Össur reported its interim report for the second quarter (2Q).
Highlights included:
- Sales were $201 million. Sales growth was 13 percent in local currency and increased by 11 percent organic.
- Prosthetics sales grew by 18 percent organic, bracing and supports sales grew by 5 percent organic, and patient care sales grew by 8 percent organic. Growth is attributed to strong volume growth, positive product mix with strong performance in high-end solutions, and price increases.
- Gross profit margin was 63 percent, compared to 61 percent in 2Q 2022. The gross profit margin is improving in line with increased productivity in manufacturing and some normalization in unit cost, partly attributed to lower freight cost, the company said.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $37 million in 2Q, and the EBITDA margin was 19 percent compared to 18 percent during the same period a year ago. EBITDA margin is increasing in line with strong sales performance and increasing gross profit margin attributed to increased productivity in manufacturing, but partly offset by cost growth mainly due to inflation.
- Net profit grew by 10 percent and totaled 1$6 million or 8 percent of sales.
Cash generated by operations is increasing and amounted to $33 million or 16 percent of sales in 2Q compared to 10 percent in the comparable quarter. In line with a strong performance in the first half of 2023, the financial guidance for the full year 2023 has been updated to 7-8 percent organic growth (previously 4-8 percent).
“We recently introduced our Growth’27 strategy with a growth ambition of 7-10 percent average local currency growth in 2023-2027,” said Sveinn Sölvason, Össur president and CEO. “As demonstrated by a strong sales performance for the first half of 2023, we are firmly on track. Our high-end solutions are performing well in line with our Innovative Solutions growth driver, and we see strong volume growth in prosthetics and patient care in line with our patient reach and O&P value creation growth drivers. Our strategy to provide more patients access to high-end solutions is evident in the results, as bionics as [a percent] of prosthetics sales amounted to 25 percent, which is among the highest we have seen historically. Strong progress on other key financial parameters with a healthy development in profitability, despite inflation driven cost, and solid cash generation.”
