2017-10-24 22:00:13 CEST

2017-10-24 22:00:13 CEST


REGULATED INFORMATION

English
Össur hf. - Interim report (Q1 and Q3)

Ossur Hf : Q3 Results 2017 


Highlights

  * Sales in the third quarter of 2017 amounted to USD 139 million,
    corresponding to 5% growth and 3% organic growth, both measured in local
    currency. Growth in the quarter was negatively impacted by fewer working
    days when compared to Q3 2016, adjusted for this the organic growth amounted
    to 4%. Sales in the first nine months of 2017 amounted to USD 415 million,
    corresponding to 9% growth and 4% organic growth, both measured in local
    currency.
  * Prosthetics grew 5% organically in the quarter but it should be noted that
    the comparable quarter in Q3 2016 was strong with 11% organic growth. Growth
    in the B&S segment was flat in the quarter due to the expected negative
    impact from own distribution companies and slow direct sales in the US.
  * Gross profit in Q3 2017 amounted to USD 87 million or 63% of sales. Gross
    profit has returned to levels comparable with the average of 2016. Gross
    profit in 9M 2017 amounted to USD 258 million or 62% of sales.
  * EBITDA before special items in Q3 2017 amounted to USD 25 million or 18% of
    sales and grew by 4% measured in local currency. Investments in R&D and
    currency headwind put pressure on margins in the quarter. Special items in
    the quarter are related to the efficiency initiatives announced 25 September
    2017. EBITDA before special items in 9M 2017 amounted to USD 73 million or
    17% of sales and grew by 8% measured in local currency.
  * Net profit in Q3 2017 amounted to USD 11 million or 8% of sales. Net profit
    for 9M 2017 amounted to USD 35 million or 8% of sales.
  * Cash generated by operations in Q3 2017 amounted to USD 23 million or 16% of
    sales. Cash generated by operations in 9M 2017 amounted to USD 56 million or
    13% of sales.
  * Össur acquired 969,400 of own shares for approximately USD 5 million in Q3
    2017. In 9M 2017, Össur has acquired 8,688,849 of own shares for
    approximately USD 34 million.
  * Guidance unchanged compared to the guidance issued in relation to the Q2
    2017 results.
  * Össur held a Capital Markets Day on 27 September 2017. Presentation material
    from the event can be found on the Össur corporate website.

Jon Sigurdsson, President & CEO, comments:

"Growth  in the  first nine  months of  the year  is primarily  driven by strong
performance  in  the  prosthetics  segment  which  is  growing organically above
estimated  market  growth.  Furthermore,  we  are  pleased  to  see our high-end
innovative  products performing well in both prosthetics and bracing & supports,
such  as the RHEO KNEE® and Unloader  One®. In September we announced efficiency
initiatives  to  further  increase  profitability  in  our business with planned
savings that will begin to materialize in 2018."

Q3 2017 conference call details

Össur  will host  a conference  call on  Wednesday 25 October  2017 at 9:00 CET/
7:00 GMT/   3:00 EDT.  To  participate  in  the  call  please  dial:  Europe:  +
45 3544 5580, +44 (0) 203 364 5374 or +46 (0) 8 505 564 74, The United States: +
1 855 753 2230, Iceland:  +354 800 7417. A webcast can be  followed on the Össur
website: www.ossur.com/investors.




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