(Alliance News) - Smith & Nephew PLC said it expects its fourth-quarter and full-year sales to be hurt by Covid-19 restrictions, which resulted in surgical procedures being postponed.
The FTSE 100 medical devices manufacturer stated it expects to post a fourth-quarter underlying revenue decline of around 7.0%. It said sales were hurt by increased rates of Covid-19 infection from mid-October onwards, particularly in the US and Europe, as surgical procedures unconnected to the pandemic were postponed following the reintroduction of restrictions.
Smith & Nephew added that annual underlying revenue is expected to have declined by around 12%. The company reiterated trading profit margin will be substantially lower year-on-year, with negative operating leverage due to lower volumes partially offset by cost control measures.
It posted a trading profit margin of 22.8% in 2019 and revenue of USD5.14 billion.
Shares in Smith & Nephew were trading 2.9% lower at 1,572.50 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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