Strong performance - improved underlying revenue growth, trading profit margin and earnings
Full year guidance maintained
30 July 2015
Smith & Nephew plc (LSE:SN, NYSE:SNN) results for second quarter and first half ended 27 June 2015:
Q2 Highlightsi
• Q2 revenue was $1,168 million, up 5% underlying and 2% on a reported basis, with -9% currency headwind partially offset by a 6% benefit from acquisitions
• Advanced Wound Care improvement continues, with revenue up 12%
• Emerging Markets consistently producing double-digit growth
• Strong global Knee Implant performance delivers revenue growth of 7%
H1 Highlightsi
• H1 revenue was $2,272 million, up 4% underlying and 2% on a reported basis, with -9% currency headwind partially offset by 7% benefit from acquisitions
• H1 trading profit was $512 million, up 6% underlying
• Trading profit margin up 70bps at 22.5%
• H1 trading profit to cash conversion ratio improved to 75% (H1 2014: 53%)
• EPSA 39.1¢, up 3%
• Interim Dividend of 11.8¢ per share (2014: 11.0¢)
Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
“These strong results demonstrate the positive effects of our actions coming through across the Group. Notably, in the second quarter we continued the improvement in Advanced Wound Care, achieved double-digit growth across the Emerging Markets, and delivered our best performance globally in Reconstruction for three years, led by strong US Knee Implants. “In the first half of 2015, we delivered higher underlying revenue growth, trading profit margin and earnings year-on-year. We made a number of acquisitions, strengthening our technology and product portfolio and Emerging Markets business. Our efficiency programmes are progressing to plan, enhancing the bottom line.
“Where we have invested to improve existing businesses we are beginning to reap the benefits. I am confident we are firmly on-track with our strategy to invigorate the growth profile of Smith & Nephew.”
Analyst conference call
An analyst meeting and conference call to discuss Smith & Nephew’s second quarter trading and half year results will be held at 8.30am BST/3.30am EST today, Thursday 30 July. This can be heard live via audio webcast on the Smith & Nephew website at www.smith-nephew.com/results and will be available on the site archive shortly afterward. For those who wish to dial in to the call, a listen-only service is available by calling +44 (0) 20 7427 1903 in the UK or +1 646 254 3361 in the US (passcode 5830059).
Enquiries
Investors
Ingeborg Øie +44 (0) 20 7960 2285
Smith & Nephew
Media
Charles Reynolds +44 (0) 20 7401 7646
Smith & Nephew
Ben Atwell / Deborah Scott / Matthew Cole +44 (0) 20 3727 1000
FTI Communications
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30 July 2015
Smith & Nephew plc (LSE:SN, NYSE:SNN) results for second quarter and first half ended 27 June 2015:
|
|
Trading |
|
Reported |
||||
|
|
27 June |
28 June |
Underlying |
|
27 June |
28 June |
Reported |
|
|
$m |
$m |
|
|
$m |
$m |
|
|
Q2 Results1 |
|
|
|
|
|
|
|
|
Revenue |
1,168 |
1,147 |
5% |
|
1,168 |
1,147 |
2% |
|
H1 Results1 |
|
|
|
|
|
|
|
|
Revenue |
2,272 |
2,220 |
4% |
|
2,272 |
2,220 |
2% |
|
Trading profit |
512 |
484 |
6% |
|
|
|
|
|
Operating profit |
|
|
|
|
439 |
363 |
21% |
|
Trading/operating |
22.5 |
21.8 |
70bps |
|
19.3 |
16.4 |
290bps |
|
EPSA/ EPS (cents) |
39.1 |
38.1 |
|
|
33.0 |
26.8 |
|
Q2 Highlightsi
• Q2 revenue was $1,168 million, up 5% underlying and 2% on a reported basis, with -9% currency headwind partially offset by a 6% benefit from acquisitions
• Advanced Wound Care improvement continues, with revenue up 12%
• Emerging Markets consistently producing double-digit growth
• Strong global Knee Implant performance delivers revenue growth of 7%
H1 Highlightsi
• H1 revenue was $2,272 million, up 4% underlying and 2% on a reported basis, with -9% currency headwind partially offset by 7% benefit from acquisitions
• H1 trading profit was $512 million, up 6% underlying
• Trading profit margin up 70bps at 22.5%
• H1 trading profit to cash conversion ratio improved to 75% (H1 2014: 53%)
• EPSA 39.1¢, up 3%
• Interim Dividend of 11.8¢ per share (2014: 11.0¢)
Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
“These strong results demonstrate the positive effects of our actions coming through across the Group. Notably, in the second quarter we continued the improvement in Advanced Wound Care, achieved double-digit growth across the Emerging Markets, and delivered our best performance globally in Reconstruction for three years, led by strong US Knee Implants. “In the first half of 2015, we delivered higher underlying revenue growth, trading profit margin and earnings year-on-year. We made a number of acquisitions, strengthening our technology and product portfolio and Emerging Markets business. Our efficiency programmes are progressing to plan, enhancing the bottom line.
“Where we have invested to improve existing businesses we are beginning to reap the benefits. I am confident we are firmly on-track with our strategy to invigorate the growth profile of Smith & Nephew.”
Analyst conference call
An analyst meeting and conference call to discuss Smith & Nephew’s second quarter trading and half year results will be held at 8.30am BST/3.30am EST today, Thursday 30 July. This can be heard live via audio webcast on the Smith & Nephew website at www.smith-nephew.com/results and will be available on the site archive shortly afterward. For those who wish to dial in to the call, a listen-only service is available by calling +44 (0) 20 7427 1903 in the UK or +1 646 254 3361 in the US (passcode 5830059).
Enquiries
Investors
Ingeborg Øie +44 (0) 20 7960 2285
Smith & Nephew
Media
Charles Reynolds +44 (0) 20 7401 7646
Smith & Nephew
Ben Atwell / Deborah Scott / Matthew Cole +44 (0) 20 3727 1000
FTI Communications
Help employers find you! Check out all the jobs and post your resume.
