Össur reported its interim report for the first quarter (1Q).
Highlights included:
- Sales amounted to $181 million. Sales growth was 11 percent in local currency and increased by 9 percent organic, compared to 10 percent in local currency and 6 percent organic in 1Q 2022.
- Prosthetics sales grew by 13 percent organic, bracing and supports sales increased by 5 percent organic, and patient care sales grew by 8 percent, compared to 10 percent, 6 percent, and 2 percent respectively, in 1Q 2022.
- Gross profit margin was 62 percent, the same as in 1Q 2022.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items totaled $28 million, and the EBITDA margin before special items was 16 percent, also the same as 1Q 2022.
- Net profit in 1Q 2023 totaled $10 million or 6 percent of sales compared to $9 million or 5 percent of sales in 1Q 2022.
- Cash generated by operations amounted to $13 million or 7 percent of sales.
The financial guidance for the full year 2023 is 4‐8 percent organic sales growth, 17‐20 percent EBITDA margin before special items, 3‐4 percent capital expenditure of sales, and an effective tax rate of 23‐24 percent.
“Sales amounted to 181 million and the EBITDA margin before special items was 16 percent in 1Q 2023. The organic growth was strong at 9 percent driven by growth in all regions and all business segments,” said Sveinn Sölvason, president and CEO. Despite inflation driven OPEX [operating expenses] growth and FX [foreign exchange] headwinds, we see a healthy development in operating profit. At the end of March, we held our Capital Markets Day in Copenhagen where we introduced our Growth’27 strategy and our new sales segmentation which includes the three business segments: prosthetics, bracing and supports, and patient care. We presented our growth ambition of 7‐10 percent average local currency growth over the Growth’27 period, in [fiscal year] 2023‐2027. We are focused on reaching more people that need mobility solutions and will drive accelerated organic growth focusing on patient reach, innovative solutions, and O&P value creation.”
