29th Apr 2021 09:01
(Alliance News) - Smith & Nephew PLC on Thursday said it saw double-digit first quarter revenue growth, helped by growth across the board, two extra trading days and currency tailwinds.
Shares in the company were 5.3% higher at 1,563.00 pence each in London early on Thursday, the best blue-chip performer.
The medical devices manufacturer said its first quarter revenue surged 12% to USD1.26 billion from USD1.13 billion a year earlier. Smith & Nephew noted a 3.4% foreign exchange benefit, a 1.9% boost from acquisitions and also said the quarter had "two more trading days".
"All three global franchises returned to growth on a reported and underlying basis," the company said.
Orthopaedics revenue climbed 1.6%, Advanced Wound Management rose 9.3% and Sports Medicine & ENT jumped 10%.
Smith & Nephew reinstated guidance for the year ahead. It expects 2021 underlying revenue growth between 10% and 13%. The outlook assumes market conditions improve in the second half, with surgery levels unhurt by Covid-19.
"Our first priority for 2021 is to return to growth and recapture our pre-Covid momentum, and we are encouraged by our early progress through Q1. This was driven not only by surgery volumes moving towards more normal levels in many markets, but also the benefits from better commercial execution, acquired assets, and recent product launches," Chief Executive Officer Roland Diggelmann said.
"Looking ahead, there is improving visibility as vaccine programmes roll out and healthcare systems reopen. Our approach through 2020 to maintain investment is already demonstrating value and I look forward to seeing further evidence of this as the recovery continues."
By Eric Cunha; [email protected]
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