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Smith & Nephew sees the light at the end of the tunnel

Published: 08:10 29 Apr 2021 BST

surgery

Smith & Nephew PLC (LON:SN.) reinstated full-year guidance as visibility is improving thanks to the COVID-19 vaccine rollout programmes and healthcare systems reopening to non-urgent surgery.

The wound care and knee and hip implants specialist is targeting underlying revenue growth of 10-13% and profit margin of 18-19%.

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It expects improvement in trading conditions during the year, with surgery volumes largely unconstrained by the pandemic in the second half.

Current performance is lifted by better commercial execution, acquired assets and recent product launches, chief executive Roland Diggelmann said in a release.

Our first priority for 2021 is to return to growth and recapture our pre-COVID momentum, and we are encouraged by our early progress through the first quarter,” he added.

In the quarter to 3 April, underlying revenue jumped 6% to US$1.2bn,with orthopaedics experiencing strong growth in hip implants and trauma & extremities offset by anticipated weaker performance in knee implants.

The sports medicine segment was driven by the return of elective surgeries in an outpatient setting while advanced wound management benefitted from improved commercial execution.

The US and China both saw sales growth, while Europe was still hit by COVID-19 related volatility.

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