Össur hf: Interim report Q1 2021

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Announcement no. 10/2021

Interim report Q1 2021

27 April 2021

Jon Sigurdsson, President & CEO, comments:

“In line with expectations, we see a positive trend in sales, with particularly strong sales towards the end of the quarter. We are pleased to see a positive organic sales growth in prosthetics in the first quarter of the year and increasing profitability. Due to vaccinations, some markets have opened, but many key markets are still impacted by measures to control the pandemic and the outlook remains uncertain. However, the long-term prospects and underlying fundamental drivers of the prosthetics and bracing & supports markets are not expected to change and we expect to realize some pent-up demand. This year marks an important milestone as Össur celebrates its 50-year anniversary of Life Without Limitations. We continue to receive notable recognition, such as the acknowledgement from the World Intellectual Property Organization on our technological leadership. We are also proud to commemorate the company’s anniversary by becoming carbon neutral this year, marking another important contribution to social responsibility and sustainable development. I would like to thank our highly dedicated and driven team of employees and our valuable customers for their resilience, flexibility, and positive team spirit through these unprecedented times.”

Highlights Q1 2021

  • Sales amounted to USD 161 million. Sales growth was flat in local currency but increased by 2% organic compared to a decline in local currency of 2% and a decline of 5% organic in Q1 2020.
  • Prosthetics grew by 3% organic compared to a 4% decline in Q1 2020. Bracing & supports (B&S) declined by 1% organic compared to a decline of 7% in Q1 2020.
  • Gross profit margin was 64% in Q1 2021 compared to 62% in Q1 2020.
  • EBITDA margin was 18% in Q1 2021 compared to 14% in Q1 2020.
  • Net profit in Q1 2021 amounted to USD 11 million or 7% of sales, a growth of 62% compared to Q1 2020.
  • Cash generated by operations amounted to USD 20 million or 12% of sales in Q1 2021 compared to USD 31 million or 20% of sales in the comparable period.
  • NIBD/EBITDA was 3.9x at the end of Q1 2021. The current NIBD/EBITDA is temporarily above the target ratio of 1.5x-2.5x, primarily due to temporarily lower EBITDA in 2020.
  • In Q1 2021, Össur completed acquisitions of entities with combined annual sales of USD 11 million.
  • The financial guidance for the full year 2021 is unchanged, 10-15% organic sales growth, 21-23% EBITDA margin before special items, 3-4% CAPEX of sales, and an effective tax rate of 23-24%.

Q1 2021 conference call details

Össur will host a conference call on 27 April 2021 at 9:00 CEST / 7:00 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 92694992#. 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 will be carbon neutral in 2021. Össur operates globally and employs around 3,500 employees. www.ossur.com