3rd Nov 2016 11:19
LONDON (Alliance News) - Medical devices maker Smith & Nephew PLC on Thursday reiterated its guidance for 2016 as it said revenue rose by 1% in the third quarter of 2016.
Smith & Nephew reported consolidated revenue of USD1.12 billion for its quarter to October 1st, up 1% from the quarter to September 26, 2015. On an underlying basis, which adjusts for acquisitions, disposals and movements in exchange rates, revenue rose by 2%.
The company said that the sale of its Gynaecology business in August reduced its reported revenue growth rate by around 1%.
It saw 2% revenue growth in the US in the quarter and 6% growth in emerging markets, but this was offset by a flat performance in its other established markets.
By franchise, Smith & Nephew saw 8% revenue growth in its Sports Medicine Joint Repair segment, and 2% growth in its Arthroscopic Enabling Technologies. Advanced Wound Care revenue fell 2%, as weakness in China and Europe offset a strong performance in the US.
In its Advanced Wound Bioactives franchise, revenue fell 3%, and Smith & Nephew said it now expects flat revenue for this segment in 2016.
Smith & Nephew said that, as it had stated in July at its interim results, it expects positive trends in its Reconstruction and Sports Medicines, as well as an improvement in China, to continue. However, it expects this to be somewhat offset by the Gulf States and the Advanced Wound Bioactives segment.
As it has previously guided, Smith & Nephew expects its second half trading profit margin to exceed what it delivered in the first half, as usual, although this will be held back by "negative operational gearing reflecting sales growth levels".
"The third quarter saw a continuation of many of the trends seen in the previous period. Underlying revenue was up 2%, led by strong global growth of 8% in Sports Medicine Joint Repair and 4% in Knee Implants. We drove revenue up 6% in the Emerging Markets, with China returning to growth," said Chief Executive Officer Olivier Bohuon in a statement.
"We are greatly encouraged by the positive customer reaction to recent product launches, such as new camera and COBLATION systems in Sports Medicine and the extension of our JOURNEY II Total Knee System. The expansion of our NAVIO robotics platform is progressing at pace and it promises to be another successful acquisition," Bohuon added.
Shares in Smith & Nephew were down 2.6% at 1,124.00 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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