Smith & Nephew PLC (LSE:SN) kept its dividend unchanged and guided to solid growth this year as it reported 2023 results in line with improved guidance from last summer.
The hip and knee replacement specialist posted results showing $5.55 billion of revenue for the past calendar year, up 7.2% on an underlying basis and 6.4% reported.
Guidance had been given for 6% to 7% underlying growth.
This followed fourth-quarter growth of 6.4% underlying and 6.8% reported thanks to a currency tailwind.
Trading profit rose 7.6% on a reported basis to $970 million with a 17.5% trading profit margin, exactly in line with guidance.
A final dividend of 23.1 cents per share made sure the full-year dividend was maintained flat at 37.5¢.
For 2024 the board gave new guidance for underlying revenue growth in the range of 5-6%, the same as it gave this time last year, or 4.6-5.6% reported, with the trading profit margin expected to increase to at least 18%.
Chief executive Deepak Nath said the 12-point strategic plan announced in 2022 is “on track” and providing benefits that are expected to more than offset headwinds including continuing inflation and Chinese distributors expected to reduce inventory for the sports medicine joint repair division.
He said “actions to transform Smith+Nephew have begun to translate into meaningful financial outcomes” and that the group has “entered 2024 as a fundamentally stronger business and [we] look forward to delivering another year of robust growth and further margin expansion."