Össur, Reykjavik, Iceland, has announced its financial results for the first nine months of 2019 and the third quarter (3Q) ended September 30. Financial amounts, unless otherwise noted, are in U.S. dollars.
Highlights include:
Gross profit in 3Q totaled $108 million or 64 percent of sales, compared to $92 million or 64 percent in the comparable quarter in 2018. Gross profit for the first nine months of 2019 was $326 million or 64 percent, compared to $280 million or 63 percent during the same period in 2018. The increase was driven by positive impact from changes in product mix, savings from the ongoing efficiency initiatives, and scalability in manufacturing.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin before special items was $40 million or 24 percent of sales for the period ended September 30. EBITDA margin before special items and excluding the impact of International Financial Reporting Standards (IFRS) 16 was $35 million or 21 percent in 3Q, compared to $30 million or 21 percent in the comparable quarter a year ago. EBITDA margin before special items for the first nine months of 2019 totaled $112 million or 22 percent and excluding the impact of IFRS 16 was $98 million or 19 percent compared to $82 million or 18 percent for the first nine months of 2018. Higher EBITDA margin was a result of changes in product mix, savings from the ongoing efficiency initiatives, scalability, and currency movements.
Sales growth during the first nine months of 2019 totaled $507 million compared to $445 million during the same period in 2018, corresponding to 7 percent organic growth, 19 percent growth including acquisitions, and 14 percent reported growth. Sales for the period ended September 30 totaled $168 million compared to $145 million from the same period a year ago, corresponding to 5 percent organic growth, 19 percent growth including acquisitions, and 15 percent reported growth.
Net profit for the period ended in September 30 amounted to $15 million or 9 percent of sales, compared to $16 million or 11 percent of sales during the comparable period a year ago. Net profit for the first nine months of the year amounted to $51 million or 10 percent of sales, compared to $46 million or 10 percent of sales for the same period in 2018.
Cash generated by operations totaled $49 million or 29 percent of sales in 3Q 2019, compared to $32 million or 22 percent of sales in 3Q 2018. Cash generated by operations amounted to $97 million or 19 percent of sales for the first nine months of 2019. Cash generated for the first nine months in 2018 totaled $61 million or 14 percent of sales.
At the beginning of 4Q 2019, Össur also made two acquisitions with combined full-year sales of about $13 million.
