Announcement no. 47/2018
Interim report Q2 2018
26 July 2018

Highlights

  • Sales amounted to USD 158 million, corresponding to 9% USD growth and 6% organic growth. Sales for 1H 2018 amounted to USD 300 million, corresponding to 9% USD growth and 4% organic growth.
     
  • Net profit in Q2 2018 amounted to USD 20 million or 12% of sales, an increase of 49% from Q2 2017. Diluted EPS growth amounted to 51% in the quarter. Net profit for 1H 2018 amounted to USD 30 million or 10% of sales, an increase of 28% from 1H 2017.
     
  • The prosthetics segment grew 7% in Q2 2018 and the B&S segment grew 4%. Growth in both business segments can be attributed to a strong sales performance of high-end innovative products.
     
  • Gross profit in Q2 2018 amounted to USD 99 million or 63% of sales, an increase from the comparable period in Q2 2017 where gross profit amounted to 62% of sales. The increase is driven by positive impact from a change in product mix. Gross profit for 1H 2018 amounted to USD 188 million or 63% of sales.
     
  • EBITDA in Q2 2018 amounted to USD 32 million or 20% of sales, compared to an EBITDA before special items of 19% in Q2 2017, an increase of 15% from Q2 2017. The increase in EBITDA margin can be traced to positive impact from changes in product mix and scalability in operations. Currency movements impacted the EBITDA margin positively by approx. 40 basis points. EBITDA for 1H 2018 amounted to USD 52 million or 17% of sales.
     
  • Cash generated by operations in Q2 2018 amounted to USD 23 million or 15% of sales. Cash generated by operations for 1H 2018 amounted to USD 29 million or 10% of sales.
     
  • Financial guidance for the full year 2018 is unchanged at 4-5% organic growth, ~19% EBITDA margin before special items, ~4% CAPEX of sales, and an effective tax rate in the range of 23-24%.
     
  • Össur acquired 690,022 of own shares for approximately USD 3 million in Q2 2018. In the 1H 2018, Össur acquired 3,431,463 of own shares for approximately USD 16 million.

Jon Sigurdsson, President & CEO, comments:

"After a slow start of the year, the second quarter came in as expected with strong sales and profitability. Our high-end innovative products performed well in both business segments, which include lower- and upper-extremity bionics in prosthetics and our osteoarthritis solutions in bracing and supports. The performance in EMEA and APAC was strong, but growth in the Americas was soft for bracing and supports. Increased profitability in the quarter is driven by scalability from strong sales growth and positive change in product mix."

Q2 2018 conference call details

Össur will host a conference call on Thursday 26 July 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.

Further information

David Hreidarsson, Investor Relations, dohreidarsson@ossur.com, +354 515 1380

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About Össur

Össur (NASDAQ: OSSR) is a global leader in non-invasive orthopaedics that helps people live a life without limitations.  Its business is focused on improving people's mobility through the delivery of innovative technologies within the fields of braces, supports, prosthetic limbs and compression therapy.  A recognized "Technology Pioneer", Össur invests significantly in research and product development; its award-winning designs ensuring a consistently strong position in the market. Successful patient and clinical outcomes are further empowered via Össur's educational programs and business solutions.  Headquartered in Iceland, Össur has major operations in the Americas, EMEA and APAC, with additional distributors worldwide. www.ossur.com.