30th Jul 2015 06:54
LONDON (Alliance News) - Smith & Nephew PLC Thursday reiterated its expectations for its full year and lifted its interim dividend, as it posted a rise in pretax profit for its first half.
The medical devices maker posted a pretax profit of USD411 million for the half year to June 27, up from USD349 million a year before, on revenue of US2.27 billion, up from USD2.22 billion. In its second quarter, revenue rose 2%, hit by around 9% from the strength of sterling, which was offset by a 6% boost from acquisitions.
Smith & Nephew proposed a dividend of 11.8 cents per share, up from 11.0 cents a year before.
The company continues to expect to deliver higher underlying revenue growth in 2015 than in 2014, and a year-on-year improvement in trading profit margin. If current exchange rates continue throughout 2015, it said it expects a hit of around 7% to its full year revenue.
"In the first half of 2015, we delivered higher underlying revenue growth, trading profit margin and earnings year-on-year. We made a number of acquisitions, strengthening our technology and product portfolio and Emerging Markets business. Our efficiency programmes are progressing to plan, enhancing the bottom line," said Chief Executive Officer Olivier Bohuon in a statement.
"Where we have invested to improve existing businesses we are beginning to reap the benefits. I am confident we are firmly on-track with our strategy to invigorate the growth profile of Smith & Nephew," Bohuon added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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