Össur hf: Interim Report Q4 & FY 2021

Announcement no. 03/2022

Interim report Q4 & FY 2021

1 February 2022

Jon Sigurdsson, President & CEO, comments:

“The results for the fourth quarter were solid with especially strong growth in EMEA and APAC. Prosthetics growth was strong in all regions, including Bionics, which has been more affected in prior quarters. This reconfirms our belief that the demand for our advanced and innovative technological solutions remains as we continue to create a Life Without Limitations® for our end-users. We have taken on challenges presented by the COVID-19 pandemic throughout the year and managed to maintain our product supply and continued our investments in our global growth platform as well as in research and development. This was yet another milestone year as we proudly celebrated Össur’s 50th anniversary in many memorable ways with Paralympic and World Records, carbon neutrality, new product launches, and noteworthy recognition on many fronts. After having been fortunate to lead Össur for the past 26 years, from a one product company to a leading global medical device company, I have announced my retirement, effective 1 April 2022. I will be passing the torch to Sveinn Sölvason, Össur’s CFO, who I am confident will lead our remarkable team and operations to future success. I sincerely thank our dedicated team of employees, customers and end-users alike, all of whom have made Össur the successful business it is today.”

Highlights Q4 and FY 2021

•    Sales amounted to USD 188 million in Q4 2021. Sales growth was 11% in local currency and increased by 5% organic compared to a decline in local currency of 8% and a decline of 4% organic in Q4 2020. Sales amounted to USD 719 million in FY 2021 and increased by 11% in local currency and by 10% organic, in line with the guidance for FY 2021, compared to a decline in local currency of 8% and a decline of 10% organic in FY 2020.

•    Prosthetics sales grew by 6% organic compared to a 1% growth in Q4 2020. Bracing & Supports (B&S) sales increased by 3% organically compared to a decline of 12% in Q4 2020. Prosthetics sales increased by 11% organic and B&S sales increased by 8% organic in FY 2021.

•    In 2021, Össur continued to invest in growing the infrastructure in new and Emerging Markets and went direct in seven new markets in the Eastern part of Europe. Now, Össur has operations in 35 countries globally.

•    Gross profit margin amounted to 64% in the quarter, the same as in Q4 2020. Gross profit margin was 63% in FY 2021 compared to 62% in FY 2020.

•    EBITDA amounted to USD 41 million in Q4 2021, and the EBITDA margin was 22%, compared to 14% EBITDA margin in Q4 2020 that was affected by extraordinary costs related to divestments. The EBITDA margin for FY 2021 was 21% in line with guidance compared to an EBITDA margin of 15% for FY 2020.

•    Net profit in Q4 2021 amounted to USD 18 million or 9% of sales compared to USD 4 million in Q4 2020 or 2% of sales. Net profit in FY 2021 amounted to USD 66 million compared to USD 8 million in FY 2020.

•    Cash generated by operations amounted to USD 39 million or 21% of sales in Q4 2021 and amounted to USD 128 million or 18% of sales in FY 2021.

•    In Q4 2021, Össur completed acquisitions of entities with combined annual sales of USD 4 million.

•    NIBD/EBITDA was 2.4x at the end of Q4 2021, within the target level of 2.0x-3.0x.

•    Össur has decided to restart its share buyback program and will commence it shortly. With emphasis on growth opportunities, value-adding investment opportunities and acquisitions, Össur has decided to discontinue dividend payments and focus on returning excess capital to shareholders via purchase of own shares in accordance with the Company’s updated Capital Structure and Capital Allocation Policy. 

•    The financial guidance for the full year 2022 is 6-9% organic sales growth, 20-21% EBITDA margin before special items, 3-4% CAPEX of sales, and an effective tax rate of 23-24%.

Q4 and FY 2021 conference call details

Össur will host a conference call on 1 February 2022 at 9:00 CET / 7:00 GMT / 3:00 ET. To participate in the call please dial:

Europe: + 45 35 44 55 77, +44 (0) 333 300 0804 or +46 (0) 8 566 426 51

The United States: + 1 631 913 1422

Iceland: +354 800 7437

The PIN CODE to access the call is 87961329#. A webcast can be followed on the Össur website: 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 global leader in non-invasive orthopaedics that helps people live a Life Without Limitations. A recognized “Technology Pioneer” with a rich 50-year history, Össur focuses on improving people’s mobility through the delivery of innovative technologies in Prosthetics and Bracing & Supports. Significant investment in research and development have led to over 2,000 patents, award-winning designs, successful clinical outcomes, and consistently strong market positions. Össur is signatory to the UN Global Compact, UN Women’s Empowerment Principles, contributes to the UN Sustainable Development Goals and became Carbon Neutral in 2021. Össur operates globally and employs around 4,000 employees. www.ossur.com