EXCELLENT SALES GROWTH
Sales – Sales growth was excellent, 9% measured in local currency with strong contribution from both bracing and supports and prosthetics. Total sales amounted to USD 359 million compared to USD 331 million in 2009. Performance in bracing and supports was strong, with sales gradually increasing during the year resulting in 12% growth measured in local currency. Sales of prosthetics were good, growing 8% measured in local currency.
Profitability – Össur continues to deliver stable margins. EBITDA amounted to USD 74 million or 21% of sales and gross profit amounted to USD 223 million or 62% of sales. Net profit amounted to USD 35 million and 10% of sales compared to USD 23 million and 7% of sales in 2009. Increased profit is primarily driven by sales growth.
Jon Sigurdsson, President & CEO, comments:
“Overall the results for 2010 are very satisfying. The product pipeline has been strong and an important contributor to this year’s success. In 2010 we have seen exciting mechanical solutions, breakthrough bionic products like the PROPRIO FOOT as well as new bracing and support products launched. Excellent sales growth in prosthetics is supported by solid performance in both EMEA and Americas. Success of the bracing and supports segment in Americas is very positive and confirms our strength in this segment.”
Highlights of the year:
- Strong product pipeline – The product pipeline was very strong in 2010. A total of 22 new products were launched including the PROPRIO FOOT which is the second product in the Bionic Platform. Products such as Miami Lumbar and Rebound Walker which were launched during the year contribute to the growth in the bracing and supports segment.
- Expanding sales platform in Americas – Extensive change in the sales structure and strategy in Americas in 2009 is returning good growth in 2010. Investments in distribution channels and increasing the sales coverage, have yielded good results and combined with a strong product pipeline have resulted in the bracing and support segment in Americas growing above the market growth rate.
Guidance 2011 – Management estimates LCY organic sales growth for 2011 to be in the range of 4-6%. EBITDA adjusted is estimated to be in the range of 20-21% for the year.
Conference call tomorrow 8 February at 12:00 CET/ 11:00 GMT/ 6:00 EST
Tuesday 8 February 2011 Jón Sigurðsson, President and CEO, and Hjörleifur Pálsson, CFO, will host a conference call for investors, analysts and shareholders presenting and discussing the results of the fourth quarter and the full year results for 2010. The conference call will be conducted in English and can be heard on Össur’s website: www.ossur.com/investors
To participate in the meeting please call one of the following telephone numbers:
Europe: +44 (0)20 3043 2436 or +46 (0)8 505 598 53
The United States: +1 866 458 40 87
Iceland: 800 8660