Össur, Reykjavik, Iceland, posted its first quarter (1Q) 2017 financial results. According to the company, the highlights of the quarter are as follows:
- Sales were US $131 million compared to US $114 million in 1Q 2016, corresponding to local currency (LCY) growth of 17 percent and 7 percent organic.
- Gross profit was US $82 million and 62 percent of sales, compared to US $71 million and 63 percent of sales in 1Q 2016.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) were US $20 million or 16 percent of sales, compared to US $19 million or 16 percent of sales in 1Q 2016, corresponding to 26 percent growth in LCY. Underlying operational margin improvements were neutralized by negative impact from changes in foreign exchange rates and temporary negative impact from acquisitions.
- Net profit grew 13 percent to US $10 million or 8 percent of sales, compared to US $9 million or 8 percent of sales in 1Q 2016.
- Cash generated by operations was US $10 million or 7 percent of sales, compared to US $16 million or 14 percent of sales in 1Q 2016.
- Dividends of 0.12 per share in Danish Krone, corresponding to approximately 15 percent of the company’s net profit in 2016, were paid at the end of March.
- Registration of the share capital reduction of 5,837,832 shares with a nominal value of ISK 1 each was completed on April 11. The shares were removed from trading on NASDAQ Copenhagen on April 19 and the resulting total share capital is ISK 437,162,725.
- Össur acquired 6,689,988 of its own shares in 1Q 2017 for approximately US $25 million.
The financial guidance for the full year of 2017 is unchanged, as follows:
- Sales growth LCY in the 7-8 percent range
- Organic sales growth LCY in the 4-5 percent range
- EBITDA margin before special items in the range of 19-20 percent of sales
- Capital expenditures around 4 percent of net sales
- Effective tax rate around 26 percent
