Össur, Reykjavik, Iceland, announced its financial results for the third quarter (3Q) during a conference call on October 26.
Highlights for the third quarter ending September 30 included:
- Sales totaled $180 million. Sales growth was 4 percent in local currency and increased by 4 percent organic compared to an increase in local currency of 1 percent and a decline of 5 percent organic compared to the same period in 2020.
- Prosthetics sales grew by 7 percent organic compared to a 4 percent decline in third quarter in 2020. Bracing and supports (B&S) sales were constant organically compared to a decline of 7 percent in 3Q of 2020. Prosthetics sales increased by 13 percent organic and B&S sales increased by 10 percent during the first nine months of 2021.
- In 3Q 2021, Össur experienced further supply chain related cost increases on freight and raw material prices. Gross profit margin was 62 percent in the third quarter, compared to 63 percent during the same period in 2020. Gross profit margin was 63 percent during the first nine months of 2021 compared to 61 percent from the same period a year ago.
- Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $37 million in 3Q this year and the EBITDA margin was 21 percent, the same as the EBITDA margin a year ago.
- Net profit in 3Q 2021 totaled $17 million or 10 percent of sales compared to $15 million in 3Q 2020 or 9 percent of sales. Net profit during the first nine months of 2021 amounted to $48 million compared to $4 million during the same period last year.
- Cash generated by operations totaled $31 million or 17 percent of sales in 3Q 2021, and $89 million or 17 percent of sales during the first nine months of this year.
- The financial guidance for the full year 2021 has been narrowed to the lower end of the organic sales growth guidance range (10-15 percent), at around 10 percent organic sales growth and the lower end of the EBITDA margin guidance range (21-23 percent), at around 21 percent EBITDA margin before special items.
“EMEA [Europe, Middle East, and Africa] and APAC [Asia-Pacific Countries] continued to perform well, in line with expectations, while the COVID-19 Delta variant primarily impacted sales in Americas, which is our largest market,” said Jon Sigurdsson, president and CEO. “Although organic growth was impacted by softer sales in Americas, the performance in other key markets strengthens our belief that the long-term prospects and underlying fundamental drivers of the prosthetics and B&S markets are not expected to change.”