Smith+Nephew Q3 Revenues Rise; Lifts FY19 Underlying Revenue Growth View

(RTTNews) - Medical technology business Smith+Nephew Plc (SN.L, SNN) reported Thursday that its third-quarter revenue increased 6.5 percent on a reported basis and 4 percent on an underlying basis.

In its trading update, the company said it recorded positive momentum across all three global franchises.

In the third quarter, the reported revenues had 390 basis points benefit of acquisitions that outweighed 140 basis points of currency headwind

Orthopaedics delivered 3.4 percent revenue growth, maintaining good momentum established in the first half. Sports Medicine & ENT delivered 6.9 percent revenue growth. Further, Advanced Wound Management revenue grew 2.1 percent.

The company continued to record mid-teens growth from the Emerging Markets, led by strong growth in China.

Further, the company updated its forecast for fiscal 2019. The company now expects underlying revenue growth in the range 3.5 percent to 4.5 percent compared to previous outlook of a growth of 3 percent to 4 percent

The trading profit margin is now expected to be around 22.8 percent, while previous view was between 22.8 percent and 23.2 percent.

Graham Baker, Chief Financial Officer, said, "We've built momentum across the first nine months of the year and, at the same time, continued to invest behind our commercial teams and acquisitions to support sustained success over the medium-term. As a result, we're confident to increase 2019 revenue guidance again."