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2020-01-14 13:51:24

Announcement no. 03/2020
14 January 2020

Revised guidance for 2019 based on preliminary results for Q4 2019

Össur revises its financial guidance due to soft prosthetics sales in the fourth quarter of 2019.The main reasons for soft sales in Q4 2019 are lower than expected sales to a certain customer and soft sales in a few key markets. The slowdown in sales in Q4 2019 is largely considered to be of a temporary nature.

Preliminary results suggest that sales for FY 2019 amounted to USD 686 million, corresponding to 5% organic growth and 16% growth including acquisitions (local currency growth). Preliminary EBITDA before special items for FY 2019 amounted to USD 150 million or 22% of sales. Based on the preliminary results, full year sales are therefore approximately 1% below guidance.

Preliminary sales in Q4 2019 amounted to USD 180 million, corresponding to 1% organic growth and 10% growth including acquisitions (local currency growth). Preliminary EBITDA before special items for the Q4 2019 amounted to USD 37 million or 21% of sales.

The preliminary results have not been audited.

Based on the preliminary results, Össur now expects organic growth of ~5% for FY 2019 (previous ~6%) and EBITDA margin before special items of ~22% for FY 2019 (previous ~23%). Other guidance parameters remain unchanged.

Jon Sigurdsson, President & CEO, comments: "The preliminary results for the fourth quarter are disappointing while sales for the full year are strong with growth of 16% in local currency and 5% organic growth. Despite the temporary slowdown in prosthetics sales in the fourth quarter, we are confident that our market position continues to be strong and we expect continued organic growth in 2020. Profitability for the full year was lower than we expected which can largely be attributed to lower than expected sales in Q4 2019."

For 2020, Össur expects organic growth to continue to be in line or above estimated market growth and continued gradual increase in underlying profitability. The financial guidance will be further specified as part of the 2019 annual report.

Össur will release its Q4 2019 interim report and 2019 annual report as scheduled on 4 February 2020.

Conference call details

Össur will host a conference call today, Tuesday 14 January 2020 at 15.00 CET (14.00 GMT), about the revised guidance and preliminary results. The conference call will be conducted in English.

Link to webcast: https://edge.media-server.com/mmc/p/pp8j5ffd

To participate in the conference call please call one of the following telephone numbers:

DK: +45 35445577
UK: +44 3333000804
SE: +46 856642651
US: +1 6319131422
IS: +354 8007437

PIN CODE to access the call: 42051814#

Further information

David Hreidarsson, Investor Relations, dhreidarsson@ossur.com,+354 515 1380

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About Össur

Össur (Nasdaq Copenhagen: OSSR) is a global leader in non-invasive orthopaedics that help people live a life without limitations. A recognized "Technology Pioneer," Össur focuses on improving people's mobility through the delivery of innovative technologies in Prosthetics and Bracing & Supports, by investing significantly in research and product development to create award-winning designs with consistently strong market positions. Successful patient and clinical outcomes are further empowered via Össur's educational programs and business solutions.  As part of Össur's long-standing commitment to social responsibility, the company has been a signatory to the United Nations Global Compact since 2011, and also participates in the Nasdaq Nordic and Baltic exchanges' voluntary guidelines for Environment, Social and Corporate Governance (ESG). Össur is headquartered in Iceland, with major operations in the Americas, Europe and Asia, and additional distributors worldwide. www.ossur.com