OTTOBOCK CONTINUES SUCCESSFUL GROWTH TRAJECTORY
Organic growth in all regions complemented by acquisitions in strategically important future fields
Ottobock, the global healthtech company, successfully continued its growth trajectory in the 2021 financial year. The company significantly increased its revenue by around 13 percent to EUR 1.19 billion (2020: EUR 1.05 billion). The underlying EBITDA* increased to EUR 234 million (2020: EUR 216 million). The operating EBITDA margin** remained at around 20 percent.
“Our double-digit revenue growth in a very challenging environment in light of the coronavirus pandemic confirms our strong position and successful strategy as a European healthtech champion in wearable human bionics,” says Philipp Schulte-Noelle, CEO of Ottobock. “From prosthetics and neuro-orthotics to bionic exoskeletons we are improving the quality of life of people all around the world and enabling them to regain or maintain their freedom of movement.”
Double-digit growth rates in all regions and targeted acquisitions
Ottobock achieved double-digit growth rates in all regions (Western Europe, North America and the rest of the world) in the 2021 financial year. The strongest organic growth driver in 2021 was in prosthetics. For example, Ottobock successfully launched a new version of the microprocessor-controlled knee prosthesis Kenevo. In addition to organic growth in all regions, Ottobock tapped additional revenue potential through targeted acquisitions in strategically important growth areas, particularly in the NeuroMobility and Exoskeleton business.
Ottobock has strengthened its position in the future field of NeuroMobility with the Swedish start-up Exoneural Network, that has developed the innovative “Exopulse Mollii Suit” for mobilization when suffering from muscle diseases such as stroke, cerebral palsy, and multiple sclerosis.
With the acquisition of the U.S. exoskeleton specialist suitX, Ottobock has become a leading global provider of exoskeletons and is thus ideally positioned for the future dynamic growth in this market.
Ottobock has been granted 170 new patents in 2021
For more than a century, Ottobock has been driving innovation to improve treatment outcomes. In 2021, the company invested 7.4 percent of its revenue in R&amp;D (previous year: 6.9%). The company holds 1,950 granted patents and has about 770 additional patents pending. Among them are numerous technical innovations for Paralympic Sports. In 2021, Ottobock has been granted 170 new patents.
Patient care processes are becoming increasingly digital and sustainable
Ottobock is continuously making progress in the digitalization of its care processes. For example, the company has also introduced the “MyCro Band Cranial Helmets” in the U.S. after the successful launch in France. These digitally customized and 3D-printed baby helmets correct a deformed head shape in infants. Each month, Ottobock provides the products to hundreds of babies on both sides of the Atlantic.
Ottobock also offers orthopaedic technicians a holistic platform solution for the fabrication of transtibial prostheses. The process starts with the fast and precise scanning of the residual limb (“iFab EasyScan”), followed by intuitive modification in the 3D scan software and, eventually, the use of test and definitive fittings with an individual, precisely fitting prosthesis, the “MyFit TT socket”. This process also reduces the consumption of gypsum, a regular by-product in the process of conventional socket fabrication.
Sustainability also plays an important role in the further development of the offering for orthopaedic technicians. With the “GreenLine”, Ottobock has designed a product line combining materials that are more environmentally friendly and less harmful to the health of orthopaedic technicians during processing compared to existing products. Ottobock relies on an innovative phthalate-free hardening powder, which marks the beginning of a new generation of materials that ideally combine functionality and occupational safety.
Confident in an uncertain geopolitical environment
“Russia's attack on Ukraine as well as inflation and disrupted supply chains create very high uncertainties for the economic development. However, from today's perspective, we are confident that we will be able to continue our growth trajectory in the 2022 financial year,” says Philipp Schulte-Noelle, CEO of Ottobock.
As part of the strategic development of Ottobock's organizational structure, the 2021 financial figures were reported according to the international IFRS standard for the first time. “With the conversion of our accounting, we have reached another important milestone to be ready for the capital market. With this step, we create the prerequisite for us to have all options in hand at the right time to optimally foster our future growth,” says CFO Kathrin Dahnke.
* Underlying EBITDA: EBITDA adjusted for extraordinary items.** Operating EBITDA margin: ratio of underlying EBITDA to revenues.