1st Nov 2018 08:09
LONDON (Alliance News) - Smith & Nephew PLC on Thursday reconfirmed its annual guidance and said revenue increased in the third quarter of the year due to strong performances from its Reconstruction and Sports Medicine franchises.
Shares in the company opened 5.5% at 1,344.00 pence, the best performer in FTSE 100 Index.
For the three months to September 29, the medical & technology business posted revenue of USD1.17 billion, up from USD1.15 billion the year before.
Sports Medicine, Trauma & Other proved Smith & Nephew's leading franchise, with revenue reaching USD476 million from USD462 million.
Reconstruction also performed well in the quarter, recording USD374 million in revenue versus USD368 million the year before.
Advanced Wound Management was Smith & Nephew's weakest franchise in the quarter, with revenue dropping to USD319 million from USD322 million.
Geographically, the US and emerging markets proved strongest for the medical technology company.
Revenue from the US grew to USD569 million from USD545 million in the quarter, and emerging markets improved to USD207 million from USD200 million.
However, other established markets, including Europe and Japan, declined to USD393 million from USD407 million.
Smith & Nephew said that it is moving to a new global commercial structure aimed at unlocking value through specialist global franchises.
For 2018, the company expects underlying revenue growth be in the lower half of the 2% to 3% range and trading profit margin to exceed that of 2017 due to a favourable legal settlement and cost controls.
Reported revenue growth rate for 2018 will also include an approximately 1% benefit from foreign exchange and its acquisition of Rotation Medical.
"Improved underlying revenue growth in the third quarter was led by growth in the US and Emerging Markets. We are on-track to deliver our full year guidance," said Smith & Nephew Chief Executive Namal Nawana.
"These results were achieved whilst successfully redesigning how we will run the company. There is still more to do, and I am pleased with the pace of progress and engagement across the organisation," Nawana added.
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