21st Feb 2023 08:43
(Alliance News) - Smith & Nephew PLC on Tuesday said it kept its full-year dividend unchanged as it eyed further revenue growth in 2023.
For 2022, the London-based portfolio medical technology company said annual revenue edged up 0.1% to USD5.22 billion from GBP5.21 billion a year ago. Trading profit fell to USD901 million from USD936 million, at a trading margin of 17.3%, down from 18.0% a year ago.
In its Sport Medicine & ENT unit, revenue rose 1.9% to USD1.59 million from USD1.56 million a year ago, while revenue in Orthopaedics dropped by 2.0% to USD2.11 million from USD2.16 million.
Pretax profit fell to USD235 million from USD586 million, as operating profit declined by 24% to USD450 million from USD593 million a year ago. Earnings per share fell to 25.5 cents from 59.8 cents a year ago.
Smith & Nephew declared a full-year dividend of 37.5 cents per share, unchanged from a year prior.
"We continued to outperform in Sports Medicine & ENT and Advanced Wound Management and, even though we are early in our work to fix Orthopaedics, performance improved here too," said Chief Executive Deepak Nath.
In the fourth quarter, revenue grew 1.4% to USD1.37 billion from USD1.35 billion a year before. The company said all three global franchises contributed to this strong finish to the year, and "all accelerated revenue growth over the first nine months".
In 2023, S&N expects underlying revenue growth of 5.0% to 6.0% and a trading profit margin of at least 17.5%. In the longer term, it plans to expand trading profit margin to "at least 20%" by 2025.
Shares were up 3.8% at 1,205.00 pence each on Tuesday morning in London.
By Xindi Wei, Alliance News reporter
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