Smiths Group plc (LON:SMIN) has announced its trading statement for the third quarter, and nine months, to 3 May 2024.
Third quarter organic revenue growth1 advanced to +7.7% bringing organic revenue growth for the nine months to 3 May 2024 to +5.2%. This strong growth was delivered against a record nine-month FY2023 comparator of +13.4%. The third quarter period this year benefited from four extra trading days and adjusting for this, the organic revenue growth on a comparable basis was +6.1% (YTD 4.6%).
As a result of the Group’s performance progression and a strong order book, we are again reaffirming our FY2024 guidance of full-year organic revenue growth of 4-6%, with continued margin expansion.
The third quarter performance reflected strong demand in John Crane, Smiths Detection and Flex-Tek aerospace and the gradually improving market conditions in Flex-Tek construction and Smiths Interconnect.
· John Crane continues to see strong demand and delivered high single digit organic revenue growth in the quarter.
· Smiths Detection continues to deliver against its order book with low double-digit organic growth in the quarter, and ongoing high levels of installation activity.
· Flex-Tek saw continued strength in aerospace and is seeing a gradual recovery in US construction, resulting in marginal organic growth in the quarter.
· Smiths Interconnect also delivered marginal organic growth in the quarter.
Roland Carter, Smiths Group Chief Executive Officer, commented:
“In my first quarter as CEO, I am pleased to report that organic revenue growth stepped up, as we expected. We continued to deliver strong results, building further on last year’s record performance and our solid first half. Our strategy of accelerating growth, improving execution and investing in our people is driving performance. I would like to thank all my colleagues across the Group for their commitment and contribution.
“Our strong results for the year to date, together with our visibility for the final quarter, gives us confidence in our full-year guidance of organic revenue growth in our medium-term target range of 4-6%, with continued margin expansion.”
FY2024 results
Smiths Group will publish its results for the year ending 31 July 2024 on Tuesday, 24 September 2024.
| 1 Organic revenue growth excludes the effects of foreign exchange and M&A. |
