Net profit increased by 45% for Össur in 2014, according to recently released fourth quarter results. The company announced an increase of $59 million, or 12% of sales, over $41 million in 2013.
Sales for the fourth quarter amounted to $129 million, compared to $128 million in the third quarter of 2013, corresponding to 6% growth and 5% organic growth, both of which were measured in local currency.
“We closed the year with yet another strong quarter despite adverse currency fluctuations, which negatively impacted our operating results,” Jón Sigurðsson, Össur president and CEO, stated in a company press release. “This year has been excellent operationally with strong profitability and cash flow.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 7% in 2014 and amounted to $26 million, or 20% of sales, in comparison with $24 million or 19% of sales in 2013. Cash generated by operations was $29 million or 23% of sales, an amount equal to that in 2013. Bracing and support sales growth was 18% and 1% organic, while prosthetics sales growth was 17% and 11% organic.
“Prosthetics sales growth was excellent across all our major markets and product lines,” Sigurðsson stated. “Sales growth in bracing and supports was in line with our expectations. Our continued emphasis on increased profitability from product rationalization efforts and focus on selling high-end innovative products is yielding promising results.”
According to the release, Össur’s financial guidance for 2015 includes total sales growth of 4% to 6%, organic sales growth of 3% to 5%, EBITDA margin in the range of 20% to 21% of sales, capital expenditures in the range of 2.5% to 3.5% of sales and an effective tax rate around 26%, all measured in local currency.