Össur, Reykjavik, Iceland, announced sales growth of 7 percent for the third quarter (3Q) ending September 30, and sales growth of 5 percent for the first nine months of the year. Net sales totaled $145 million compared to $139 million during the same period in 2017. Net sales growth for the first nine months of 2018 totaled $445 million, compared with $415 million for the same period a year ago. The company reported its financial results during a conference call with analysts on October 25.
Gross profit margin was $92 million or 64 percent at the end of 3Q compared to $87 million or 63 percent in the comparable quarter a year ago. Gross profit margin during the first nine months of 2018 amounted to $280 million or 63 percent, compared to $258 million or 62 percent from the same period in 2017. The increase was driven by positive impact from changes in product mix, stable unit cost, and savings from the ongoing efficiency initiatives.
Net profit for the first nine months of 2018 totaled $46 million or 10 percent of sales, compared to $35 million or 8 percent of sales during the first nine months of 2017, an increase of 33 percent. Net profit for 3Q amounted to $16 million or 11 percent of sales, compared to $11 million or 8 percent of sales during the same period in 2017, an increase of 43 percent in the period.
Cash generated by operations in 3Q amounted to $33 million or 22 percent of sales compared to $23 million or 16 percent of sales during the same period in 2017. During the first nine months of 2018, cash generated by operations amounted to $61 million or 14 percent of sales, compared to $56 million or 13 percent of sales during the first nine months of 2017.
The prosthetics segment grew 11 percent in 3Q, and the bracing and support segment grew 2 percent. Growth in both business segments can be attributed to strong products sales.
Though Össur made two acquisitions with combined full-year sales of about $40 million, the company reported that the acquisitions did not impact operating income in 3Q. The acquisitions, however, will have an impact on the fourth quarter results, which will end December 31.
“We are pleased to deliver a strong quarter in terms of sales growth and profitability… Profitability is increasing in line with our plans, driven by scalability from strong sales growth, positive changes in product mix, and our ongoing efficiency initiatives. In line with the operating results, we also have a strong cash generation in the quarter,” said Jon Sigurdsson, president and CEO.
