Smith & Nephew plc (LON:SN, NYSE:SNN) trading report for the first quarter ended 30 March 2019.
Highlights
· Improved organic revenue growth across Smith & Nephew
o Q1 revenue of $1,202 million (2018: $1,196 million), up 4.4% on an underlying basis (0.5% reported growth after -3.9% foreign exchange headwind)
o All three global franchises accelerated, delivering growth ahead of FY 2018 as we started to benefit from our new commercial model
o Mid-teens growth from the Emerging Markets, led by a strong quarter in China
· Rapid progress in M&A strategy, securing additional growth drivers and building our technology base
o Ceterix Orthopaedics broadens leading portfolio in knee meniscal repair
o Osiris Therapeutics to accelerate growth in Advanced Wound Bioactives
o Leaf Patient Monitoring System supports unique pressure injury prevention portfolio
o Brainlab orthopaedic navigation business adds to digital surgery and robotics ecosystem
· 2019 guidance updated: Increasingly confident that underlying revenue growth will be in the upper half of the guidance range of 2.5% to 3.5%; expected trading profit margin unchanged in the range of 22.8% to 23.2%
Commenting on the quarter, Namal Nawana, Chief Executive Officer, said:
“It’s been a good start to 2019 across the whole of Smith & Nephew.
“All three global franchises delivered improved organic growth as we continued to improve execution; important confirmation that each has the potential to perform sustainably at or above their markets.
“At the same time, we’ve made well-judged acquisitions that bring in new technologies to strengthen leadership positions across the business, which we expect to further accelerate growth over time.
“While recognising that further work remains to achieve the full potential of our portfolio, we are encouraged with our progress towards sustainably delivering above-market growth.”
