Smith & Nephew first-half profit rises, reiterates full-year guidance
Smith & Nephew posted a 4% rise in first-half revenue and a 6% gain in underlying trading profit amid continued improvement in its Advanced Wound Care business, growth in emerging markets and a strong global performance in its reconstruction unit.
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Revenue for the first half ended 27 June came in at $2.27bn from $2.22bn, while trading profit was up at $512m from $484m.
The trading profit margin was 22.5%, up 70 basis points from the first half last year, in part reflecting the phase of efficiencies and investments in the first half over the second.
Adjusted earnings per share, meanwhile, were 39.1 cents, up 3% from 38.1 cents last year.
The company, which makes artificial hips and knees, said it was firmly on track with its strategy to invigorate its growth profile.
In the second quarter, it said it built on the good start to the year delivered last quarter, with revenue of $1.17bn compared with $1.15bn in 2015.
The company maintained its guidance for the full year and said it continues to expect higher underlying revenue growth in 2015 than in 2014 and a year-on-year improvement in trading profit margin.
As previously guided, it expects a significant currency headwind in 2015. If current exchange rates prevail throughout 2015, the company anticipated a full-year currency headwind of -7% on reported revenue.
Chief executive officer Olivier Bouhon said: "In the first half of 2015, we delivered higher underlying revenue growth, trading profit margin and earnings year-on-year. We made a number of acquisitions, strengthening our technology and product portfolio and Emerging Markets business. Our efficiency programmes are progressing to plan, enhancing the bottom line.”