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(Alliance News) - Smith & Nephew PLC on Thursday said it expected full-year revenue growth in the middle of the previously guided range, after foreign exchange headwinds led to a small decline in sales.
For the third quarter, the London-based portfolio medical technology company reported revenue of USD1.25 billion, down 1.6% from USD1.27 billion a year prior. It attributed this to a 600 basis points forex exchange headwind, driven by the strength of the US dollar.
However, it also reported 4.8% underlying revenue growth, attributed to robust performance across "all franchises and geographies".
Smith & Nephew now expects full-year underlying revenue growth in the middle of its previously guided range of 4.0% to 5.0%.
At October 1, consolidated orthopaedics revenue was reported at USD492 million, down 3.0% from USD508 million a year prior. Underlying growth, however, was recorded at 2.1%.
Revenue for sports and ENT medicine was USD382 million, up 0.8% on reported growth from USD379 million, and 7.1% on underlying growth. Smith & Nephew said recent product launches were doing well, including the Fast-Fix Flex meniscal repair system and Werewolf Fastseal 6.0 hemostasis wand.
In advanced wound management, revenue decreased marginally on reported growth by 1.0% to USD376 million from USD379 million, but increased by 6.0% on underlying growth.
During the second half, Smith & Nephew set out a 12-point plan to improve business performance, which focused on fixing orthopaedics, improving productivity, and accelerating growth in advanced wound management and sports medicine.
It said it had executed these goals at pace, recording a number of early successes, including reducing backorders and improving instrument set deployment in orthopaedics.
"While we are still near the start of the journey, and there is much more work to be done, I am pleased with our early progress, and confident that we are on the right track to transform performance," said Chief Executive Officer Deepak Nath.
The company's full-year trading profit margin guidance of around 18% remains unchanged.
Smith & Nephew shares were trading 3.4% higher at 1,040.00 pence each in London on Thursday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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