# Smith & Nephew reports Q4 revenue of $1,458 million, up 6.4%

- Link: https://www.directorstalkinterviews.com/smith-nephew-reports-q4-revenue-of-1458-million-up-6.4/4121144571
- Published: 2024-02-27T07:36:40+00:00
- Author: Amilia Stone

**Smith+Nephew plc** (LON:SN, NYSE:SNN), the global medical technology business,
has reported results for the fourth quarter and full year ended 31 December 2023:

|  |  |  |  |  |  |  |  |  | 
| ** ** | ** ** | **_31 Dec_** | ** ** | **_31 Dec_** | ** ** | **_Reported_** | ** ** | **_Underlying_** | 
| ** ** | ** ** | **_2023_** | ** ** | **_2022_** | ** ** | **_growth_** | ** ** | **_growth_** | 
| ** ** | **    ** | **_$m_** | **    ** | **_$m_** | **    ** | **_%_** | ** ** | **_%_** | 
| **Fourth Quarter Results^(1,2)** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | 
| Revenue | ** ** | 1,458 |  | 1,365 |  |  6.8 |  |  6.4 | 
|  | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | 
| **Full Year Results^(1,2)** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | 
| Revenue |  | 5,549 |  | 5,215 |  |  6.4 |  |  7.2 | 
| Operating profit |  | 425 |  | 450 |  |  |  |  | 
| Operating profit margin (%) |  | 7.7 |  | 8.6 |  |  |  |  | 
| EPS (cents) |  | 30.2 |  | 25.5 |  |  |  |  | 
|  |  |  |  |  |  |  |  |  | 
| Trading profit |  | 970 |  | 901 |  |  |  |  | 
| Trading profit margin (%) |  | 17.5 |  | 17.3 |  |  |  |  | 
| EPSA (cents) |  | 82.8 |  | 81.8 |  |  |  |  |

**Q4 Trading Highlights****^(1,2)**

·    Q4 revenue of $1,458 million (2022: $1,365 million), up 6.4% on an underlying
basis. Reported growth of 6.8% was after 40bps FX tailwind

**Full Year Financial Highlights****^(1,2)**

·    Revenue of $5,549 million (2022: $5,215 million), up 7.2% on an underlying 
basis, ahead of guidance. Reported growth of 6.4% was after -80bps FX headwind

o  Orthopaedics underlying growth up 5.7%, setting foundations for further improvement

o  Sports Medicine & ENT underlying growth up 10.0%, including headwind from slow
China market

o  Advanced Wound Management delivered 6.4% underlying revenue growth, maintaining
momentum from prior year

·    Trading profit up 7.6% on a reported basis to $970 million (2022: $901 million)
with 17.5% trading profit margin (2022: 17.3%), in line with guidance. Reported 
operating profit was $425 million (2022: $450 million)

·    Cash generated from operations of $829 million (2022: $581 million) with improved
trading cash flow of $635 million (2022: $444 million)

·    EPSA 82.8¢ (2022: 81.8¢), EPS 30.2¢ (2022: 25.5¢)

·    Full year dividend of 37.5¢ per share (2022: 37.5¢ per share)

**Strategic Highlights**

·    12-Point Plan on-track with progress starting to translate into financial outcomes

·    Innovation strategy driving higher growth and delivering a strong pipeline 
of new products

·    Acquisition of CartiHeal, strengthening leadership in Sports Medicine biological
healing **

**Outlook****^(1,2)**

·    Positive operating leverage and 12-Point Plan benefits expected to more than
offset headwinds including continuing inflation, -70bps from China Volume Based 
Procurement (VBP) within Sports Medicine Joint Repair, and transactional foreign
exchange

·    2024 guidance: underlying revenue growth expected in the range of 5.0% to 6.0%(
4.6% to 5.6% reported), and trading profit margin expected to be at least 18.0%

·    Midterm targets unchanged

> **Deepak Nath, Smith & Nephew Chief Executive Officer, said:**
> “I am pleased with our overall performance in 2023, as our actions to transform
> Smith+Nephew have begun to translate into meaningful financial outcomes. We delivered
> revenue growth ahead of guidance for the full year and made important improvements
> to our trading profit margin against a challenging macro-environment.
> “Our 12-Point Plan is on track. While there is more to do to enhance our performance
> in US reconstruction, our Orthopaedics business is progressing along a clear improvement
> path. 2023 was another year of good growth for our Sports Medicine & ENT and Advanced
> Wound Management businesses.
> “Our investment in innovation continues to deliver, with almost half of our 2023
> growth coming from products launched in the last five years. We were pleased to
> add major launches in robotics, shoulder arthroplasty and negative pressure wound
> therapy to the portfolio during the year.
> “We have entered 2024 as a fundamentally stronger business and look forward to
> delivering another year of robust growth and further margin expansion.”

**Analyst conference call**

An analyst conference call to discuss Smith & Nephew’s fourth quarter and full year
results will be held 8.30am GMT / 3.30am EST on 27 February 2024, details of which
can be found on the Smith+Nephew website at https://www.smith-nephew.com/en/about-
us/investors.

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