4th Nov 2021 08:40
(Alliance News) - Medical equipment maker Smith & Nephew PLC on Thursday said it is on track to deliver at the low end of its full-year guidance due to the Delta variant of coronavirus, as well as supply constrains.
For the third quarter of 2021, revenue rose 5.5% to USD1.27 billion, and grew 2.3% on an underlying basis. The reported revenue increase included benefits from acquisitions and foreign exchange, the London-based company noted.
Sports Medicine & ENT revenue totalled USD379 million, up 8.3% year-on-year, driven by continued strong joint-repair performance. Advanced Wound Management revenue was USD379 million in the quarter, up 12% year-on-year, with all sub-franchises growing.
Orthopaedics revenue, however, slipped by 0.7% to USD508 million, reflecting impact of Delta variant in US and supply constraints.
For the first nine months of the year, group revenue growth was up 20%, or 14% on an underlying basis.
"Third quarter performance included the impacts of the Delta variant, which we expect to be less in the final quarter, and continued supply constraints," the medical devices maker said.
As a result, Smith & Nephew said it is on track to deliver at the low end of its full-year guidance ranges. For 2021, the underlying revenue growth guided range was 10.0% to 13.0%, and trading profit margin guided range was 18.0% to 19.0%.
Smith & Nephew shares were outperforming in London early Thursday, trading 2.4% higher at 1,323.00 pence each while the broader FTSE 100 index was up just 0.3%.
By Evelina Grecenko; [email protected]
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