Össur: Key takeaways: CEO conf. call - ABG

Considerable cuts in travel expense expected long-term
Today we had the pleasure of hosting CEO Jon Sigurdsson, for our ABGSC conference call. On the call Jon provided an update on the latest Q2 results, which saw a strong sales recovery in all segments leaving the CEO comfortable with current FY’21 guidance. The CEO furthermore elaborated on some potential long-term effects of COVID. While COVID has been predominantly negatively impacting the company for the past year and a half, it has led the company to revaluate its cost base, to manage costs in line with sales recovery. And while most costs are returning to pre-COVID levels, in line with sales recovery, the travel expenses have been considerably cut down and is expected to remain well below the pre-COVID benchmark in the long-term. This is due to the company’s ability to operate in an equally efficient manner, with the use of online tools such as teams etc.

Sales recovery well under way
Looking at short term and long term growth drivers, Jon confirms that in the short term, we are seeing especially the B&S segment benefitting from the lifting of restrictions, as this segment is very reliant on “accidents” incurring in e.g. skiing, proving a direct example of the Alpine region, which he states in a normal year will see ~ 70.000 injuries a year, however during COVID they largely did not happen. In the long term, the growth drivers will be linked to the strategies presented at the CMD and tech-trade up to bionics, which he believes will grow more significantly post COVID as it requires more physical fittings etc. Furthermore, overall, the health economics continue to support the uptake in bionic prosthetics.

COVID impact not completely over, but outlook is solid
While COVID continue to have some negative impact on the business, e.g. increased freight costs, Jon confirms that the business is on the right track of getting back to a new normal, with share buyback reinstatement likely not far out in the future. He furthermore continues to see a strong, long-term outlook for the O&P market.

Länk till analysen i sin helhet: https://www.introduce.se/foretag/ossur/Equity-research/2021/8/ossur---key-takeaways-ceo-conf.-call/