Össur hf: Interim Report Q1 2023

Announcement no. 13/2023

Interim report Q1 2023

25 April 2023

Sveinn Sölvason, President and CEO, Comments:

“Sales amounted to 181 million and the EBITDA margin before special items was 16% in Q1 2023. The organic growth was strong at 9% driven by growth in all regions and all business segments. Despite inflation driven OPEX growth and FX headwinds, we see a healthy development in operating profit. At the end of March, we held our Capital Markets Day in Copenhagen where we introduced our Growth’27 strategy and our new sales segmentation which includes the three business segments; Prosthetics, Bracing & Supports and Patient Care. We presented our growth ambition of 7‐10% average local currency growth over the Growth’27 period, in FY 2023‐2027. We are focused on reaching more people that need mobility solutions and will drive accelerated organic growth focusing on Patient Reach, Innovative Solutions and O&P Value Creation.”

Highlights Q1 2023

• Sales amounted to USD 181 million in Q1 2023. Sales growth was 11% in local currency and increased by 9% organic, compared to 10% in local currency and 6% organic in Q1 2022.
• Prosthetics sales grew by 13% organic, Bracing & Supports (B&S) sales increased by 5% organic and Patient Care sales grew by 8% in Q1 2023, compared to 10%, 6% and 2% respectively, in Q1 2022.
• FX changes resulted in USD 8 million lower reported sales in Q1 2023, when comparing to Q1 2022.
• Gross profit margin was 62% in Q1 2023, the same as in Q1 2022.
• EBITDA before special items amounted to USD 28 million in Q1 2023, and the EBITDA margin before special items was 16%, also the same as in Q1 2022.
• Net profit in Q1 2023 amounted to USD 10 million or 6% of sales compared to USD 9 million or 5% of sales in Q1 2022.
• Cash generated by operations amounted to USD 13 million or 7% of sales in Q1 2023.
• NIBD/EBITDA before special items was 3.2x (2.7x without lease liabilities) at the end of Q1 2023, above the target ratio of 2.0‐3.0x. In line with Össur’s Capital Structure and Capital Allocation Policy, Össur continues to temporarily pause share buybacks as NIBD/EBITDA before special items is temporarily above the target leverage range.
• The financial guidance for the full year 2023 is 4‐8% organic sales growth, 17‐20% EBITDA margin before special items, 3‐4% CAPEX of sales, and an effective tax rate of 23‐24%.

Q1 2023 conference call details

Össur will host a conference call on 25 April 2023 at 9:00 CEST / 7:00 GMT / 3:00 ET. To participate in the call, please click on this link: Össur Conference Call

A webcast can be followed on the Össur website: http://www.ossur.com/investors

Further information

Edda Lára Lúðvígsdóttir, Investor Relations Director, eludvigsdottir@ossur.com, +354 844 4759

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About Össur

Össur (Nasdaq Copenhagen: OSSR) is a leading global provider of innovative mobility solutions that help people live a Life Without Limitations®. For over 50 years, Össur has had a strong purpose rooted in positively impacting people’s health and well-being. A recognized “Technology Pioneer”, Össur focuses on improving people’s mobility through the delivery of solutions that advance patient care. Significant investment in research and development has led to over 2,000 patents, award-winning designs, successful clinical outcomes, and steady growth. Össur is committed to sustainable business practices and is signatory to the UN Global Compact, UN Women’s Empowerment Principles, and contributes to the UN Sustainable Development Goals. Össur operates globally and has around 4,000 employees. www.ossur.com