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Össur hf: Interim report Q4 2019

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Announcement no. 08/2020

Interim report Q4 2019

4 February 2020

Highlights

  • Sales growth of 10% in local currency in Q4 2019 and organic sales growth of 1%. Sales growth of 16% in local currency for FY 2019 and organic sales growth of 5%.
  • Both the prosthetics segment and the B&S segment grew 1% organic in Q4 2019. Organic growth for FY 2019 was 7% for prosthetics and 3% for B&S. Strong organic growth in 2019 is attributed to good sales of high-end products, recently launched products and strong sales in the emerging markets.
  • Gross profit margin in Q4 2019 was 63%. Gross profit margin for FY 2019 was 64% compared to 63% for FY 2018. The increase is driven by positive impact from changes in product mix, savings from the ongoing efficiency initiatives, and scalability in manufacturing.
  • EBITDA margin before special items was 21% in Q4 2019 and excluding the impact of IFRS 16 it was 18%. EBITDA margin before special items for FY 2019 was 22% and excluding the impact of IFRS 16 was 19% compared to 19% for FY 2018. Profitability was positively impacted by changes in product mix and savings from the ongoing efficiency initiatives, however profitability was impacted by acquisitions and investments in emerging markets.
  • Net profit in Q4 2019 and FY 2019 amounted to 10% of sales.
  • Cash generated by operations amounted to 13% of sales in Q4 2019. Cash generated by operations amounted to 17% of sales for FY 2019 compared to 15% of sales for FY 2018.
  • Össur acquired 1,525,437 of own shares through the ongoing share buyback program for USD 11 million in Q4 2019. For FY 2019, Össur acquired 4,784,631 of own shares for USD 30 million.
  • Össur made three acquisitions with combined full-year sales of about USD 20 million in FY 2019.
  • The financial guidance for the full year 2020 is 3-5% organic sales growth, 21-23% EBITDA margin before special items, 4-5% CAPEX of sales, and an effective tax rate of 23-24%.

Jon Sigurdsson, President & CEO, comments:

“The results for the full year are strong with growth of 16% in local currency and 5% organic growth. Growth drivers include our high-end products in both prosthetics and bracing & supports, including recently launched products such as the new PRORPRIO FOOT and the Unloader One X. We furthermore made good progress with our external growth strategy by acquiring three companies during the year in addition to signing an agreement to acquire the prosthetics manufacturer College Park Industries. Despite the temporary slowdown in prosthetics sales in the fourth quarter, we are confident that our market position continues to be strong and we expect continued organic growth and increasing profitability in 2020.”

Q4&FY 2019 conference call details

Össur will host a conference call on 4 February 2020 at 9:00 CET / 8:00 GMT / 3:00 EDT. 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 50608822#. A webcast can be followed on the Össur website: www.ossur.com/investors

Further information

David Hreidarsson, Investor Relations Manager, dhreidarsson@ossur.com, +354 515 1380

Helga Danielsdottir, Investor Relations Analyst, hdanielsdottir@ossur.com, +354 515 1380

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About Össur

Össur (Nasdaq Copenhagen: OSSR) is a global leader in non-invasive orthopaedics that help people live a life without limitations. A recognized “Technology Pioneer,” Össur focuses on improving people’s mobility through the delivery of innovative technologies in Prosthetics and Bracing & Supports, by investing significantly in research and product development to create award-winning designs with consistently strong market positions. Successful patient and clinical outcomes are further empowered via Össur’s educational programs and business solutions.  As part of Össur’s long-standing commitment to social responsibility, the company has been a signatory to the United Nations Global Compact since 2011, and also participates in the Nasdaq Nordic and Baltic exchanges’ voluntary guidelines for Environment, Social and Corporate Governance (ESG). Össur is headquartered in Iceland, with major operations in the Americas, Europe and Asia, and additional distributors worldwide. www.ossur.com

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