Smith & Nephew reports rise in Q4, full-year sales

Headline results for the fourth quarter:

Revenue

$1.3 billion (in line with forecasts)

+1%

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"We accelerated performance across 2018, with 3 percent underlying revenue growth in both the third and fourth quarters and 7 percent uplift in full year trading profit," remarked CEO Namal Nawana.

Other results:

  • Sports Medicine, Trauma & Other: $528 million, up 2 percent, driven by good performance across the company's shoulder repair portfolio, with the recently acquired REGENETEN Bioinductive implant for rotator cuff repair continuing to "perform ahead" of expectations
  • Reconstruction: $429 million, up 1 percent
    • Knee implants: $269 million, up 1 percent
    • Hip implants: $160 million, up 2 percent, led by increased demand for the POLAR3 total hip solution and the continued roll-out of the REDAPT revision system
  • Advanced Wound Management: $337 million, no change, with growth in the US continuing to be offset by softness in some European countries
  • US Sales: $649 million, up 4 percent
  • Other Established Markets: $427 million, down 3 percent
  • Emerging Markets: $218 million, up 2 percent, with double-digit growth in China
  • Full-year revenue: $4.9 billion, up 3 percent
  • Full-year profit: $781 million, down 11 percent

Looking ahead:

Smith & Nephew expects full-year underlying revenue growth of between 2.5 percent and 3.5 percent, falling in line with analyst estimates, and equating to a range of around 1.8 percent to 2.8 percent on a reported basis, including the effect of the Ceterix acquisition.

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