- Third-quarter revenue up 7.7%
- Full-year growth forecast increased
- New finance chief appointed
Medical products-maker Smith & Nephew (SN.) was one of the top gainers in the FTSE 100 on Thursday, up 5% after delivering strong third-quarter growth and raising its full-year outlook.
Underlying revenue for the three months to 30 September grew 7.7% to $1.4 billion driven by broad-based growth across the firm’s three franchises.
The shares have lost around 15% in 2023 and trade at half their peak level of 2019.
Product launches and business improvements saw Orthopaedics revenues increase 8.3%, with a strong showing from Trauma and Extremities.
Revenue from Sports Medicine and ENT (Ear Nose and Throat) increased 11% despite continued weakness in China, while performance in Advanced Wound Management was mixed with underlying revenue up 3.6%.
WHAT DID THE COMPANY SAY?
Chief executive Deepak Nath commented: ‘We saw strong growth in the third quarter, continuing the momentum from the first half of the year.
‘Performance was broad-based, and I am particularly pleased by the step-up in Orthopaedics as we start to see the real impact from our improving execution under the 12-Point Plan.
‘Overall, I am encouraged that our actions to transform Smith+Nephew to a consistently higher growth company are starting to deliver.’
The company raised its full-year sales growth guidance to the top end of the range between 6% and 7% which is above the current consensus of 6.4%.
Whether a nudge-up in sales will translate into upward earnings revisions remains to be seen. Over the last few months, earnings estimates have remained flat.
NEW FINANCE CHIEF
Smith & Nephew has appointed John Rogers, the former chief financial officer of WPP (WPP), to replace outgoing chief financial officer Anne Francoise Nesmes, who announced her intention to step down on 3 August 2023.
Prior to serving as chief financial officer at WPP, Rogers was chief financial officer at grocer Sainsbury’s (SBRY) while also serving as chief executive of Argos, Habitat and Sainsbury’s clothing and merchandising businesses.
Chairman Rupert Soames said: ‘John is a highly regarded CFO with a proven track record operating around the world and across a number of industry sectors.
‘His extensive experience in transformation and capital markets is especially important given Smith+Nephew's focus on driving greater shareholder value.’
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