Össur, Reykjavik, Iceland, posted its interim financial results for the first quarter (1Q) of 2022.
Highlights included:
- Sales amounted to $170 million. Sales growth was 10 percent in local currency and increased by 6 percent organic compared to a flat growth in local currency and an increase of 2 percent organic in 1Q 2021.
- Prosthetics grew by 6 percent organic compared to a 3 percent growth in 1Q 2021.
- Gross profit margin was 62 percent compared to 64 percent over the same period a year ago. Supply chain cost increases are expected to increase cost of goods sold by $13 million on a full-year (FY) basis in FY 2022 from pre-pandemic levels in FY 2019, compared to $10 million in FY 2021.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $27 million in 1Q 2022, and the EBITDA margin was 16 percent compared to 18 percent from the same period in 2021.
- Net profit totaled $9 million or 5 percent of sales compared to $11 million or 7 percent of sales in 1Q 2021.
- In 1Q 2022, Össur completed an acquisition with annual sales of $10 million.
- On February 24, Össur suspended sales to Russia due to the ongoing war and has decided to extend the suspension while the situation remains unchanged. Sales to Russia amounted to around 1 percent of sales in FY 2021.
- Cash generated by operations was to $14 million or 8 percent of sales in 1Q 2022 compared to $20 million or 12 percent of sales in the comparable period.
- On February 14, Össur initiated a new share buyback program, designed to reduce its share capital and adjust the capital structure by distributing capital to shareholders in line with the company’s capital structure and capital allocation policy.
- The financial guidance for FY 2022 is unchanged, 6-9 percent organic sales growth, 20-21 percent EBITDA margin before special items, 3-4 percent capital expenditure of sales, and an effective tax rate of 23-24 percent.
Said Sveinn Sölvason, Össur’s new president and CEO: “Continued positive development and normalization of activity levels are driving demand for prosthetics and [bracing and supports] products in our key markets. We delivered solid organic growth despite all regions being impacted by COVID-19 in the first months of the year. We are managing temporary variable supply chain–related cost increases which are expected to normalize gradually.”
