Growing demand for hip and knee replacements help Smith and Nephew to growth
Medical equipment manufacturer Smith+Nephew has reported 2.9 per cent revenue growth for the first quarter of 2024, in-line with expected growth.
Reported revenue growth was slightly lower, at 2.2 per cent, due to foreign exchange headwinds.
“Revenue growth in the first quarter was driven by solid performance in our orthopaedics and sports medicine & ENT businesses, partially offset by some anticipated softness in advanced wound management,” Chief Executive Officer Deepak Nath said.
Orthopaedic sales grew by 4.4 per cent over the quarter, thanks to “growth in hip and knee implants outside the US.” Sports medicine grew by 5.5 per cent and treatment of trauma wounds grew by 7.8 per cent.
Revenue in specialist wound management fell by nearly 10 per cent in the first three months of the year.
“We expect the trading profit margin to be higher in the second half than in the first half of the year, although with a less marked step-up than in 2023,” the company said. The company kept its full-year guidance for 2024 unchanged at 5-6 per cent revenue growth.
Smith+Nephew noted a “tough” US environment for surgical business, with revenue in the US down by 0.6 per cent over the quarter.
“Our 12-Point Plan is on-track and the progress in Orthopaedics was again evident from the strong growth across most segments, and we expect the remainder to improve as the year progresses,” Nath said.
“We are confident in our outlook and look forward to all three of our business units contributing as we deliver another year of strong revenue growth,” he continued.
Earlier this year, the company released steady full-year results, despite a slowdown in Chinese demand. Operating profit for 2023 fell to $425m (£335m) from $450m (£356m).
Smith+Nephew’s share price has been relatively stable, although a dip in March pulled it down by 0.7 per cent over the quarter.