EMBLA MEDICAL HF. Announcement no. 16/2023
Interim report Q3 2023
Sveinn Sölvason, President and CEO, Comments:
"Sales amounted to 193 million, with 7% organic growth, and the EBITDA margin was 19% in Q3 2023. Organic growth was 9% in the first nine months, driven by a strong contribution in all our business segments and regions. We continue to be on track to deliver on our ambition to grow 7-10% in average local currency growth in 2023-2027, in line with our recently launched Growth'27 strategy. We see strong volume growth within Prosthetics and
Highlights Q3 2023
- Sales amounted to
USD 193 million in Q3 2023. Sales growth was 8% in local currency and increased by 7% organic. -
Prosthetics sales grew by 12% organic, Bracing & Supports (B&S) sales grew by 1% organic and
Patient Care sales grew by 5% organic. Growth is attributed to strong volume growth and positive product mix with strong performance in our high-end solutions, in addition to price increases. -
Net profit grew by 107% and amounted to
USD 14 million or 7% of sales. It should be noted that the comparable period is impacted by the expense of special items in Q3 2022. - Gross profit margin was 62% compared to 61% in Q3 2022 (63% excluding special items). The gross profit margin was positively impacted by strong sales growth, positive product mix, and lower freight cost but adversely impacted by higher unit cost, time-lag in reimbursement, and investments in Össur Leg.
-
EBITDA amounted to
USD 36 million , and the EBITDA margin was 19% compared to an EBITDA margin before special items of 20% in Q3 2022. EBITDA margin remains stable at 18% year-to-date compared to last year. -
Cash generated by operations amounted to
USD 34 million or 17% of sales compared to 12% of sales in Q3 2022. Solid cash generation but inventories remain high due to build-up of bionic components in line with sales performance. -
Free cash flow amounted to
USD 17 million or 9% of sales compared to 7% of sales in Q3 2022. Free cash flow impacted by CAPEX investments due to expansions in key locations and higher interest payments than in the comparable quarter last year. - NIBD/EBITDA before special items was 2.9x at the end of Q3 2023, within the target ratio of 2.0-3.0x. Össur continues to pause share buybacks.
- The financial guidance is unchanged or 7-8% organic sales growth, 17-20% EBITDA margin before special items, ~5% CAPEX as % of sales, and 23-24% effective tax rate.
Q3 2023 conference call details
Össur will host a conference call on
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
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