Smith+Nephew FY22 Profit Down, Maintains Dividend; Sees Growth In FY23; Updates Midterm View

(RTTNews) - Medical technology company Smith & Nephew Plc (SN, SNN) reported Tuesday that its fiscal 2022 profit before taxation declined to $235 million from last year's $586 million.

Earnings per share were 25.5 US cents, down from 59.7 US cents a year ago.

Earnings per ADS were 51.0 US cents.

Adjusted earnings per share were 81.8 US cents, compared to 80.9 US cents last year.

Trading profit dropped 4 percent to $901 million from prior year's $936 million. Trading profit margin of 17.3 percent was lower than 18 percent a year ago.

Revenue edged up 0.1 percent to $5.215 billion from $5.212 billion a year ago. Revenue went up 4.7 percent on an underlying basis.

In the fourth quarter, revenue grew 1.4 percent to $1.37 billion from last year's $1.35 billion. Underlying revenue growth was 6.8 percent.

Further, the Board is recommending a Final Dividend of 23.1 cents per share, same as last year. Dividend would be 46.2 cents per ADS. The total distribution for the year would be 37.5 cents per share or 75.0 cents per ADS, unchanged from 2021.

Subject to confirmation at Annual General Meeting, the Final Dividend will be paid on May 17 to shareholders on the register at the close of business on March 31.

Looking ahead for fiscal 2023, revenues is expected to grow in the range of 5 percent to 6 percent on a reported and underlying basis.

Trading profit margin expected to be at least 17.5 percent, above 2022 levels

Further, the company updated midterm targets, expecting underlying revenue growth consistently 5 percent+, compared to (previously expected growth of 4 percent to 6 percent.

Trading profit margin is expected to expand to at least 20 percent in 2025, driven by productivity improvements, while previous view was for 21 percent in 2024.

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