26th Jul 2018 08:46
LONDON (Alliance News) - Smith & Nephew PLC on Thursday reported a rise in interim revenue but a fall in profit, as it progressed a programme designed to generate annualised cost savings of USD50 million.
Shares in Smith & Nephew were up 3.8% at 1,371.50 pence on Thursday, making it the second best performer in the FTSE 100.
Revenue for the first half of the year rose 4.3% to USD2.44 billion from USD2.34 billion, though pretax profit slipped 11% to USD341 million from USD383 million.
The revenue growth included a foreign exchange tailwind of 3%, with sales up 1% on an underlying basis.
Established Markets returned to growth, Smith & Nephew said, with "improved dynamics" across Hip and Knee Implants and strong performance from Sports Medicine and Advanced Wound Devices
Nonetheless, the medical devices maker said it remains on track to deliver its full-year underlying revenue growth guidance of 2% to 3%, and a trading profit margin "at or above" that achieved in 2017.
In the half, the Accelerating Performance & Execution programme, initiated at the end of 2017, incurred restructuring costs - primarily cash - of USD58 million. Smith & Nephew said the actions undertaken should, however, result in annualised benefits of more than USD50 million.
Smith & Nephew declared a dividend of 14 cents per share for the half, up 14% on last year.
"In my first few weeks at Smith & Nephew, I have reviewed our businesses and operations and validated that we have an excellent product portfolio with numerous best-in-class medical technologies. We are now focused on energising and organising the business to accelerate growth," said Chief Executive Namal Nawana.
Related Shares:
Smith & Nephew