Sales – Sales growth was excellent, 11% measured in local currency. Total sales amounted to USD 97 million compared to USD 86 million in the first quarter of 2010. Performance in bracing and supports was excellent in Americas and moderate in EMEA. Overall sales growth of bracing and supports was 20%, measured in local currency. Sales growth in prosthetics was 5% measured in local currency.
Profitability – Össur continues to deliver good profits and margins are stable. EBITDA amounted to USD 18 million or 19% of sales and gross profit amounted to USD 61 million or 63% of sales. Net profit amounted to USD 8 million or 8% of sales.
Jón Sigurðsson, President & CEO, comments:
“The first quarter results are a good start of the year. We are pleased with the results and the overall performance is excellent. Strong contributors to the growth are some of the important products launched last year. Both main product segments show good growth and the bracing and supports segment in Americas is growing well above the market growth rate and we are gaining market share. We will continue to focus on strengthening our product offering and the product pipeline for 2011 contains some exciting products.”
Highlights of the quarter:
Excellent bracing and supports growth – In the first quarter of 2011 the bracing and supports segment in Americas delivered record growth and Össur is gaining share in the market. New products launched in 2010, such as Miami Lumbar and Rebound Walker, are amongst the best selling products and strong contributors to the growth in this segment.
Mexico facility – Össur continues to build up its manufacturing facility for bracing and supports in Mexico. In 2010 manufacturing of spinal products was moved from Allentown and Paulsboro and this year knee brace manufacturing is being moved from Foothill Ranch in California to Mexico.
Financing – In March 2011 Össur signed an agreement with three international banks, ING Bank, Nordea and SEB, on long-term financing in the amount of USD 231 million. The financing is a milestone for Össur as the Company has now established international access to both debt and equity financing.
Guidance 2011 – Management maintains estimates of LCY organic sales growth for 2011 in the range of 4-6%. EBITDA ratio adjusted is estimated to be in the range of 20-21% of sales for the year, as reported in the 2010 full year report.