Smith & Nephew plc (LON:SN), the global medical technology business, has announced that it expects a fourth quarter underlying1 revenue decline of approximately -7%. Sales were impacted by increased rates of COVID-19 infection from mid-October onwards, particularly in the US and Europe where more procedures were postponed following the reintroduction of restrictions.
As in previous months, the impact was most pronounced on our Orthopaedic Reconstruction, Sports Medicine and ENT businesses, driven by lower levels of elective surgery. Our Advanced Wound Management and Trauma businesses remained more resilient.
Full year underlying revenue is expected to have declined approximately
-12%. As previously stated, the trading profit margin will be substantially down year-on-year, with negative operating leverage due to lower volumes partially offset by cost control measures.
Throughout 2020 we continued to serve customers, develop and launch new products and make acquisitions, whilst prioritising the health and wellbeing of employees.
Further detail of the trading performance, including franchise and regional sales performance, trading profit margin, and a review of our strategic progress in 2020, will be provided with Smith & Nephew’s fourth quarter and full year results, scheduled for 18 February 2021.