Össur, Reykjavik, Iceland, posted its second quarter (2Q) 2015 financial results. According to the company, the highlights of the quarter are as follows:
- Sales amounted to US $127 million, corresponding to local currency (LCY) growth of 8 percent and 7 percent organic growth.
- Bracing and supports sales growth was 8 percent and 8 percent organic, both measured in LCY.
- Prosthetics sales growth was 10 percent and 7 percent organic, both measured in LCY.
- Gross profit amounted to US $80 million and 63 percent of sales, compared to US $85 million and 64 percent of sales in 2Q 2014.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to US $27 million or 21 percent of sales. Adjusted EBITDA amounted to US $28 million or 22 percent of sales, compared to US $29 million or 22 percent of sales in 2Q 2014. Adjusted EBITDA grew by 7 percent in LCY.
- Net profit amounted to US $16 million or 12 percent of sales, compared to US $17 million or 13 percent of sales in 2Q 2014.
- Strengthening of the U.S. dollar has had a significant impact on reported sales and profits when comparing to prior year results. It negatively impacted sales by US $13 million and EBITDA by US $2 million.
- Cash generated by operations amounted to US $23 million or 18 percent of sales, compared to US $24 million or 18 percent of sales in 2Q 2014.
The company’s financial guidance for the full year of 2015, unchanged except for capital expenditures, is as follows:
- Total sales growth LCY in the range of 4-6 percent
- Organic sales growth LCY in the range of 3-5 percent
- EBITDA margin in the range of 20-21 percent of sales
- Capital expenditures 3.5-4.5 percent of sales (previously 2.5-3.5 percent)
- Effective tax rate around 26 percent
“The results of this quarter are good,” said Össur President and CEO Jón Sigurðsson. “[The company showed] strong growth and good profitability despite adverse impact from currency fluctuations. Prosthetics continue to perform well in all of our major markets, and sales growth in bracing and supports was excellent in the quarter, driven by very strong performance in EMEA [Europe, the Middle East, and Africa].”