Össur, Reykjavik, Iceland, reported that its second quarter 2012 sales were US $103 million compared to US $105 million in the second quarter of 2011. Sales growth in bracing and supports was 4 percent while prosthetic sales increased by 1 percent, both measured in Icelandic currency.
Net profit was US $10 million or 10 percent of sales. Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to US $19 million, or 19 percent of sales, and gross profit was US $64 million or 62 percent of sales.
“Sales growth in the second quarter was moderate,” said Jón Sigurðsson, president and CEO of Össur. “Overall performance is affected by weak prosthetics sales in [the] Americas. Conservative sentiment in the U.S. prosthetics market, due to audits from the reimbursement systems, continues to affect customer behavior. Performance in other major markets is however good….”
Össur reported that during the second quarter, two bracing and support product updates were launched along with the full commercial launch of the SYMBIONIC® LEG, and it started a new global marketing division that will function across divisions and geographical locations.
Össur said it continues to estimate 2012 sales growth in the range of 4-6 percent, measured in Icelandic currency, and the adjusted EBITDA estimated margin continues to be in the range of 20-21 percent of sales-with expectations of 2012 results to be in the lower end of this guided range, both in terms of sales and EBITDA.