7 February 2013 -- Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business, announces its results for the Fourth Quarter and Full Year ended 31 December 2012.
Financial Highlights
? Good underlying growth in Q4 with revenue up 3% at $1,077m and trading profit up 2% at $272m
? Strong Full Year - underlying growth in revenue up 2% to $4,137m and in trading profit up 6% to $965m
? Full Year trading profit margin up 80bps to 23.3%, driven by actions to implement strategic priorities
? Final Dividend up 50% to 16.2 cents per share, giving total 2012 dividends of 26.1 cents per share
Strategic Highlights
? Systemic efficiency programme progressing to plan, on track for $150m annual savings in 2014
? Maintained high rate of product introductions
? Emerging markets platform significantly strengthened
? Bioventus transaction realised resources for investment in near-term opportunities
? Healthpoint acquisition completed, giving strong position in fastest growing woundcare segment
Commenting, Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
“Smith & Nephew finished the year strongly, with both underlying Q4 revenue and trading profit up on the prior year and the completion of the Healthpoint Biotherapeutics acquisition. Advanced Wound Management grew at well above the market rate and the Group delivered double digit growth in the emerging markets. It was also pleasing that our Trauma performance improved.
“There is no doubt that we are benefitting from implementing our Strategic Priorities. Our choices to invest in products and geographic areas of higher growth are enabling us to drive greater value from existing resources. Looking at the Full Year, we generated good revenue and profit growth and a healthy 80 basis points increase in trading profit margin. The acquisition of Healthpoint, a leader in the fastest growing area of advanced wound management, clearly demonstrates our delivery in action.
“Our confidence in continued strategic progress, coupled with our financial strength, is reflected in the significant 50% uplift in our 2012 dividends.”
Analyst presentation and conference call
An analyst presentation and conference call to discuss Smith & Nephew’s fourth quarter and preliminary results will be held at 9:00am GMT/4:00am EST today, Thursday 7 February. 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/Q412. If interested parties are unable to connect to the web, a listen-only service is available by calling +44(0)20 7138 0813 (passcode 3548180) in the UK or +1718 354 1359 (passcode 3548180) 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.
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 reconcil iation 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 acquisition related costs, restructuring and rationalisation costs, amortisation of acquisition intangibles, profit on disposal of net assets held for sale, legal provision and taxation thereon. See note 2 to the financial statements.
4 All numbers given are for the quarter ended 31 December 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
Brunswick
