Smith & Nephew plc (LSE: SN, NYSE: SNN) results for the second quarter ended 28 June 2014.
| 3 Months to | 6 Months to | ||||||
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28 June 2014 $m |
29 June 2013 $m |
Underlying growth % |
28 June 2014 $m |
29 June 2013 $m |
Underlying growth % |
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| Trading results 1 | |||||||
| Revenue |
1,147 |
1,074 | 3 | 2,220 | 2,149 | 2 | |
| Divisional Revenue | |||||||
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- Advanced Surgical Devices global |
810 | 741 | 4 | 1,568 | 1,501 | 3 | |
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- Advanced Wound Management global |
337 | 333 | 0 | 652 | 648 | 0 | |
| Trading profit | 255 | 232 | 6 | 484 | 473 | 0 | |
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Trading profit margin (%) |
22.3 | 21.6 | 21.8 | 22.0 |
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| EPSA (cents) | 20.4 | 18.0 | 38.1 | 36.5 | |||
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| Reported results |
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Revenue |
1,147 | 1,074 | 2,220 | 2,149 | |||
| Operating profit | 134 | 188 | 363 | 395 | |||
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EPS (cents) |
10.0 | 14.3 | 26.8 | 30.1 | |||
Second quarter highlights1
• Revenue was $1,147 million, up 3% underlying and 7% on a reported basis
• Trading profit was $255 million, up 6% underlying and 10% on a reported basis
• Trading profit margin of 22.3%, up 70bps
• EPSA 20.4¢, up 13%
• Good quarter performance led by Sports Medicine Joint Repair, Trauma & Extremities and Orthopaedic Reconstruction, with growth rates significantly ahead of previous quarter
• Advanced Wound Management revenue growth flat; 2014 outlook guidance updated
• Emerging & International Markets revenue growth remains strong, up 17%
• ArthroCare Corporation acquisition completed
• Interim dividend of 11.0¢ per share (2013: 10.4¢)
Commenting on Q2, Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
“We have delivered a good increase in revenues and trading profit, resulting in a 13% uplift in EPSA. We believe this strong performance reflects the execution of our strategy to rebalance the business towards higher growth markets. In particular, we drove good growth in Sports Medicine Joint Repair and our investment in Emerging & International Markets has delivered a 17% increase in revenues. In Orthopaedic Reconstruction we saw an improved performance led by both US knees and hips.
“We also completed the ArthroCare acquisition in the period. I am very excited by the prospects for our expanded Sports Medicine business.
“With half of our revenues now coming from higher growth markets, and a more focused structure, we are well placed to take advantage of the many further opportunities we see.”
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