(Sharecast News) – Smith & Nephew has said that sales growth is now expected to be at the top end of guidance after a strong third quarter, though it did warn that margins would likely not grow as much as hoped.
The medical equipment manufacturing company said third-quarter revenues were up 7.7% on an underlying basis at $1.36bn,
Strong sales increases in the Orthopaedics (+8.3%), and Sports Medicine and Ear, Nose and Throat (+11.1%) divisions was partly offset by weaker growth in Advanced Wound Management (+3.6%).
Underlying revenues for the full year are now expected to be “towards the higher end” of the guided range of 6-7%, which had already been upgraded at the half-year stage from 5-6%.
Trading profit margins, however, are now expected to be “around 17.5%”, reflecting headwinds in China. This was a slight change from earlier guidance of “at least 17.5%”, and compares with a trading profit margin of 17.3% in 2022.
“We saw strong growth in the third quarter, continuing the momentum from the first half of the year,” said chief executive Deepak Nath.
“Performance was broad-based, and I am particularly pleased by the step-up in Orthopaedics as we start to see the real impact from our improving execution under the 12-Point Plan.”
In a separate statement, the company announced it was replacing chief financial officer Anne-Françoise Nesmes, who announced their intention to step down in August, with former WPP and Sainsbury finance chief John Rogers.
Rogers, who also served as the chief executive of Argos, Habitat and Sainsbury’s clothing and general merchandise businesses, will join the board in December.
