2 August 2012 -- Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business, announces its results for the second quarter ended 30 June 2012.
Q2 Financial Highlights
? Revenue of $1,029 million, up 2% on an underlying basis
? Trading profit of $234 million, up 6% on an underlying basis
? Trading profit margin up 80 bps to 22.7% as ASD restructuring benefits come through
? Strong performance from Sports Medicine Joint Repair and NPWT
? EPSA consistent at 18.1 cents
? Group moves to net cash of $150 million
? Interim dividend increased 50% to 9.9¢ and new progressive dividend policy
Commenting, Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
“Smith & Nephew completed a good first half as we continued to generate top-line growth and delivered an improved trading profit margin. This demonstrates the early benefits of our actions to reshape the Group to provide the right commercial models, innovation and efficiencies required to win in our markets today and in the future.
“We have consistently delivered revenue and earnings growth and strong cash generation in the challenging markets of the last few years. This financial strength, and our confidence in delivering against our Strategic Priorities, has enabled us to increase substantially our dividend pay-out, whilst keeping the flexibility to meet our organic and inorganic growth objectives.”
Analyst presentation and conference call
An analyst presentation and conference call to discuss Smith & Nephew’s second quarter results will be held at 7.30am GMT/8.30am BST/3.30am EST today, Thursday 2 August. This will be broadcast live on the company’s website and will be available on demand shortly following the close of the call at http://www.smith- nephew.com/Q212. If interested parties are unable to connect to the web, a listen-only service is available by calling +44(0)20 3364 5381 (passcode 8741712) in the UK or +1646 254 3366 (passcode 8741712) in the US. Analysts should contact Jennifer Heagney on +44 (0) 20 7960 2255 or by email at jennifer.heagney@smith-nephew.com for conference call details.
Notes
1 Unless otherwise specified as ‘reported’ all revenue increases/decreases throughout this document are underlying increases/decreases after adjusting for the effects of currency translation and disposals. See note 4 to the financial statements for a reconciliation of these measures to results reported under IFRS.
2 A reconciliation from operating profit to trading profit is given in note 5 to the financial statements. The underlying increase in trading profit is the increase in trading profit after adjusting for the effects of currency translation and disposals.
3 Adjusted earnings per ordinary share (‘EPSA’) growth is as reported, not underlying, and is stated before restructuring and rationalisation costs, amortisation of acquisition intangibles, profit on disposal of net assets held for sale and taxation thereon. See note 2 to the financial statements.
4 All numbers given are for the quarter ended 30 June 2012 unless stated otherwise.
5 References to market growth rates are estimates generated by Smith & Nephew based on a variety of sources.
Enquiries
Investors
Phil Cowdy +44 (0) 20 7401 7646
Smith & Nephew
Media
Charles Reynolds +44 (0) 20 7401 7646
Smith & Nephew
Andrew Mitchell / Justine McIlroy +44 (0) 20 7404 5959
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