Published: 2023-07-25 08:00:00 CEST
Embla Medical hf
Half Year financial report

Össur hf: Interim Report Q2 2023

Announcement no. 15/2023

Interim report Q2 2023

25 July 2023

Sveinn Sölvason, President and CEO, Comments:

“Sales amounted to 201 million and the EBITDA margin was 19% in Q2 2023. Organic growth was 11% driven by strong contribution from all our business segments and regions. We recently introduced our Growth’27 strategy with a growth ambition of 7-10% average local currency growth in 2023-2027. As demonstrated by a strong sales performance for the first half of 2023, we are firmly on track. Our high-end solutions are performing well in line with our Innovative Solutions growth driver, and we see strong volume growth in Prosthetics and Patient Care in line with our Patient Reach & O&P Value Creation growth drivers. Our strategy to provide more patients access to high-end solutions is evident in the results, as bionics as % of Prosthetics sales amounted to 25%, which is among the highest we have seen historically. Strong progress on other key financial parameters with a healthy development in profitability, despite inflation driven cost, and solid cash generation.”

Highlights Q2 2023

  • Sales amounted to USD 201 million in Q2 2023. Sales growth was 13% in local currency and increased by 11% organic.
  • Prosthetics sales grew by 18% organic, Bracing & Supports (B&S) sales grew by 5% organic and Patient Care sales grew by 8% organic in Q2 2023. Growth is attributed to strong volume growth and positive product mix with strong performance in our high-end solutions, in addition to price increases.
  • Gross profit margin was 63% in Q2 2023 compared to 61% in Q2 2022. The gross profit margin is improving in line with increased productivity in manufacturing and some normalization in unit cost, partly attributed to lower freight cost.
  • EBITDA amounted to USD 37 million in Q2 2023, and the EBITDA margin was 19% compared to 18% in Q2 2022. EBITDA margin is increasing in line with strong sales performance and increasing gross profit margin attributed to increased productivity in manufacturing, but partly offset by cost growth mainly due to inflation.
  • Net profit grew by 10% in Q2 2023 and amounted to USD 16 million or 8% of sales.
  • Cash generated by operations is increasing and amounted to USD 33 million or 16% of sales in Q2 2023 compared to 10% in the comparable quarter. Solid cash generation but cash flow adversely impacted by inventory and CAPEX investments.
  • NIBD/EBITDA before special items was 3.1x at the end of Q2 2023, above the target ratio of 2.0-3.0x. In line with Össur’s Capital Structure and Capital Allocation Policy, Össur continues to temporarily pause share buybacks as NIBD/EBITDA before special items is temporarily above the target leverage range.
  • In line with a strong performance in the first half of the year, the financial guidance for the full year 2023 has been updated to 7-8% organic growth (previously 4-8%) and ~5% CAPEX of sales (previously 3-4%). Guidance for EBITDA margin before special items remains unchanged or 17-20% and effective tax rate remains unchanged or 23-24%.
  • Lukas Märklin has been appointed as Chief Operating Officer. Mr. Märklin joins Össur from Straumann and his experience within the global medical device industry makes him well-suited to lead Operations at Össur.

Q2 2023 conference call details

Össur will host a conference call on 25 July 2023 at 9:00 CET / 7:00 GMT / 3:00 ET. To participate in the call please click on this link: Össur Conference Call.

A webcast can be followed on the Össur website: www.ossur.com/investors.

Further information

David Hreidarsson, VP of Investor Relations, IR@ossur.com, +354 661 8225

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About Össur

Össur (Nasdaq Copenhagen: OSSR) is a leading global provider of innovative mobility solutions that help people live a Life Without Limitations®. For over 50 years, Össur has had a strong purpose rooted in positively impacting people’s health and well-being. A recognized “Technology Pioneer”, Össur focuses on improving people’s mobility through the delivery of solutions that advance patient care. Significant investment in research and development has led to over 2,000 patents, award-winning designs, successful clinical outcomes, and steady growth. Össur is committed to sustainable business practices and is signatory to the UN Global Compact, UN Women’s Empowerment Principles, and contributes to the UN Sustainable Development Goals. Össur operates globally and has around 4,000 employees. www.ossur.com

2023 Q2 Ossur Investor Presentation.pdf