Össur posted its interim report for the third quarter (3Q).
Highlights include:
- Sales totaled $193 million. Sales growth was 8 percent in local currency and increased by 7 percent organic.
- Prosthetics sales grew by 12 percent organic, bracing and supports sales grew by 1 percent organic, and patient care sales grew by 5 percent organic. Growth is attributed to strong volume growth and positive product mix with strong performance in the company’s high-end solutions, in addition to price increases, Össur said.
- Net profit grew by 107 percent and totaled $14 million or 7 percent of sales. The comparable period was impacted by the expense of special items in the same period a year ago, the company reported.
- Gross profit margin was 62 percent compared to 61 percent in 3Q 2022 (63 percent excluding special items). The gross profit margin was positively impacted by strong sales growth, positive product mix, and lower freight cost, but adversely impacted by higher unit cost, time-lag in reimbursement, and investments in Össur Leg.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $36 million, and the EBITDA margin was 19 percent compared to an EBITDA margin before special items of 20 percent during the same period a year ago. EBITDA margin remains stable at 18 percent year-to-date compared to last year, the company noted.
- Cash generated by operations amounted to $34 million or 17 percent of sales compared to 12 percent of sales in 3Q 2022. Össur said there was solid cash generation but inventories remain high due to buildup of bionic components in line with sales performance.
- Free cash flow totaled $17 million or 9 percent of sales compared to 7 percent of sales in during the same period in 2022. Free cash flow impacted by capital expenditure (CAPEX) investments due to expansions in key locations and higher interest payments than in the comparable quarter last year.
- The financial guidance remains unchanged or 7-8 percent organic sales growth, 17-20 percent EBITDA margin before special items, approximately 5 percent CAPEX as percentage of sales, and 23-24 percent effective tax rate.
“Sales amounted to $193 million, with 7 percent organic growth, and the EBITDA margin was 19 percent in 3Q,” said Sveinn Sölvason, president and CEO. “Organic growth was 9 percent in the first nine months, driven by a strong contribution in all our business segments and regions. We continue to be on track to deliver on our ambition to grow 7-10 percent in average local currency growth in 2023-2027, in line with our recently launched Growth’27 strategy. We see strong volume growth within prosthetics and patient care….”
