Össur - Second Quarter Report 2010
Announcement Össur hf. No. 19/2010
Reykjavik, 27 July 2010
EXCELLENT SALES GROWTH
Sales - Sales growth in the second quarter was very good, 12% measured in local
currency. Total sales amounted to USD 90 million compared to USD 81 million in
the second quarter of 2009. Both major product segments show double digit
growth, prosthetics 15% and bracing and supports 11%, measured in local
currency.
Profitability - Profits remain strong and EBITDA amounted to USD 20 million or
22% of sales and gross profit amounted to USD 56 million or 62% of sales.
Overall margins remain stable and increased profits are driven by good sales
growth. Net profit amounted to USD 14 million compared to USD 2 million for the
same period in 2009. Net profit is significantly impacted by positive exchange
gains flowing through financial items.
Jon Sigurdsson, President & CEO, comments:
"Overall performance in the second quarter was strong across all markets, and
main product segments delivered double digit growth. New product launches in
bracing and supports, in the first half of the year, have created excitement and
are contributing to the growth in the B&S segment. The sales growth in
prosthetics in the quarter is fuelled by good sales across all major product
lines as well as the continued success of the bionic products."
Highlights of the quarter:
* Good performance in bracing and supports - Sales of bracing and supports
products were excellent in the Americas in the second quarter. This is the
second consecutive quarter showing positive results in the Americas and
sales growing above the market growth. Sales of bracing and supports in EMEA
grew in line with the market.
* Growth across all product lines in prosthetics - Sales of prosthetics in
both the Americas and EMEA continue to perform well and grow above the
market growth rate. Sales of bionic products accounted for 15% of the
prosthetics sales in the quarter. More moderate growth is expected in the
second half of the year.
Guidance - Management estimates LCY organic sales growth will be at the top end,
or even slightly above the previously guided range of 4-6% for the full year.
LCY organic EBITDA growth is expected to be above 10%.
Conference call at 12:00 CET/ 10:00 GMT/ 6:00 EST
Today, Tuesday 27 July 2010 Jon Sigurdsson, President and CEO, and Hjörleifur
Palsson, CFO, will host a conference call for investors, analysts and
shareholders presenting and discussing the results of the second quarter of
2010. The conference call will be conducted in English and can be heard on
Össur's website: www.ossur.com/investors
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
Further information
Jon Sigurdsson, President & CEO Tel: +354 515 1300
Hjorleifur Palsson, CFO Tel: +354 515 1300
Sigurborg Arnarsdottir, IR Manager Tel: +354 664-1044
NOTE: This page only includes the highlights of the quarter. For the full press
release please visit www.ossur.com/investors