Össur, Reykjavik, Iceland, posted its third quarter (3Q) 2016 financial results. According to the company, the highlights of the quarter are as follows:
- Sales were US $129 million compared to US $117 million in 3Q 2015, corresponding to local currency (LCY) growth of 11 percent and 5 percent organic growth.
- Gross profit was US $81 million or 63 percent of sales, compared to US $74 million or 63 percent of sales in 3Q 2015.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) were US $24 million or 19 percent of sales, compared to US $25 million or 22 percent of sales in 3Q 2015.
- Net profit was US $13 million or 10 percent of sales, compared to US $14 million or 12 percent of sales in 3Q 2015.
- Cash generated by operations was US $27 million or 21 percent of sales, compared to US $23 million or 20 percent of sales in 3Q 2015.
- On September 1, Össur acquired medi prosthetics, Bayreuth, Germany. The income statement for 3Q 2016 therefore includes medi prosthetics for the month of September only.
- Össur acquired 301,621 of its own shares in 3Q 2016 for approximately US $1.2 million.
The company has revised its financial guidance for the full year of 2016, as follows:
- Sales growth LCY in the 8-10 percent range (previously 7-9 percent)
- Organic sales growth LCY in the 3-5 percent range (unchanged)
- Adjusted EBITDA margin around 19 percent of sales (previously 20-21 percent)
- Capital expenditures 5 percent of sales (unchanged)
- Effective tax rate around 26 percent (unchanged)
“The sales growth in the quarter was good. Prosthetics growth was excellent, driven by bionics and newly launched products,” said president and CEO Jón Sigurðsson. [The acquisition of medi prosthetics] enables us to take another step to complete our prosthetics offering and further strengthen our global market position. Due to adverse currency movements, mainly the strengthening of the ISK [Icelandic Króna], and temporary impact from the medi prosthetics acquisition, we have revised our guidance for the full year.”
