TOP NEWS: Smith & Nephew Expects Revenue Hit From Virus Restrictions

(Alliance News) - Smith & Nephew PLC said it expects its fourth-quarter and full-year sales to be ...

Alliance News 11 January, 2021 | 8:29AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Smith & Nephew PLC said it expects its fourth-quarter and full-year sales to be hurt by Covid-19 restrictions, which resulted in surgical procedures being postponed.

The FTSE 100 medical devices manufacturer stated it expects to post a fourth-quarter underlying revenue decline of around 7.0%. It said sales were hurt by increased rates of Covid-19 infection from mid-October onwards, particularly in the US and Europe, as surgical procedures unconnected to the pandemic were postponed following the reintroduction of restrictions.

Smith & Nephew added that annual underlying revenue is expected to have declined by around 12%. The company reiterated trading profit margin will be substantially lower year-on-year, with negative operating leverage due to lower volumes partially offset by cost control measures.

It posted a trading profit margin of 22.8% in 2019 and revenue of USD5.14 billion.

Shares in Smith & Nephew were trading 2.9% lower at 1,572.50 pence each on Monday morning in London.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement