Ottobock doubles profit and raises forecast on strong half-year results

Prosthetics manufacturer Ottobock has reported a significant surge in its financial performance, more than doubling its profit in the first half of the year.

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The company grew both in business with patients and with corporate customers.

The company, based in Southern Lower Saxony, Germany, announced that its net profit climbed from 28 million euros to 67.3 million euros compared to the same period last year. Revenue also saw a healthy increase of over six percent, reaching 854.1 million euros.

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Growth driver was the Europe business, which also accounts for about three-quarters of the revenue.

Ottobock attributed its growth to increased demand from both individual patients and corporate clients. The European market, which accounts for approximately three-quarters of the company's revenue, was a key growth driver, alongside positive developments in the crucial U.S. market. The company also noted a rise in demand from Russia and Ukraine, though this segment represents a small portion of its overall European business. Ottobock has consistently stated it does not conduct business with the military in Russia.

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The business in the important US market also developed positively.

Buoyed by these strong results, Ottobock has slightly raised its forecast for the current year. It now expects revenue growth in its core business (excluding the recently announced sale of its wheelchair division) to be between 6% and 8%, up from the previous projection of 5% to 8%. The company also anticipates its leverage ratio to fall below 2 by year-end, despite a slight increase in the first half due to acquisitions. The company's stock also saw a positive reaction, rising to 60.9 euros.

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Increased demand from Russia and Ukraine is also noticeable.