Announcement no. 44/2019
Interim report Q2 2019
25 July 2019
Highlights
- Sales growth of 18% in local currency in Q2 2019 and organic sales growth of 7%. Sales growth of 19% in local currency in 1H 2019 and organic sales growth of 7%.
- The prosthetics segment grew 11% organic and the B&S segment grew 1% organic. Strong growth in prosthetics is attributed to good sales of high-end solutions and recently launched products.
- Gross profit margin in Q2 2019 was 64% compared to 63% in the comparable quarter. Gross profit margin in 1H 2019 was 64% compared to 63% in the comparable period. The increase is driven by positive impact from changes in product mix, savings from the ongoing efficiency initiatives, and scalability in manufacturing.
- EBITDA margin was 24% in Q2 2019. EBITDA margin excluding the impact of IFRS 16 was 21% in Q2 2019 compared to 20% in the comparable quarter. EBITDA margin in 1H 2019 was 21%. EBITDA margin excluding impact of IFRS16 was 18% in 1H 2019 compared to 17% in 1H 2018. Higher EBITDA margin is a result of changes in product mix, savings from the ongoing efficiency initiatives, scalability, and currency movements.
- Net profit in Q2 2019 grew by 15% and amounted to 13% of sales. Growth in diluted EPS amounted to 15%. Net profit in 1H 2019 grew by 23% and amounted to 11% of sales.
- Cash generated by operations amounted to 18% of sales in Q2 2019 compared to 15% of sales in the comparable quarter last year. Cash generated by operations amounted to 14% of sales in 1H 2019.
- Össur acquired 1,106,220 of own shares through the ongoing share buyback program for USD 6 million in Q2 2019. In 1H 2019, Össur acquired 2,091,584 of own shares for USD 11 million.
- Össur has signed an agreement to acquire College Park Industries, a global provider of lower and upper limb prostheses and supporting devices. Closing is expected later in 2019.
- With strong sales growth in the first half of the year, the financial guidance for organic growth has been upgraded to 5-6% (previous 4-5%). The financial guidance for the full year 2019 is therefore 5-6% organic sales growth, ~23% EBITDA margin before special items*, 4-5% CAPEX of sales, and an effective tax rate of 23-24%.
Jon Sigurdsson, President & CEO, comments:
“We are pleased to close the first half of the year with strong sales growth and an excellent performance in the prosthetics segment. Growth drivers include our high-end solutions and recently launched products such as the new PROPRIO FOOT® which was fully launched in the market in the first quarter of the year. In line with strong sales growth, we are upgrading our guidance for organic growth to 5-6% for the full year. Profitability increased in the first half of the year with favorable changes in product mix, additional savings from the ongoing efficiency initiatives, and scalability. We recently signed an agreement to acquire College Park Industries, a global provider of lower and upper limb prostheses, and expect to close the transaction later in 2019.”
Q2 2019 conference call details
Össur will host a conference call on 25 July 2019 at 9:00 CET / 7:00 GMT / 3:00 EDT. To participate in the call please dial: Europe: + 45 35 44 55 77, +44 (0) 333 300 0804 or +46 (0) 8 566 426 51, The United States: + 1 631 913 1422, Iceland: +354 800 7437. The PIN CODE to access the call is 57380500#. A webcast can be followed on the Össur website: www.ossur.com/investors.
Further information
David Hreidarsson, Investor Relations, dhreidarsson@ossur.com, +354 515 1380
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About Össur
Össur (NASDAQ OMX: OSSR) is a global leader in non-invasive orthopaedics that help people live a life without limitations. Its business is focused on improving people’s mobility through the delivery of innovative technologies within the fields of Prosthetics and Bracing & Supports. A recognized “Technology Pioneer,” Össur invests significantly in research and product development—its award-winning designs ensuring a consistently strong position in the market. Successful patient and clinical outcomes are further empowered via Össur’s educational programs and business solutions. Headquartered in Iceland, Össur has major operations in the Americas, Europe and Asia, with additional distributors worldwide. www.ossur.com
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