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(Sharecast News) - Smith & Nephew upgraded its annual revenue growth guidance again on Thursday as it posted a rise in third-quarter revenue.
In an update for the three months to 28 September, the company said underlying revenue was up 4%, while reported growth was 6.5% as the benefits of acquisitions offset a 140 basis points currency headwind.
The orthopaedics business saw 3.4% revenue growth, while the sports medicine and ENT division delivered 6.9% revenue growth during the quarter. Revenue in advanced wound management was up 2.1%, an improvement on the second quarter, the company said.
The emerging markets business remained strong, with revenue up 16%, led by a "stand-out" performance in China, while Osiris delivered a second quarter of double-digit growth following acquisition.
The group lifted its guidance for full-year underling revenue growth by 50 basis points to between 3.5% and 4.5%. However, it also cautioned that 2019 trading profit margin will be around 22.8%, which is at the lower end of the previously guided range. S&N said this reflects the decision to continue to invest in opportunities to support medium-term growth, dilution from acquisitions, and a small foreign exchange headwind in the second half of the year.
Chief financial officer Graham Baker said: "We're pleased to have delivered organic revenue growth of 4% in the third quarter, a further step towards growing at or above our markets.
"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."
30 Aug 2023 08:04
IN BRIEF: Smiths Group buys US firm Heating & Cooling Products
Smiths Group PLC - London-based engineering firm - Acquires Heating & Cooling Products Inc, a Ohio-based manufacturer of heating, ventilation and air conditioning products. Smiths is paying USD82 million on a cash and debt-free basis for HCP, which recorded USD69 million in revenue in the 12 months that ended July 31. Smiths doesn't provide HCP's recent earnings but says the acquisition is done at 7x multiple to HCP's estimated 2023 earnings before interest, tax, depreciation and amortisation. HCP will be integrated within the Flex-Tek division of Smiths. The UK company says the acquisition expands its presence in the North American HVAC market, highlighting HCP's axial and radial seal duct technology, which improves energy efficiency.
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