Recently released fourth quarter results from Össur show a 5% increase in net profit over last year and a full year increase of 45%, or $59 million.
Fourth quarter results showed sales of $129 million compared to $128 million in Q4 2013, corresponding to 6% growth and 5% organic growth, both measured in local currency. Bracing and supports sales increased by 2% and 1% organic compared to Q4 2013, while prosthetics sales increased by 13% and 10% organic compared to Q4 2013, all measured in local currency.
Full year results for 2014 showed total sales of $509 million compared to $436 million in 213, corresponding to 18% growth and 5% organic growth, both measured in local currency. Bracing and supports sales increased by 18% and 1% organic compared to 2013, while prosthetics sales increased by 17% and 11% organic compared to 2013, all measured in local currency. Össur recognized a gross profit of $323 million and 64% of sales, compared to $270 million and 62% of sales in 2013 and an increase in EBITDA of 38%, amounting to $104 million or 20% of sales, compared to $75 million or 17% of sales in 2013. Cash generated by operations in 2014 was $98 million or 19% of sales, compared to $73 million or 17% of sales in 2013.
“We closed the year with yet another strong quarter despite adverse currency fluctuations which negatively impacted our operating results. This year has been excellent operationally with strong profitability and cash flow,” Jón Sigurðsson, Össur president and CEO, stated in a company press release. “We have successfully been harvesting from our efficiency improvement projects. Prosthetics sales growth was excellent across all our major markets and product lines with good contribution from the latest bionic product, RHEO KNEE®3. Sales growth in bracing and supports was in line with expectations. Our continued emphasis on increased profitability from product rationalization efforts and focus on selling high end innovative products is yielding promising results.”
Össur also completed two small acquisitions in the Asia-Pacific segment in 2014 and purchased 9,863,578 of its own shares in November, according to the release.
The company’s board of directors will propose to the annual general meeting in 2015 that the company pays a cash dividend of DKK 0.12 per share for 2014, an increase of 20% from 2013, equivalent to 14% of net earnings in 2014. The board also will propose to reduce share capital by cancelling 7,456,755 of the company’s own shares.