Smith & Nephew (LON:SN) has updated investors on its full-year performance this morning.
Highlights from the company statement:
2016 Full Year Highlights
· Reported revenue growth up 1%, including -1% FX impact. Underlying revenue growth up 2%
· Operating profit margin of 17.2% is before one-off $326 million gain from Gynaecology disposal
· Trading profit margin of 21.8% reflects previously disclosed transactional FX headwind, loss of leverage from lower sales growth and investment in Blue Belt, offset by efficiencies
· Tax rate of 26.2% reported and 23.8% on Trading results includes benefit of one-off US tax settlement
· Proposed Full Year dividend of 30.8¢ per share, maintained in-line with prior year. Equates to 24.8p per share, up around 20% in sterling at current exchange rates.
· Stronger revenue growth expected in 2017, with reported revenue increasing by 1.2%-2.2% (at prevailing exchange rates) and underlying revenue increasing by 3%-4%
· Improvement in 2017 Trading profit margin expected in the 20-70bps range.
Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
"Whilst we still delivered growth in 2016 it was not at the level we had wanted. However, I was pleased with our 2016 performance in areas such as Sports Medicine and Knee Implants, where we maintained strong momentum. Market conditions in China and the Gulf States together shaved more than a percentage point of growth off the Group in 2016. China returned to growth in the second half, as did the Emerging Markets as a whole.
"I am confident we now have the right structure and capability in place and are focused on improving execution across the Group, with a clear set of actions underway. Beyond this, with our innovative products and deep customer relationships, we are well set to deliver a stronger performance generating higher revenue growth and a better trading profit margin in the future."