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01 Nov 2018 | 07:59

Smith & Nephew post 3% rise in Q3 sales, confirm FY guidance

Global medical technology business Smith & Nephew reported a 3% increase in third-quarter underlying revenue and reconfirmed its full-year guidance as it implemented a new global commercial model.

The firm said on Thursday that growth in its US and Emerging Markets segments had supported the 3% increase to $1.169bn,

"We expect underlying revenue growth to be in the lower half of the 2-3% range and, as a result of a favourable legal settlement and improved cost control, trading profit margin to be above that achieved in 2017," CEO Namal Nawana said.

However, revenue declined 1% in its Other Established Markets, where Europe was negatively impacted by challenging conditions in Germany and the UK, while revenue from its Advanced Wound Bioactives franchise fell 7%.

Looking forward, the Group did not believe the UK's decision to leave the EU would have a significant impact on its long-term ability to conduct business into and out of the EU or UK. It was making "good progress" with preparations of the various scenarios.

In order for the company to leverage its strength as a portfolio medical device company and unlock its growth potential, it was implementing a new global commercial model. Under this, a president would be responsible for each of its three specialised global marketing franchises - Orthopaedics, Sports Medicine/ENT and Wound. Aligned with and supporting the franchises would be presidents and regional commercial organisations for Europe, Middle East, and Africa (EMEA), and Asia Pacific (APAC), while the franchise presidents would also have commercial responsibility for the US.

Story provided by StockMarketWire.com
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