30th Apr 2015 06:52
LONDON (Alliance News) - Smith & Nephew PLC Thursday reiterated its expectations for 2015 as it saw revenue rise 3% in its first quarter, although the strong dollar held back its performance, and it cautioned that it expects a "significant currency headwind" in 2015.
The medical devices company estimated a hit of around 8% from the stronger dollar in the first quarter, which offset 8% growth contributed by acquisitions.
For the quarter to March 28 the company posted revenue of USD1.10 billion, up from USD1.07 billion a year before. This was boosted by strong revenue growth in Emerging markets, which offset modest revenue growth in the US and challenging markets in Europe, it said.
In terms of businesses lines, the Sports Medicine Joint Repair segment produced revenue growth of 16% in the quarter as it completed the integration of its acquisition ArthoCare and it launched new products.
Smith & Nephew said it continues to expect higher underlying revenue growth in 2015 compared to 2014, and an improved trading profit margin. It expects profitability to be "significantly stronger" in the second half.
If current exchange rates prevail, it expects a 7% currency hit to revenue for the full year.
"We are pleased with our start to 2015 and are on track to make further progress during the year," said Cheif Executive Officer Olivier Bohuon in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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