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The Markets
by Proactive
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The Markets
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Pharma & Biotech

Smith & Nephew drops guidance as surgical procedures stop amid pandemic

Underlying revenue growth in the quarter to March is expected to drop 8% on 2019

Smith & Nephew PLC (LON:SN.) has withdrawn guidance for 2020 as surgical procedures in the US and Europe are coming to a halt.

In China, which contributed more than half of group organic growth last year, hospital activity had restarted but remains “considerably below” pre-outbreak levels.

READ: Analysts mull Smith & Nephew's big coronavirus assumptions

The medical products manufacturer said underlying revenue growth in the quarter to March is expected to drop 8% on 2019.

Second quarter revenue and first-half trading margin are estimated to come in “substantially down” compared to last year.

As of 31 December, net debt was US$1.6bn, with committed facilities of US$2.9bn plus another US$550mln in senior notes to be drawn in June.

Shares dropped 3% to 1,389.5p on Monday morning.

--Adds shares--

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