3 November 2022
Q3 Highlights1,2
· Q3 revenue of $1,250 million (2021: $1,266 million), representing underlying revenue growth of 4.8% (600bps FX headwind resulted in reported decline of -1.2%)
· Orthopaedics revenue up 2.1%. Excluding China, Orthopaedics grew 5.6%
· Sports Medicine & ENT up 7.1%, with recent product launches performing well
· Advanced Wound Management up 6.0%, maintaining recent strong performance
2022 Full Year Outlook1,2
· Full-year underlying revenue growth currently expected in middle of previously guided range of 4.0% to 5.0%
· Unchanged trading profit margin guidance of around 17.5%
Strategic and Operational Update
· 12-point plan to improve execution and drive Strategy for Growth underway, focused on fixing Orthopaedics, improving productivity, and accelerating growth in Advanced Wound Management and Sports Medicine
o Teams and structures embedded and KPIs established
o In Orthopaedics, improved logistics contributed to a reduction in overdue orders and improved instrument set utilisation during the quarter
· Continuing cadence of new product launches and publication of clinical evidence
Deepak Nath, Chief Executive Officer, said:
“We delivered 4.8% underlying revenue growth in the third quarter, with all franchises and geographies contributing, and are on track to deliver our full year guidance.
“Last quarter we set out our 12-point plan to improve business performance. We are executing at pace and have recorded a number of early successes, including reducing backorders and improving instrument set deployment in Orthopaedics.
“We also continue to deliver innovative new products and build on the value of our technology. During the quarter we became the first company to receive FDA approval for robotics-assisted revision knee surgery, launched a superabsorbent wound dressing, and published compelling new rotator-cuff repair data for REGENETENâ—Š.
“While we are still near the start of the journey, and there is much more work to be done, I am pleased with our early progress, and confident that we are on the right track to transform performance.”
Enquiries
| Investors | |
| Andrew Swift | +44 (0) 1923 477433 |
| Smith+Nephew | |
| Media | |
| Charles Reynolds | +44 (0) 1923 477314 |
| Smith+Nephew | |
| Susan Gilchrist / Ayesha Bharmal | +44 (0) 20 7404 5959 |
| Brunswick |
Analyst conference call
A conference call to discuss Smith+Nephew’s third quarter results will be held today at 8.30am GMT / 4.30am EDT, details of which can be found on the Smith+Nephew website at https://www.smith-nephew.com/results/ .
Forward calendar
The full year results will be released on 21 February 2023.