Össur – Second Quarter Report 2012

26 July 2012

Össur – Second Quarter Report 2012

Announcement Össur hf. No. 22/2012
Reykjavik, 25 July 2012

MODERATE SALES GROWTH

Sales – Sales growth was moderate, 3% measured in local currency. Total sales amounted to USD 103 million compared to USD 105 million in the second quarter of 2011. Sales growth for bracing and supports was moderate or 4%, measured in local currency. Sales growth in prosthetics was flat or 1%, measured in local currency.

Profitability – Net profit amounted to USD 10 million or 10% of sales. EBITDA amounted to USD 19 million or 19% of sales and gross profit amounted to USD 64 million or 62% of sales.

Jón Sigurðsson, President & CEO, comments:
“We are pleased to announce that the SYMBIONIC LEG, introduced last year is now available in all main markets. The introduction has been successful and feedback from users very positive. Sales growth in the second quarter was moderate. Overall performance is affected by weak prosthetics sales in Americas. Conservative sentiment in the US prosthetics market, due to audits from the reimbursement systems, continues to affect customer behavior. Performance in other major markets is however good, especially for prosthetics in EMEA and in Asia where we had excellent growth in the quarter.”

Full commercial launch of SYMBIONIC LEG – The SYMBIONIC LEG, the latest addition to Össur’s Bionic Platform, is now available in all main markets. The SYMBIONIC LEG unites the proven capabilities of RHEO KNEE and PROPRIO FOOT into a single integrated unit offering unprecedented functionality for above knee amputees. This revolutionary new product is the first of its kind in the world.

Oscar Pistorius selected for the South African national athletics team – The South African sprinter Oscar Pistorius is the first amputee sprinter to be selected to compete among able-bodied athletes on the world stage. Often called “Blade Runner“, Oscar competes on Össur‘s Flex-Foot Cheetah prosthetic legs and has been selected to compete in the individual men’s 400m and 4x400m relay on behalf of Team South Africa.

Global Marketing - To increase Össur’s competitive edge in a changing market more focus will be on effectively communicating the outcomes of Össur’s solutions. To facilitate this and further add value to Össur‘s customer experience a global marketing division has been established that will function across divisions and geographical locations.

Guidance 2012 – The guidance for the full year of 2012 is organic LCY sales growth in the range of 4-6% and adjusted EBITDA margin in the range of 20-21% of sales. However, due to current negative sentiment in the Americas prosthetic market and slowdown in prosthetics sales in the region, management expects the results of 2012 to be in the lower end of the guided range, both in terms of sales and EBITDA.