Smith & Nephew (LON:SN) has updated investors on its first-quarter performance this morning.
Highlights from the company statement:
· Revenue $1,142million, flat on a reported basis after -2% impact from Gynaecology disposal and -1% currency headwind. Revenue up 3% on an underlying basis
· Emerging markets returned to double digit growth with revenue up 13% on a reported and 12% on an underlying basis
· Strong revenue growth continues in Knee Implants, up 4% reported and 5% underlying
· Advanced Wound Management reported revenue down -1% reported and up 1% underlying, with expected weakness in Advanced Wound Bioactives offset by a strong quarter from Advanced Wound Devices
· Smith & Nephew is on-track to deliver 3-4% underlying revenue growth for full year
Commenting on Q1, Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
"I am pleased with the start of 2017, which was in-line with our expectations. In particular, performance in the Emerging Markets was good, returning to double-digit growth, with China up 14% underlying. Our innovative new products, such as the LENS◊ camera and WEREWOLF◊ COBLATION◊ systems, have been well received, and we look forward to the imminent full market release of the Total Knee Application on our NAVIO◊ robotics-assisted surgery system."
"Over the last few years we have successfully put in place the right structures and capabilities to make the Group stronger, simpler, more agile and efficient. We continue to focus on execution and expect to see progress through the year."
Our full year outlook for underlying revenue growth in the 3%-4% range and a 20-70bps improvement in Trading profit margin remains unchanged.
On a reported basis, we expect 2017 revenue growth to be in the range of 1.6%-2.6% based on prevailing exchange rates at the end of April and reflecting the 80bps headwind from the disposal of the Gynaecology business.
Over the last few years we have successfully put in place the right structures and capabilities to make the Group stronger, simpler, more agile and efficient. We continue to focus on execution and expect to see progress through the year.