5th May 2016 07:03
LONDON (Alliance News) - Smith & Nephew PLC Thursday said overall revenue has grown during the first quarter of 2016 with the majority of its divisions reporting a rise in the period, and said its full year targets remain unchanged.
The medical technology business said overall revenue in the first quarter of the year rose 3.0% to USD1.13 billion from USD1.10 billion a year earlier, with that revenue rising 4.0% on an underlying basis.
The two largest divisions, Sports Medicine & Trauma and Reconstruction, both reported revenue growth of 3.0% and 8.0% respectively in the first quarter compared to a year earlier, but the smallest division, Advanced Wound Management, reported a 3.0% fall in revenue.
Sports Medicine & Trauma revenue rose to USD468.0 million from USD454.0 million, driven by US revenue rising 11% whilst other regions saw sales fall 2.0%. All of the sub-divisions of that unit reported revenue growth, apart from Trauma & Extremities which saw revenue fall 8% year-on-year.
Reconstruction revenue rose to USD387.0 million from USD360.0 million, with US revenue growing 9.0% and revenue from elsewhere rising 5.0%. The Knee Implant unit of that division saw revenue rise by 12.0% whilst Hip Implant revenue increased by 1.0%.
The Advanced Wound Management division saw revenue fall to USD282.0 million from USD290.0 million, with US revenue rising 1.0% whilst revenue from other geographical areas remained flat. Two sub-divisions saw revenue fall by around 4.0% in the period, but the Advanced Wound Devices unit reported a 6.0% lift in first quarter revenue.
"Our full year outlook for the group remains unchanged. We expect to deliver continued good underlying revenue growth as we benefit from our investments in existing businesses, acquisitions and pioneering technologies," said the company.
Shares in Smith & Nephew were down 2.1% at 1,140.00 pence shortly after market open Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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