Össur, Reykjavik, Iceland, reported that its third quarter (3Q) 2013 sales were US $105 million compared to US $99 million in the same quarter last year. Bracing and supports sales increased 6 percent while prosthetics sales increased 5 percent, measured in Icelandic currency. Net profit increased 28 percent to US $13 million, or 12 percent of sales, compared to US $10 million and 10 percent of sales in 3Q 2012. Performance in Europe, the Middle East, and Africa (EMEA) continued to be strong across all markets. Performance in the Americas showed some positive signs, however the company said that uncertainty in the U.S. market is expected to continue.
Gross profit was US $65 million, or 62 percent of sales, compared to US $62 million and 63 percent of sales in 3Q 2012. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was US $22 million, or 21 percent of sales, compared to US $18 million and 19 percent of sales in 3Q 2012. Cash generated by operations was 23 percent of sales, compared to 17 percent in 3Q 2012.
The company noted that cost savings initiatives executed in the second quarter are materializing. Operational expenditures as a ratio to sales declined to 45 percent compared to 47 percent of sales in 3Q 2012.
Össur completed the acquisition of O&P provider TeamOlmed, Jönköping, Sweden, and included the company in the Össur Consolidation as of October 1. According to the report, two other minor acquisitions were closed during the quarter.
Össur’s management reiterated its previous guidance for 2013: Organic sales growth is expected to be in the range of 2-4 percent and adjusted EBITDA is expected to be within the margin of 18-19 percent, measured in Icelandic currency.
