Smith+Nephew Q2 Revenue Up 48.2%; On-track To Meet FY Guidance

(RTTNews) - Smith+Nephew (SN.L, SNN), on Thursday, reported second-quarter revenue of $1.34 billion, up 48.2% on a reported basis, compared to the previous year's revenue of $901 million. On an underlying basis, revenue was up 40.3%.

The company noted that all franchises delivered strong growth on 2020 as COVID restrictions eased and levels of elective surgery returned towards normal in many markets.

For the first-half period, the company generated revenue of $2.599 billion versus $2.035 billion last year, an increase of 27.8% on a reported basis and 21.3% on an underlying basis.

Earnings totaled 23.4 cents per share compared to 11.5 cents per share reported in the same period of last year.

Operating profit was $239 million compared to a loss of $5 million incurred a year ago. Trading profit totaled $459 million compared to $172 million in the prior year period. Trading profit margin of 17.6% reflects headwinds relative to pre-COVID levels from increased investment, negative leverage from fixed costs and higher logistics/freight costs.

Looking ahead, the company continues to project FY underlying revenue growth in range of 10.0% - 13.0%; and trading profit margin in range of 18.0% - 19.0%.

Roland Diggelmann, Chief Executive Officer, said, "Looking ahead, we believe we are well positioned to deliver on our guidance for this year. We also remain focused on setting ourselves up for sustainable success in the medium-term, prioritising revenue growth from our R&D pipeline, unlocking further value from acquisitions, and driving commercial and operational excellence."