(Alliance News) - Smith & Nephew PLC on Wednesday backed its full-year outlook after growth in its Orthopaedics and Sports Medicine divisions offset weakness in Advanced Wound Management.
Shares in Smith & Nephew rose 3.5% to 1,013.50 pence in London on Wednesday. The wider FTSE 100 was up 0.3%.
In a trading statement, the London-based medical technology company said sales in the first quarter rose 2.2% to USD1.39 billion from USD1.36 billion, or by 2.9% on an underlying basis. This included a 70 basis points foreign exchange headwind.
S&N said growth was in-line with expected 2024 phasing and included one less trading day year-on-year, representing around a 1.5 percentage point headwind in the quarter.
Orthopaedics revenue rose 4.4% on an underlying basis. S&N saw good growth across hip and knee implants outside the US. But it noted continued weakness in US hip and knee implants against tough comparisons.
Sports Medicine & Ear, Nose & Throat revenue rose 5.5% on an underlying basis. S&N reported a robust performance from Sports Medicine Joint Repair supported by prior-year product launches and expansion of REGENETEN, an implant which helps stimulate new tendon-like tissue growth.
But Advanced Wound Management revenue fell 2.0% on an underlying basis. Sustained good growth from Advanced Wound Devices was offset by a decline at Advanced Wound Bioactives due to expected SANTYL volatility following the strong fourth quarter of 2023.
SANTYL is an ointment used to remove damaged tissue from chronic skin ulcers and severely burned areas.
S&N left full-year guidance unchanged. It expects underlying revenue growth in the range of 5.0% to 6.0% and trading profit margin of at least 18.0%.
Chief Executive Deepak Nath said: "Revenue growth in the first quarter was driven by solid performance in our Orthopaedics and Sports Medicine & ENT businesses, partially offset by some anticipated softness in Advanced Wound Management."
"Our 12-Point Plan is on-track and the progress in Orthopaedics was again evident from the strong growth across most segments, and we expect the remainder to improve as the year progresses."
"We are confident in our outlook and look forward to all three of our business units contributing as we deliver another year of strong revenue growth."
By Jeremy Cutler, Alliance News reporter
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