Please note that the Annual General Meeting of Össur hf. held on 13 March 2024, approved the name change of the Össur hf. parent organization to Embla Medical hf.
Introduction
Letter from the CEO
Patients Are The Driving Force
As we reflect on the past year, we can be proud of our progress and unwavering commitment to improving people‘s mobility. Our collective efforts have seen us realize a strong financial performance underpinned by positive momentum in all regions and business segments.
We held our Capital Markets Day in Copenhagen in March 2023 and proudly introduced our Growth’27 strategy and ambition of 7-10% average local currency growth over the Growth’27 period of 2023-2027. We also began reporting according to our new sales segmentation; Prosthetics, Bracing & Supports and Patient Care.
Central to our Growth’27 strategy is our commitment to reach more people with our mobility solutions. We will drive accelerated organic growth by focusing on Patient Reach, Innovative Solutions and O&P Value Creation, in addition to pursuing Bracing Simplified. These pillars are further enabled by sustainability, scalability and our talented people.
Our strategy to provide more patients access to high-end solutions is evident in our bionic sales in 2023 being among the highest ratios of Prosthetics sales we have ever had. The growing ratio is driven by our recently launched Power Knee™ in addition to a strong performance in other bionic products. This achievement fuels our commitment to the ongoing development of our innovative bionic solutions. During the year we launched a new Proprio Foot®, a proven bionic ankle which is now waterproof with additional functional benefits contributing to a better quality of life for lower limb amputees.
Introduction
2023 in Brief
Össur is a leading global provider of innovative mobility solutions with focus on improving people’s mobility through the delivery of Prosthetics, Bracing & Supports and accompanying Patient Care. Helping people live a Life Without Limitations® is why we exist as a company.
Strategic Progress
We introduced our new strategy, Growth’27, in March. Our growth drivers delivered good results and we remain confident in our strategic choices.
Innovative Solutions
13% organic sales growth in Prosthetics
O&P Value Creation
20% increase of prosthetics sales via the Össur Portal
Patient Reach
8% organic sales growth in Patient Care
Bracing Simplified
3% organic sales growth in Bracing & Supports
Sustainability Progress
Sustainability is embedded into our strategy and throughout our organization. In 2023, we continued our ambitious climate actions and established compliance status to the upcoming EU Corporate Sustainability Reporting Directive (CSRD).
Science-Based Targets
Submitted emissions reduction targets to the Science Based Targets initiative for validation
Towards CSRD Compliance
Completed Double Materiality Assessment and Gap Analysis on CSRD compliance
Suppliers Sustainability Survey
Supplier Survey on Environmental Sustainability completed
Responsible for Tomorrow
Launched a Responsible for Tomorrow® program to strength our sustainability governance
Performance Highlights
Performance in 2023
Net sales
786
719
Sales growth, organic
9%
4%
5-8%
Gross profit margin
62%
61%
EBITDA
139
114
EBITDA margin
18%
16%
EBITDA, before special items
139
128
EBITDA margin, before special items
18%
18%
19-20%
CAPEX as % of sales
5.4%
4%
3-4%
Effective tax rate
23%
23%
23-24%
Net sales
Sales growth, organic
Gross profit margin
EBITDA
EBITDA margin
EBITDA, before special items
EBITDA margin, before special items
CAPEX as % of sales
Effective tax rate
Sales in 2023 by Business Segment
of sales
USD 384 million
Organic growth: 8%
FTEs: ~1,500
of sales
USD 336 million
Organic growth: 10%
FTEs: ~1,600
of sales
USD 65 million
Organic growth: 10%
FTEs: ~200
9%
18%
36%
2.8x
HQ FTEs: ~700
Female in management positions
Electricity from renewable sources
Incident rate per 100 FTEs
50% Male, 50% Female
74%
Submitted
Growth'27 Strategy
Our Strategy
Growth’27 is our five-year strategy focusing on reaching more people that need mobility solutions. The strategy addresses key industry themes and supports our evolution of being an increasingly patient driven company. Our aim is to drive accelerated organic growth and continue to generate value for individuals and healthcare systems.
Becoming Increasingly Patient Driven
Over the years, Össur has been transitioning from becoming a product company to an increasingly patient-centric organization, primarily focusing on chronic mobility categories where individuals require lifelong solutions but also individuals who have suffered acute injuries necessitating short-term solutions. This transition offers opportunities by having direct access to patients, payers, and providers but also addresses a broader set of chronic mobility categories.
Growth Drivers
Patient Reach, Innovative Solutions, and O&P Value Creation are the three growth drivers that form the basis of Growth’27. They address our prioritization to become increasingly patient driven and to cater for the needs of individuals with chronic mobility challenges. In other words, they guide our strategic priorities within Prosthetics and Patient Care.
We continue to drive growth in Bracing & Supports in line with our Bracing Simplified strategy, which was first implemented in 2021, by being a trusted partner for our customers through the delivery of a simplified and strong product portfolio.
Patient Reach
We connect directly with patients and reach out to payers and prescribers.
Innovative Solutions
We embrace innovation in all our actions. We provide innovative & patient-centric solutions combining product & service.
O&P Value Creation
We offer business solutions to our customers, including O&P clinics enabling seamless service & close partnership.
Outlook
Guidance for 2024
Sales growth, organic
5-8%
9%
EBITDA margin before special items
19-20%
18%
For modeling purposes:
Special items
1
0
CAPEX as % of sales
3-4%
5%
Effective tax rate
23-24%
23%
Sales growth, organic
EBITDA margin before special items
For modeling purposes:
Special items
CAPEX as % of sales
Effective tax rate
