Össur hf: Interim report Q2 2021

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Announcement no. 15/2021

Interim report Q2 2021

22 July 2021

Jon Sigurdsson, President & CEO, comments:

“Sales continued to normalize in our key markets, both in Prosthetics and Bracing and Supports. Sales growth in the second quarter was high as the comparison quarter was the most affected by COVID-19 last year. Restrictions have been lifted in many of our main markets while others are still impacted by measures to control the pandemic. We saw increased profitability, as sales grew, and we will continue to focus on managing cost in line with the sales recovery. As Össur remains deeply committed to progressing in its rich, 50-year history of innovation and technological leadership, we successfully launched the new Power Knee this quarter. I am truly thankful to our customers and proud of all Össur employees around the world for continuing to make a positive impact for the benefit of our customers and end-users.”

Highlights Q2 2021

  • Sales amounted to USD 190 million in Q2 2021. Sales growth was 33% in local currency and increased by 32% organic compared to a decline in local currency of 23% and a decline of 26% organic in Q2 2020.
  • Prosthetics grew by 30% organic compared to a 21% decline in Q2 2020. Bracing & Supports (B&S) increased by 36% organic compared to a decline of 32% in Q2 2020. Both Prosthetics and B&S increased by 16% organic in 1H 2021.
  • Gross profit margin was 63% in Q2 2021 compared to 58% in Q2 2020, mainly due to higher sales in Q2 2021. For the same reason, gross profit was 64% in 1H 2021 compared to 60% in 1H 2020.
  • EBITDA amounted to USD 42m in Q2 2021 and the EBITDA margin was 22% compared to 9% in Q2 2020.
  • Growth in sales and operating margins is high as the comparison quarter was the most affected by COVID-19 in 2020.
  • Net profit in Q2 2021 amounted to USD 19 million or 10% of sales compared to a net loss of USD 18 million in Q2 2020 as the second quarter in 2020 was heavily impacted by COVID-19 and one-off items in relation to divestments. Net profit in 1H 2021 amounted to USD 31 million.
  • Cash generated by operations amounted to USD 38 million or 20% of sales in Q2 2021 and amounted to USD 58 million or 16% of sales in 1H 2021.
  • In Q2 2021, Össur completed acquisitions of entities with combined annual sales of USD 11 million.
  • Össur’s Capital Structure and Dividend Policy has been updated to a desired level of 2.0x-3.0x net interest-bearing debt to EBITDA from a prior level of 1.5-2.5x. NIBD/EBITDA was 3.0x at the end of Q2 2021.
  • The financial guidance for the full year 2021 consists of 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%. Currently, management estimates that organic sales growth will be around the middle of the guidance range.

Q2 2021 conference call details

Össur will host a conference call on 22 July 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 22832590#. 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