Össur - First Quarter Report 2011
Announcement Össur hf. No. 06/2011
Reykjavik, 4 May 2011
EXCELLENT PERFORMANCE
Sales - Sales growth was excellent, 11% measured in local currency. Total sales
amounted to USD 97 million compared to USD 86 million in the first quarter of
2010. Performance in bracing and supports was excellent in Americas and moderate
in EMEA. Overall sales growth of bracing and supports was 20%, measured in local
currency. Sales growth in prosthetics was 5% measured in local currency.
Profitability - Össur continues to deliver good profits and margins are stable.
EBITDA amounted to USD 18 million or 19% of sales and gross profit amounted to
USD 61 million or 63% of sales. Net profit amounted to USD 8 million or 8% of
sales.
Jón Sigurðsson, President & CEO, comments:
"The first quarter results are a good start of the year. We are pleased with the
results and the overall performance is excellent. Strong contributors to the
growth are some of the important products launched last year. Both main product
segments show good growth and the bracing and supports segment in Americas is
growing well above the market growth rate and we are gaining market share. We
will continue to focus on strengthening our product offering and the product
pipeline for 2011 contains some exciting products."
Highlights of the quarter:
* Excellent bracing and supports growth - In the first quarter of 2011 the
bracing and supports segment in Americas delivered record growth and Össur
is gaining share in the market. New products launched in 2010, such as Miami
Lumbar and Rebound Walker, are amongst the best selling products and strong
contributors to the growth in this segment.
* Mexico facility - Össur continues to build up its manufacturing facility for
bracing and supports in Mexico. In 2010 manufacturing of spinal products
was moved from Allentown and Paulsboro and this year knee brace
manufacturing is being moved from Foothill Ranch in California to Mexico.
* Financing - In March 2011 Össur signed an agreement with three international
banks, ING Bank, Nordea and SEB, on long-term financing in the amount of USD
231 million. The financing is a milestone for Össur as the Company has now
established international access to both debt and equity financing.
Guidance 2011 - Management maintains estimates of LCY organic sales growth for
2011 in the range of 4-6%. EBITDA ratio adjusted is estimated to be in the range
of 20-21% of sales for the year, as reported in the 2010 full year report.
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Conference call tomorrow 5 May at 12:00 CET/ 10:00 GMT/ 6:00 EDT
Thursday 5 May 2011 Jón Sigurðsson, President and CEO, and Hjörleifur Pálsson,
CFO, will host a conference call for investors, analysts and shareholders
presenting and discussing the results of the first quarter of 2011. The
conference call will be conducted in English and can be heard on Össur's
website: www.ossur.com
To participate in the meeting please call one of the following telephone
numbers:
Europe: +44 (0)20 3043 2436 or +46 (0)8 505 598 53
The United States: +1 866 458 40 87
Iceland: 800 8660
