Smith & Nephew Raises Revenue Growth Outlook After Strong 1H Performance, Sports Medicine and Wound Management Show Strength

Author: Vandana Singh | August 03, 2023 01:32pm

Smith & Nephew PLC (NYSE:SNN) reported improved revenue, profit, and margin in the first half, progressing towards achieving sustainable higher growth under its 12-point plan.

The medical equipment manufacturing company's 1H revenue rose 5.2% Y/Y (underlying growth of 7.3%) to $2.73 billion, while operating profit climbed to $275 million from $242 million.

Trading profit decreased to $417 million from $440 million. Adjusted EPS slipped to 34.9 cents from 38.1 cents.

For Q2, the company's revenues increased 6.6% (7.8% underlying) to $1.38 billion.

• Orthopaedics revenue is up 5.8% (4.6% reported), reflecting higher procedure volumes, accelerating robotics adoption, and reducing the China VBP headwind.
• Sports Medicine & ENT is up 12.0% (10.4% reported), with strong growth across shoulder and knee repair.
• Advanced Wound Management is up 6.2% (5.5% reported), led by double-digit growth from our negative pressure wound therapy portfolio.

Smith & Nephew, which makes orthopedic implants and prosthetics, wound dressings, and other surgical technologies, also announced that its CFO Anne-Françoise Nesmes will step down during the second quarter of 2024, the board has initiated an external search for a successor.

Guidance: Smith & Nephew increased full-year underlying revenue growth guidance to 6.0%-7.0% (previously 5.0% to 6.0%). 

It left trading profit margin guidance unchanged of at least 17.5%.

Price Action: SNN shares are down 2.84% at $28.47 on the last check Thursday.

Posted In: SNN