Ossur Hf : Interim report Q1 2018
|Announcement no. 31/2018 Interim report Q1 2018 25 April 2018|
Highlights Q1 2018
- Sales amounted to USD 142 million, corresponding to 8% USD growth and 1% organic growth.
- The prosthetics segment grew 4% while sales of B&S products declined 1%.
- Gross profit amounted to USD 88 million or 62% of sales, the same as in the comparable quarter last year.
- EBITDA amounted to USD 20 million or 14% of sales, compared to 16% in Q1 2017. Currency movements impacted the EBITDA margin negatively by approx. 50 basis points.
- Net profit amounted to USD 10 million or 7% of sales.
- Cash generated by operations amounted to USD 6 million or 4% of sales. Cash generation is seasonally weak in the first quarter of the year.
- Financial guidance for the full year 2018 is unchanged at 4-5% organic growth, ~19% EBITDA margin before special items, ~4% capital expenditures, and an effective tax rate in the range of 23-24%.
- Össur acquired 2,741,441 of own shares for approximately USD 13 million in Q1 2018.
- Dividends of DKK 0.13 per share, corresponding to approximately USD 9 million or 16% of net profit in 2017, were paid out in March 2018.
- Registration of the share capital reduction of 6,354,662 shares with a nominal value of ISK 1 each was completed on 27 March 2018. The cancelled shares were removed from trading on Nasdaq Copenhagen on 5 April 2018. Össur's total share capital is now ISK 430,808,063.
- In March 2018 Össur entered into a new financing agreement with Nordea and Danske Bank. The new financing reflects Össur's strong financial profile and outlook with lower interest rate margins and greater operational flexibility.
Jon Sigurdsson, President & CEO, comments:
"We had a slow start of the year in what is seasonally the weakest quarter in terms of sales and profitability. On a positive note, the prosthetics segment continued to grow with good contribution from our high-end products, such as bionics, and we see an excellent sales growth momentum in APAC. Sales in B&S were slow, but we expect the remainder of the year to be stronger, supported by recent product launches. The soft sales growth, combined with additional R&D investments in projects for high-end innovative products, shaped the profitability in the quarter."
Q1 2018 conference call details
Össur will host a conference call on Thursday 26 April 2018 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.