Össur has revised its forecast for the remainder of 2014 due to a 26% increase in third-quarter profits compared to 2013 as well as a 21% growth in sales overall, according to recently published third quarter results.
“We are pleased to deliver another quarter with strong profitability and our best cash flow to date,” Jon Sigurðsson, Össur president and CEO, stated in a company press release.
The revised forecast for year-end includes a total sales growth of 18% to 19%, previously 16% to 17%; organic sales growth of 4% to 5%, previously 3% to 4%; and earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 20% to 21%, previously 19% to 20% of sales. All forecast figures are measured in local currency.
Highlights of the third quarter results include a 19% increase in the sale of bracing and supports; a 23% increase in prosthetics sales; a gross profit of $81 million, compared to last year’s gross profit of $65 million; a 30% increase in EBITDA; and $33 million of cash generated by operations, in comparison with last year’s $24 million.
“We are seeing continued excellent prosthetics sales across all our major markets and product lines,” Sigurðsson stated. “Our results in bracing and supports are in line with expectations. Our emphasis on increased profitability from product rationalization efforts and focus on selling high-end innovative products is yielding promising results.”
The company introduced eight new products or product upgrades in its third quarter: five bracing and supports products and three prosthetics products. Overall, 19% of the company’s prosthetics sales was attributed to bionic products, according to the published results.