Össur, Reykjavik, Iceland, reported that its second quarter (2Q) 2014 net profit increased by 106 percent and amounted to US $17 million, or 13 percent of sales, compared to US $8 million and 8 percent of sales in 2Q 2013. Sales amounted to US $133 million compared to US $106 million in 2Q 2013, corresponding to 23 percent growth and 3 percent organic growth, both measured in Icelandic currency. Bracing and supports sales growth was 30 percent while organic sales growth declined by 1 percent, both measured in Icelandic currency.
Prosthetics sales growth was 15 percent and 8 percent organic, both measured in Icelandic currency. Gross profit was US $85 million and 64 percent of sales, compared to US $65 million and 61 percent of sales in 2Q 2013. Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to US $29 million and 22 percent of sales, compared to US $15 million and 14 percent of sales in 2Q 2013. Cash generated by operations was US $25 million and 19 percent of sales, compared to US $11 million and 11 percent of sales.
Össur provided the following revised financial guidance for 2014:
- Local currency (LCY) sales growth of 16-18 percent (previously 14-16 percent).
- Organic LCY sales growth of 3-4 percent (previously 2-4 percent).
- EBITDA margin of 19-20 percent of sales (previously 17-19 percent).
- Capital expenditures of 2.5-3.5 percent of sales (unchanged).
- Effective tax rate around 26 percent (unchanged).
On Friday, July 25, Össur will host a conference call where Jón Sigurðsson, president and CEO, and Sveinn Sölvason, CFO, will present and discuss the results of the quarter. The conference call, scheduled to begin at 6 a.m. ET, will be conducted in English. Those wishing to participate should call 855.753.2230, or access the webcast at www.ossur.com/investors