Össur, Reykjavik, Iceland, has reported its fourth quarter (4Q) and full year (FY) 2014 financial results.
Net profit for 4Q increased 5 percent to US $15 million or 12 percent of sales, compared to US $14 million or 11 percent of sales in 4Q 2013. Sales were US $129 million compared to US $128 million in 4Q 2013, corresponding to 6 percent growth and 5 percent organic growth, both measured in local currency (LCY).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 7 percent to US $26 million or 20 percent of sales, compared to US $24 million or 19 percent of sales in 4Q 2013. Cash generated by operations was US $29 million or 23 percent of sales, compared to US $29 million or 22 percent of sales in 4Q 2013. In November 2014, Össur purchased 9,863,578 of its own shares (2.2 percent of the company’s share capital) for US $29 million.
The company also said that its full year (FY) 2014 net profit increased 45 percent to US $59 million or 12 percent of sales. Sales increased 18 percent to US $509 million compared to US $436 million in 2013, measured in LCY. Bracing and supports sales increased 18 percent and 1 percent organic and prosthetics sales increased 17 percent and 11 percent organic, all measured in LCY.
Gross profit was US $323 million (63 percent of sales), compared to US $270 million (62 percent of sales) in 2013. EBITDA increased 38 percent to US $104 million or 20 percent of sales. Cash generated by operations was US $98 million or 19 percent of sales. Two small acquisitions were completed in the Asia-Pacific segment during the year, which further strengthened the sales platform, the company said.
Össur said the board of directors will propose at the 2015 Annual General Meeting that the company pays a cash dividend of US $0.02 per share for 2014 and that the share capital be reduced by cancelling 7,456,755 of the company’s own shares.
Össur provided the following financial guidance for 2015:
- Total LCY sales growth of 4-6 percent
- Organic LCY sales growth of 3-5 percent
- EBITDA margin in the range of 20-21 percent of sales
- Capital expenditures in the range of 2.5-3.5 percent of sales
- Effective tax rate around 26 percent
