Medtech business plots ‘transformational’ strategy for growth

Hull-based medical technology business, Smith+Nephew, has reported H1 revenue of $2.6bn/£2.1bn, up 3.5% on an underlying basis, in its results for the second quarter and first half ended 2 July 2022.

Smith+Nephew also recorded pre-tax profits of £204m (H1 2021: £223m).

The business achieved quarter two revenues of $1.3bn/£1bn up 1.2% on an underlying basis.

Two of the business’s three franchises delivered revenue growth in the quarter, with Sports Medicine & ENT up 1.9% (-2.4% reported) and Advanced Wound Management up 3.8% (-1.3% reported).

Growth from Sports Medicine was significantly impacted by recent COVID-related lockdowns in China. Advanced Wound Management delivered growth across all regions and segments. Revenue from Orthopaedics declined -1.1%

Deepak Nath, chief executive officer, said: “Our fundamental competitive position is strong, and we have a clear right to win in all three franchises through product differentiation and proprietary platform technologies.

“And, importantly, delivery is well on-track in two of the three franchises, providing 60% of our revenue.

“Orthopaedics continues to be held back by execution and supply chain challenges. In the last three months, I have reviewed the business and, together with the team, we have developed a comprehensive plan to drive better execution at pace.

“Our focus is on delivering our transformational strategy. We will drive operational benefits in Orthopaedics, as soon as this year, and build on our strong positions in Advanced Wound Management and Sports Medicine & ENT.”

The company says it is continuing to invest in its manufacturing and supply chain operations to drive productivity.

During the first half it opened its new high technology orthopaedics manufacturing facility in Malaysia and announced plans for a new R&D and manufacturing facility for Advanced Wound Management in the UK.

Smith+Nephew adds it is also closely managing the impact of the widely reported global shortages of some raw materials and components.