By
Sveinn Sölvason, President and CEO, comments:
“We delivered solid sales in the third quarter amounting to USD 214 million. Organic sales growth was 7% and local currency growth was 11%. The strong momentum we have seen in EMEA throughout 2024 continued driven by strong performance in Prosthetics & Neuro Orthotics and Patient Care. In our Bracing & Supports business growth was more modest for the quarter.
As of September 1, 2024, US Medicare has expanded access to advanced bionics for K2 patients. Healthcare professionals are currently assessing first patients as part of the replacement cycle through medical documentation that a bionic knee would improve the patient’s functional health outcomes.
Our EBITDA margin came in strong for the quarter at 22%. We continue to see the positive effects from the cost reduction initiatives implemented in manufacturing earlier this year as well as contribution from better product mix and cost control.
We are executing well on our Growth’27 strategy and reiterate our full year guidance of 6-8% organic sales growth and ~20% EBITDA margin before special items.”
Highlights Q3 2024
- Sales amounted to USD 214 million and organic growth was 7%, compared to 7% in Q3 2023. In local currency sales growth was 10% increase including acquisitions and 11% reported growth (USD growth).
- Prosthetics & Neuro Orthotics sales grew by 9%, Patient Care grew 9%, while Bracing & Supports grew by 1% (all organically). EMEA continued to contribute strongly during Q3, whereas performance in Americas remained soft. APAC delivered good growth.
- Gross profit margin was 63%, compared to 62% in Q3 2023. The increase in gross profit can partly be ascribed to cost reduction initiatives in manufacturing implemented during Q1 as well as better product mix and manufacturing efficiency.
- EBITDA amounted to USD 47 million, and EBITDA margin was 22% of sales, compared to 19% in Q3 2023. Increasing gross profit margin and continued cost control contributed to increased profitability.
- Net profit grew by 58% and was USD 22 million with a net profit margin of 10%, compared to 7% of sales in Q3 2023.
- Cash generated from operations amounted to USD 52 million or 24% of sales, compared to 17% of sales in Q3 2023.
- Free cash flow amounted to USD 33 million or 15% of sales, compared to 9% of sales in Q3 2023. Free cash flow was strong in the third quarter with solid operating results.
- NIBD/EBITDA before special items was 2.8x at the end of Q3 2024. Share buybacks continue to be paused.
Other highlights
- During the third quarter we introduced the third generation of our Naked Prosthetics finger device portfolio, while our newly launched bionic knee solutions, NAVii® by Össur and Icon® by College Park continue to be rolled out in selected markets as part of our limited launch program. A full launch of NAVii and Icon is expected early 2025, as previously announced.
- A global team of elite para-athletes who wear Össur’s renowned prosthetics won 22 medals and set five new Paralympic Records during the 2024 Paralympic Games in Paris, with the company’s iconic carbon fiber Cheetah sports blades, easily identifiable by their distinctive yellow stripe, dominating several categories of Athletics competition.
2024 outlook
- We reiterate our full year guidance of 6-8% organic sales growth and ~20% EBITDA margin before special items.
