Smith & Nephew share price: Q2 revenue climbs

on Jul 30, 2015
Updated: Oct 21, 2019
Listen

Smith & Nephew Plc (LON:SN) today updated investors with quarterly results for the three months ended June 30. Following are the highlights from the company’s statement.

**Highlights:**
Q2 Highlights
• Q2 revenue was $1,168 million, up 5% underlying and 2% on a reported basis, with -9% currency headwind partially offset by a 6% benefit from acquisitions
• Advanced Wound Care improvement continues, with revenue up 12%
• Emerging Markets consistently producing double-digit growth
• Strong global Knee Implant performance delivers revenue growth of 7%

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

H1 Highlights
• H1 revenue was $2,272 million, up 4% underlying and 2% on a reported basis, with -9% currency headwind partially offset by 7% benefit from acquisitions
• H1 trading profit was $512 million, up 6% underlying
• Trading profit margin up 70bps at 22.5%
• H1 trading profit to cash conversion ratio improved to 75% (H1 2014: 53%)
• EPSA 39.1¢, up 3%
• Interim Dividend of 11.8¢ per share (2014: 11.0¢)
Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:

“These strong results demonstrate the positive effects of our actions coming through across the Group. Notably, in the second quarter we continued the improvement in Advanced Wound Care, achieved double-digit growth across the Emerging Markets, and delivered our best performance globally in Reconstruction for three years, led by strong US Knee Implants.

“In the first half of 2015, we delivered higher underlying revenue growth, trading profit margin and earnings year-on-year. We made a number of acquisitions, strengthening our technology and product portfolio and Emerging Markets business. Our efficiency programmes are progressing to plan, enhancing the bottom line.

“Where we have invested to improve existing businesses we are beginning to reap the benefits. I am confident we are firmly on-track with our strategy to invigorate the growth profile of Smith & Nephew.”
Outlook

Our guidance for the full year 2015 is maintained. We continue to expect to deliver higher underlying revenue growth in 2015 than in 2014 and a year-on-year improvement in trading profit margin.

As previously guided we expect a significant currency headwind in 2015. If current exchange rates prevail throughout 2015 we would expect a full year currency headwind of -7% on reported revenue.

We are firmly on-track with our strategy to invigorate the growth profile of Smith & Nephew.
As of 07:36 BST, Thursday, 30 July, Smith & Nephew plc share price is 1,135.00p.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Health & pharma Manufacturing Stock Market