Össur hf: Interim report Q3 2020

Announcement no. 39/2020

Interim report Q3 2020

27 October 2020

Highlights

• Sales growth of 1% in local currency in Q3 2020 and decline by 5% organic. Sales declined by 8% in local currency in 9M 2020 and by 13% organic. Sales are recovering but are still impacted in most markets by measures to control the COVID-19 pandemic.
• The prosthetics segment declined by 4% organic and the bracing & supports (B&S) declined by 7% organic in Q3 2020. The prosthetics segment declined by 10% in 9M 2020 organic and the B&S segment declined by 16%.
• Gross profit margin was 63% in Q3 2020 compared to 64% in Q3 2019. EBITDA margin was 21% in Q3 2020 compared to EBITDA margin before special items of 24% in Q3 2019. Profitability was strong despite the impact on topline due to COVID-19 and underlines that profitability will return to normalized levels as sales recover.
• Net profit in Q3 2020 amounted to USD 15 million, same as in Q3 2019.
• Cash generated by operations amounted to USD 32 million or 18% of sales in Q3 2020.
• Össur’s liquidity position remains strong. Bank balances and cash equivalents in addition to undrawn facilities at the end of Q3 2020 amounted to USD 313 million.
• Following the approval from employee representative bodies of Gibaud and Innothera, Össur completed the divestment of Gibaud SAS (Gibaud) in France to Innothera on 30 September. Gibaud’s sales amounted to USD 51 million in 2019.
• The financial guidance for the second half of 2020 is unchanged at 0 to -8% organic sales decline. As of today, the most likely scenario is expected to be around the mid-point of the range.

Jon Sigurdsson, President & CEO, comments:

“Since the beginning of April, Össur’s sales have continued to gradually recover in all our major markets and were between 90-100% of last year’s sales in the third quarter. We have begun to realize pent-up demand in some markets in APAC and EMEA. Even so, the outlook regarding the COVID-19 pandemic remains uncertain. We are however confident that there will be no long-term change in the demand for our products and services. We continued to manage our variable costs in the quarter and hence our operating profit was strong considering the impact on sales. We were also pleased to complete the divestment of Gibaud in France to Innothera at end of September.”

Q3 2020 conference call details

Össur will host a conference call on 27 October 2020 at 9:00 CET / 8:00 GMT / 4:00 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 44174556#. A webcast can be followed on the Össur website: www.ossur.com/investors.

Further information

David Hreidarsson, Investor Relations Manager, dhreidarsson@ossur.com, +354 661 8225

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About Össur

Össur (Nasdaq Copenhagen: OSSR) is a global leader in non-invasive orthopedics 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 products.  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