Össur, Reykjavik, Iceland, posted its second quarter (2Q) 2016 financial results. According to the company, the highlights of the quarter are as follows:
- Sales were US $139 million compared to US $127 million in 2Q 2015, corresponding to local currency (LCY) growth of 10 percent and 5 percent organic growth.
- Gross profit was US $89 million or 64 percent of sales, compared to US $80 million or 63 percent of sales in 2Q 2015.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) were US $25 million or 18 percent of sales. Adjusted for one-time expenses, EBITDA was US $30 million or 22 percent of sales compared to US $28 million or 22 percent of sales in 2Q 2015.
- Net profit was US $15 million or 10 percent of sales, compared to US $16 million or 12 percent of sales in 2Q 2015. Net profit is impacted by one-time costs of US $4.6 million. Net profit adjusted for one-time expenses grew 10 percent and amounted to 13 percent of sales.
- Cash generated by operations was US $16 million or 12 percent of sales, compared to US $23 million or 18 percent of sales in 2Q 2015.
- The financial statements for 2Q 2016 include the financials of the recently acquired Touch Bionics, Livingston, Scotland.
- Össur acquired 5,325,004 of its own shares in 2Q 2016 for about US $20.8 million.
The company’s financial guidance for the full year of 2016 is unchanged except for capital expenditures, as follows:
- Sales growth LCY of 7-9 percent
- Organic sales growth LCY of 3-5 percent
- Adjusted EBITDA margin of 20-21 percent of sales
- Capital expenditures 5 percent of sales (previously 3-4 percent)
- Effective tax rate around 26 percent
“We are pleased to deliver a quarter with strong operational results and good profitability on top of an excellent comparable quarter last year,” said president and CEO Jón Sigurðsson. “Americas had an overall strong quarter with excellent prosthetics sales growth. As we expected, EMEA [Europe, the Middle East, and Africa] had a good quarter after experiencing a soft [first quarter].”
