Ossur Hf : Interim report Q1 2019

Announcement no. 28/2019
Interim report Q1 2019
30 April 2019

Highlights

• Sales growth of 19% in local currency in the quarter and organic sales growth of 8%. 
• The prosthetics segment grew 10% organic and the B&S segment grew 5% organic. Growth in both business segments can be attributed to strong sales of high-end innovative products.
• Gross profit margin was 64% compared to 62% in the comparable quarter. 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 19% compared to 14% in the comparable quarter. EBITDA margin excluding the impact of IFRS 16, was 16% in Q1 2019. Higher EBITDA margin is driven by positive changes in product mix, savings from the ongoing efficiency initiatives, scalability, and currency movements. It should be noted that EBITDA margin is seasonally weak in the first quarter of the year.
• Net profit grew by 37% and amounted to 9% of sales. Growth in diluted EPS amounted to 38%.
• Cash generated by operations amounted to 10% compared to 4% of sales in the comparable quarter.
• Össur acquired 985,364 of own shares through the ongoing share buyback program for USD 5 million in Q1 2019.
• Dividends of DKK 0.14 per share, corresponding to approximately USD 9 million or 11% of net profit in 2018, were paid out in March 2019.
• 5,430,259 own shares with a nominal value of ISK 1 each were cancelled at the end of March 2019. The share capital of Össur is now ISK 425,377,804.
• The financial guidance for the full year 2019 is unchanged, 4-5% 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:

"The sales growth in the first quarter was strong with good growth from both business segments and all market regions with the prosthetics segment and the APAC region at the forefront. We are pleased to see that our high-end innovative products were driving growth, including the new PROPRIO FOOT® which was fully launched in all markets in the quarter and has received a good response. We increased our profitability in the quarter compared to last year with favorable changes in product mix, additional savings from the ongoing efficiency initiatives, and scalability. Cash generation was furthermore strong in the quarter bearing in mind that the first quarter of the year is seasonally the weakest in terms of profitability and cash generation."

Q1 2019 conference call details

Össur will host a conference call on 30 April 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 41901274#. 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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