Össur, Reykjavik, Iceland, posted its second quarter (2Q) 2017 financial results. Financial amounts, unless otherwise noted, are in U.S. dollars. According to the company, the highlights of the quarter are as follows:
· Sales were $145 million compared to $139 million in 2Q 2016, corresponding to 6 percent growth and 3 percent organic, both measured in local currency. Growth rates were negatively impacted by fewer sales days due to Easter shifting between quarters. Year-to-date (YTD) sales growth is 5 percent organically.
· Gross profit was to $89 million and 62 percent of sales, compared to $89 million and 64 percent of sales in 2Q 2016. Gross profit was negatively impacted by cost increases in certain manufacturing sites and adverse currency movements. YTD gross profit is 62 percent compared to YTD 63 percent in 2016.
· Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $24 million or 17 percent of sales, compared to $25 million or 18 percent of sales in 2Q 2016. Adjusted for $2.6 million in one-time costs, EBITDA amounted to $27 million or 19 percent of sales compared to $30 million or 22 percent of sales in 2Q 2016.
· Net profit was $13 million or 9 percent of sales, compared to $15 million or 10 percent of sales in 2Q 2016.
· Cash generated by operations was $23 million or 16 percent of sales, compared to $16 million or 12 percent of sales in 2Q 2016.
· Össur acquired 1,037,461 of its own shares in 2Q 2017 for approximately $5 million.
Due to adverse movements in currency rates during the first half of the year, the company revised its full-year guidance for 2017. The EBITDA margin before special items is now estimated in the range of 18-19 percent compared to the previous guidance estimate of 19-20 percent. All other guidance parameters remain intact.
“The growth in the second quarter of the year is in line with our expectations,” said Jon Sigurdsson, president and CEO. “We are seeing a healthy organic growth rate for the first half of 2017, but growth in the second quarter is negatively impacted due to fewer sales days than in the comparable quarter. We continue to see a strong performance in prosthetics…. Integration of recently acquired companies is on track and we are realizing the planned synergies in our combined business.”
