Smith & Nephew PLC (LSE:SN) has reported a 4.8% increase in underlying revenue for the third quarter and forecast revenue growth for the full year in the middle of its previously guided range of 4%-5%.
The medical products company left its trading profit margin guidance for the year unchanged at around 17.5%, down from 18% in 2021.
Forex headwinds, mainly due to the strong dollar, meant reported revenue for the third quarter fell to US$1.25bn from US$1.26bn in the same period last year, the medical products company said.
Underlying revenue from its Orthopaedics business rose by 2.1%, (-3.0% reported), while Sports Medicine & ENT was up 7.1% (0.8% reported), and Advanced Wound Management grew 6.0% (-1.0% reported).
Established Markets underlying revenue increased by 3.9% (-1.8% reported), with the US, the company’s largest market, growing 6.0%.
Meanwhile, Emerging Markets revenue was up 8.6% (1.4% reported), as the expected decline in China Orthopaedics continued to be offset by strong growth in markets such as India and Latin America.
Smith & Nephew noted that growth in a number of segments continues to be constrained by shortages of input materials and labour.
"We delivered 4.8% underlying revenue growth in the third quarter, with all franchises and geographies contributing, and are on track to deliver our full-year guidance,” commented chief executive officer Deepak Nath in the trading statement.
"Last quarter we set out our 12-point plan to improve business performance. We are executing at pace and have recorded a number of early successes, including reducing backorders and improving instrument set deployment in Orthopaedics.
"We also continue to deliver innovative new products and build on the value of our technology. During the quarter we became the first company to receive FDA approval for robotics-assisted revision knee surgery, launched a superabsorbent wound dressing, and published compelling new rotator-cuff repair data for REGENETEN.
"While we are still near the start of the journey, and there is much more work to be done, I am pleased with our early progress, and confident that we are on the right track to transform performance."