Smith & Nephew PLC (LSE:SN) said pre-tax profit more than doubled in 2021, helped by strong sales in its sports medicine & ENT and wound care segments, all of which delivered revenue higher than in pre-Coronavirus (COVID-19) 2019.
The medical group also revealed Dr Deepak Nath was appointed as the new chief executive officer (CEO), succeeding Roland Diggelmann, who will step down by mutual agreement. Deepak will take up the role on 1 April 2022.
The comments came as the company reported pre-tax profit for the year ended December 31 2021 of $586mln, compared to $246mln in 2020. Revenues rose to $5.21bn from $4.56bn.
The final dividend was held at 23.1cents a share, bringing the total payout for the year to 37.5c, in line with 2020 and 2019.
According to the medical equipment manufacturer, the second half of the year will be stronger than the first, despite persisting global supply-chain issues.
On an underlying basis, revenue rose 10.3% for the year. In the coming year, underlying revenue growth is expected to range between 4.0% and 5.0% (around 2.6% to 3.6% reported).
A 300 basis point margin increase due to improved trading impacts and cost-control measures offset higher logistics costs and increased trading profit to $936mln from $683mln in 2020.
For the year, the trading profit margin was 18.0%, in line with the low end of the range previously provided (18% to 19%).
Earnings per share increased 17% to 59.8 cents.
"We finished 2021 with a solid fourth quarter, despite nearly a week less trading than in 2020 and the impact of Omicron, which affected the typical quarter-end pick up in average daily sales," CEO Diggelmann said.
"Smith & Nephew is well placed to continue to take advantage of the opportunities we see to drive shareholder returns, including through a new share buy-back programme."
Smith & Nephew also revealed Nath will take over from Diggelmann on April 1. Previously, Nath was president of Siemens Healthineers' diagnostics business segment and responsible for $6bn in sales and 15,000 employees.