Revenue down at global medtech business
Global medtech business, Smith+Nephew has posted its half year results which show that revenue in the second quarter of the financial year was down by 30%.
Its operating loss for the first half amounted to £5m which was down from a £419m profit in the same period last year.
The firm states that its performance improved across the second quarter which ended on 27 June as elective surgeries began to restart after being halted due to lockdown. As a result revenue decline in June was -12% compared with that of April which was down by almost half (-47%).
Despite the operating and trading profit being lower year-on year, the business has maintained investment in R&D resulting in significant new product introductions such as a new robotics platform.
Alongside this the firm has delivered approximately $150m worth of cost saving measures out of a programme of up to $200m for 2020.
The impact of a hold on elective surgeries during lockdown particularly hit the firms orthopaedics franchise with revenue from knee implant reduced by almost 50% to £137m. Similarly its ear not and throat work (ENT) also saw a decline by 45%.
Roland Diggelmann, CEO at Smith+Nephew, said, “I am proud of the way all at Smith+Nephew have managed the pressure of the COVID-19 crisis. We have continued to serve our customers throughout, and were ready as lockdown restrictions easeddelivering an improving performance across the second quarter.
“At the same time, we have taken measures to ensure the Group emerges from this crisis as strongly as possible. These include maintaining our R&D investment, launching new products, protecting jobs, and managing our cost base.
“There remain many uncertainties as countries continue to battle COVID-19, but with our unique portfolio, proven strategy, strong balance sheet and motivated workforce we are ready to take advantage as markets recover.
Look ahead the business has stated that it is encouraged by the improved performance towards the end of the second quarter but that it would not provide any further update on the future due to the continued “significant uncertainty and geographical variation as Covid-19” and its impact on the business’ major markets.