Össur, Reykjavik, Iceland, announced its interim financial results for the fourth quarter (4Q) and fiscal year (FY) ended December 31, 2020.
- 4Q sales declined by 8 percent, and by 4 percent organic. Sales declined by 8 percent for FY 2020 and by 10 percent organic.
- 4Q gross profit margin was 64 percent compared to 63 percent in 4Q 2019. FY gross profit margin was 62 percent compared to 64 percent for the same period a year ago.
- Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was 14 percent in 4Q compared to 21 percent in 4Q 2019.
- 4Q net profit totaled $4 million and 2 percent of sales. FY net profit amounted to $8 million and 1 percent of sales, which were impacted by extraordinary items related to divestments, acquisitions, litigation, severance, and government grants, in addition to COVID-19.
- Cash flow was strong in 2020, mainly due to inventory management efforts and lower capital expenditure. Cash generated by operations totaled $27 million or 16 percent of sales in the 4Q. Cash generated by operations amounted to $119 million or 19 percent of sales in FY 2020 compared to $120 million or 17 percent of sales for 2019.
- Össur reported its liquidity position remains strong. Bank balances and cash equivalents in addition to undrawn credit facilities on December 31, 2020, totaled $275 million. Össur completed three acquisitions in 4Q 2020, and one in the first week of 2021 with combined annual sales of $38 million.
“We are satisfied with the results for 2020 considering this unprecedented year,” said Jon Sigurdsson, president and CEO. “We have seen a strong recovery in sales, with prosthetics reporting positive organic sales growth in the last quarter. The cash flow was strong in 2020 with the focus on managing working capital and capital expenditures. We expect the impact from the pandemic to be short-term, and that the long-term prospects and underlying fundamental drivers of the business are unchanged.”