TOP NEWS: Smith & Nephew Revenue Declines In Third Quarter

(Alliance News) - Smith & Nephew PLC on Thursday reported a year-on-year decline in revenue for ...

Alliance News 29 October, 2020 | 8:58AM
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(Alliance News) - Smith & Nephew PLC on Thursday reported a year-on-year decline in revenue for the third quarter of its financial year, but marked a considerable improvement from the 29% decline in the second quarter.

For the three months ended September 26, the FTSE 100 medical devices firm posted revenue of USD1.20 billion, down 3.7% from USD1.25 billion the year before. On an underlying basis, revenue fell by 4.2%.

Revenue from the Orthopaedics segment declined by 2.8%, as growth from the Hip Implants business due to a greater number of emergency cases was more than offset by a fall in Knee Implants, Trauma and Other Reconstruction.

Sports Medicine & ENT revenue dropped 4.5%, as the ENT business continued to falter on caution over restarting procedures and lower rates of Ear, Nose & Throat infections.

In addition, revenue from the Advanced Wound Management franchise feel by 6.1%, due to continued restriction on access to healthcare facilities, and the recovery rate remaining slow.

For the nine months ended September 26, Smith & Nephew's total revenue was USD3.23 billion, a 13% fall from USD3.73 billion the same period the prior year, reflecting the disruption caused by Covid-19.

Looking ahead, the group has continued to withdraw its full-year guidance, on the lack of certainty over the nature and scope of any new restrictions to curb the spread of the virus.

"I am pleased with our progress in the third quarter and how the business and our employees have responded to challenging circumstances. We were well prepared as global levels of elective surgery recovered and delivered a substantial improvement in performance over the previous quarter, led by growth in both the US and China, our two largest markets," said Chief Executive Officer Roland Diggelman.

Smith & Nephew will publish its annual results on February 18, 2021.

Shares in Smith & Nephew were up 0.1% at 1,386.50 pence on Thursday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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