Revenues climb at medical equipment group
Hull-based med tech group, Smith & Nephew, has reported revenues of $2.7bn/£2.1bn (H1 2022: $2.6bn/£2bn), up 7.3% on an underlying basis in its results for the first half ended 1 July 2023.
The group made an operating profit of $275m/£216m (H1 2022: $242m/£191m) and a trading profit of $417m/£328m (H1 2022: $440m/£346m).
Restructuring costs related to the efficiency and productivity work underway across the group totalled $46m/£36.2m.
Deepak Nath, chief executive officer, said: “I am pleased to report strong first half revenue growth across our business.
“The continued outperformance in Sports Medicine and Advanced Wound Management – representing 60% of our business – has continued.
“In Orthopaedics, our actions to improve product supply and execution have increased our ability to benefit from strong elective procedure volumes. Overall, these results have given us the confidence to increase our full year revenue growth guidance.
“Margin development in the first half was in line with our expectations. In the second half, we expect a clear step up in both trading margin and cash generation as we begin to see the benefit of productivity gains and start bringing down inventory levels.”
So far this year, the business has launched 13 new products, with major launches underway in high growth segments including robotics, shoulder replacement and negative pressure wound therapy.
In its 2023 full year outlook, Smith & Nephew has increased its full year underlying revenue growth guidance of 6% to 7% (previously 5% to 6%).
The group has also reported that Anne-Françoise Nesmes intends to step down as chief financial officer during the second quarter of 2024, on a date to be agreed. The Board has launched an external search for her successor.
Nath said: “I would like to thank Anne-Françoise for her leadership and significant contribution to Smith+Nephew.
“She was instrumental in helping the group navigate the financial challenges of the pandemic and in laying the foundation for our transformation under the 12-point plan.
“On a personal note, I have been very grateful for her support and counsel which I know will continue over the coming months.”
Nesmes added: “It has been a privilege to work alongside Deepak and the leadership team and I have every confidence that Smith+Nephew is on a path to stronger performance.
“Given our progress, I feel now is the right moment to reflect and consider my next professional challenge.
“I would like to thank my colleagues for their strong support and dedication, and remain fully committed to continuing our work together until I leave next year.”
