Össur, Reykjavik, Iceland, announced its interim financial results for the third quarter (3Q) ended September 30.
Financial amounts, unless otherwise noted, are in US dollars.
Sales growth of 1 percent in 3Q and decline by 5 percent organic. Sales declined by 8 percent for the first nine months of 2020, and by 13 percent organic. The prosthetics segment declined by 4 percent organic, bracing and supports declined by 7 percent ended September 30. The prosthetics segment declined by 10 percent in the first nine months of the year, the bracing segment declined by 16 percent.
Gross profit was 63 percent in 3Q compared to 64 percent during the same period a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was 21 percent in 3Q compared to EBITDA margin before special items of 24 percent in 3Q 2019. Profitability was strong despite the impact on topline due to COVID-19 and underlines that profitability will return to normalized levels as sales recover.
Net profit totaled $15 million, a reflection of 3Q 2019. Cash generated by operations totaled $32 million or 18 percent of sales ended September 30. Cash liquidity totaled $313 million in 3Q.
Össur reported sales are recovering, but are still impacted in most markets by measures to control the COVID-19 pandemic. “Since the beginning of April, Össur’s sales have continued to gradually recover in all our major markets and were between 90-100 percent of last year’s sales in the third quarter,” said Jon Sigurdsson, president and CEO. “We have begun to realize pent-up demand in some markets in APAC and EMEA. Even so, the outlook regarding the COVID-19 pandemic remains uncertain. We are however confident that there will be no long-term change in the demand for our products and services.”