Smith & Nephew profits, sales jump on US recovery

(Sharecast News) - Medical equipment maker Smith & Nephew on Tuesday posted a sharp jump in full year profit and revenue, driven by a rebound in its US knee and hip implant unit, which offset continuing headwinds in China. Revenue jumped 4.7% to $5.8bn, while operating profit surged 54.6% to $657m. The results follow a profit warning after a third-quarter trading update and pressure from shareholders to break up the group. Fourth quarter revenue was up 7.8% to $1.57bn.

"We finished the year strongly and US Reconstruction was again sequentially better. Our innovation continued to deliver, with more than 60% of revenue growth in 2024 coming from products launched in the last five years," said chief executive Deepak Nath.

"We have launched nearly 50 new products over the last three years and have an exciting pipeline for 2025."

The company said it now expected 2025 underlying revenue growth to be around 5% and first quarter underlying revenue growth of 1% to 2% primarily due to continued China headwinds and one less trading day, with "acceleration thereafter".

Reporting by Frank Prenesti for Sharecast.com