Prosthetic sales growth was flat in the third quarter of 2015 for Össur, according to recently released financial results.
Sales were equivalent to $117 million, compared with $127 million for the third quarter of 2014. Gross profit amounted to $74 million or 63% of sales, and earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $25 million or 22% of sales. The third-quarter gross profit for last year was $81 million and 64% of sales, and EBTIDA was $29 million or 23% of sales.
According to a company press release, net profit was equivalent to $14 million or 12% of sales, compared with $16 million or 13% of sales in the third quarter of 2014. Cash generated by operations amounted to $23 million or 20% of sales. Cash generated by operations last year was $33 million or 26% of sales.
Sales growth in local currency was 3%, and bracing and supports (B&S) sales grew by 5% in local currency. According to the release, financial results were significantly affected by the strengthened dollar. The company estimated that sales were negatively impacted by $11 million and the EBITDA by $2 million. The company’s financial guidance is unchanged, with total sales growth in local currency predicted in the range of 4% to 6% and an effective tax rate around 26%.
“The results of the quarter are in line with expectations,” Jón Sigurðsson, Össur president and chief executive officer, stated in the release. “As in previous quarters there is an adverse impact from currency fluctuations. B&S sales were good in all markets, driven by growth of high-end innovative products. Prosthetics growth was flat; however, we are comparing to an exceptionally strong quarter last year.”