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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 sort of a brief overview of our preliminary results for quarter 2. And then we can go into a Q&A session afterwards.
Our revised organic growth guidance for 2022 is now 4% to 6%, previously 6% to 9% for the full year. And our revised guidance for EBITDA margin before special items is now 18% to 20% for 2022, adjusted from our previous estimate of 20% to 21%. Currently, we estimate that organic sales growth and EBITDA margin before special items will be around the middle of this new guidance range, and other guidance parameters are unchanged.
Now 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. And then as we previously communicated, also sales to Russia have been suspended from 24th of February due to the ongoing war.
Now in addition, shortage of certain raw materials and components, primarily for the new Power Knee, also have an adverse impact on sales here in the second quarter. And it's also worth noting, although not that impacting organic growth, there are the changes in FX rates, mostly with a stronger dollar towards all other major currencies.
Now freight rates and raw material inflation, now -- are now expected to increase cost of goods sold by $15 million on a full year basis in '22 from pandemic levels, $6 million more than was estimated and communicated when the guidance for '22 was presented.
There are around $9 million related to freight and around $6 million is raw material prices. Now we did implement sales price increases in quarter 1 this year and aim to increase prices further in '22 and '23. And our assumption is that, let's say, over time, we will absorb the before mentioned supply chain cost increases, which are structurally sort of some of them are temporary in nature, like 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.
So there are some of these, let's say, price increases that we expect to normalize over time. Now, preliminary sales in quarter 2 amounted to USD 181 million corresponding to minus 1% organic growth and 2% local currency growth. Preliminary gross profit in the quarter amounted to $111 million and 61% of sales and preliminary EBIT amounted to $21 million and 11% of sales.
Preliminary EBITDA before special items for quarter 2 amounted to $33 million or 18% of sales. That was a brief in production 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. But I'd like to open it up for questions now, please.
[Operator Instructions] We are going now to take the next question. Our next question is from Thomas Bowers from Danske Bank.
Yes, thank you. Thomas from Danske. So just a few questions from my side. So -- so maybe just going to -- in regards to the U.S., can you maybe add a little bit of color on the store sales that you see in the U.S.? Is this mostly staffing related? And also, do you have any idea whether there's sort of a more short-term impact that you see?
And then maybe the second question, just on your gross margin. So can you maybe quantify the impact from FX that you see given that you can say that the peso is closely pegged the U.S. dollar. So do they 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? And maybe in regards to the mix impact, is there any -- maybe on the Power Knee, can you just highlight whether the supply -- component supply issues have been resolved by now? Or do you see this as a longer-term impact? So I think that was basically it. Thank you.
Yes. Hi, Thomas, and thanks for the questions. Now 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 with -- if we compare to key markets in Europe, which are all well underway 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 launch the Power Knee principally in the U.S. market, in addition to the bigger part of our Prosthetics sales are complete [ Leg ] sales. So when we are missing components that all is 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 general slowness across the board. Also, I want to say on the Bracing & Supports side, we did get reports on, let's say, patient volumes dipping a little bit towards the end of quarter 2. People relating that back to sort of 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 that there's some -- how that will develop going forward.
But structurally, I mean, 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. Yes. So yes, in other words, mainly sort of as we look at it now, short term.
On the FX side, let's say the peso -- let's say, 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 cost, I would say. What has had an impact on gross profit margin is not just the increase in raw material prices, is 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 a normal operating rhythm. So we have less productivity in addition to these price increases.
Firstly, on the Power Knee, which is, let's say, 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 needs. Now -- we are -- as 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 principally electronic components. So our assumption and what we 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 a little 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 difference in wording on how you see second half?
Yes. I mean price is a very big topic us and all companies these days. Now 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. And if we look at the major big market for us in Europe, Germany, France, Scandi markets, hardly any price increases on behalf of the reimbursement system as such, even though we have increased prices varying by market from quarter 1.
Our assumption is that we will over time, let's say, capture these pricing -- let's say, our increase in unit costs 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 the prices. And as I tried to explain earlier, some of the unit cost increase we are seeing is not we estimate, let's say, longer term. I mean there are the staffing issues with many of our vendors, mainly in 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 -- lead into us having to use expedited [ airfreight ] 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.
Thank you for your question. [Operator Instructions]
There are no question at the moment.
Thank you very much, operator, and 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.