Thank you very much. I would like to welcome you to this conference call where we will begin by going through our revised guidance for 2022 and then a brief overview over our preliminary results for quarter two. Then we can go into a Q&A session afterwards. Our revised organic growth guidance for 2022 is now 4%-6%, previously 6%-9% for the full year. Our revised guidance for EBITDA margin before special items is now 18%-20% for 2022, adjusted from our previous estimate of 20%-21%. Currently, we estimate that organic sales growth and EBITDA margin before special items will be around the middle of this new guidance range. Other guidance parameters are unchanged.
Although sales have been strong in many key markets in EMEA and APAC in the first half of the year, sales have been slower than what we expected in Americas. COVID-19 related lockdowns in China have also impacted our sales in that important market. As we previously communicated, sales to Russia have been suspended from February 24 due to the ongoing war. In addition, shortage of certain raw materials and components, primarily for the new POWER KNEE, also had an adverse impact on sales here in the second quarter. It is also worth noting, although not impacting organic growth, are the changes in FX rates, mostly with a stronger dollar towards all other major currencies. Freight rates and raw material inflation are now expected to increase cost of goods sold by $15 million on a full year basis in 2022 from pre-pandemic levels.
$6 million more than was estimated and communicated when the guidance for 2022 was presented. Thereof, around $9 million are related to freight and around $6 million is raw material prices. We did implement sales price increases in quarter one this year and aim to increase prices further in 2022 and 2023. Our assumption is that, over time, we will absorb the beforementioned supply chain cost increases, which are structurally, some of them are temporary in nature. We are having to pay more for expedited freight, for example, as we are moving supplies to our manufacturing locations quicker than due to in a normal market. There are some of these, let us say, price increases that we expect to normalize over time. Preliminary sales in quarter two amounted to $181 million, corresponding to a -1% organic growth and 2% local currency growth.
Preliminary gross profit in the quarter amounted to $111 million and 61% of sales. Preliminary EBIT amounted to $21 million and 11% of sales. Preliminary EBITDA before special items for quarter two amounted to $33 million or 18% of sales. That was a brief introduction and also in line with what we sent out in the preliminary announcement earlier. We will of course go through the quarter in much more detail when we report here Thursday morning. I would like to open it up for questions now, please.
As a reminder, if you wish to ask a question, you will need to press star one on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A queue. As a reminder, star one if you wish to ask a question. We are going now to take the next question. Please stand by. The next question from Thomas Bowers from Danske Bank. Please go ahead.
Yes. Thank you, Thomas from Danske. Just a few questions from my side here. Maybe just going in regards to the U.S., can you maybe add a little bit of color on the slower sales that you see in the U.S.? Is this mostly staffing related? Also, do you have any idea whether this is sort of a more short-term impact that you see? Then maybe the second question just on your gross margin. Can you maybe quantify the impact from FX that you see given that you can say that the peso is closely pegged to the U.S. dollar? Do you have any material impact here? Also given that you are sort of a little bit on the low side on the gross margin for the quarter, and is there any material mix impact also that we should be aware of?
Maybe in regards to the mix impact, maybe on the POWER KNEE, can you just highlight whether the component supply issues have been resolved by now? Or do you see this as a longer-term impact? I think that was basically it. Thank you.
Yeah. Hi, Thomas, and thanks for the questions. Your question regarding the U.S. U.S. was slower than what we anticipated, and in general, the U.S. has been a few sort of steps behind, let's say, normalization if you compare to key markets in Europe, which are all well on their way and normalized, I would say. But U.S. has been sort of a mixed performance. One explanation is, let's say the raw material sort of complications and the supply chain complications did impact us proportionately more in Europe as we launched the POWER KNEE principally in the U.S. market, in addition to a bigger part of our prosthetic sales are complete leg sales. So when we are missing components, all else equal, it creates more slowness on that side of the business.
What we also see in the U.S. is, there is some feedback from customers that there's still slowness in processing claims due back to staffing issues, and some staffing issues and capacity complications in the whole system causing a general slowness across the board. Also, I want to say on the bracing and support side, we did get reports on, let's say, patient volumes dipping a little bit towards the end of quarter two, people relating that back to consumer sentiment, the big picture macro environment where, let's say, leading to less, what can be considered elective surgeries. But still maybe too early to conclude how that will develop going forward. But structurally, reimbursement is still there. The patient volumes are still there. So we are more looking at this as a short term, let's say, slowness in the system rather than something structural.
But it has, of course, had a reasonably big impact on our view for the full year, let's say. I hope that adds some color. In other words, mainly as we look at it now, short term. On the FX side, let's say the peso, our operating cost in Mexico is mainly dollar-based except for wages, which are, let's say, in the bigger scheme of things, not a very big part of our overall costs. I would say what has had an impact on gross profit margin is not just the increase in raw material prices, it's also just the rhythm in our manufacturing organization because we are sort of running lower on certain components which has caused sort of temporary disturbance, let's say, in the normal operating rhythm. So we have less productivity, in addition to these price increases.
Finally on the POWER KNEE, the good news there is that the POWER KNEE is just a major success in terms of this product and functionality and there's a lot of demand for the POWER KNEE. Now, we've not been able to supply the POWER KNEE here in the month of June and expect to be back on track delivering the product towards the end of August. That's what we see now with the communication we have with our vendors around It's principally electronic components. So our assumption and what we've baked into the forecast is that we are again delivering the POWER KNEE towards the end of August.
Okay, that's great. And maybe just to follow up, can I just ask on the price increase, you also did mention it a bit, but has anything changed in your sort of wording on how we should see price increases for the remainder part of this fiscal year? Because now you also highlight 2023, but I guess this is just something that has to do with the longer term contracts. Is that correct? Or is there any different in wording on how you see second half?
Yes. Price is a very big topic for us, and all companies these days. The starting point is that the reimbursement systems that we operate in have largely not made changes in pricing. Medicare did increase prices moderately at the beginning of the year, but that only addresses part of our ultimate payer mix in the U.S. and private insurance has not followed suit. If we look at the major big market for us in Europe, that's Germany, France, Scandi markets, hardly any price increases on behalf of the reimbursement systems as such, even though we have increased prices varying by market from Q1. Our assumption is that we will over time, let's say, capture these pricing, our increase in unit cost through higher pricing, but it's not going to be a linear process. There's a time lag.
Reimbursement systems will have to react and adjust their prices. As I tried to explain earlier, some of the unit cost increase we are seeing is not, we estimate, let's say longer term. There are these staffing issues with many of our vendors, mainly those vendors that we have in the U.S., which are leading to them struggling to supply us at the rate we would like to, leading to us having to use expedited air freight, which is pushing the supply chain cost higher than just the underlying unit cost increases. So some of the supply chain increase in cost we expect to go down also.
Okay. Got it. Thank you very much. That was very helpful.
Thank you so much. Thanks.
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Thank you very much, operator. Thanks everyone for calling in on such short notice. We will go through the quarter in much more detail when we have our conference call on Thursday morning. Thank you very much all for listening in.