Highlights Q2 2014
* Net profit increased by 106% and amounted to USD 17 million or 13% of sales,
compared to USD 8 million and 8% of sales in Q2 2013.
* Sales amounted to USD 133 million compared to USD 106 million in Q2 2013,
corresponding to 23% growth and 3% organic growth, both measured in local
* Bracing and supports sales growth compared to Q2 2013 was 30% while organic
sales growth declined by 1%, both measured in local currency.
* Prosthetics sales growth compared to Q2 2013 was 15% and 8% organic, both
measured in local currency.
* Gross profit amounted to USD 85 million and 64% of sales, compared to USD
65 million and 61% of sales in Q2 2013.
* EBITDA amounted to USD 29 million and 22% of sales, compared to USD 15
million and 14% of sales in Q2 2013.
* Cash generated by operations amounted to USD 25 million and 19% of sales,
compared to USD 11 million and 11% of sales in Q2 2013.
Revised Guidance for 2014
The company has decided to revise the guidance for 2014 due to strong growth in
prosthetics sales, increased efficiency in operations and effects of two small
acquisitions. The new guidance for the full year of 2014 is as follows:
* Total sales growth LCY in the range of 16-18% (previously 14-16%)
* Organic sales growth LCY in the range of 3-4% (previously 2-4%)
* EBITDA margin in the range of 19-20% of sales (previously 17-19%)
* Capital expenditures in the range of 2.5-3.5% of sales (unchanged)
* Effective tax rate around 26% (unchanged)
Jón Sigurðsson, President & CEO, comments:
"I'm pleased to present strong performance in the first half of 2014. We have
successfully built on the good start of the year by delivering robust profits in
this quarter. Our cash flow from operations also continues to be solid. Sales in
EMEA continues to be good and the performance of our recently acquired companies
is in line with our expectations. Prosthetics sales growth in the quarter is
excellent, primarily driven by bionic products, yet again confirming the success
of the bionic platform we have built."
Össur will host a conference call on Friday 25 July 2014 at 12:00 CET/ 10:00
GMT/ 6:00 EDT.
To participate in the call please dial: Europe: +44 (0) 203 364 5374 or +46 (0)
8 505 564 74,
The United States: +1 855 753 2230, Iceland: +354 800 8660