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Ossur Hf : Interim Report Q4 2017 and Annual Report 2017

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Announcement no. 8/2018
5 February 2018

Highlights

  • Sales in Q4 2017 amounted to USD 154 million, corresponding to 7% organic growth. Sales for FY 2017 amounted to USD 569 million, corresponding to 8% growth and 5% organic growth, both measured in local currency.
  • Prosthetics segment grew 11% organically in Q4 2017 with an excellent contribution from the recently launched upgrades of the RHEO KNEE®. Growth in the B&S segment was 3% organic in the quarter.
  • Gross profit in Q4 2017 amounted to USD 97 million or 63% of sales. Gross profit for FY 2017 amounted to USD 355 million or 62% of sales.
  • EBITDA in Q4 2017 amounted to USD 30 million or 20% of sales. Favorable trend in product mix and good sales growth contributed to increased profitability. EBITDA before special items for FY 2017 amounted to USD 103 million or 18% of sales. Currency movements impacted the FY 2017 EBITDA margin negatively by approx. 70 basis points net of hedge.
  • The enactment of the Tax Cuts and Jobs Act in the US and the Finance Bill in France resulted in a USD 6 million one-time tax benefit in Q4 2017 which significantly impacted the effective tax rate. The one-time benefit has no cash flow impact.
  • Net profit in Q4 2017 amounted to USD 23 million or 15% of sales. Net profit for FY 2017 amounted to USD 58 million or 10% of sales.
  • Cash generated by operations in Q4 2017 amounted to USD 34 million or 22% of sales. Cash generated by operations for FY 2017 amounted to USD 90 million or 16% of sales.
  • Össur acquired 493,377 of own shares for approximately USD 2 million in Q4 2017. In the FY 2017, Össur acquired 9,182,226 of own shares for approximately USD 37 million.
  • The Board of Directors will propose to the Annual General Meeting in 2018 that the Company pays a cash dividend of DKK 0.13 per share for 2017, an increase of 8% per share compared to 2016.
  • Financial guidance for the full year 2018 is 4-5% organic growth, ~19% EBITDA margin before special items, ~4% capital expenditures, and an effective tax rate in the range of 23-24%. 

Jon Sigurdsson, President & CEO, comments:

"Growth during the year was primarily driven by excellent performance in our prosthetics segment which grew above estimated market growth in addition to a stellar contribution from our high-end innovative products across our portfolio in both prosthetics and bracing & supports. We accelerated our investments in R&D projects for high-end innovative products, such as bionic bracing, during the year. Even so, we grew our operating profit faster than sales with positive contribution from product mix, integration efforts and economies of scale." 

Annual Report 2017

The 2017 Annual Report is available online at http://annual-report.ossur.com/ and for download at www.ossur.com/investors.

Q4&FY 2017 conference call details

Össur will host a conference call on Tuesday 6 February 2018 at 9:00 CET/ 8:00 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. 

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