Q4 Highlights
? Revenue $1,106 million, up 4% on a reported and 3% on an underlying basis
? Trading profit was $279 million
? Trading profit margin of 25.2%, exceeding Q4 expectation of 24%
? Orthopaedics delivered significant improvement in profitability quarter-on-quarter
? Endoscopy delivered good revenue growth and excellent trading profit margin
? Advanced Wound Management grew at more than twice the market rate
? EPSA was up at 21.9¢
? Proposed final dividend up 10% to 10.8 cents per share
Full Year Commentary
? Reported revenue of $4,270 million, up 8% on a reported and 4% on an underlying basis
? Reported trading profit was $961 million
? Trading margin 22.5%
? EPSA increased 1.2% to 74.5¢
? Strong cash generation, net debt reduced by $354 million to $138 million
Commenting on the fourth quarter, Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
“I am pleased to report that we grew revenue and exceeded our Q4 trading profit margin expectation. Our Endoscopy and Advanced Wound Management businesses delivered strong revenue growth and excellent trading profit margins, with Advanced Wound Management growing at more than twice the market rate. In Orthopaedics, our rigorous management actions led to a significant improvement in Q4 profitability.
“We also made good progress delivering against our strategic priorities, reaching important milestones in finalising management teams and streamlining our operations. We are building momentum every day and I am confident that the result will be a business that is stronger, growing faster, better balanced and fit and effective for the future.”
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, 2 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/Q411. A podcast will also be available at the same address. If interested parties are unable to connect to the web, a listen-only service is available by calling +44 (0) 20 7136 2055 (passcode 5402599) in the UK or +1 (212) 444 0481 (passcode 5402599) 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 details.
Notes
1 Unless otherwise specified as „reported? or „average daily sales (ADS)?, all revenue increases/decreases throughout this document are underlying increases/decreases after adjusting for the effects of currency translation. See note 3 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 4 to the financial statements. The underlying increase in trading profit is the increase in trading profit after adjusting for the effects of currency translation.
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, legal provision and taxation thereon. See note 2 to the financial statements.
4 All numbers given are for the quarter ended 31 December 2011 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
