Smith & Nephew raises 2019 sales target after strong start to year
Smith and Nephew CEO, Namal Nawana
By Hull Daily Mail | Posted: 3 May 2019
Smith & Nephew sales were up more than four per cent in the first three months of 2019 as the Hull FTSE giant raised its guidance for the year.
The medical equipment manufacturer recorded revenues of $1.2bn in the first quarter, in what was its best quarter in three years.
Smith & Nephew’ boss said a string of clever acquisitions – including a deal to buy US medicine firm Osiris Therapeutics for more than £500m – had put the company in a strong position looking ahead.
Namal Nawana, CEO, said: “It’s been a good start to 2019 across the whole of Smith & Nephew.
“All three global franchises delivered improved organic growth as we continued to improve execution; important confirmation that each has the potential to perform sustainably at or above their markets.
“At the same time, we’ve made well-judged acquisitions that bring in new technologies to strengthen leadership positions across the business, which we expect to further accelerate growth over time.
“While recognising that further work remains to achieve the full potential of our portfolio, we are encouraged with our progress towards sustainably delivering above-market growth.”
Underlying sales in the first three months of 2019 hit $1.2bn – up 4.4 per cent on the same period last year.
It was also Smith & Nephew’s highest quarter for sales since 2015.
The company enjoyed strong growth in its emerging markets, led by China, but also cited its string of high-profile purchases.
Smith & Nephew has hit the headlines several times this year for its acquisitions, perhaps most notably its £500m deal to buy Osiris.
Smith & Nephew's NAVIO surgical gadget (Smith & Nephew)
Speaking about the deal with Osiris, Peter Friedli, chairman and co-founder, said: “I am immensely proud of the business we have built from our research into advanced regenerative technologies.
“Smith & Nephew is the best new owner to take these products forward, widening access to more customers and restoring quality of life for more patients.”
Smith & Nephew’s strong performance at the start of 2019 has led to the FTSE manufacturer increasing its full guidance for the year.
It has now said expected revenue growth will be closer to 3.5 per cent than it previously forecast.
Its expected trading profit margin however remained unchanged, with a range of 22.8 per cent to 23.2 per cent.