Smith & Nephew buoyant after results come back positive

MEDICAL technology group Smith & Nephew has seen an increase in revenue and profit as its strategy to rebalance the business takes effect.

Its results for second Q2 2014 reveal the firm, whose UK orthopaedics operation is based at Warwick Technology Park, brought in $1.147bn, 3% more than the corresponding period last year ($1.074bn).

Trading profit was $255m, a 6% increase on the $232m achieved in the corresponding period last year.

The quarter performance was led by sports medicine joint repair, trauma & extremities and orthopaedic reconstruction, with growth rates significantly ahead of the previous quarter.

Advanced wound management revenue growth was flat but emerging & international markets revenue growth remains strong, up 17%

Olivier Bohuon, chief executive officer of Smith & Nephew, said: “We have delivered a good increase in revenues and trading profit, resulting in a 13% uplift in EPSA. 

“We believe this strong performance reflects the execution of our strategy to rebalance the business towards higher growth markets.

“In particular, we drove good growth in sports medicine joint repair and our investment in emerging & international markets has delivered a 17% increase in revenues. In orthopaedic reconstruction we saw an improved performance led by both US knees and hips. 
 
“We also completed the ArthroCare acquisition in the period. I am very excited by the prospects for our expanded sports medicine business.
 
“With half of our revenues now coming from higher growth markets, and a more focused structure, we are well placed to take advantage of the many further opportunities we see.”