zhuhai production site remains unaffected.
What broader program are these changes in China a part of?
The changes are part of a program to free up 500 million Danish crowns through organizational changes and procurement savings.

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