Össur – Third Quarter Report 2010
Announcement Össur hf. No. 20/2010
Reykjavik, 25 October 2010
Sales – Overall sales growth was good, 7% measured in local currency and all segments contributed to growth. Total sales amounted to USD 87 million compared to USD 84 million in the third quarter of 2009. Sales of bracing and supports were strong, growing 12% measured in local currency. Sales of prosthetics were slow in the quarter, growing 3% measured in local currency.
Profitability – EBITDA amounted to USD 19 million or 22% of sales and gross profit amounted to USD 54 million or 62% of sales. Overall margins remain stable. Net profit amounted to USD 4 million compared to USD 5 million for the same period in 2009. Net profit was significantly impacted by negative exchange rate adjustments related to financial items.
Jon Sigurdsson, President & CEO, comments:
“Performance in the bracing and supports segment continues to be good, especially in the US. The product pipeline remains strong and we are pleased to see how the new bracing and supports products are contributing to growth. Amongst new products launched in the quarter is the PROPRIO FOOT which is the second product in Össur’s bionic platform. The Bionic platform has created excitement in the market and we are committed to further development within this field.”
Highlights of the quarter:
PROPRIO Launch – PROPRIO FOOT was launched in the third quarter. PROPRIO FOOT is the second product in the Bionic Platform to be launched. Össur is paving the road for Proprio as this is the first product of its kind. Sales generated from the foot in the third and fourth quarter of 2010 are expected to have immaterial effect on the Company’s total sales for 2010.
Sales of bracing and supports – The bracing and supports segment is growing above the market growth rate. The growth trend in the US is positive and confirms that increased investment in sales coverage in the US is returning. New products in bracing and supports, such as the Miami Lumbar and Rebound Walker, have been well received and are contributing to growth.
Guidance – Management estimates LCY organic sales growth for 2010 to be within the original guided range of 4-6%. EBITDA LCY organic growth is now estimated to be in the range of 5-7% for the year.