Smith & Nephew expects strong full-year results after solid Q3

(Sharecast News) - Smith & Nephew has said that sales growth is now expected to be at the top end of guidance after a strong third quarter, though it did warn that margins would likely not grow as much as hoped. The medical equipment manufacturing company said third-quarter revenues were up 7.7% on an underlying basis at $1.36bn,

Strong sales increases in the Orthopaedics (+8.3%), and Sports Medicine and Ear, Nose and Throat (+11.1%) divisions was partly offset by weaker growth in Advanced Wound Management (+3.6%).

Underlying revenues for the full year are now expected to be "towards the higher end" of the guided range of 6-7%, which had already been upgraded at the half-year stage from 5-6%.

Trading profit margins, however, are now expected to be "around 17.5%", reflecting headwinds in China. This was a slight change from earlier guidance of "at least 17.5%", and compares with a trading profit margin of 17.3% in 2022.

"We saw strong growth in the third quarter, continuing the momentum from the first half of the year," said chief executive Deepak Nath.

"Performance was broad-based, and I am particularly pleased by the step-up in Orthopaedics as we start to see the real impact from our improving execution under the 12-Point Plan."