Össur hf: Q2 Results 2017

Announcement no. 52/2017
Interim report for the first six months of 2017
25 July 2017

Össur Q2 2017 highlights 

• Sales amounted to USD 145 million compared to USD 139 million in Q2 2016, corresponding to 6% growth and 3% organic, both measured in local currency. Growth rates were negatively impacted by fewer sales days due to Easter shifting between quarters. YTD sales growth is 5% organically.
• Gross profit amounted to USD 89 million and 62% of sales, compared to USD 89 million and 64% of sales in Q2 2016. Gross profit was negatively impacted by cost increases in certain manufacturing sites and adverse currency movements. YTD gross profit is 62% compared to YTD 63% in 2016.
• EBITDA amounted to USD 24 million or 17% of sales, compared to USD 25 million or 18% of sales in Q2 2016. Adjusted for USD 2.6 million in one-time costs, EBITDA amounted to USD 27 million or 19% of sales compared to USD 30 million or 22% of sales in Q2 2016.
• Net profit amounted to USD 13 million or 9% of sales, compared to USD 15 million or 10% of sales in Q2 2016.
• Cash generated by operations amounted to USD 23 million or 16% of sales, compared to USD 16 million or 12% of sales in Q2 2016.
• Össur acquired 1,037,461 of own shares in Q2 2017 for approximately USD 5 million.
• Due to adverse movements in currency rates during the first half of the year, we are revising our full year guidance for 2017. EBITDA margin before special items is now estimated in the range of 18-19% compared to our previous guidance estimate of 19-20%. All other guidance parameters remain intact.

Jon Sigurdsson, President & CEO, comments:

"The growth in the second quarter of the year is in line with our expectations. We are seeing a healthy organic growth rate for the first half of 2017 but growth in the second quarter is negatively impacted due to fewer sales days than in the comparable quarter. We continue to see a strong performance in prosthetics with a good contribution from the RHEO® knee and other key products. Integration of recently acquired companies is on track and we are realizing the planned synergies in our combined business."

Q2 2017 conference call details

Össur will host a conference call on Wednesday 26 July 2017 at 9:00 CET/ 7:00 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.