Ossur Hf: Q3 Results 2017
- Sales in the third quarter of 2017 amounted to USD 139 million, corresponding to 5% growth and 3% organic growth, both measured in local currency. Growth in the quarter was negatively impacted by fewer working days when compared to Q3 2016, adjusted for this the organic growth amounted to 4%. Sales in the first nine months of 2017 amounted to USD 415 million, corresponding to 9% growth and 4% organic growth, both measured in local currency.
- Prosthetics grew 5% organically in the quarter but it should be noted that the comparable quarter in Q3 2016 was strong with 11% organic growth. Growth in the B&S segment was flat in the quarter due to the expected negative impact from own distribution companies and slow direct sales in the US.
- Gross profit in Q3 2017 amounted to USD 87 million or 63% of sales. Gross profit has returned to levels comparable with the average of 2016. Gross profit in 9M 2017 amounted to USD 258 million or 62% of sales.
- EBITDA before special items in Q3 2017 amounted to USD 25 million or 18% of sales and grew by 4% measured in local currency. Investments in R&D and currency headwind put pressure on margins in the quarter. Special items in the quarter are related to the efficiency initiatives announced 25 September 2017. EBITDA before special items in 9M 2017 amounted to USD 73 million or 17% of sales and grew by 8% measured in local currency.
- Net profit in Q3 2017 amounted to USD 11 million or 8% of sales. Net profit for 9M 2017 amounted to USD 35 million or 8% of sales.
- Cash generated by operations in Q3 2017 amounted to USD 23 million or 16% of sales. Cash generated by operations in 9M 2017 amounted to USD 56 million or 13% of sales.
- Össur acquired 969,400 of own shares for approximately USD 5 million in Q3 2017. In 9M 2017, Össur has acquired 8,688,849 of own shares for approximately USD 34 million.
- Guidance unchanged compared to the guidance issued in relation to the Q2 2017 results.
- Össur held a Capital Markets Day on 27 September 2017. Presentation material from the event can be found on the Össur corporate website.
Jon Sigurdsson, President & CEO, comments:
"Growth in the first nine months of the year is primarily driven by strong performance in the prosthetics segment which is growing organically above estimated market growth. Furthermore, we are pleased to see our high-end innovative products performing well in both prosthetics and bracing & supports, such as the RHEO KNEE® and Unloader One®. In September we announced efficiency initiatives to further increase profitability in our business with planned savings that will begin to materialize in 2018."
Q3 2017 conference call details
Össur will host a conference call on Wednesday 25 October 2017 at 9:00 CET/ 7:00 GMT/ 3:00 EDT. To participate in the call please dial: Europe: + 45 3544 5580, +44 (0) 203 364 5374 or +46 (0) 8 505 564 74, The United States: + 1 855 753 2230, Iceland: +354 800 7417. A webcast can be followed on the Össur website: www.ossur.com/investors.