Össur, Reykjavik, Iceland, has reported its third quarter (3Q) 2015 financial results. According to the company, the highlights of the quarter are as follows:
- Sales amounted to US $117 million compared to US $127 million in 3Q 2014. Sales growth in local currency (LCY) amounted to 3 percent.
- Bracing and supports sales growth was 5 percent, measured in LCY.
- Prosthetics sales growth was flat, measured in LCY, compared to a strong quarter last year.
- Gross profit amounted to US $74 million and 63 percent of sales, compared to US $81 million and 64 percent of sales in 3Q 2014.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to US $25 million or 22 percent of sales, compared to US $29 million or 23 percent of sales in 3Q 2014.
- Net profit amounted to US $14 million or 12 percent of sales, compared to US $16 million or 13 percent of sales in 3Q 2014.
- Strengthening of the U.S. dollar has had a significant impact on reported sales and profits when comparing to prior year results. It has negatively impacted sales by US $11 million and EBITDA by US $2 million.
- Cash generated by operations amounted to US $23 million or 20 percent of sales, compared to US $33 million or 26 percent of sales in 3Q 2014.
The company’s financial guidance for the full year of 2015 is unchanged:
- 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
- Effective tax rate around 26 percent
“The results of the quarter are in line with expectations,” said Jón Sigurðsson, president and CEO. “As in previous quarters there is an adverse impact from currency fluctuations. [Bracing and supports] sales were good in all markets, driven by growth of high-end, innovative products. Prosthetics growth was flat, however we are comparing to an exceptionally strong quarter last year.”